L-3 Communications Holdings Inc. (LLL) announced that its STRATIS division has been selected as one of the three prime contractors for the Intelligence Support Services-Afghanistan (ISS-A) contract.

Under this contract, L-3 has already been awarded two firm fixed-price task orders valued at $36 million to provide intelligence support to the United States Forces-Afghanistan (USFOR-A). Going forward, L-3 will provide multi-functional analysis, counterintelligence support, signals intelligence analysis and program management services, as well as other supporting intelligence activities to USFOR-A.

L-3 STRATIS is among the largest divisions of L-3 Communications. Headquartered in Reston, Virginia, STRATIS has 5,000 employees who cater to customers across the globe. They deliver specialized services, advanced technology and project management solutions in support of intelligence and enterprise information technology solutions for government and commercial entities.

Headquartered in New York City, L-3 Communications is a prime contractor for C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance, and government services. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms.

L-3 Communications stands out among pure defense players by virtue of its non-platform focus, premier position as a sub-contractor/supplier to other defense primes, broad diversification of programs, strong order bookings, and order backlog of approximately $10.8 billion at the end of the first nine months of fiscal 2010.

Revenue and earnings growth continues to be driven by its strong presence in the current focus areas of command, control, communications, intelligence, surveillance and reconnaissance (C3ISR) equipment; precision-guided weapons; unmanned aerial vehicles; along with electro-mechanical robotic capabilities, networked information technologies, special operations forces and helicopter crew training programs.

L-3 Communications mainly competes with FLIR Systems Inc. (FLIR), Herley Industries Inc. (HRLY), and Raytheon Company (RTN). We currently have a Neutral recommendation on the Zacks #3 Rank stock.

 
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