Northrop Grumman to Fully Assist U.S. Navy to Deploy CANES - Analyst Blog

Aerospace and defense operator Northrop Grumman Corporation ( NOC ) was selected by the U.S. Navy to assist in the Consolidated Afloat Networks and Enterprise Services (:CANES) full deployment. The objective is to upgrade cybersecurity, command and control, communications and intelligence (C4I) systems across the fleet.

Northrop Grumman had received a $37 million contract from the U.S. Navy in 2012 for the design, development and limited deployment phase of CANES. We believe Northrop's prior experience and its expertise have helped it to clinch this full deployment contract. Northrop will be one among five contractors to fully deploy CANES.

Since the first installation of the CANES system aboard the destroyer USS McCampbell (DDG 85) in Nov 2013, this system has been deployed on nine destroyers as of Aug 15, 2014. The U.S. Navy plans to install the CANES system in 180 platforms, which will include surface ships, submarines and Maritime Operations Centers. The system is expected to reach full operational capability around 2022.

Northrop Grumman will utilize its Modular Open Systems Approach-Competitive process for the CANES solution. CANES' ultimate motive is to strengthen the network infrastructure, improve security, reduce existing hardware footprint, increase interoperability and decrease total ownership costs.

Northrop Grumman currently holds a Zacks Rank #2 (Buy). Other well-ranked players in the aerospace and defense industry include The Boeing Company ( BA ), General Dynamics ( GD ) and Lockheed Martin Corporation ( LMT ). All these stocks carry the same Zacks Rank as Northrop Grumman.

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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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