LONGBOW to Enhance Apache Lethality - Analyst Blog

By Zacks Equity Research,

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Defense operators Lockheed Martin Corporation ( LMT ) and Northrop Grumman Corporation 's ( NOC ) joint venture company, LONGBOW Limited Liability Company received a contract from the U.S. Army to enhance the Lethality of the Apache helicopter.

The $181 million contract will include the first international purchase of 15 Block III LONGBOW Fire Control Radar (FCR) systems by Taiwan. LONGBOW will also deliver 18 Radar Electronic Units (REU), 14 Unmanned Aerial System Tactical Common Data Link Assembly ( UTA ) systems and spares to the U.S. Army's AH-64D Block III Apaches.

LONGBOW will complete the work from Lockheed's facilities in Ocala and Orlando, Florida and Northrop Grumman's facility in Baltimore. The agreement has an option to extend the performance period from 2015 to 2017.

The LONGBOW FCR has been the backbone for the Apache helicopter for over a decade, enabling optimum functionality in various terrains and the capacity to engage multiple targets in hostile territory. This new system will further upgrade the lethality of the Army's premier attack helicopter.

The new LONGBOW Block III FCR REU will upgrade the fire control radar system and lower the maintenance cost while the LONGBOW Block III UTA will provide a two-way, high-bandwidth data link, enabling aircrew to control Unmanned Aircraft Systems' (UAS) flight path, sensors and lasers at long ranges.

LONGBOW's FCR has been in demand in the Army since its inception given its ability to provide situational awareness and actionable intelligence to the war fighters.  LONGBOW has delivered more than 400 FCRs to the Army since the first order was placed in 1995 and the tradition continues with the new orders.                                                                                                                             

These systems will provide the Army with a much needed edge in the hostile situation, lowering the risk of casualty and neutralizing threats. With terrorism with a constant threat, the need to upgrade defense equipment is a prerequisite.

Both Lockheed Martin and Northrop currently retain a Zacks #3 Rank, which translates into a short-term Hold rating.

Based in Los Angeles, California, Northrop Grumman provides products, services, and integrated solutions in the aerospace, electronics, information and services, and shipbuilding sectors in the U.S. and all over the world.

Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

LOCKHEED MARTIN ( LMT ): Free Stock Analysis Report
NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: LMT , NOC , UTA

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