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Motorola (MSI) to Support German Navy's Mission-Critical Operations

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Motorola Solutions Inc. (MSI - Free Report) recently secured an $82.3 million contract from a federal government agency of Germany to support the mission-critical operations of its naval vessels. The deal reinforces the company’s position as one of the leading providers of mission-critical communication products and services in the global market.  

Per the deal, Motorola will offer secure digital radio communications for 16 naval vessels and training platforms for Germany’s Navy by leveraging its digital TETRA (Terrestrial Trunked Radio) networks. TETRA is a global Land Mobile Radio open standard for digital trunked radio technology and provides secure, reliable and instant voice and data communications in mission-critical environments. Designed to meet specific requirements, the system addresses peak usage criteria by utilizing a dedicated licensed spectrum.

Motorola will deploy digital TETRA networks on each of the 16 naval vessels and integrate them with the existing IT infrastructure of the security agencies to provide real-time visibility of the operational status of each vessel. It will also enable interoperable secure instant communication with all other public safety organizations of Germany to ensure the safety and security of all personnel. In addition, it offers an end-to-end security framework offering concentric rings of protection and a security-enhanced, hardened architecture to safeguard sensitive communications.

Riding on such state-of-the-art products, Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales, and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.

Motorola intends to fortify its position in the public safety domain by entering into alliances with other players in the ecosystem. It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position, along with an attractive portfolio for a large addressable market, augurs well for long-term growth.

The stock has gained 55.4% over the past year against the industry’s growth of 23.3%.

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We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and InterDigital, Inc. (IDCC - Free Report) and Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

InterDigital has a long-term earnings growth expectation of 15%. It delivered an earnings surprise of 536%, on average, in the trailing four quarters.

Qualcomm has a long-term earnings growth expectation of 21%. It delivered an earnings surprise of 13.5%, on average, in the trailing four quarters.