Harris Wins Contract in Australia – Analyst Blog

Harris Corp. (HRS) has won a major contract from Australian Department of Defense to supply its Falcon tactical radio systems. Total size of the order is $112 million and the portfolio of products include Falcon III AN/PRC-152(C) multiband handheld radios, Falcon III AN/PRC-117G wideband, AN/PRC-117F multiband and AN/PRC-150(C) high-frequency manpack radios.

 

Harris has a strong market position for its RF Communications products with a broad product line and an enviable win rate on several government contracts throughout the world. Notable successes include the company’s Falcon III tactical radios, which are being widely used by U.S. Special Operations forces, the U.S. Army and various NATO and “Partnership for Peace” countries.

 

Harris estimated that its full fiscal 2010 revenue from tactical radio will be between $1.4 billion − $1.5 billion. Several industry researches have predicted that the tactical radio segment may provide a multi-billion dollar business opportunity to the company in the next couple of years as overall defense spending is likely to remain firm with upgrading the military’s communications infrastructure becoming a priority.

 

According to our assessment, in the near term, Harris will benefit from higher defense expenditure by the U.S. government coupled with new expansion drives in the Asia-Pacific, European and African markets. The company has established a solid international dealer network to pursue multiyear contracts throughout these regions. Harris has estimated that international markets represent around $2 billion pipeline opportunity. The company has won large-scale multiyear standardization contracts in Mexico, Australia, Algeria, the U.K., Pakistan, Sweden and Iraq.