Harris Shares Climb On $419M Army Contract

PITTSBURGH (AP) — Shares of Harris Corp. rose Friday after the company said it received a contract valued at a total of $419 million to supply the Army with field radios and vehicle power-amplifier adapter systems.

The communications and information-technology company said earlier the initial delivery order under the contract is valued at $165 million. Harris did not provide delivery dates or the timeframe of the order.

The Melbourne, Fla., company said the new radio is about half the size of radios used in the field now and offers an extended frequency range. The radios, which support streaming video, imagery, biometrics, logistics and other data-intensive applications, will be used by the Army in missions around the world.

In a note to investors, SunTrust Robinson Humphrey analyst Chris Donaghey noted the order came on the heels of an authorization for additional purchases of the radios for combat units in Afghanistan.

"We view today's announcement as an additional sign that this radio could see increased utilization by U.S. armed forces due to its capabilities," he wrote. "We continue to have an upward bias to our estimate with additional program wins and the increasingly likely recovery in (Harris') tactical radio business."

Donaghey has a "buy" rating on the company's stock.

In afternoon trading, Harris shares climbed $2.35, or 6.3 percent, to $39.57.