HRS Harris Corp.

Harris Corp. (HRS) recently won a contract worth $17.8 million from the U.S. army for supplying Falcon II high-frequency manpack radios. These devices protect army vehicles from enemy mines in the battle field.

This popular Falcon II® AN/VRC-104(V)(3) radio systems operate between frequencies of 1.6 and 60 MHz, and also consume less battery power. It also provides important features like Third Generation-Automatic Link Establishment (3G-ALE) and integrated data link protocols. It also supports embedded GPS receivers.

However, the company’s next generation Falcon III radios are the most advanced and support the Joint Tactical Radio System (JTRS). The Falcon III radio also facilitates better communication among armies during important missions along with wideband networking support.

Harris remains the 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.

Recently, the company completed the acquisition of the Global Connectivity Services (GCS) business from Schlumberger Ltd. It has also bought Carefx Corporation, a leading provider of interoperability workflow solutions. The acquisition of Carefx Corporation will enable Harris to gain a strong foothold in the commercial healthcare 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).

 
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