Data Link Solutions,
Alliant Techsystems Inc.
FLIR Systems Inc.
Lockheed Martin Corporation
) have received Department of Defense (DoD) contracts on Jun 20,
2013. A total of 22 contracts have been issued with a cumulative
value of less than $500 million.
Data Link Solutions − a joint venture between BAE Systems plc
Rockwell Collins Inc.
) − won a firm-fixed-price contract with a value of $38.2
million. The contract calls for Data Link to perform repair works
on Multifunctional Information Distribution System (MIDS) units
for the 402nd Maintenance Wing (MXW) at Warner-Robins Air
It will be executed at BAE Systems in Wayne, N.J., Rockwell
Collins in Cedar Rapids, IA, and the 402nd MXW at Robins Air
Force Base, GA, and is slated to be completed by Jun 20, 2019.
Alliant Techsystems has been awarded a $20 million contract
modification in order to acquire various AN/AAR-47 Missile
Warning System Weapons Replaceable Assemblies for the U. S. Navy
and Air Force. The contract is expected to be completed by Dec
Again, FLIR Systems received a contract worth $14.4 million to
supply and maintain sensor components on Legacy Rapid Aerostat
Initial Deployment Base, Expeditionary Targeting and Surveillance
Systems. This is a firm-fixed-price, multi-year contract wherein
the sensor components used are airborne, blimp-based sensor
arrays that provide early warning of hostile activity in the
vicinity of U.S. forward operating bases in Iraq, Afghanistan and
Meanwhile, a Lockheed Martin unit, Mission Systems and Training,
won a $6.9 million cost-plus-incentive-fee, cost-plus-fixed-fee
contract to perform additional Aegis development work for the
U.S. Navy. The deal though minor has an option, which would raise
the total value to $304.4 million, if exercised.
Despite a flurry of contracts, the threat of sequestration, fear
from budget uncertainty, the fate of high-cost programs, risks
associated with key project executions and order cancellations
cannot be denied.
We believe more international order wins will partly counter the
budget austerities of the U.S. DoD, providing a regular stream of
revenues for the defense prime. Some companies are also
repositioning themselves in order to streamline their operations
and reduce operating expenses. These initiatives will help the
defense companies to tackle the ongoing headwinds.
Alliant Techsystems currently has a Zacks Rank #2 (Buy) while
FLIR Systems, Rockwell Collins and Lockheed Martin carry a Zacks
Rank #3 (Hold).
ALLIANT TECHSYS (ATK): Free Stock Analysis
ROCKWELL COLLIN (COL): Free Stock Analysis
FLIR SYSTEMS (FLIR): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
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