L-3 Communications’ (LLL) MPRI division has received a $37 million contract to provide curriculum development support and public affairs instructors to the Defense Information School (DINFOS) at Fort Meade, Maryland. The contract extends for a period of four years.
This contract entails providing 48 full-time instructors and curriculum developers to DINFOS. It also provides training to more than 3,000 military and civilian personnel each year, to become journalists, broadcasters and visual communications specialists. This contract is an extension of L-3’s long-term support to the DINFOS public affairs mission.
The DINFOS is the Center of Excellence for government communicators and will be incorporated into the Defense Media Activity headquarters in 2011, when it gets completed as the largest media facility in the world.
L-3 Communications is a leading supplier of a broad range of products and services used in a number of aerospace and defense platforms. L-3 Communications, through its subsidiary MRPI Inc., provides professional services, specialized products and integrated solutions for education, training and operations to national security, defense and law enforcement customers within the U.S. and abroad.
MPRI’s services include training, education, institutional capacity building, staff support, and international security sector reform and leadership development. Its products include maritime, driver and marksmanship simulations and a multi-hazard emergency and routine operations management system.
L-3 Communications is a prime contractor in C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance and government services. It stands out among pure defense players by virtue of its non-platform focus, its prominent position as sub-contractor/supplier to other defense primes, its broad diversification of programs, strong order bookings and an order backlog of approximately $11.1 billion at the end of the first half of fiscal 2010.
L-3 Communications’ top line is spread over a large number of contracts in process. Going forward, the company expects sales in the $16.0– $16.1 billion range for 2010. We believe the new contract wins will benefit the company in the second half of the year.
We currently have a short term Zacks #3 Rank (Hold) on L-3 Communications. We also maintain our long-term Neutral recommendation on the stock.
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