A business arm of
), Platform Integration Division, announced that it has signed a
memorandum of agreement with
) to offer advanced in-flight connectivity capabilities to
private transport aircrafts.
Per the agreement, both the companies will jointly work on a
broadband satellite communication system for high-end aircrafts
used by Heads of State and high-profile clients.
The new communication features include an airborne shipset and
worldwide broadband network services that will be provided by
ViaSat. L-3 Communications will deliver system integration,
installation, engineering, design, in-cabin passenger networking
and certification facilities.
This is the second communications-related deal signed by L-3
Communications following the recent $39.0 million dual satellite
telecommunication terminal contract with the Australian Defense
Force. This reflects the company's aggressive pursuit of options
to develop this business segment.
With its varied businesses, L-3 Communications has managed to
maintain a stable earnings flow. Going forward, better prospects
from overseas customers are expected to lead to earnings
accretion. In the first quarter 2013, L-3 Communications'
international business registered 18% growth.
The combined efforts towards the development of the new
technology will be a profitable addition to L-3 Communications'
logistics business. The company's overall bookings at the end of
2012 stood at $10.9 billion. In the first quarter 2013, its
backlog of orders remained solid at $10.5 billion which will lend
significant upside to returns.
However, austerity in defense budget will continue to act as a
deterrent to L-3 Communications' broad growth objectives. The
company presently carries a Zacks Rank #3 (Hold).
Other stocks in the defense domain currently performing well
Wesco Aircraft Holdings, Inc.
MTU Aero Engines Holding AG
). Both holds a Zacks Rank #2 (Buy).
Headquartered in New York, NY, L-3 Communications offers
command, control, communications, intelligence, surveillance, and
reconnaissance (C3ISR) systems; aircraft modernization and
maintenance; and national security solutions in the United States
and internationally. Currently, it has a market capitalization of
L-3 COMM HLDGS (LLL): Free Stock Analysis
MTU AERO ENGINE (MTUAY): Get Free Report
VIASAT INC (VSAT): Free Stock Analysis Report
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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