e424b3
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-140193
November 21, 2007
PROSPECTUS
520,445 Shares of Class A Common Stock
$0.01 par value
Harris Stratex Networks, Inc.
Research Triangle Park
637 Davis Drive
Morrisville, North Carolina 27560
(919) 767-3250
This prospectus relates solely to the issuance of up to an aggregate of 520,445 shares of
our Class A common stock upon the exercise of warrants of Stratex Networks, Inc., or Stratex,
assumed by us upon consummation of the transactions contemplated by the Amended and Restated
Formation, Contribution and Merger Agreement, or the combination agreement, among us, Harris
Corporation, or Harris, Stratex Merger Corp., or Merger Sub, and Stratex, dated as of December 18,
2006. Under the combination agreement, our wholly owned subsidiary, Merger Sub, merged with and
into Stratex, and Harris simultaneously contributed its Microwave Communications Division and cash
to the combined company. In the merger, we issued one-fourth of a share of Class A common stock for
each outstanding share of Stratex common stock held by Stratex stockholders. In addition, we issued
shares of our Class B common stock to Harris in connection with its contribution of the Microwave
Communications Division and cash which represented 57% of our outstanding common stock immediately
following the merger and Harris contribution.
The warrants are currently exercisable for an aggregate of 520,445 shares of Class A
common stock at an exercise price of $11.80 per share of Class A common stock issuable upon
exercise.
If all of the warrants were exercised on a cash basis, the aggregate net proceeds would
be approximately $6,141,251. We intend to use any net proceeds received from the exercise of the
warrants on a cash basis for working capital and general corporate purposes.
The Class A common stock of Harris Stratex is listed on the NASDAQ Global Market with the
symbol HSTX.
THE SHARES OF CLASS A COMMON STOCK INVOLVE A HIGH DEGREE OF RISK. SEE RISK FACTORS
BEGINNING ON PAGE 4
Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved of these securities or determined if this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
This prospectus is dated November 21, 2007.
TABLE OF CONTENTS
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INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that involve risks and uncertainties,
as well as assumptions that, if they do not materialize or prove correct, could cause our results
to differ materially from those expressed or implied by such forward-looking statements. All
statements other than statements of historical fact are statements that could be deemed
forward-looking statements, including statements of, about, concerning or regarding: our plans,
strategies and objectives for future operations; our research and development efforts and new
product releases and services; trends in revenue; drivers of our business and the markets in which
we operate; future economic conditions, performance or outlook and changes in our industry and the
markets we serve; the outcome of contingencies; the value of our contract awards; beliefs or
expectations; the sufficiency of our cash and our capital needs and expenditures; our intellectual
property protection; our compliance with regulatory requirements and the associated expenses;
expectations regarding litigation; our intention not to pay cash dividends; seasonality of our
business; the impact of foreign exchange and inflation; taxes; and assumptions underlying any of
the foregoing. Forward-looking statements may be identified by the use of forward-looking
terminology, such as believes, expects, may, should, would, will, intends, plans,
estimates, anticipates, projects, targets, goals, seeing, delivering, continues,
forecasts, future, predict, might, could, potential, or the negative of these terms,
and similar words or expressions. You should not place undue reliance on these forward-looking
statements, which reflect our managements opinions only as of the date of the filing of this
Annual Report on Form 10-K. Forward-looking statements are made in reliance upon the safe harbor
provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and we undertake no obligation, other than as imposed
by law, to update forward-looking statements to reflect further developments or information
obtained after the date of filing of this Annual Report on Form 10-K or, in the case of any
document incorporated by reference, the date of that document, and disclaim any obligation to do
so.
The following are some of the factors we believe could cause our actual results to differ
materially from expected and historical results. Other factors besides those listed here also could
adversely affect us, including those in Risk Factors, below.
