), a leader in the public safety and professional communications
market, announced that Denmark-based Norden AS has extended its
agreement with it to provide broadband communication to its
global fleet of 39 vessels. Notably, the initial contract was
awarded to Harris on Mar 2012.
Per the agreement, Harris CapRock Communication will provide
each of Norden's 39 vessels with end to end VSAT (Very Small
Aperture Terminal) communication, which will allow internet
access, voice communications, and real time monitoring and
reporting. Harris will install the equipment and provides round
the clock service to Norden through CapRock's Customer Support
The solution will be beneficial for Norden as it will offer
both way transmissions of short messages in real quick time,
thus, eliminating the need to send mails. Additionally, the
solution is expected to improve the on-board employees' morale by
allowing them to maintain contact with their near and dear
Harris CapRock has installed the VSAT communication solutions
in 30 of its global fleet to date. Nevertheless, the company has
not divulged the deal extension value.
Recently, Harris declared its third-quarter fiscal 2013
results wherein earnings per share met the Zacks Consensus
Estimate. However, in the reported quarter, the Integrated
Network Solution segment, which includes Harris CapRock
Communication, declared a 6.1% annualized revenue decline.
Tightness in the U.S. government spending for defence coupled
with a slowdown in international defence expenditures have forced
Harris to reduce its earnings guidance. The ongoing defence
budget contraction is expected to affect Harris in the long
Of late, the company has won several small contracts for its
Tactical Radio System. We believe that these contracts coupled
with contract extension in the CapRock Communication division
will allow Harris to compensate the loss due to the ongoing
defence budget contraction.
Currently, Harris carries a Zacks Rank #4 (Sell).
Other Stocks to Consider
Other stocks in this industry that are worth considering
Ubiquiti Networks Inc.
). Ubiquiti and ShorTel currently has a Zacks Rank #1 (Strong
Buy), while InterDigital has a Zacks Rank #2 (Buy).
HARRIS CORP (HRS): Free Stock Analysis Report
INTERDIGITL INC (IDCC): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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