Industry Week in Review – March 2, 2012

This week, the U.S. Air Force announced that it has begun reducing the number of bases at which it plans to eventually house the new F-35. This is being done in an effort to reduce the estimated life-cycle cost of the single-engine stealthy fighter.

Last year, the Pentagon disclosed an estimated more than $1 trillion to operate the fighter for the next 50 years, raising significant concern from customers, including the U.S. Navy and Air Force. Since then, the services have been working to refine their plans to operate the jet in hopes of curbing operations and sustainment (O&S) cost.

Air Force Chief of Staff Gen. Norton Schwartz says the original cost estimate contained more than 40 operating locations for the F-35A, and “We are pressing down on that. We are in the low 30s now.” Schwartz adds that the initial cost estimate is “of limited value” because it projected so far out into the future – 50 years. Typical cost estimates of this type span fewer years, he notes. Fewer operating locations could dovetail with the service’s request to conduct new rounds of base closures with a hope of reducing as much as 20% of excess infrastructure being operated by the Air Force.

Big Movers

OSI Systems, Inc. (Up 10.2%) – Shares rose this week after the company announced that Mexico’s tax and customs authority has exercised options under its pact that bring the total value of the six-year turnkey screening services agreement to about $900 million. The specialized electronics and services provider had previously announced the minimum obligated value of $400 million for the program.

VSE Corp. (Down 11.4%) – Shares fell this week after the company fourth-quarter revenue of $148.9 million, down 29.9% from $212.4 million in the same quarter a year ago. For the year, revenue was down 28.6% to $618.6 million, while earnings fell 13.2% to $20.6 million. VSE blames lower fourth-quarter and full-year revenue on the expiration of a large U.S. Army contract, delays in other government contract awards and delays caused by protests of contract awards.

DigitalGlobe, Inc. (Down 21.3%) – Shares fell this week after the company reported a fourth quarter net loss of $27 million, or 58 cents per diluted share. The loss compares to a $600,000 profit the company reported in the fourth quarter of 2010. During the past fiscal year, which ended December 31, DigitalGlobe reported a net loss of $28.1 million, or 61 cents per diluted share. In 2010, the company reported a net income of $2.5 million, or 5 cents per diluted share.

Relevant Transactions

RLJ Equity Partners acquired LAI International, a portfolio company of Spell Capital Partners. LAI International is a contract manufacturer, offering precision-engineered finished parts, components, and subassemblies for aerospace, power generation, defense, medical, electronics, and other technology industries. The deal was funded by a $37.1 million unitranche facility and an equity co-investment provided by Monroe Capital.

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Industry Week in Review – February 24, 2012

AerCap Holdings NV, which own 350 planes and is the third largest global leasing company in the world, issued a warning this week that Airbus and Boeing are building too many planes. Both Boeing and Airbus are boosting output by about 40% over the next two years, citing demand from emerging markets and the need for developed-nation carriers to replace their aging fleets.

However, Aengus Kelly, chief executive of AerCap Holdings, believes that “clearly there is a vast amount of over-ordering.” In reference to Lion Air of Indonesia, Kelly asked, “is it realistic that a small airline in Indonesia is the largest customer of the world’s largest exporter?” Lion Air’s order for 230 planes, at list prices, is valued at $22.4 billion.

Although executives of both suppliers and airlines are rationalizing the record orders seen over the past 12 months by soaring domestic and regional demand in Europe and Asia, Aengus Kelly doubts whether some big deals, such as Lion Air’s, will ever be realized in full.

Big Movers

Finmeccanica SpA (Up 5.3%) – Shares rose this week after the company announced its objective to sell assets worth roughly €1 billion ($1.3 billion) with an intent to strengthen its financial structure.

Dynamics Research Corp. (Down 15.7%) – Shares fell this week after the company announce FY2012 expected earnings per share (“EPS”) to be in the range of $1.06 to $1.14, and revenue and EBITDA to be in the range of $353 to $363 million and $37 to $39 million, respectively. Analysts had been expecting FY2012 EPS of $1.41 and revenue and EBITDA of $399 million and $45 million, respectively.