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The recent acquisition of Stratex could be difficult to integrate and we may fail to see the
expected synergies between the combined companies. |
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We participate in markets that are often subject to uncertain economic conditions, which makes it
difficult to estimate growth in our markets and, as a result, future income and expenditures. |
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We derive a substantial portion of our revenue from international operations and are subject to the
risks of doing business in foreign countries, including fluctuations in foreign currency exchange
rates. |
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Our future success will depend on our ability to develop new products that achieve market acceptance. |
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We cannot predict the consequences of future geo-political events, but they may adversely affect the
markets in which we operate, our ability to insure against risks, our operations or our
profitability. |
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We have made, and may continue to make, strategic acquisitions that involve significant risks and
uncertainties, including the diversion of management attention, difficulties in integration and a
failure to realize expected synergies between the combined companies. |
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The inability of our subcontractors to perform, or our key suppliers to deliver our components or
products, could cause our products to be produced in an untimely or unsatisfactory manner. |
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Third parties have claimed in the past and may claim in the future that we are infringing upon their
intellectual property rights, and third parties may infringe upon our intellectual property rights. |
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The outcome of litigation or arbitration in which we are involved is unpredictable and an adverse
decision in any such matter could have a material adverse affect on our financial position and
results of operations. |
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We are subject to customer credit risk. |
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Developing new technologies entails significant risks and uncertainties. |
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We have significant operations in Florida that could be materially and adversely impacted in the
event of a hurricane, and operations in California that could be materially and adversely impacted
in the event of an earthquake. |
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Changes in our effective tax rate may have an adverse effect on our results of operations. |
1
PROSPECTUS SUMMARY
This summary highlights selected information contained in this prospectus and may not
contain all of the information that is important to you. Unless otherwise indicated in this
prospectus or the context otherwise requires, all references to Harris Stratex we, us, our
or the combined company mean Harris Stratex Networks, Inc.; all references to Stratex mean
Stratex Networks, Inc.; all references to Harris mean Harris Corporation; and all references to
the Microwave Communications Division or MCD mean the Microwave Communications Division of
Harris Corporation.
Our Company
We, together with our subsidiaries, are a leading global independent supplier of turnkey
wireless network solutions and comprehensive network management software, backed by an extensive
suite of professional services and support. We offer a broad portfolio of reliable, flexible,
scalable and cost-efficient wireless network solutions, based on our innovative microwave radio
systems and network management software. We serve all global markets, including mobile network
operators, public safety agencies, private network operators, utility and transportation companies,
government agencies and broadcasters. Customers in more than 135 countries depend on us to build,
expand and upgrade their voice, data and video solutions and we are recognized around the world for
innovative, best-in-class solutions and services.
Acquisition of Stratex Networks, Inc. and Combination with MCD
On January 26, 2007, we completed our merger (the Stratex acquisition) with Stratex
Networks, Inc. (Stratex) pursuant to a Formation, Contribution and Merger Agreement among Harris
Corporation, Stratex, and Stratex Merger Corp., as amended and restated on December 18, 2006 and
amended by letter agreement on January 26, 2007. In the transaction, Stratex Merger Corp., a
wholly-owned subsidiary of the Company, merged with and into Stratex, with Stratex as the surviving
corporation (renamed as Harris Stratex Networks Operating Corporation). Concurrently with the
merger of Stratex and Stratex Merger Corp. (the merger), Harris Corporation contributed the
Microwave Communications Division (MCD), along with $32.1 million in cash (comprised of $26.9
million contributed on January 26, 2007 and $5.2 million held by the Companys international
operating subsidiaries on January 26, 2007) to the Company (the contribution transaction).
Pursuant to the merger, each share of Stratex common stock was converted into one-fourth
of a share of our Class A common stock, and a total of 24,782,153 shares of our Class A common
stock were issued to the former holders of Stratex common stock. In the contribution transaction,
Harris Corporation contributed the assets of MCD, along with $32.1 million in cash, and in
exchange, we assumed certain liabilities of Harris Corporation related to MCD and issued 32,913,377
shares of our Class B common stock to Harris Corporation. As a result of these transactions, Harris
Corporation owned approximately 57% and the former Stratex shareholders owned approximately 43% of
our total outstanding stock immediately following the closing.
We completed the Stratex acquisition to create a leading global communications solutions
company offering end-to-end wireless transmission solutions for mobile and fixed-wireless service
providers and private networks.
