Harris Corp. (HRS - Free Report) , one of the leading companies in the public safety and professional communication market, has won the final phase of a four-year contract worth $60 million from the U.S. Department of Veterans Affairs (VA).
Harris will plan, deploy and deliver wireless technologies to VA medical centers. This will not only boost voice, video and data services of these centers but will also provide secure transfer of medical information in a timely manner.
In the first two phases, Harris has successfully installed its wireless infrastructure in 66 medical centers and is expected to cover the remaining 46 medical sites in the final phase.
Two months back, Harris won two major contracts worth $960 million and $150 million, from the U.S. Air force Network-Centric Solutions-2 (NETCENTS-2) Application Services and the Federal Aviation Administration’s (FAA) NextGen Data Communications Program, respectively. Recently, Harris CapRock, a division of Harris’ Integrated Network Solution segment, struck a five-year deal with Carnival Corporation to deliver communications services to more than 100 cruise ships of 10 different cruise lines.
Harris reported fourth-quarter 2013 financial results where the bottom line met the Zacks Consensus Estimate and the top line surpassed the same. During the quarter, the Integrated Network Solution segment (IT Services is part of this segment) generated revenues of $402.1 million, up 6.1% year over year.
Thus, we believe that such contracts wins will boost the company’s top-line growth in the upcoming quarters.
Harris currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
The stocks that are performing better in the related sector are Ubiquiti Networks, Inc. (UBNT - Free Report) , Ericsson (ERIC - Free Report) and Qualcomm Inc. (QCOM - Free Report) . While Ericsson and Qualcomm have a Zacks Rank #2 (Buy), Ubiquiti Networks carries a Zacks Rank #1 (Strong Buy).