Communications technology company
) received a follow-on contract worth $297.7 million from the U.S.
Navy. Per the contract, Harris will deliver portable radios and
related parts to the Navy department.
Procurement of these devices by the U.S. Navy forces will
enhance their service quality and help them provide improved
network support, thereby fostering them to complete the mission
successfully. The extended lot of radio systems are projected to be
interchangeable and interoperable with Harris radio families
AN/PRC-117, AN/PRC-150, and AN/PRC-152 used in the field now.
In the recently concluded quarter, Harris reported
fourth-quarter 2012 financial results, where EPS met the Zacks
Consensus Estimate but revenue missed the same. Tactical Radio
Communications, which contributes 70% of the total RF Communication
segment revenue, generated new orders worth $356 million. The
company ended the fourth quarter of fiscal 2012 with a total order
backlog of $665 million in Tactical Radio Communications
Despite winning consistent contracts coupled with huge order
backlog, the company remains exposed to stiff competition from the
General Dynamics Corp.
), which also provide high-end public safety communication
We maintain our long-term Neutral recommendation on Harris
Corporation. Currently, it has a Zacks #3 Rank, implying a
short-term Hold rating on the stock.
Harris Corporation, based in Melbourne, Florida, remains one of
the leaders in the public safety and professional communication
market and boasts products ranging from industry leading
multi-band, multi-mode radios, public safety-grade broadband voice,
video and data solutions.
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