Harris Corp. (HRS), one of the leading companies in the public safety and professional communication market, has recently won a contract worth $38 million from the U.S. Air Force. Per the deal, the company will supply Falcon III AN/PRC-117G multiband manpack and AN/PRC-152A multiband handheld tactical radio systems.
The popular Falcon III tactical radios will also facilitate aerial communication. Moreover, its secure voice and data communication services will solve mission critical issues by providing logistical and customer field support.
Furthermore, the deployment of Joint Tactical Radio System (:JTRS) wideband networking will offer both ways communication support to the unit, thereby securely connecting to the Global Information Grid.
These radios are light in weight and can be carried to critical operations. Integrated with the company’s Adaptive Networking Wideband Waveform, the radios enable the use of the battle management software.
Harris has supplied more than 40,000 of its popular AN/PRC-117G and AN/PRC-152A radios to the U.S. military departments and more than 15 allied countries.
Last month, Harris won two major contracts worth $960 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.
Per the deals, 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.
Recently, Harris reported fourth-quarter 2013 financial results where the bottom line met the Zacks Consensus Estimate and the top line surpassed the same. During the quarter, the Tactical Radio Communications segment generated $498 million while the total order backlog for the quarter was $743 million. Thus, we believe that wining such contracts will certainly boost the company’s top line.
Harris currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
The stocks that are performing better in the defense and public safety sector are General Dynamics Corp. (GD), The Boeing Co. (BA) and Motorola Solutions Inc. (MSI). All three have a Zacks Rank #3 (Hold).