HRS Harris Corp.

A leading supplier of communications equipment and services, Harris Corp. (HRS) recently won an $18 million contract to upgrade the public safety communications system in Linn County, Iowa.

Under the agreement, Harris will provide ‘Project 25 to the power of Internet Protocol’ (P25IP) trunked simulcast radio system in the state, enabling secure voice and data communications for public safety users in more than 200,000 residents and over 724 square miles.

Harris’ P25IP simulcast system will spread across six sites in Linn County. Installation and other technical services will be provided by the company’s locally based partner RACOM.

The P25IP system comprises a Voice, Interoperability, Data and Access (VIDA) network, a unified Internet protocol (IP) based voice and data communication that provides complete IP solutions including interoperability without intervention of console operators, IP consoles, and other benefits like open IP architecture systems.

The contract also includes Harris Unity XG-100P Full-Spectrum Multiband portable radios for improved communication across all regional frequency bands to public safety officials.

Harris remains a leader in the public safety and professional communication market with more than 80 years of experience and boasts products ranging from IP voice and data networks, industry leading multiband, multimode radios, public safety-grade broadband voice, video and data solutions that support 500 systems globally.

In the recently concluded third quarter, the company added approximately $1.55 billion worth of contract to its kitty, thereby strengthening its capital position. Further, with a strong financial background, Harris remains focused on business expansion through acquisitions. Recently, the company acquired the Global Connectivity Services business from Schlumberger Ltd (SLB). It also bought Carefx Corporation, a leading provider of interoperability workflow solutions in April 2011. The acquisition of Carefx Corporation provides Harris a strong foothold in the commercial health care communication system market.

However, the company remains exposed to stiff competition from companies like Boeing Co. (BA), General Dynamics Corp. (GD) and Raytheon Co. (RTN) that also provide high-end public safety communication systems.

We maintain our long-term Neutral recommendation for Harris Corporation supported by a Zacks#3 (Hold) Rank.

 
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