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A leading supplier of communications equipment and services, Harris Corp. (HRS - Analyst Report) recently won a follow-on contract worth $16 million from Lockheed Martin. The total value of the contract from Lockheed Martin including the recent win is approximately $200 million.

As per the deal, Harris will deliver nearly 100 Harris Highband Networking Radio (HNR) systems to the U.S. Army's Warfighter Information Network.

The Highband Networking Radio system supports beam technology, which ensures smooth long distance communication facility and avoids fixed network infrastructure or operator intervention as it automatically selects the best communications path, and creates a self-forming, self-healing network.

Harris remains the leader in the public safety and professional communication market and boasts products ranging from IP voice and data networks, industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions that support 500 systems globally. Recently, the company declared its fourth quarter 2011 financial results, where both revenue and earnings per share (EPS) surpassed the Zacks Consensus Estimate.

Accretive share repurchase plan and the recent dividend hikes will act as positive catalysts for the stock going forward. Moreover, continuous contract wins and huge order back logs will support future growth.

However, the company remains exposed to stiff competition from companies like Boeing Co. (BA - Analyst Report), General Dynamics Corp. (GD - Analyst Report) and Raytheon Co. ((RTN - Analyst Report), which also provide high-end public safety communication systems.

We, thus, maintain our long-term Neutral recommendation for Harris Corporation. Currently, Harris Corporation has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

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