Raytheon Company’s (RTN) operating subsidiary, Raytheon BBN Technologies, received supplementary funding of $1.7 million from Intelligence Advanced Research Projects Activity (IARPA) to carry forward its research and development (R&D) activity under the Foresight and Understanding from Scientific Exposition (FUSE) program.
FUSE is designed to develop techniques that will enable analysts and subject matter experts to decode evolving technologies in published scientific, technical and patent literatures. The current funding is a follow up to the $5.2 million that was awarded to Raytheon by IARPA for the first stage of the R&D project.
In the first phase, Raytheon created a system that utilizes analytical methods and algorithms to crack related topics in a variety of printed materials and recognized options that have the potential to develop into technical solutions.
With the additional funding Raytheon will advance its methods with finer-grained models and apply them to predict future interest levels on a specific technology on the basis of patent forms, grants as well as on scientific papers in various languages.
Of late, domestic contract flows for Raytheon have been low-priced owing to the defense budget austerity in the U.S. We believe the continued cutbacks in the sector will weigh on the company’s profitability.
However, strong international orders will provide a respite to Raytheon’s business. Recently, the company announced its proposed signing of a $2.1 billion deal with Oman for the supply of an air defense system. It expects overseas orders to rise by 20% in 2013. Raytheon at present carries a Zacks Rank #3 (Hold).
Erickson Air-Crane Incorporated (EAC), an operator in the defense sector is currently performing well and has a Zacks Rank #1 (Strong Buy). Also, to look for are Northrop Grumman Corporation (NOC) and B/E Aerospace, Inc. (BEAV), each holding a Zacks Rank #2 (Buy).
Based in Waltham, Mass., Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities to the U.S. and internationally.
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