This prospectus relates to the issuance of 520,445 shares of class A common stock upon
the exercise of certain warrants originally issued by Stratex and assumed by us under the terms of
the combination agreement.
Business Segments
We design, manufacture and sell a range of wireless networking products, solutions and
services to mobile and fixed telephone service providers, private network operators, government
agencies, transportation and utility companies, public safety agencies and broadcast system
operators across the globe. Products include point-to-point digital microwave radio systems for
mobile system access, backhaul, trunking and license-exempt applications, supporting new network
deployments, network expansion, and capacity upgrades. We offer a broad range of products,
including the products developed and sold by both Stratex and MCD. We deliver our products and
services through three reportable business segments: North America Microwave, International
Microwave and Network Operations. Network Operations serves all markets worldwide.
North America Microwave
The North America Microwave segment delivers microwave radio products and services to
major national carriers and other cellular network operators, public safety operators and other
government agencies, systems integrators, transportation and utility companies, and other private
network operators within North America. A large part of our North American business is with the
cellular backhaul and public safety segments.
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Historically, and prior to the merger of Stratex and Harris MCD, the North America
Microwave segment accounted for the most significant portion of our revenue. Because substantially
all of Stratexs revenue was in international markets, our North America segment revenue declined
to approximately 43% of our total revenue for fiscal 2007. We generally sell products and services
directly to our customers. We use distributors to sell some products and services.
International Microwave
The International Microwave segment delivers microwave radio products and services to
regional and national carriers and other cellular network operators, public safety operators,
government and defense agencies, and other private network operators in every region outside of
North America. Our wireless systems deliver regional and country-wide backbone in developing
nations, where microwave radio installations provide 21st-century communications rapidly and
economically. Rural communities, areas with rugged terrain and regions with extreme temperatures
benefit from the ability to build an advanced, affordable communications infrastructure despite
these challenges. A significant part of our international business is in supplying wireless
segments in small-pocket, remote, rural and metropolitan areas. High-capacity backhaul is another
major opportunity for us. We see the increase in subscriber density and the forecasted growth and
introduction of new bandwidth-hungry 3G services as major drivers for growth is this market.
Our International Microwave segment represented approximately 53% of our revenue for
fiscal 2007. The addition of Stratex business contributes significantly to our International
Microwave segment, since approximately 95% of Stratexs historical revenue was in international
markets. We generally sell products and services directly to our customers. We use agents and
distributors to sell some products and services in international markets.
Network Operations
The Network Operations segment offers a wide range of software-based network management
solutions for network operators worldwide, from element management to turnkey, end-to-end network
management and service assurance solutions for virtually any type of communications or information
network including broadband, wireline, wireless and converged networks. The NetBoss product line
develops, designs, produces, sells and services network management systems for these applications.
Other element management product families include ProVision ® and StarView.
Our Network Operations segment represented approximately 4% of our revenue for fiscal
2007. We generally sell products and services directly to our customers. We use agents, resellers
and distributors to sell some products and services in international markets.
Corporate Information
We were incorporated in Delaware in 2006 to combine the businesses MCD and Stratex. Our
principal executive offices are located at 637 Davis Drive, Morrisville, North Carolina 27560. Our
telephone number is (919) 767-3230. Our Internet address is www.harrisstratex.com. Our common stock
is listed on the NASDAQ Global Market under the symbol HSTX.
The Offering
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Class A common stock
offered to holders of
warrants.
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520,445 shares. |
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Offering Price.
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$11.80 per share of Class A common stock subject to adjustment in accordance
with the terms of the warrants. |
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Plan of Distribution.
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This prospectus relates to the issuance of Harris Stratex Class A common stock. |
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Use of proceeds.
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We intend to use the net proceeds from the cash exercise of the warrants for
working capital and general corporate purposes. |
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Nasdaq Global Market symbol.