Relevant Transactions

NetStar-1, a portfolio company of Lake Capital, has merged with Whitney, Bradley and Brown Inc., a management consulting firm focused on business transformation, organizational realignment, and process improvement. The combined company will operate under the Whitney, Bradley and Brown name and will have over $130 million in revenue. KippsDeSanto & Co. acted as financial advisor to Whitney, Bradley and Brown in this merger. Terms of the deal were not disclosed.

Salient Federal Solutions, Inc. to acquire ATS Corporation, a provider of software and systems development, systems integration, and IT infrastructure and outsourcing primarily to government agencies in the United States, for $3.20 per share or around $73 million. Salient expects to build on ATSC’s offerings and relationships and help them address the many immediate customer requirements for delivery of rapid solutions

Logistics Management Institute acquired Belzo, Inc., a provider of IT project management and logistics services, for an undisclosed amount. The acquisition is expected to expand LMI’s Southeast Region presence.

Dell Inc. acquired AppAssure Software Inc., a developer of backup and replication software for Windows Server, Hyper-V, VMware, and Microsoft Exchange, among others. The acquisition will allow Dell customers to modernize their data protection strategies and keep up with the pace of their organization. Terms of the deal were not disclosed.

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Industry Week in Review – February 17, 2012

This week President Obama released the Budget for Fiscal Year 2013. In it the Department of Defense has requested a total of $613.9 billion – $525.4 billion for base discretionary spending and $88.5 billion for Overseas Contingency Operation (“OCO”) spending. In all, the Pentagon’s 2013 budget outlines the elimination of $259 billion over the next five years, which is in line with the Budget Control Act of 2011’s requirement of $487 billion in defense cuts over the next decade.

According to the budget proposal, the Pentagon has stated that $75 billion will be saved over the next five years by reorganizing its investment strategy. A large portion of these cuts, $15.1 billion, will come from reorganizing the Joint Strike Fighter program, with another $13.1 billion from reducing the Navy’s shipbuilding plans. Overall the Pentagon has requested $179 billion in 2013 to buy and develop aircraft, ships, vehicles, missiles, and satellites.

Specifically, the 2013 budget requests breakdown for military services are:

  • $136.6 billion for the Army – about $700 million more than appropriated in 2012
  • $155.9 billion for the Navy – about $900 million less than appropriated in 2012
  • $140.1 billion for the Air Force – about $4.8 billion less than appropriated in 2012
  • $94.9 billion for defense-wide issues – about that same as was appropriated in 2012

Big Movers

Finmeccanica SpA (Up 17.7%) – Shares are up this week amid investor speculation that euro-area officials are nearing an agreement on a Greek bailout deal, as well as the announcement that the company’s subsidiary Telespazio signed contracts worth about €112 million ($147 million). All of the contracts signed support various space operations.

Mine Safety Appliances Co. (Up 6.1%) – Shares rose this week after the company announced record net sales in the fourth quarter and full year. MSA earned $0.46 a share on net sales of $303.7 million, compared to $0.32 a share on $285 million a year ago.

Ceradyne, Inc. (Down 4.3%) – Shares declined this week after the company reported 4Q2011 earnings per share of $0.56, $0.05 below analysts’ estimates of $0.61. Revenue for the quarter also came in below estimates at $128.5 million, versus the consensus of $131.9 million.

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Industry Week in Review – February 10, 2012

This week, Europe’s air safety authority (“EASA”) ordered checks to the entire global fleet of Airbus A380 after cracks were found in some of the planes’ so-called “wing rib feet” – the metal brackets that connect the wing’s ribs to its skin. The order extends a previous order for nearly a third of the planes to be inspected. Airbus has announced that they have developed repair kits for the problem and that, despite the cracks, the aircraft are safe to fly. Still EASA has said that “this condition, if not detected and corrected, could potentially affect the structural integrity of the airplane.” Currently 68 planes are flying with seven airlines. The agency has given airlines between four days to six weeks to complete checks on the A380 aircraft.

