Global telephone provider Iridium, which went live this week, and many similar satellite telecommunications services under development, would be Prime targets for Harris' newly named Space & Defence Business, the company said.

"While many companies are backing away from the space and defence markets, Harris is reinvesting," said Ray Odum, head of the unit.

"With the proliferation of high-volume commercial satellite constellations, such as Iridium and Teledesic, we see double-digit annual growth opportunities," he said.

Harris, a manufacturer and electronics services group based in Melbourne, Florida, makes specialised semiconductors meant for outer space and able to withstand the solar rays, gamma radiation and extreme temperatures beyond Earth's atmosphere.

The market forsuch specialised computer chips, and other specialised products Harris will roll out in coming months, is now about $350 million a year and should grow by about 15 per cent a year in 1999 and later, a Harris spokesman said.

"This is something Harris has done before," analyst Blaine Carroll of Cowen & Co. said. "A lot of R&D (Research and development) at Harris is funded by the Defence Department and finds its way into civilian uses."

Harris said in a news release that the newly organised Space & Defence Business would combine various analogue and other technologies for use in civilian, as well as, military space projects.

"We see tremendous growth opportunities -- particularly in the commercial space market -- and will be introducing many new products and process flows in the coming months to address them," Odom said.

With $3.9 billion in revenues in the fiscal year ended July 3, Harris is also a leading provider of broadcast for high definition television now being introduced in the UnitedStates.

Carroll said Harris faces short-term difficulties in many markets but its shares, which he now rates neutral, should pick up when satellite sales and returns from a joint venture with General Electric Co. kick in.

Carroll forecasted Harris will post sales in the current fiscal 1999 of about $4 billion, or a year-over-year rise of 3 per cent, and earnings per share of $2.76, or 3 per cent less than in fiscal 1998.