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HSTX |
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RISK FACTORS
An investment in our Class A common stock is risky. Prior to making a decision about
investing in our Class A common stock, you should carefully consider the specific risks discussed
under Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended June 29, 2007,
filed on August 27, 2007, and in our other filings with the SEC, which are incorporated by
reference in this prospectus, together with all of the other information contained in this
prospectus, any applicable prospectus supplement, or otherwise incorporated by reference in this
prospectus. The risks and uncertainties described in our SEC filings are not the only ones facing
us. Additional risks and uncertainties not presently known to us, or that we currently see as
immaterial, may also harm our business. If any of the risks or uncertainties described in the
applicable prospectus supplement or our SEC filings or any such additional risks and uncertainties
actually occur, our business, results of operations, cash flows and financial condition could be
materially and adversely affected. In that case, the trading price of our common stock could
decline, and you might lose all or part of your investment.
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USE OF PROCEEDS
All net proceeds from the disposition of the Class A common stock covered by this
prospectus will go to the holders of such shares or their transferees. We will not receive any
proceeds from any dispositions of the Class A common stock covered by this prospectus. However, if
all of the warrants to purchase the common stock covered by this prospectus are exercised in full,
we would receive gross proceeds of approximately $6,141,251, which we intend to use for working
capital and general corporate purposes. There can be no assurance that the Holders will choose to
exercise any of the warrants.
DIVIDEND POLICY
We do not expect to pay any dividends in the immediate future. We have a $50 million
credit facility, and the covenants of that credit facility restrict us from paying dividends or
making other distributions to our stockholders under certain circumstances. We also may enter into
other credit facilities or debt financing arrangements that further limit our ability to pay
dividends or make other distributions.
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PLAN OF DISTRIBUTION
We are offering shares of Class A common stock upon the exercise of certain warrants
originally issued by Stratex as assumed by us pursuant to the Warrant Assumption Agreement.
The warrants are immediately exercisable and will expire five years after their initial
issuance date in September 2004. Each warrant entitles the holder to purchase one share of Class A
common stock at an initial exercise price of $11.80 per share. This exercise price will be adjusted
if specific events occur. We do not have the right to call or otherwise redeem the warrants. The
warrants are exercisable to purchase an aggregate of 520,445 shares of Class A common stock. The
warrants are exercisable upon surrender of the warrant certificate on or prior to the expiration
date at our principal office, with the form of election to purchase on the reverse side of the
warrant certificate completed and executed as indicated, accompanied by either (1) full payment of
the exercise price, in U.S. currency, by certified check or money order payable to the order of the
Company, for the number of warrants being exercised or (2) by cashless exercise. The cashless
exercise option allows a warrant holder to elect to pay the exercise price due upon exercise of the
warrants using shares of Class A common stock instead of cash. In a cashless exercise, we will
determine the fair market value of the shares of Class A common stock at the time of exercise,
calculate the number of shares of Class A common stock that equals the exercise price due (the full
number is issued at first) and deduct (repurchase from the newly issued shares of Class A common
stock) that number of shares of Class A common stock from the number of warrant shares issued. To
the extent that the warrant holders elect to use the warrants cashless exercise option, then we
will issuer fewer common shares than the total stated above. The exercise price and number of
shares of Class A common stock issuable upon exercise of each warrant will be subject to adjustment
in respect of events that may have a dilutive effect on its underlying share ownership interest.
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DETERMINATION OF OFFERING PRICE
The shares of Class A common stock offered hereby are issuable upon exercise of the
warrants at a per share exercise price of $11.80, subject to adjustment, in accordance with the
terms of the warrants.
DESCRIPTION OF CAPITAL STOCK
The following is a description of the material terms of our capital stock and is
qualified in its entirety by reference to (1) our amended and restated certificate of
incorporation, (2) our amended and restated bylaws, and (3) the applicable provisions of the
Delaware General Corporation Law. This description is not complete, and you should read the full
text of these documents to fully understand the terms and conditions of our capital stock.
Common Stock
We are authorized under our certificate of incorporation to issue up to 450,000,000
shares, of which 300,000,000 shares are designated as Class A common stock, par value $0.01 per
share, and 100,000,000 shares are designated as Class B common stock, par value $0.01 per share.
Except as otherwise provided in our amended and restated certificate of incorporation, the Class A
common stock and Class B common stock have the same rights and privileges and rank equally, share
ratably and are identical in all respects. As of September 28, 2007, 25,478,101 of Class A common
stock have been issued and 32,913,377 shares of Class B common stock have been issued. As of that
time, no shares were subject to outstanding options and other rights to purchase or acquire.
