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Harris Unit, Carnival Corp. Pen Deal

Zacks Equity Research

Harris CapRock, a unit of Harris Corp. (HRS), has struck a five-year deal with Carnival Corporation to deliver communications services to more than 100 cruise ships of 10 different cruise lines. Harris CapRock offers satellite and terrestrial communications services to remote areas.

The collaboration with Harris CapRock will help Carnival Corp. to provide enhanced bandwidth service to its onboard customers.

Harris will install the Very Small Aperture Terminal (VSAT) technology applying the latest generation of iDirect technology, via a hybrid C- and Ku-band solution. Each cruise liner will have an antenna capable of maximizing the bandwidth strength. Moreover, Harris’ customer support centers will offer 24/7 monitoring, maintenance and support to Carnival. Harris will also deploy its superior technology across various ports of United States, Bahamas, Europe, South America, Australia and Singapore.

Two months back, Harris won two major contracts worth $960 million and $150 million, from the U.S. Air force Network-Centric Solutions-2 (NETCENTS-2) Application Services and the Federal Aviation Administration’s (FAA) NextGen Data Communications Program, respectively.

Harris will supply an indefinite amount of IT-related products and services for three years to NETCENTS-2 and terrestrial circuits and high-frequency data communication services to the DCNS department of FAA.

Such major contract wins will not drive the company’s top-line growth but will also consolidate its position against larger industry players.

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

Other Stocks to Consider

The stocks that are performing better in the defense sector and public safety are Ubiquiti Networks, Inc. (UBNT), Polycom, Inc. (PLCM) and Qualcomm Inc. (QCOM). While both Polycom and Qualcomm have a Zacks Rank #2 (Buy), Ubiquiti Networks carries a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on PLCM
Read the Full Research Report on HRS
Read the Full Research Report on QCOM
Read the Full Research Report on UBNT

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