Northrop Upgrades Sensor System (BA) (DCO) (LMT) (NOC)

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Northrop Grumman Corporation (NOC) has introduced the Fourth Generation Tracking Adjunct Sensor (4G TAS) for its Hawk air defense system. The company’s Electronic Systems business is responsible for this new product development.

The new 4G TAS is a steady and high-resolution sensor system. It offers passive electro-optical/infrared (EO/IR) initiating, tracking and investigating competence to Hawk. In addition, this new system provides risk-measurement and detection ability away from the visual range by giving 24 hours real-time positional alertness, and passes them to Hawk's fire control radar.

Northrop Grumman's improvements to the baseline arrangements include a new 640 x 480 pixel infrared sensor. This new sensor has more than double the resolution capacity of the current system. In addition, it has a new Charge-Coupled Device (CCD) camera, which increases resolution and enhances actions under low-light situations.

Over the years, Northrop Grumman has a long-standing business association with the U.S. defense establishments and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing.

We believe Northrop Grumman introduced this new system due to a rise in security compromises and terrorist activities. The U.S. government has currently increased its focus on countering these threats. As an important provider of sensor solutions to the U.S. government as well as its international allies, the company strives to maintain its track record by upgrading TAS in order to strengthen its defense mechanism. The company has been a trusted partner of numerous federal bodies for more than 30 years. It has to date delivered several kinds of sensors, which have acted as the eyes of the Hawk air defense system.

Falls Church, VA-based Northrop Grumman offers products, services, and solutions in aerospace, electronics, information systems, and technical services worldwide.

Northrop Grumman’s strength lies in its strong order backlog, which stood at $40.8 billion for full year-2012. Moreover, its cyber security offering, constant upgrading of defense and homeland security assets, intelligence, surveillance and reconnaissance systems, advanced electronics and software development businesses are expected to be the major top-line churners, going forward.

However, these positives are offset by apprehensions over the future growth of the U.S. defense budget and risks related to key project executions and order cancellations.

Northrop Grumman Corporation currently has a Zacks Rank #3 (Hold). Other stocks from the sector that are presently performing better include Ducommun Inc. (DCO) and Lockheed Martin Corporation (LMT) with a Zacks Rank #1 (Strong Buy), and The Boeing Company (BA) with a Zacks Rank #2 (Buy).

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