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General Dynamics Canada, a business arm of General Dynamics Corp. (GD - Analyst Report), clinched an international multi-year contract for the delivery of advanced acoustic processing systems, Vpx Enhanced Open architecture Multi-static ("VENOM"), to the naval forces of Republic of Korea. The contract value was undisclosed.

The state-of-the-art acoustic processing systems will feature in the Republic’s P-3C Orion Maritime Patrol Aircraft upgrade program. The company will supply 10 of these sonobuoy processors, which will replace the current acoustic sensors under Lot I P-3C of the upgrade program. The Korean Navy will use the VENOM systems for maritime patrol missions.

The VENOM system is a cutting-edge processor which offers underwater acoustic signal acquisition and processing capabilities, automation as well as sophisticated tools that allow operators to swiftly and accurately identify, classify and track submarine movements under sea.

The compact size and modularity of VENOM's 3U VPX also makes it suitable for airborne applications. The VENOM system will aid operators to efficiently manage and analyze large volumes of sensor data and will help present a comprehensive picture of situational awareness as well as detect submarine threats.

The VENOM processor has been one of the company’s prime marine intelligence products for the last 40 years. The new high-tech version was introduced in May 2013. Before this, General Dynamics Canada also supplied acoustic processors under South Korea’s "Lot II" P-3 upgrade program.

General Dynamics is constantly developing its technological expertise to stay ahead of the competition. The company secured a sizeable mix of high as well as low value orders in the last few months including the lofty $2.8 billion contract for the construction of four Arleigh Burke-class destroyers for the U.S. Navy. This will help keep the company’s revenue stream stable amidst the sluggish economic environment.

Currently, General Dynamics carries a Zacks Rank #3 (Hold). Other defense counterparts worth considering at the moment are Zacks Ranked #2 (Buy) Lockheed Martin Corp. (LMT - Analyst Report), Northrop Grumman Corp. (NOC - Analyst Report) and Huntington Ingalls Industries (HII - Snapshot Report).

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