Raytheon to Aid the FUSE Program - Analyst Blog

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Raytheon BBN Technologies, a wholly owned subsidiary of Raytheon Company ( RTN ), has received a $5.2 million contract from the Intelligence Advanced Research Projects Activity ("IARPA").

The contract lies under the Foresight and Understanding from Scientific Exposition ("FUSE") program. The main objective of the FUSE program is to develop methods that automatically help analysts and subject-matter experts to get acquainted with emerging technologies in published scientific, technical and patent literature.

As per the objective of the program, BBN Technologies will develop a method that uses techniques and algorithms that are logical and identify the associated and related topics required within a variety of printed materials automatically. Moreover, it will be engaged in classifying those areas that are most likely expected to develop into major and wide-ranging technical solutions. These steps will help in spotting targeted information which will assist in easy identification of important emerging technologies.

The FUSE program conceived by IARPA would process the world's massive, growing and multilingual collection of full-text scientific, technical and patent literature; organize the related technical concepts and effortlessly generate, validate and prioritize areas of greatest importance and also offer multilingual capabilities.

In October 2009, Raytheon Company acquired BBN Technologies for approximately $350 million. Raytheon 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.

Raytheon is one of the best-positioned companies among the large-cap defense players due to its non-platform-centric focus, as well as its strong order bookings and order backlog. Revenue and earnings growth continue to be driven by a strong presence in the areas of Intelligence, Surveillance and Reconnaissance, air & missile defense systems, border security, air traffic management; training and homeland security, and cyber security.

This is, however, offset by apprehensions over future growth of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations.The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock. Raytheon mainly competes with The Boeing Company ( BA ) and Northrop Grumman Corporation ( NOC ).

BOEING CO ( BA ): Free Stock Analysis Report

NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report

RAYTHEON CO ( RTN ): 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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