Iridium Communications Inc. (IRDM) and ITT Corp. (ITT) announced that ITT has won a contract from the U.S. Naval Surface Warfare Center -Dahlgren Division to supply 1,450 Iridium-based handheld tactical satellite communication devices for use by U.S. forces in Iraq and Afghanistan.
 
Under the fixed-price contract, valued at $9.7 million, ITT will manufacture and deliver the Distributed Tactical Communications Systems (DTCS) – Radio Only transceivers by March 2010. These push-to-talk radios use the Iridium satellite network to provide over-the-horizon, beyond-line-of-sight tactical networks connectivity for war-fighters on the move. The DTCS-RO handsets are lightweight, easy to use, require no deployed infrastructure, and represent a real breakthrough in handheld mobile satellite communications.
 
Iridium is making in-orbit upgrades to the satellites and ground infrastructure to expand the footprint of DTCS nets from 100 to 250 miles, and to permit more than 2,000 nets to be activated simultaneously on the satellite network.
 
Earlier, the company had announced that it was awarded a contract to provide turnkey potable and process water treatment systems to a Mexican platform designed by Dragados Offshore Mexico. The contract, valued at $2.6 million, will see ITT supply pumps and extensive treatment systems for an offshore oil platform in the Bay of Campeche.
 
Iridium Corporation is the only mobile satellite service (MSS) company offering coverage over the entire globe. The Iridium constellation of low-earth orbiting (LEO) cross-linked satellites provides critical voice and data services for areas not served by terrestrial communication networks.
 
ITT Corporation manufactures engineered products and related services worldwide. The company’s Defense Electronics and Services segment provides systems integration, communications, engineering, and technical support solutions; and research, technologies, and engineering support services to the government, industrial, and commercial customers. It also offers wireless networking systems for tactical communications; night vision equipment; electronic warfare technologies for military aircraft; and military and civilian air traffic control systems. Major competitors are Lockheed Martin Corp. (LMT) and Raytheon Co. (RTN).
 
Currently, we have a Neutral recommendation on ITT.
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