Raytheon Company ( RTN ) has been chosen to provide engineering, technical and depot services in support of 15 Air Traffic, Navigation, Integration, and Coordination Systems (ATNAVICS) for the Naval Air Systems Command (NAVAIR) and U.S. Marine Corps.
Raytheon's ATNAVICS is a mobile system that provides air traffic services for the rapid deployment of troops and equipment to remote locations where no operational airport control and landing system exists.
Raytheon will provide engineering changes, field and maintenance support, depot requirements and system refurbishment. In addition, the work will include fault isolation, assembly, disassembly, fabrication, refurbishment, upgrading, purchasing of parts, components, assemblies and materials, and fleet support activities.
The work will be performed in Marlborough, Massachusetts; Largo, Florida; and St. Inigoes, Maryland, and is expected to be completed in February 2013. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is handling the contracting activity.
We believe that Raytheon's diversified revenue base greatly insulates its performance from cancellation, curtailment or deferment of a program. Moreover, it is one of the best-positioned companies with an improving balance sheet, growing cash flow and operational improvements.
In January this year, Raytheon Company reported fourth quarter and fiscal 2011 results. The company's fourth-quarter adjusted earnings of $1.74 per share beat the Zacks Consensus Estimate by 40 cents. Results were also higher than the year-ago quarterly earnings of $1.55 per share.
These positives are, however, offset by apprehensions over future cutbacks of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations.
Raytheon Company is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. The company provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing, effects, and command, control, communications and intelligence systems, as well as a broad range of mission support services.