L-3 Communications Holdings Inc.
) STRATIS division has been selected as one of the six awardees for
an indefinite-delivery/indefinite-quantity (ID/IQ) contract to
support the U.S. Air Force Research Laboratory ("AFRL") for its
cyber initiative under the Agile Cyber Technology ("ACT") program.
(EGL): ETF Research Reports
L-3 COMM HLDGS (LLL): Free Stock Analysis
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Over the next five years, the ACT program has a funding limit of
$300 million. The program is a flexible as well as focused medium
for cyber acquisition between AFRL, military program offices and
the operational community for rapid development, prototyping,
demonstration, evaluation and transition of cyber capabilities.
Air Force Research Laboratory is Air Force's organization that is
committed for the discovery, development and integration of war
fighting technologies for air, space and cyberspace forces.
L-3 STRATIS is a division of National Security Solutions ("NSS").
Few days back, L-3 Communications Holdings announced the completion
of 100% of a new, independent, publicly traded government services
company - Engility Holdings to L-3 shareholders. Engility Holdings
now trade as
Engility Holdings Inc.
). However, the company had retained its cyber, intelligence and
security solutions business, which is known as National Security
National Security Solutions businesses are focused on providing
high-performance computing, cyber security, analytics,
intelligence, physical security and IT services and offer solutions
to Intelligence Community, the Department of Defense, U.S. federal
civilian, state and local government agencies and international
customers to combat security challenges.
Going forward, L-3 Communications has ample opportunities for
growth and profit expansion after the spin-off of its Government
Services businesses. The spin-off has removed a lot of uncertainty
with respect to revenue and takes away some of the low margin
businesses of the company. Over the longer run, we view the company
as one of the best-positioned pure defense players based on its
non-platform focus, broad diversification of programs and its focus
on shareholder value.
However, negative offsets include the loss of key contracts,
defense spending cuts and the lack of near-term catalysts. The
company presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the