), a leader in the public safety and professional communications
market, has received a $42 million order from an international
customer for its tactical information system. The deal signifies
the growing global popularity of the company's radio products
among the defense sectors.
The unnamed country is acquiring the Integrating Tactical Area
Communications System (ITACS) of Harris that will be used to
connect top commanders with armed soldiers in the battlefield.
The ITACS system connects the users to a high capacity tactical
Internet, which supports voice, data and video services thus
allowing them to maneuver forces quickly, thereby having a
command over the situation.
The ITACS system includes the new Harris Falcon III RF-7800 W
high capacity line-of-sight radio that has been deployed in more
than 20 countries and serves their long range of network
requirements. This latest radio system from Harris will allow the
armed forces to get secure and reliable multipoint data
communications with a high network speed of 180 Mbit/sec.
Harris's RF Communications segment provides secure radio
communications and embedded high-grade encryption solutions for
military, government and commercial organizations. The next
generation radio - Falcon III - supports the U.S. military's
Joint Tactical Radio System and also other countries' network
Of late, the company has won numerous orders for its Tactical
III product both from domestic and international customers,
including a $7 million contract from U.S. Special Operations
Command for its multiband manpack radios and accessories.
We believe growing momentum in the RF Communications segment
in the international markets is likely to continue since Harris'
next-generation Falcon II and Falcon III tactical radio products
are receiving increasing market traction. At the end of the
previous quarter, order backlog in the segment came in at $1.24
billion including $665 million in Tactical Radio Communications
We maintain our long-term Neutral recommendation on Harris
Corporation. However, it holds a short-term Zacks Rank #4
We presently prefer its peers
General Dynamics Corp.
), which also provide high-end public safety communications
system. All of them currently having a Zacks Rank #3 (Hold).
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