A leading supplier of communications equipment and services, Harris Corp. (HRS) recently won a contract worth $56.7 million for a period of three years and six months from the FAA (Federal Aviation Administration).
The company will provide support and information to the FAA relating to weather report and flight-planning schedules. According to the deal, Harris will be responsible for the up gradation of hardware and other software for the Operational and Supportability Implementation System (OASIS) flight service automation system as well as to provide maintenance support services.
The company already provides its service to approximately 4000 FAA facilities located across the U.S.
Recently, the company won another Public Safety Communications System contract worth $23.6 million from FloydCounty, Georgia. The company will build its P25IP digital radio system in Georgia. The transmitters will provide assistance to public safety officers to communicate with other government departments located around 518 square mile area in case of an emergency.
Harris remains the leader in the public safety and professional communication market and boasts products ranging from IP voice and data networks, industry leading multi-band, multi-mode radios, public safety-grade broadband voice, video and data solutions that support 500 systems globally.
However, the company 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.
We maintain our long-term Neutral recommendation for Harris Corporation, which corresponds to a Zacks #3 Rank (short-term Hold rating).
