By Zacks Equity Research
March 16, 2012
Communication technology company Harris Corp. (HRS) received a contract worth $64 million from the U.S Marine Corps. Per the contract, Harris will deliver Falcon III AN/PRC-117G multiband manpack radios, vehicular amplifier adapters, antennas and field support.
The AN/PRC-117G belongs to the Falcon III wideband radio suite that provides precise knowledge of the battlefield environment. The AN/PRC-117G can be upgraded further and enables high-performance voice as well as high-bandwidth data communication. The radio supports new generation combat applications such as streaming video, collaborative chat and other applications.
Procurement of these devices by the U.S. Marine force will enhance their service quality and help them provide improved network support, which in turn will help them to complete the mission successfully.
Apart from catering to the demand of the U.S. government, Harris is also expanding its international presence by supplying its technology to emerging economies like Brazil, Russia, India and China together with Latin America, 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 strong international market conditions. In fact, the emerging economies like Brazil, Russia, India, and China together with Latin America, Asia Pacific, and Africa regions paved the way for the company’s long-term growth.
In the last 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. During the ongoing quarter, the company has already generated orders worth $400 million in the Tactical Radio Communications segment, which includes a massive deal signed by the Australian Department of Defense.
Despite winning consistent contracts coupled with huge order backlog the company remains exposed to stiff competition from companies like 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 boasts products ranging from industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions.