Raytheon BBN Technologies, a wholly owned subsidiary of Raytheon Company (RTN), received an award worth $16 million in additional funding from the Defense Advanced Research Projects Agency (‘DARPA’) and a $3 million award in government funding from the Intelligence Advanced Research Projects Activity (‘IARPA’).
The $16 million contract is under phase 2 of the Military Networking Protocol (‘MNP’) program, assigned to create architectures, protocols, and network devices that will improve network capabilities and integrity for tactical military units.
The basic aim of the MNP program is to enhance network security and performance by providing user-level attribution for military computer networks. The program has the ability to clearly identify individual aspects of network traffic that helps the unit commanders to adapt and reassign network resources to guarantee the swift delivery of mission-critical information to the correct individuals and units. Additionally, the MNP program's suite of security techniques will ensure that use of the network is limited to authorized users and that it is extremely difficult to inject false traffic into the network.
In the first phase, the BBN team developed and successfully demonstrated the network technology in a test environment using 200 network devices at a data transmission speed of 100 Mbps. However, the team is currently working towards the objective of a networked environment that is scaled to 10,000 devices working at speeds up to 100 times faster.
Under the $3.0 million contract, BBN Technologies will explore new methods of modeling the brain's ability to make sense of large amounts of haphazard, partial information. The research will be beneficial on a commercial as well as military level by helping the intelligence community analyze fast-moving battlefield video, audio, and text data quickly and accurately.
The IARPA is a part of the Integrated Cognitive-Neuroscience Architectures for Understanding Sensemaking program. It invests in long-range, high-risk/high-payoff research programs that have the potential to provide the U.S. with an overwhelming intelligence advantage.
Raytheon is one of the best-positioned companies among the large-cap defense players due to its non-platform-centric focus, as well as its strong order bookings and order backlog. Revenue and earnings growth continue to be driven by a strong presence in the areas of Intelligence, Surveillance and Reconnaissance, missile defense, border security; training and mission support, and cyber security.
This is, however, offset by apprehensions over future growth of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Raytheon is expected to release its second quarter 2011 earnings on July 28, 2011. Going forward, the Zacks Consensus Estimates for the second quarter 2011 and fiscal year 2011 are currently at $1.16 and $4.88 per share, respectively.
Raytheon Company is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. The company provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. The company mainly competes with Arotech Corp. (ARTX) and L-3 Communications Holdings Inc. (LLL).
AROTECH CORP (ARTX): Free Stock Analysis Report
L-3 COMM HLDGS (LLL): Free Stock Analysis Report
Be the first to comment