Harris Corp. (HRS) recently won a contract from the Ministry of Health of Saudi Arabia worth $8 million. As per the contract, Harris will provide public safety communications support to various hospitals across the country.
Harris will deploy its Harris P25 system including mobile and radios to enhance communication facilities during medical emergencies and provide secure and effective voice and data communication for EMS personnel.
A few days back, Harris won a similar contract worth $19 million from the U.S. Department of Veteran Affairs' Office of Information and Technology. The two-year contract requires Harris to build a wireless network infrastructure for healthcare mobility across the nationwide Veteran Affairs center. Such contract wins will drive the Public Safety and Professional Communications unit of the RF Communication segment of the company going forward.
In the recently concluded quarter, Harris surpassed both the Zacks Consensus EPS and revenue estimate. In the reported quarter, the RF Communication segment, which includes Tactical Radio Communications and Public Safety and Professional Communications, garnered $537.7 million revenue, of which “Public Safety and Professional Communications” contributed $80.7 million. It also generated new orders worth $95 million with a total order backlog of $635 million.
Harris Corp’s consistent deal wins and huge order backlog are particularly encouraging, since it remains exposed to stiff competition from companies like Boeing Co. (BA), General Dynamics Corp. (GD) and Raytheon Co. (RTN), which also provide high-end public safety communication systems.
Currently, Harris Corporation has a Zacks #3 Rank, implying a short-term Hold rating on the stock. Based in Melbourne, Florida, Harris remains one of the leaders in the public safety and professional communication market and boasts products ranging from industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions.
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