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L3 Technologies Wins $49M Deal to Upgrade SATCOM Terminals

Defense major L3 Technologies Inc.’s LLL Communications Systems business segment recently clinched a contract for testing, inspecting and upgrading the Marines Corp AN/TSC-156C and the Army AN/TSC-156B/D terminals. Work related to this deal is scheduled to be over by Aug 10, 2022.

Valued at $48.8 million, the contract was awarded by the U.S. Army Contracting Command, Aberdeen Proving Ground, MD. Per the terms of the deal, work locations and funding will be determined with each order.

AN/TSC-156C & AN/TSC-156B/D Terminals

Both AN/TSC-156C & AN/TSC-156B/D are tactical satellite communications (satcom) terminal that operates in the super high frequency over commercial and military satellites. Through these terminals, the company aids in providing flexible, mobile, high capacity, extended-range communications connectivity using military and commercial satellite space segments.

Our View

L3 Technologies is a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. Its Communications Systems segment offers airborne, space and surface data link terminals, ground stations, and transportable tactical SATCOM systems. This might enable the company to pose stiff competition to its peers like FLIR Systems, Inc. FLIR, Arotech Corp ARTX and Mikros Systems Corp. MKRS.

With increasing prevalence of cyber attacks these days, strong and secured SATCOM systems are the need of the hour. U.S. being the largest digitally advanced country, is also the worst affected in terms of cyber crimes. This has pushed its focus toward strengthening its SATCOM communications even more in recent times. In this context, President Trump’s Fiscal 2017 appropriation budget request included funding worth $7.2 billion for operations and maintenance to address urgent readiness shortfalls across the joint force, including improvements in cyber intelligence capabilities.

We believe, if this proposal gets approved, it will boost the revenues of defense contractors like L3 Technologies, which provides advanced communications solutions.

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