Lockheed Martin Corporation (LMT) has received a follow-on production contract worth $19.0 million for VNsight low-light vision sensors that are to be installed in Apache attack helicopters.
Per the VNsight Lot 2 production contract, the company will supply 112 sensors and spares for 4 U.S. Army Apache battalions and additional sensors for Foreign Military Sales.
The Apache helicopter is a four-blade, twin-engine attack helicopter with a tail wheel-type landing gear arrangement, and a tandem cockpit for a two-man crew. The VNsight visible/near infrared sensor provides Apache pilots with significant tactical advantages, particularly in low-light-level conditions.
VNsight is integrated into the Modernized Pilot Night Vision Sensor (“PNVS”). A PNVS, also known as Arrowhead, for the AH-64D Apache attack helicopter is a pilotage system of the combat-proven Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS).
By blending VNsight imagery with the M-PNVS, the pilots can see cultural and military lighting accurately overlaid on the forward looking infrared (“FLIR”) image over the full 30-by-40 degree field of view of the M-PNVS. The combination creates an electro-optical sensor that provides composite pilotage imagery unmatched by any other system.
Lockheed Martin Missiles and Fire Control produces the VNsight lens and serves as the system integrator, while Lockheed Martin Mission Systems and Sensors in Akron, Ohio, provides the sensor’s camera.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. Looking ahead, we expect a stable performance due to a leveraged presence in the Army, Air Force, Navy and IT programs. Also, we believe that shareholder return will continue to be shored up by the company’s focus on debt repayment, its ongoing share repurchase program and the incremental dividend.
These positives are dampened by defense budget cuts, headwinds in margins, higher pension liability and risk regarding retrenchment cost recovery. However, we believe that the market pessimism is fully accounted for in the current valuation. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Some of its main competitors are Northrop Grumman Corporation (NOC) and Raytheon Company (RTN).
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