General Dynamics (GD) To Supply DMR Radios To U.S. Navy

Aerospace & defense company General Dynamics Corporation (NYSE:GD) announced that its unit General Dynamics Mission Systems has received a contract from the U.S. Navy to build important communication devices, related materials and equipment for new Navy surface vessels and submarines.

Per the contract, General Dynamics’ unit will supply more than 30 new AN/USC-61(C) Digital Modular Radios (“DMR”) to the U.S. Navy. Swift and secure communication is essential for the functioning of the Navy or for that matter all other defense departments. The radios supplied by General Dynamics help the Navy to effectively communicate with its other units worldwide.

To date, General Dynamics has supplied more than 550 DMRs to the U.S. Navy. The company continues to upgrade these radios to adapt to changing needs while keeping the basic hardware intact.

DMR radios allow sailors and commanders the flexibility to talk and share data with a wide spectrum of military radios. The latest addition in these DMR radios, the MUOS waveform, will further add to the existing capabilities of these radios. The new network when operational will help to deliver secure, smartphone-like capabilities including crystal-clear voice communications and access to video and mission command information with the quality of service that smartphone users enjoy every day.

Secure and cost effective communications systems are essential for the defense departments. General Dynamics through its Mission Systems unit delivers efficient communication systems to its customers worldwide. The company had a hefty backlog of $52.1 billion at the end of first-quarter 2016, thanks to its broad portfolio of products and services.

General Dynamics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include KLX Inc. (NASDAQ:KLXI) , CAE Inc. (TO:CAE) and Esterline Technologies Corp. (NYSE:ESL) . KLX currently sports a Zacks Rank #1 (Strong Buy), while CAE and Esterline Technologies carry a Zacks Rank #2 (Buy).

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