Data Link Solutions, LLC or DLS, jointly owned by
Rockwell Collins Inc.
) and London-based BAE Systems plc, and
) have won contracts worth $166.3 million each, from the U.S.
Department of Defense (DoD). Both these contracts are
modifications to multiple-award contracts awarded earlier.
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Per the agreement, DLS will provide systems engineering and
integration support to the multifunctional information
distribution system (MIDS) low volume terminal (LVT) and the MIDS
joint tactical radio systems (JTRS) terminal. This activity will
take place in Wayne, N.J. and Cedar Rapids, Iowa and is scheduled
to be completed by 2015.
Rockwell Collins and BAE Systems formed DLS to upgrade the next
generation Link 16 applications. Link 16 tactical data link is
the standard by which other systems are computed for airborne
positional awareness. The company supplies Link 16 terminals,
software, logistics and support services for land, air and
sea-based platforms. The product line includes the joint tactical
information distribution system (JTIDS) Class 2 family, the MIDS
LVT and LVT-3 fighter data link (FDL), and the URC-138 link 16
terminals. To date, the company has delivered more than 3,000
Link 16 systems.
The MIDS LVT is a low-cost fighter terminal, having flexibility
and open-architecture design. It offers ground, airborne and
maritime link that provide simultaneous co-ordination of armed
forces and positional awareness in battlefield operations.
The MIDS JTRS is a 4-channel radio, used for complex Link 16
waveform and capable of three additional communication protocols
including the Airborne Networking Waveform. This terminal has the
competence to host and offer required computer processing for
routing and platform-specific applications. This feature would
lower the integration cost into host platforms.
Rockwell Collins as evident from its record book has a strong
contract pipeline. Recently, the company won a $44.5 million
foreign military sales contract from the U.S. DoD to modernize
The Boeing Company
) KC-135R aerial refueling tankers for the French Air Force.
Given the cutbacks in the U.S. defense budget leading to a
decline in domestic orders, the foreign contracts will offer a
stable revenue stream for the company.
Moving forward, Rockwell Collins' effort to introduce
cutting-edge technology applications in military and aerospace
programs will allow it to remain well-positioned amidst the
challenging defense environment.
Rockwell Collins currently has a Zacks Rank #3 (Hold). In the
near term, we would advise investors to accumulate its Zacks Rank
#1 (Strong Buy) peer