Dividends
Subject to the rights of the holders of any series of preferred stock that may be issued
from time to time, the holders of our common stock are entitled to receive such dividends and
distributions as may be declared on the common stock by the board of directors out of funds legally
available for payment.
Voting
Except where otherwise required by our certificate of incorporation or bylaws, the
holders of our common stock vote together as a single class. Each share of common stock entitles
the holder to one vote on each matter upon which stockholders of the relevant class have the right
to vote. However, our amended and restated certificate of incorporation provides the holders of
Class B common stock with certain sole and exclusive rights, as further described below. In
particular, the holders of Class B common stock have the sole and exclusive right to elect or
remove the Class B directors. Further, our amended and restated certificate of incorporation cannot
be amended or replaced to adversely affect the rights of holders of Class B common stock or to
approve a new issuance of Class B common stock without the approval of the holders of a majority of
Class B common stock.
Rights on Liquidation
Subject to the rights of the holders of any series of preferred stock that may be issued
from time to time, in the event of any liquidation, dissolution or winding-up (whether voluntary or
involuntary), the assets available for distribution to stockholders will be distributed in equal
amounts per share to the holders of Class A common stock and the holders of Class B common stock,
as if such classes constituted a single class. However, the holders of common stock will be
entitled to participate in such a distribution only after we have paid in full all of its debts and
after the holders of preferred stock of Harris Stratex have received their liquidation preferences
in full. It is not expected that we will issue any preferred stock in the foreseeable future,
although our management continually reviews the optimal capital structure for us.
Subdivision, Combinations and Mergers
If we split, subdivide or combine the outstanding shares of either the Class A or the
Class B common stock, the outstanding shares of the other class of our common stock also will be
split, subdivided or combined in the same manner proportionately and on the same basis per share.
In the event of any merger, statutory share exchange, consolidation or similar form of corporate
transaction involving us (regardless of whether we are the surviving entity), the holders of Class
A and Class B common stock will be entitled to receive the same per share consideration, if any.
7
Special Rights of Holders of Shares of Class B Common Stock
Exchange Rights
Voluntary
The holders of Class B common stock have the right at any time to exchange:
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any outstanding shares of Class A common stock held by the holder for
an equal number of shares of Class B common stock or |
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any outstanding shares of Class B common stock held by the holder for
an equal number of shares of Class A common stock. |
Mandatory Exchange Rights
Each share of Class B common stock automatically converts into one outstanding share of
Class A common stock under the following circumstances:
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the holders of all of the outstanding shares of Class B common stock
(assuming that all of the outstanding shares of Class A common stock
which are then exchangeable for shares of Class B common stock have
been exchanged as described under Exchange Rights Voluntary
above) are collectively entitled to cast less than 10% of the total
voting power; or |
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such Class B common stock is transferred by a holder to any person who
is not an affiliate of the holder or nominee of the holder or one of
its affiliates unless such transfer is part of a transfer by the
holder and its affiliates of all of the shares of Class B common stock
then owned by them. |
For purposes of our amended and restated certificate of incorporation, total voting
power means, at any time, the total number of votes then entitled to be cast generally in the
election of Class A directors by all holders of all classes of our capital stock or securities
outstanding and entitled to vote generally in the election of Class A directors (including the
holders of Class B common stock).
Board of Directors
If the Class B Common Stock Constitutes a Majority
At all times when the holders of all outstanding Class B common stock (assuming that all
of the outstanding shares of Class A common stock which are then exchangeable for shares of Class B
common stock have been exchanged as described under Exchange Rights Voluntary above) are
collectively entitled to cast a majority of the total voting power:
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there will be nine directors; |
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the holders of Class B common stock are permitted to elect five of the directors separately as a class; and |
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the quorum for action by the board of directors is a majority of the board of directors, which majority
must include at least four Class B directors. |
The remaining four directors will be Class A directors nominated by a nominating
committee consisting solely of Class A directors then in office and elected by the holders of
Class A and Class B common stock voting together as a single class (as described above).
