Posted on Friday, April 20th, 2012 | In Current Market News, Stocks to Watch
Communication technology company Harris Corp. (HRS) recently entered into a 5-year contract worth $400 million with the U.S. Special Operations and Command (SOCOM). Per the contract, Harris will deliver Falcon III AN/PRC-117G and AN/PRC-152A multimode radios to different military vehicles.
These tactical radios will be distributed to the armed forces in order to enable reliable and secure line-of-sight and beyond-line-of-sight communications. Moreover, these tactical radios also support video streaming, delivery of data and information across wideband networks during warfare.
In the beginning of fiscal 2012, Harris received a massive deal worth $235 million from the Australian Department of Defense for upgrading the tactical radio program of their military service.
Presently, Harris is showing more interest in expanding its international presence by supplying its technology to emerging economies like Brazil, Russia, India and China as well as Latin American, Asia-Pacific and Africa regions. Currently, the company has a sustainable and diversified product pipeline with a potential market size of $15 billion.
As a leading government electronics supplier, Harris is benefiting from favorable market conditions globally. In fact, the emerging economies like Brazil, Russia, India, and China together with Latin American, Asia-Pacific and African regions have paved the way for the company’s growth over the long term.
In the earlier quarter, Harris generated new orders worth $183 million in the Tactical Radio Communications business. The company ended the second quarter of fiscal 2012 with a total order backlog of $581 million. For the ongoing quarter, the company has already generated orders exceeding $400 million in the Tactical Radio Communications segment, including the massive deal signed with the Australian Department of Defense.
Despite the consistent contract wins and huge order backlog, the company remains exposed to stiff competition from the likes of Boeing Co. (BA), General Dynamics Corp. (GD) and Raytheon Co. (RTN), which also provide high-end public safety communication systems.
Currently, Harris Corporation has a Zacks#3 Rank, implying a short-term Hold rating on the stock.
Harris Corporation, based in Melbourne, Florida, remains one of the leaders in the public safety and professional communication market and boast of a varied range of products including industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions.
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