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Harris Corporation (HRS - Analyst Report), a leader in the public safety and professional communications market, has received a $42 million order from an international customer for its tactical information system. The deal signifies the growing global popularity of the company’s radio products among the defense sectors.

The unnamed country is acquiring the Integrating Tactical Area Communications System (ITACS) of Harris that will be used to connect top commanders with armed soldiers in the battlefield. The ITACS system connects the users to a high capacity tactical Internet, which supports voice, data and video services thus allowing them to maneuver forces quickly, thereby having a command over the situation.

The ITACS system includes the new Harris Falcon III RF-7800 W high capacity line-of-sight radio that has been deployed in more than 20 countries and serves their long range of network requirements. This latest radio system from Harris will allow the armed forces to get secure and reliable multipoint data communications with a high network speed of 180 Mbit/sec.

Harris’s RF Communications segment provides secure radio communications and embedded high-grade encryption solutions for military, government and commercial organizations. The next generation radio – Falcon III – supports the U.S. military’s Joint Tactical Radio System and also other countries’ network related requirements.

Of late, the company has won numerous orders for its Tactical III product both from domestic and international customers, including a $7 million contract from U.S. Special Operations Command for its multiband manpack radios and accessories.

We believe growing momentum in the RF Communications segment in the international markets is likely to continue since Harris’ next-generation Falcon II and Falcon III tactical radio products are receiving increasing market traction. At the end of the previous quarter, order backlog in the segment came in at $1.24 billion including $665 million in Tactical Radio Communications segment.

We maintain our long-term Neutral recommendation on Harris Corporation. However, it holds a short-term Zacks Rank #4 (Sell).

We presently prefer its peers The Boeing Co. (BA - Analyst Report), General Dynamics Corp. (GD - Analyst Report) and Raytheon Co. (RTN - Analyst Report), which also provide high-end public safety communications system. All of them currently having a Zacks Rank #3 (Hold).

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