In addition, at all times when we are required to have directors who satisfy the
independence requirements for directors serving on an audit committee as prescribed by NASDAQ
marketplace rules, a sufficient number of the Class A directors must satisfy those requirements so
that there are enough Class A directors, together with any Class B directors who are required to or
otherwise satisfy those independence requirements, to constitute an audit committee of the board of
directors which complies with the applicable NASDAQ marketplace rule.
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If the Class B Common Stock Constitutes Less than a Majority
At all times when the holders of all outstanding Class B common stock (assuming that all
of the outstanding shares of Class A common stock which are then exchangeable for shares of Class B
common stock have been exchanged as described under Exchange Rights Voluntary above) are
collectively entitled to cast less than a majority but equal to or greater than 10% of the total
voting power, the holders of Class B common stock are permitted to elect a number of Class B
directors equal to its percentage of total voting power times the total number of directors
comprising the board of directors (rounding down to the next whole number of directors).
The remaining directors will be Class A directors nominated by a nominating committee
meeting the requirements of the applicable NASDAQ marketplace rules and elected by the holders of
Class A and Class B common stock voting together as a single class.
In addition, at all times when we are required to have directors who satisfy the
applicable independence requirements prescribed by the NASDAQ marketplace rules, a sufficient
number of the Class A directors must satisfy those requirements so that there are enough Class A
directors, together with any Class B directors who are required to or otherwise satisfy those
independence requirements, to cause us to comply with the applicable NASDAQ marketplace rules.
Removal and Vacancies
Holders of Class B common stock have the right to remove any Class B director with or
without cause at any time for any reason and will have the right to elect any successor director to
the fill the vacancies created by such removal. Any vacancy created by the resignation, death or
incapacity of a Class B director will be filled by the other Class B directors then in office and,
if none, by the holders of Class B common stock, voting separately as a class.
Only holders of Class A common stock, voting separately as a class, are permitted to
remove the Class A directors without cause or fill vacancies created by such removal, if not filled
by the Class A directors then in office. Holders of Class A and Class B common stock, voting
together as a single class, have the sole right to remove the Class A directors for cause and the
sole right to elect successor directors to fill any vacancy caused by such removal. Any vacancy
created by the resignation, death or incapacity of a Class A director will be filled by the
remaining Class A directors then in office and, if none, by the holders of Class A and Class B
common stock, voting separately as a class.
Freedom of Action and Corporate Opportunities
Other than opportunities offered to an individual who is a director or officer of both us
and the holder of the Class B common stock in writing solely in that persons capacity as our
officer or director, each holder of Class B common stock and its affiliates has the right to, and
has no fiduciary duty or other obligation to us or any of our stockholders not to, take any of the
following actions:
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engage in the same or similar activities or lines of business as us or any of our subsidiaries
or develop or market any products or services that compete, directly or indirectly, with those
of us or any of our subsidiaries; |
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invest or own any interest in, or develop a business relationship with, any entity or person
engaged in the same or similar activities or lines of business as, or otherwise in competition
with, us or any of our subsidiaries; |
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do business with any client or customer of ours or any of our subsidiaries; or |
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employ or otherwise engage any former officers or employees of ours or any of our subsidiaries. |
Neither the holder of Class B common stock nor any of its affiliates nor any officer,
director, employee or former employee of the holder or any of its affiliates that is not currently
an employee of our or any of our subsidiaries (including any Class B directors) have any
obligation, or be liable, to us, any of our subsidiaries or any of their stockholders for, or
arising out of, the conduct described in the preceding paragraph or the exercise of Harris rights
under the combination agreement or any related agreement, and none of these persons will be deemed
to have acted (1) in bad faith, (2) in a manner inconsistent with our best interests of or those of
any of our subsidiaries or any of their stockholders or (3) in a manner inconsistent with, or
opposed to, any fiduciary duty owed by them to us, any of our subsidiaries or any of their
stockholders because of such conduct or the exercise of their rights as contemplated by the
combination agreement and any related agreement.
