), a leader in the public safety and professional communications
market, has won a multi-million contract extension from the U.S.
Army Communications Electronics Command. The ceiling value of the
contract - 2011 IDIQ (Indefinite Delivery Indefinite Quantity) -
has been increased by $500 million.
The contract is part of the U.S. government's Foreign Military
Sales Program, through which it acts as an intermediary in
supplying U.S. defence equipment to its allied countries thus
encouraging coalition and cooperation between them in the
The contract enables the U.S. government to acquire a wide
range of radio products including Falcon III RF-7800S Secure
Personal radios, RF-7800M Multiband Networking Radio and RF-7800H
High Frequency for its partner countries. These radio products
will aid the U.S. government and its allied members in
maintaining border security and fight against
Harris RF Communications segment provides secure radio
communications and embedded high-grade encryption solutions for
military, government and commercial organizations. At the end of
the previous quarter, order backlog in the segment came in at
$1.14 billion including $561 million in the Tactical radio
Harris's communication product is very popular among the
defence sector of various countries and of late, the company has
won numerous orders for its Tactical III radio products both from
domestic and international customers.
We believe that the contract extension establishes the faith
that the U.S. Department of Defence has on Harris' products,
which already satisfies the requirements of U.S. military's Joint
Tactical Radio System (JTRS) requirements. The contract will
significantly boost the company's top line going forward.
Harris currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some other stocks in the defence sector and public safety are
General Dynamics Corp.
The Boeing Co.
Motorola Solutions Inc.
). While net earnings of General Dynamics missed the Zacks
Consensus Estimate in the recent quarter, Motorola Solutions and
Boeing have handily beaten the Zacks Consensus Estimates. Boeing
currently has a Zacks Rank #2 (Buy), while both Motorola
Solutions and General Dynamics carry Zacks Rank #3 (Hold).
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis
HARRIS CORP (HRS): Free Stock Analysis Report
MOTOROLA SOLUTN (MSI): Free Stock Analysis
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