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A leading supplier of communications equipment and services, Harris Corp. (HRS - Analyst Report) recently won a contract worth $29 million to supply its popular Falcon III portable multi-band manpack radios to the U.S. Air Force.

Falcon III radios support interoperable voice and wideband data communications facilities, thus enabling the user to communicate properly on land or from land to air.

Recently, Harris CapRock Communications, which is a global provider of mission-critical managed satellite communications solutions for the energy, government, and maritime industries, received a contract from Farstad Shipping to supply Very Small Aperture Terminal (VSAT) for its 53 fleets.

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 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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