9
If any holder of Class B common stock or any of its subsidiaries or any of their
directors, officers or employees, including any such individuals who are also directors, officers
or employees of our or any of our subsidiaries, acquires knowledge of a potential opportunity,
transaction or matter which may be a corporate opportunity for both the holder or any of our
subsidiaries or ours, then each person or entity who has a relationship with the Class B holder and
us as described above will have the right to, and none of them shall have any fiduciary duty or
other obligation not to, pursue such corporate opportunity for itself or to direct the corporate
opportunity to any of its affiliates or to any third party. Under the circumstances described in
the immediately preceding sentence, no person or entity who has a relationship with the Class B
holder and us as described above:
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will have any duty to communicate, offer or present the corporate
opportunity to us or any of our subsidiaries, directors, officers or
employees; |
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will have any liability to us, any of our subsidiaries or any of their
stockholders for breach of any fiduciary duty or other duty, as a
stockholder, director, officer or employee of ours or any of our
subsidiaries or in any other capacity; or |
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will be deemed to have acted (1) in bad faith, (2) in a manner
inconsistent with our best interests, those of any of our or any of
their stockholders or (3) in a manner inconsistent with, or opposed
to, any fiduciary duty owed by them to us, any of our subsidiaries or
any of their stockholders because any person or entity who has a
relationship with the Class B holder and us as described above pursues
or acquires the corporate opportunity for itself, directs the
corporate opportunity to any of its affiliates or any third party, or
does not communicate information regarding the corporate opportunity
to us or any of our subsidiaries, directors, officers or employees. |
However, a corporate opportunity offered to a person who is both our director or officer and a
director or officer of the holder will belong to us if the corporate opportunity is expressly
offered to the person in writing solely in his or her capacity as a director or officer of ours.
Preemptive Rights
Holders of Class B common stock have the right to preserve their proportionate interest
in us by participating in any issuance of capital stock by us, but only when the holders of Class B
common stock hold a majority of the total number of votes entitled to be cast generally in an
election of our directors (other than an election of the Class B directors). If it elects to
participate in the issuance, each holder of Class B common stock has the right to purchase up to
that number of shares necessary to preserve its voting percentage at the same price and on the same
terms and conditions otherwise being offered by us.
The foregoing preemptive right does not apply to any issuances pursuant to any stock
option, restricted stock or employee benefit plan of ours. However, at the end of each month, we
will give the holders of Class B common stock written notice of all of the proposed issuances
pursuant to any stock option, restricted stock or employee benefit plan, and each holder of Class B
common stock will have the right within 15 days of receiving such notice to purchase for cash up to
a sufficient number of shares of Class B common stock to prevent its total voting power from
decreasing. The per share price for a purchase of Class B common stock pursuant to the monthly
exercise notice will be the closing price of the Class A common stock on the trading day
immediately preceding the date on which we received the notice of exercise.
Preferred Stock
We are authorized under our certificate of incorporation to issue up to 50,000,000 shares
of preferred stock, par value $0.01 per share. As of September 28, 2007, no shares of preferred
stock have been issued and no such shares were subject to outstanding options and other rights to
purchase or acquire our shares of preferred stock. However, shares of preferred stock may be issued
in one or more series from time to time by the board of directors, and the board is expressly
authorized to fix by resolution or resolutions the designations and the powers, preferences and
rights, and the qualifications, limitations and restrictions thereof, of the shares of each series
of preferred stock. Subject to the determination of the board of directors, preferred stock would
generally have preference over our common stock with respect to the payment of dividends and the
distribution of assets in the event of a liquidation or dissolution.
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LEGAL MATTERS
Bingham McCutchen LLP, has provided an opinion regarding the validity of the shares of
Harris Stratex Class A common stock to be issued upon the exercise of warrants.
EXPERTS
The consolidated financial statements of Harris Stratex Networks, Inc. incorporated by
reference in Harris Stratex Networks, Inc.s Annual Report (Form 10-K) for the year ended June 29,
2007 (including schedules appearing therein), have been audited by Ernst & Young LLP, independent
registered public accounting firm, as set forth in their report thereon, incorporated by reference
therein, and incorporated herein by reference. Such consolidated financial statements are
incorporated herein by reference in reliance upon such report given on the authority of such firm
as experts in accounting and auditing.
