Northrop Gets Combat Simulator Order - Analyst Blog

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Northrop Grumman Corporation ( NOC ) has been awarded an indefinite-delivery/indefinite-quantity task order by the U.S. General Services Administration for a combat simulator.

The award calls for Northrop Grumman to provide the enhanced Combat Electromagnetic Environment Simulator (CEESIM) system for the U.S. Warner Robins Air Logistics Center (WR-ALC).

This CEESIM system is a sophisticated technology simulator that creates complex, dynamic electromagnetic environments to replicate true-to-war conditions. It features a modernized user interface and digital hardware optimized to create greater pulse density for complex threats. It is an off-the-shelf solution that integrates into the existing Simulation Network lab control system at WR-ALC while supporting software maintenance and reprogramming of multiple electronic combat systems, including those onboard C-130 and F-16 aircraft.

Overall, the new digital subsystem and advanced graphical user interface will be both cost effective and time saving for WR-ALC as it simplifies the process of programming the most realistic and complex threat radiators.

Northrop Grumman pays close heed to customer needs with a view to increase affordability and cost competitiveness. The company is the fourth largest U.S. defense contractor behind The Boeing Company ( BA ), Lockheed Martin Corp. ( LMT ), and General Dynamics Corp. ( GD ) in terms of 2012 revenues.

It has a strong presence in the Air Force, Space & Cyber Security programs. Northrop Grumman's product line is well positioned in high priority categories, such as defense electronics, unmanned aircraft and missile defense. Revenue and earnings growth continue to be driven by its strong presence in the current focus areas of cyber security, modernization of defense and homeland security assets, intelligence, surveillance and reconnaissance systems, advanced electronics and software development.

Although Northrop Grumman like its peers faces uncertainty related to the defense budget, it seems to be immune to some extent to defense budget cuts. In fact, the President's fiscal year 2014 budget supports some of Northrop's key programs. For 2014, the proposed budget increased funding for Northrop's E-2D Advanced Hawkeye by 25%, while 21 EA-18G Growlers funding got a proposal for double financing in comparison to 2013. Cybersecurity became a key investment area with funding increasing by more than 20% to $4.7 billion.

The company currently holds a Zacks Rank #3 (Hold).



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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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BA , GD , LMT , NOC

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