Harris Corporation
(
HRS
), a leader in the public safety and professional communication
market, received an order worth $19 million from U.S. Department of
Veteran Affairs Office of Information and Technology. The two-year
contract entails Harris to build a wireless network infrastructure
for healthcare mobility across the nationwide Veteran Affairs
centre.
Per the terms of the deal, Harris will design, install, validate
and provide training needed for a secure wireless infrastructure,
which will help the Veteran Affairs office to have access to voice,
video and essential data whenever it requires. The company will
execute the order along with sub-contractors Synaptek Corporation
and TL Services Inc. to 26 customer sites and will be one of the
largest healthcare mobility infrastructure deployments in the
world.
Recently, Harris Corporation declared its third quarter 2012
financial results with both revenue and EPS surpassing the Zacks
Consensus Estimate. In the reported quarter, the Integrated Network
Solution segment -- which includes IT, Cyber, Healthcare and
Broadcast divisions -- generated revenues of $499.6 million, up
almost 8% year over year.
The wireless network contract for the Veteran Affairs office is
the second order for the company in almost a month after it won a
$1.2 million contract to help the department of Veteran Affairs
Health Eligibility Center reduce its costs. We believe that the
latest deal will help Harris Corporation to consolidate its
healthcare divisions amid current economic uncertainty around the
world.
However, despite winning consistent contracts along with a
strong order book, Harris faces stiff competition from companies
like
Boeing Co.
(
BA
),
General Dynamics Corp.
(
GD
) and
Raytheon Co.
(
RTN
), which also provide high-end public safety communication
systems.
Recommendation:
We are maintaining our long-term Neutral recommendation on
Harris Corporation. Currently Harris Corporation has a Zacks #3
Rank, implying a short-term hold rating on the stock.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
HARRIS CORP (HRS): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
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