L-3 Communications Gets FMS Contract To Supply 8 Turrets

Aerospace and defense company, L-3 Communications (NYSE:LLL) announced that it has received a foreign military sales (FMS) contract to supply eight WESCAM MX-10D electro-optical and infrared (EO/IR) designating turrets to a Middle Eastern nation’s Ministry of Defense. L-3 WESCAM is well known across the globe for its stabilized and multi-spectral imaging systems.

The advanced MX-10D are configured with a series of high-sensitivity, multi-spectral sensors that enable precision engagement from tactical ranges for daylight, low-light as well as nighttime missions. L-3 Communications’ imaging and targeting systems range in size from 8 inches to 25 inches in diameter, and provide high-resolution, stabilized, full-motion intelligence in support of low-level tactical to high-altitude, ultra long-range persistent missions.

Utilization of MX-10Ds

The L-3 MX-10Ds will be utilized to support counterterrorism operations onboard the newly acquired UH-60 Black Hawk helicopters. The WESCAM has an impressive track record of providing innovative technologies which gives the company’s customers a distinct advantage for security operations.

Also, the company’s high-magnification imaging technology has become a useful asset for the Border Guard for its time-critical surveillance missions.

Other WESCAM Contracts

This July, the company received an order from the Finnish Border Guard to provide MX-15 electro-optical and infrared (EO/IR) imaging systems for installation on a number of Airbus (OTC:EADSY) H215 twin-engine helicopters.

FMS Contracts – a Key to Future Growth

FMS contracts are a key growth catalyst for many large U.S.-based defense companies. With the U.S. government planning to trim defense expenditure in the future, these companies are looking to fill the void created by the decline in domestic orders with FMS contracts. For example, nearly 29% of The Boeing Company’s (NYSE:BA) defense revenues come from FMS contracts.

Thanks to its diverse high-quality product offerings, L-3 Communications continues to enjoy a steady stream of contracts from foreign defense establishments. The company’s international and commercial sales represented about 30.3% of its consolidated net sales in 2015, compared with 29% in 2014. The company is striving to strengthen its footprint in countries like the Kingdom of Saudi Arabia and addresses several customers in Asia and China.

Zacks Rank & Key Picks

L-3 Communications currently has a Zacks Rank #3 (Hold). A better-ranked company in the aerospace & defense industry is Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) , with a Zacks Rank #1 (Strong Buy).

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