Harman Rallies On Strong Quarter; Big Win From Toyota

Harman International (HAR) shares have spiked this morning on a strong earnings report - and a big new piece of business from Toyota.

Harman, which makes audio products, posted revenue for its fiscal first quarter ended September of $757.4 million, well ahead of the Street consensus at $693 million, and a loss of 14 cents a share, not as bad as the Street consensus estimate of a loss of 23 cents. The company noted that it had positive operating income of $5 million, down from $43 million a year ago, but up from a $34 million a loss in the June quarter.

On a conference call with the Street late yesterday, Harman CEO Dinesh Paliwal announced that the company has signed a deal to supply infotainment systems to Toyota for cars sold in Europe starting in 2011.

“Ladies and gentlemen, let me stress this, this is history in making,” he said on the call. “This is a real game changer and marks the first application of our new scalable, next-generation infotainment system. I must also add to it, this is the first time a non-Japanese company has been awarded an infotainment business to go on Japanese automaker. I’m very proud of it.” Harman’s infotainment systems include 3D navigation, Internet access, and wired or wireless connectivity for all passengers.

Paliwal said the company also expanded its audio relationship with Toyota, and will provide JBL branded audio for 4Runner and Land Cruiser models in the U.S., Europe and the Middle East.

HAR today is up $6.94, or 21%, to $39.94.