Raytheon Company RTN and the Estonian Ministry of Defense have agreed to collaborate for cyber security.
The collaboration took place during the recent visit of Mikk Marran, Permanent Secretary of the Estonian Ministry of Defense, to Washington. Detailed areas for cooperation will be discussed when Raytheon and Estonia Ministry of Defense’s representatives meet in Tallinn. Initially, it will focus on improving the country’s cyber defense capabilities.
Through this collaboration, Raytheon, along with the information technology infrastructure of Estonia, expects to address the challenges to cyber threats that every country is currently facing. Raytheon expects to realize huge benefits from this collaboration, going forward.
At the macro level, there has been a gradual shift in defense spending patterns. Demand seems to have shifted toward high-tech intelligence equipment, cyber security, from conventional big guns and heavy armor.
In light of the security breaches and rising threats, the U.S. government has realized the need for cyber security. Consequently, higher investments in cyber defense and cutting-edge defense systems have been suggested by the FY16 defense budget proposal. The Pentagon has proposed a funding of $5.5 billion for cyber security upon realizing that the weapons program in the U.S. is exposed to cyber attacks.
Raytheon has also been spending heavily on its technology and acquiring companies in the field of cyber security to strengthen its portfolio of cyber defense solutions. In Nov 2014, it acquired surveillance and cyber security company, Blackbird Technologies to boost its intelligence business and open opportunities for exploring the prospects of cyber.
Thus Raytheon now boasts a strong portfolio of cyber security defense solutions, which benefits it tremendously as evident from the latest collaboration.
Raytheon, however, struggled to register new bookings in the fourth quarter that stood at $7,109 million compared with $7,517 million in the year-ago period, reflecting a 5.4% decline. Total backlog at the end of 2014 was $33.57 billion, down 0.3% year over year.
Raytheon has a Zacks Rank #4 (Sell). Better-ranked stocks in the same sector are Northrop Grumman Corp. NOC, Rockwell Collins Inc. COL and Spirit AeroSystems Holdings, Inc. SPR, each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment