Ultra Electronics Wins $650 Mln Worth US Defense Contract - Update

Defense equipment maker Ultra Electronics Holdings Plc (ULE.L) announced Tuesday that its Montreal, Canada-based Tactical Communication Systems business has been awarded an Indefinite Delivery, Indefinite Quantity or IDIQ contract by the Canadian Commercial Corp. acting on behalf of the US Department of Defense. The contract is worth up to $650 million over seven years.

As per the contract, Ultra Electronics will supply upgraded versions of its High Capacity Line of Sight radios that form the core of wideband tactical radio systems used by US armed forces engaged in land operations. The company said initial contract authorisations under the contract are valued at nearly $48 million and include more than 400 High Capacity Line of Sight multiband radios for delivery in the first half of 2011.

Ultra Electronics claims that its High Capacity Line of Sight radios and related equipment are key elements of the transformation of the US armed forces' battlespace information management systems. The radios provide data highways in communication systems and are vital components of the wide area networks for voice and data transmission between various command levels in land forces.

UK-based Ultra Electronics stated that its radio communication systems provide secure battlefield trunk telephone and high-capacity data telecommunication services to link battlefield commanders and their combat forces. The group claims that the systems also accommodate the increasing need for data-based communications, which includes email and video transmissions, along with voice communications.

Commenting on the contract, Chief Executive Douglas Caster said, "I am really pleased that the excellence of Ultra's specialist tactical radio communication systems has been recognised by the award of this IDIQ contract by the DoD which will underpin sales for years to come."

ULE is currently trading on the London Stock Exchange at 1,551.00 pence per share, up 23.00 pence or 1.51%, on a volume of 4,894 shares. In the past 52-week period, the stock traded in a range of 1,079.00 pence to 1,678.00 pence, with a three-month average volume of 206,049 shares.

For comments and feedback contact: editorial@rttnews.com

Follow RTT