With respect to the unaudited condensed consolidated interim financial information of
Harris Stratex Networks, Inc. for the three-month periods ended September 28, 2007 and
September 29, 2006, incorporated by reference in this Prospectus, Ernst & Young LLP reported that
they have applied limited procedures in accordance with professional standards for a review of such
information. However, their separate report dated November 2, 2007, included in Harris Stratex
Networks, Inc.s Quarterly Report on Form 10-Q for the quarter ended September 28, 2007, and
incorporated by reference herein, states that they did not audit and they do not express an opinion
on that interim financial information. Accordingly, the degree of reliance on their report on such
information should be restricted in light of the limited nature of the review procedures applied.
Ernst & Young LLP is not subject to the liability provisions of Section 11 of the Securities Act of
1933 (the Act) for their report on the unaudited interim financial information because that
report is not a report or a part of the Registration Statement prepared or certified by Ernst &
Young LLP within the meaning of Sections 7 and 11 of the Act.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to incorporate by reference into this prospectus the publicly filed
reports described below, which means that information included in those reports is considered part
of this prospectus. Information that we file with the SEC subsequent to the date of this prospectus
will automatically update and supersede the information contained in this prospectus. We
specifically incorporate by reference in this prospectus the following documents we have filed with
the SEC pursuant to the Securities Exchange Act of 1934, as amended, which we refer to hereafter as
the Exchange Act (other than any portions of the respective filings that were furnished pursuant to
Item 2.02 or 7.01 of Current Reports on Form 8-K or other applicable SEC rules) and any future
filings made with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act
of 1934 between the filing date and the effective date of the post-effective amendment of which
prospectus is a part, or after such effective date and until the selling shareholders have sold all
the shares:
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our Annual Report on Form 10-K for the fiscal year ended June 29, 2007 filed with the SEC on August 27, 2007. |
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our Definitive Proxy Statement for the 2006 annual meeting of our shareholders, filed with the SEC on
October 4, 2007. |
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our Quarterly Report on Form 10-Q for the fiscal quarters ended September 28, 2007 filed with the SEC on
November 6, 2007. |
In addition, we will provide to each person, including any beneficial owner, to whom this
prospectus is delivered, a copy of any and all of the reports or documents that have been
incorporated by reference in this prospectus but not delivered with the prospectus. We will provide
these reports or documents upon written or oral request at no cost to the requestor. If you need an
additional copy of such document, you may request copies, at no cost, by writing or telephoning us
at the following address:
HARRIS STRATEX NETWORKS, INC.
Research Triangle Park
637 Davis Drive
Morrisville, North Carolina 27560
Attention: General Counsel and Secretary
Telephone: (919) 767-3250
Email: juan.otero@hstx.com
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Alternatively, you may access these reports or documents from our website at the
following URL: http://www.harrisstratex.com/investors/financial.asp. The contents of our website
are not incorporated by reference into this prospectus or our other SEC reports and filings.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information
with the Securities and Exchange Commission (SEC). You may read and copy any document we file at
SECs public reference room at 100 F Street, N.E., Washington, D.C. 20549. You can call
1-800-SEC-0330 for more information on the public reference room. The SEC maintains an Internet
website at http://www.sec.gov that contains reports, proxy and information statements, and other
information regarding issuers that file electronically with the SEC. Our SEC filings are available
to you on the SECs Internet site.
This prospectus is part of a registration statement on Form S-1 that we filed with the
SEC (File No. 333-140193). Certain information in the registration statement has been omitted from
this prospectus in accordance with the rules and regulations of the SEC. We have also filed
exhibits and schedules with the registration statement that are excluded from this prospectus. You
may obtain a copy of any document we file at the SEC, including this registration statement,
exhibits and schedules, without charge at the public reference rooms described above or at the SEC
internet site. When a reference is made in this prospectus to any contract, agreement or other
document, the reference may not be complete and you should refer to the copy of that contract,
agreement or other document filed as an exhibit to the registration statement or to one of our
previous SEC filings.
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