Warrior Systems, a unit of L-3 Communications Holdings, Inc. (LLL - Analyst Report), has received a firm-fixed-price, indefinite-delivery/indefinite-quantity ("ID/IQ") contract worth $50 million from the U.S. Navy’s Naval Surface Warfare Center for its Binocular Night Vision Devices (“BNVD”).
L-3 Communications’ BNVD is a miniature dual-tube night vision goggle that features outstanding depth perception and supportability. Its mechanical format makes it the world’s smallest, lightest, best-performing amid most cost-effective product available. It is light in weight and can be worn comfortably for a long period.
Per the contract, the equipment will provide special operations to U.S. Special Operations Command with enhanced surveillance and detection capability even where vision is limited or restricted due to low light conditions.
Meanwhile, in January this year, L-3 Communications qualified to compete for task orders under the Contracted Advisory and Assistance Services ("CAAS IV") program. It received a contract from the U.S. Air Force under the program that consists of multiple ID/IQ contract awards and has funding ceiling of $4.7 billion for over a span of eight years.
Based in New York City, L-3 is a prime contractor in C3ISR systems, aircraft modernization and maintenance, and government services. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms. L-3 Communications stands out among pure defense players by virtue of its non-platform focus on shorter-cycle contracts.
However, the company is witnessing lower sales while higher competition has resulted in margin headwinds through re-competition of existing businesses. The company presently retains a short-term Zacks #3 Rank (Hold). We have a long-term Underperform recommendation on the stock.
Currently, the company mainly competes with Lockheed Martin Corporation (LMT - Analyst Report) and Raytheon Company (RTN - Analyst Report).