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Raytheon (RTN) Wins $119M Air Force Contract for MALD-J

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Raytheon Company has won a contract worth $118.5 million from the U.S. Air Force to supply the Lot 9 Miniature Air Launched Decoy Jammer (“MALD-J”) vehicles and support equipment. Contracting activity is the Air Force Life Cycle Management Center, Eglin AFB, FL.

Work is scheduled to be complete by Jun 30, 2020. The company will carry out the work in Tucson, AZ. The contract will use fiscal 2016 procurement, and operations and maintenance funds.

The MALD is an economical, expendable air-launched flight, which is a replica of the combat flights of the U.S. and allied aircraft. It can be used to deceive enemy integrated air defense systems (“IADS”).

The MALD-J is the radar jammer variant of the basic MALD decoy, which has been designed to work with and control other electronic warfare platforms. It can function in both the decoy and jammer configurations, depending on warfighters' mission requirements. The MALD-J is the first-ever stand-in jammer to come into production. It can operate on its own or pair off with another device.

Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. The company will continue to gain traction on the back of its strong fundamentals, focus on technological innovation and improvement of its product offering, which will ensure more contract wins and an enhanced growth trajectory.

The company has been enjoying a steady stream of contracts from several government establishments. As a result, total backlog at the end of the first quarter of 2016 was $34.8 billion, up from $32.5 billion at the end of first-quarter 2015.

Raytheon currently has a Zacks Rank #3 (Hold).

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