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Harris (HRS) Strikes $390M Tactical Radio Deal with SOF

Leading supplier of communications equipment and services Harris Corp.HRS recently landed a significant tactical radio contract worth $390 million from the U.S. Special Operations Forces (SOF).

Per the agreement, Harris will deliver two-channel handheld tactical radios to the department. The five-year contract includes a four-year base and a one-year option. These small, light weight, multiband, multifunction handheld radios are capable of operating in tough environments. Meanwhile, these radios can be easily upgraded and has built-in backward interoperability, allowing users to communicate over legacy networks.

A few days back, Harris landed a deal worth $21 million from a Latin American nation for the delivery of its popular wideband Falcon III tactical radio systems. Earlier this month, the company was awarded another IDIQ contract worth $228 million by the Space and Naval Warfare (SPAWAR) Systems Center Pacific in San Diego, CA, to assist the U.S. Navy's maritime mine countermeasures (MCM) endeavors.

In the fourth quarter of 2015, Harris reported strong financial results wherein both the top and the bottom line outpaced the Zacks Consensus Estimate. Such solid results were mainly supported by synergies from the Exelis integration. The segment generated orders worth $402 million from the Tactical Radio Communications business and $128 million from the Public Safety and Professional Communications business in the quarter. Total order backlog at the Tactical Radio Communications segment and the Public Safety and Professional Communications segment stood at $488 million and $514 million, respectively.

The company has already gained orders worth nearly $1 billion in the first quarter of 2016. Such a strong order backlog coupled with continuous contract wins will boost the company's top line to a great extent.

Harris currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Other favorably ranked stocks in this space are Motorola Solutions, Inc. MSI , Ericsson ERIC and Juniper Networks, Inc. JNPR , all of which carry the same Zacks Rank as Harris.

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HARRIS CORP (HRS): Free Stock Analysis Report

JUNIPER NETWRKS (JNPR): Free Stock Analysis Report

ERICSSON LM ADR (ERIC): Free Stock Analysis Report

MOTOROLA SOLUTN (MSI): 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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