Harris Corporation (HRS), a leading supplier of communications equipment and services, has won a multiband tactical radio order worth $21 million from a NATO country.
As per the contract, Harris will deliver Falcon III AN/PRC-117G manpack and AN/PRC-152A handheld radios. This will provide the country’s Special Forces and soldiers with data communications, wideband networking, along with line-of-sight, ground-to-air and tactical satellite voice communications.
Harris’ Falcon III offers high-bandwidth applications like streaming videos, synchronized voice and data feeds, collective chat, and connectivity to protect networks. Recently, the company also received a $36 million order to supply Falcon high-frequency tactical radios to another NATO country.
Harris has already won $234 million worth of tactical radio contracts globally in the past few months. Notably, more than 45,000 radios have been sent to the U.S. Department of Defense and allied forces in more than 15 countries.
In the recently concluded first quarter of fiscal 2014, Harris reported mixed financial results with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. In the reported quarter, the RF Communications segment generated orders worth $348 million of which 65% was from the Tactical Radio Communications unit. Moreover, the total order backlog in the Tactical Radio Communications division amounted to $664 million.
Thus, we believe that Harris’ top line is poised to witness growth on the series of orders received. The company is scheduled to report its second-quarter results on Jan 28, 2014.
Harris currently carries a Zacks Rank #3 (Hold).
Other Stocks to consider
Other better-ranked stocks in the wireless equipment industry include Comtech Telecomm. Corp. (CMTL), InterDigital, Inc. (IDCC) and Nokia Corporation (NOK). These stocks carry a Zacks Rank #2 (Buy).
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