Harris Corp (HRS - Analyst Report), a leader in the public safety and professional communications market, has won a $29 million contract for its Falcon III wideband tactical radio from an Asian country. Harris will aid the country’s modernization effort with its new RF-7800H high-frequency (HF) wideband manpack radio and RF-7800W high-capacity Line-of-Sight radios.
RF-7800H is the world’s first HF tactical radio that allows easy and fast transmission of large files like videos and images over a long range. The radio is also 20% lighter and 10 times faster than HF radios.
On the other hand, RF-7800W radio provides point to multi-point IP (Internet Protocol) infrastructure that enables high bandwidth data communication between mobiles or operational centres. Harris claims that RF-7800W will provide the nation’s armed forces with greater situational awareness by offering real-time video streaming, VoIP and video conferencing abilities.
Harris’ RF Communications segment provides secure radio communications and embedded high-grade encryption solutions for military, government and commercial organizations. At the end of the previous quarter, order backlog in the segment came in at $1.14 billion including $561 million in the Tactical Radio Communication division.
Recently, the company received a multi-million contract extension from the U.S. Army Communications Electronics Command. The ceiling value of the 2011 IDIQ (Indefinite Delivery Indefinite Quantity) contract has been increased by $500 million.
Per the agreement, the U.S. government will acquire a wide range of Falcon III products from Harris. Within the international market also the company has won numerous orders for its Tactical III radio products from the defence sector of various countries.
We believe that this growing momentum in the RF Communications segment is likely to continue since Harris’ next-generation Falcon II and Falcon III tactical radio products are gaining market traction.
Harris currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks to consider within the same industry are Interdigital Inc. (IDCC - Snapshot Report), SonusNetworks Inc. (SONS - Snapshot Report) and Ubiquiti Networks Inc. (UBNT - Analyst Report). All the stocks currently carry a Zacks Rank #2 (Buy).