Harris Corporation
(
HRS
), a leader in the public safety and professional communication
market, wins a $7.2 million contract from a Middle East country to
supply Falcon III RF-7800S Secure Personal Radios and Falcon II
high-frequency manpack radios.
Acquisition of these devices will enhance the performance of the
security forces by means of offering terrestrial voice and data
communications in remote and inaccessible areas for the country's
armed forces.
A lightweight body-worn tactical radio, Falcon III RF-7800S -
apart from offering full-duplex voice and data communications over
two kilometers also provides dual push-to-talk capabilities and
allows simultaneous communication for voice, data and video. The
RF-7800S secure personal role radio provides continuous coverage in
the 350 to 450 MHz frequency range. This helps in better
performance across highly variable environments.
Few days back, Harris received an order from Middle East worth
$25 million for its Falcon II high frequency tactical radios as a
part of the country's effort to upgrade its military communication
system.
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
business.
Despite winning contracts regularly coupled with huge order
backlog, the company remains exposed to stiff competition from the
likes of
Boeing Co.
(
BA
) and
Raytheon Co.
(
RTN
), which also provide high-end public safety communication
systems.
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.
BOEING CO (BA): Free Stock Analysis Report
HARRIS CORP (HRS): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
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