Harris Corporation (HRS), a leader in the public safety and professional communications market, recently got a major push as it secured three contracts for its tactical radio products from both the U.S. as well as the international markets. The combined value of the contracts stands at around $183 million.
Harris received a $92 million contract from a Middle Eastern country and will provide them its latest Fusion 4G LTE (long term evolution) base stations, Harris RF-7800W high capacity line of sight and RF-7800H high frequency tactical radios. The LTE system and the wideband tactical radios will allow soldiers to avail secure IP based voice, data and video services across the war field.
Melbourne, Fla.-based Harris also won a $55 million contract for its Falcon line of tactical radios from an overseas customer. Under the terms of the contract, Harris will deliver its RF-5800H high frequency and RF-5800V very high frequency radios and accessories, which will be part of the customer’s tactical radio modernization program.
Inspite of the tightness in the U.S. government’s defence expenditure, Harris has managed to win orders worth $36 million from the U.S. Special Operations Command (:USSOCOM) to deploy a state-of-the-art wideband tactical communications system. USSOCOM will receive AN/PRC-117G manpack and AN/PRC-152A handheld radios that will allow the armed forces with situational awareness in the battlefield to deliver real-time tactical information.
These deals signify the growing global popularity of the company’s communication products among the defence sectors of various countries. We believe that these new contracts will allow Harris to compensate the loss due to the ongoing defence budget contraction in the U.S.
Currently, Harris carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks in this industry that are worth considering include ShorTel Inc. (SHOR), Ubiquiti Networks Inc. (UBNT) and InterDigital Inc. (IDCC). Currently, Ubiquiti and ShorTel currently hold a Zacks Rank #1 (Strong Buy), while InterDigital carries a Zacks Rank #2 (Buy).
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