Harris' Winning Spree Continues - Analyst Blog
June 24 2011 - 5:45AM
Zacks
A leading supplier of
communications equipment and services, Harris
Corp. (HRS) recently won a $16 million contract from the
U.S. military forces to supply Falcon III AN/PRC-117G Multiband
Manpack tactical radios.
Earlier, the company had received
orders worth $9.4 million and $5 million, respectively, for the
same device from the U.S air and marine departments.
This newly developed tactical radio
supports both way communications along with better streaming of
videos, more delivery of data and information across wideband
networks during warfare. Its reduced weight and size will also
enhance the movement of the armies in the battlefield. This newly
developed AN/PRC-117G Multiband radio software, which provides
secure voice and data signals, has also been certified by the
National Security Agency (NSA).
During the quarter, Harris won more
than $150 million tactical radio contracts, which reflects strong
signs of growth in the company’s RF Communication segment.
Harris remains a leader in the
public safety and professional communication market and boasts
products ranging from IP voice and data networks, industry leading
multi-band, multi-mode radios, public safety-grade broadband voice,
video and data solutions that support 500 systems globally.
In the recently concluded third
quarter, the company won contracts worth approximately $1.55
billion, thereby strengthening its capital position. Further, given
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), which also provide high-end
public safety communication systems.
We maintain our long-term Neutral
recommendation for Harris Corporation, which corresponds to a Zacks
#3 Rank (short-term Hold rating).
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
HARRIS CORP (HRS): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
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