), a leader in the public safety and professional communications
market, has won a $19 million contract in Spotsylvania County,
Va. to improve its critical communication network.
As part of the deal, Harris will replace the existing public
system network and enhance different communication needs of law
enforcement, fire service and other emergency service departments
of Spotsylvania County. The new solution will remarkably improve
the communication capacity and extend the coverage area to more
than 95% of the county.
Harris will install seven new transmission sites based on its
Project 25 Technology standard. The new digital radio system
features Harris' VIDA (Voice, Interoperability, Data and Access)
network, which is an IP based technology used for flexible,
secure and high performance public safety and professional
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 was $1.14
billion including $581 million in the Public Safety and
Professional Communications division.
However, Harris is suffering from tightness in the U.S.
government spending for defence coupled with a slowdown in
international defence expenditures. Of late, the company has won
small contracts only and the reduction in budget spending has
resulted in delays in tactical radio order procurements. We
believe that the ongoing defence budget contraction will continue
to affect Harris in the long run and see no immediate growth
The current Zacks Consensus Estimate for the third quarter of
fiscal 2013 for Harris Corp. is pegged at $1.12 with a growth
rate estimate of (19.42%). For 2013 and 2014, the Zacks Consensus
Estimate are $4.66 and $4.81 with a growth rate of (10.41%) and
Currently, Harris carries a Zacks Rank #4 (Sell).
Other Stocks to Consider
Other stocks to consider within the same industry are
Sonus Networks Inc.
Motorola Solutions Inc.
). All the stocks currently carry a Zacks Rank #2
HARRIS CORP (HRS): Free Stock Analysis Report
MOTOROLA SOLUTN (MSI): Free Stock Analysis
QUALCOMM INC (QCOM): Free Stock Analysis
SONUS NETWORKS (SONS): Free Stock Analysis
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