Defense contractor Raytheon Company (RTN) announced that its new precision-guided projectile Excalibur Ia-2 has successfully fired nine rounds in U.S. Army lot acceptance tests. This makes the projectiles ready for use for the U.S. Army and Marine Corps in Afghanistan.
The projectiles are developed on the proven platform of Excalibur Ia-1, which had a range of 24 kilometers (14.92 miles). The upgraded Excalibur Ia-2 will have a range of 37.5 kilometers (23.3 miles) and will be able to counter a projected threat, while maintaining true precision and accuracy of better than a 6-meter (19.7 feet) circular error probable.
This Excalibur precision-guided projectile can be utilized at any time of the day, providing handlers with more life-saving options while conducting missions in urban habitats and surrounding areas. The accuracy of the projectiles reduces collateral damage, which saves warfighter lives and reduces the chance of civilian casualties.
Missile Systems, a Raytheon business wing, developed this Excalibur precision-guided projectile. This segment contributed 22% to the total revenue of the company in the second quarter 2011. Total backlog of this segment at the end of the second quarter was $7.73 billion.
We believe the success of Excalibur la-1 has led to the development of the upgraded version. The U.S. Army has already used more than 500 rounds of Excalibur la-1 and this new upgraded version will further enhance the army’s ability to combat terrorism. These projectiles will be helpful in operations close to human habitation and in the surrounding fields, valleys and mountainous terrain of Afghanistan.
Raytheon currently retains a Zacks #3 Rank, which translates into a short-term Hold Rating. The company competes with the likes of Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
Based in Massachusetts, Raytheon Company deals with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.
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