Also this week, India selected Dassault Aviation as the preferred bidder for a 126 fighter jet deal. The award was determined largely on the 25% cheaper price tag, compared to the Eurofighter Typhoon jet, which would have cost five billion dollars more than Dassault’s Rafale fighter. In April of last year India pulled a surprise move, cutting out Boeing and Lockheed Martin from the procurement process, as well as Saab AB and Russia’s makers of the MiG-35. Now as the biennial 2012 Singapore Airshow, among the world’s top three aviation events, kicks off February 14th, attention is on the Eurofighter and Boeing. If these planes lose in South Korea and Malaysia, as they have in India and Japan, questions will be raised as to the future of these planes in the international market.

Big Movers

TransDigm Group Incorporated (Up 7.8%) – Shares rose this week after the company raised its FY2012 guidance. Sales are expected to be in the range of $1.47 billion to $1.51 billion, up from $1.43 billion to $1.47 billion. EBITDA is now expected between $723 million to $743 million, compared to $705 million to $725 million previously

Aeroflex Holding Corp. (Down 11.9%) – Shares are down this week after the company posted 2Q2012 sales of $171.1 million compared to $181.6 million the same quarter last year. Additionally, net income fell to $12.6 million or $0.15 per share from $14.3 million or $.19 per share last year.

iRobot Corporation (Down 31.7%) – Shares fell this week after the company announced that it expects to report first quarter earnings per share (“EPS”) between a loss of $0.08 and break-even. Consensus estimates for EPS were $0.30 and $1.45.

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Industry Week in Review – February 03, 2012

This week Republican senators introduced a bill aimed at delaying the spending cuts required under sequestration by one year. Senator John McCain, R-Arizona, introduced the legislation entitled, the “Down Payment to Protect National Security Act of 2012,” aimed towards reducing federal spending by $127 billion over the next ten years. Republicans hope to realize these savings through an extension of the federal pay freeze, including members of Congress, by an additional year and a reduction in the federal workforce through attrition. According to John McCain, roughly $110 billion is required to cover the first year of cuts under sequestration; however, President Obama has formerly stated that he would veto any plan that would undo the Budget Control Act of 2011’s sequestration provision because he believes it could still force Congress to come together on a much broader solution to reduce the country’s deficit.

As budget cuts are pushed throughout the military, reductions in the Air Force are expected to be met through a heavier reliance on multirole aircraft. According to Dan Goure, an analyst at the Lexington Institute, the service cannot afford to maintain fleets of specialized aircraft anymore, even though it might mean the Air Force ends up with planes capable of performing many missions, but none particularly well. Given the delays on the F-35, however, the Air Force is currently modifying roughly 350 F-16s to add capabilities and extend the aircrafts’ service life.

Big Movers

Northstar Aerospace Inc. (Down 62.3%) – Shares plunged this week after the company received a notice from a major customer claiming breach of obligations under certain contracts. The aircraft parts maker said that it expects to violate its financial covenants as of January 31.

Cubic Corporation (Up 10.6%) – Shares rose this week after the company released Q12012 sales and operating income of $318.7 million and $28.2 million, compared to $284.4 million and $27.2 million the same quarter last year, an increase of 12% and 4%, respectively. The company also announced a record backlog of $3.2 billion.

BE Aerospace Inc. (Up 10.4%) – Shares are up this week after the company announced fiscal 2012 estimated revenue and earnings per share (“EPS”) to be approximately $2.95 billion and $2.75 per diluted share, respectively. Analysts had expected revenue of $2.86 billion and EPS of $2.74 for fiscal 2012.

Recent Acquisitions

ICF International Inc. to acquire GHK Holdings Limited, a multidisciplinary consultancy serving government and commercial clients on government, health, and international development issues. The acquisition is expected to strengthen ICF’s European presence and create critical mass for ICF in high-growth Asian markets. Terms of the deal were not disclosed.

Wynnchurch Capital, Ltd. acquired the assets of Burtek, Inc., a manufacturer of ground-based mobile military equipment, such as radar systems, ground vehicles, and shelters, for nine million dollars. Wynnchurch originally offered $14 million two months ago, but reduced its offer after Burtek lost two contracts while the deal was still pending. The deal closed late Thursday after a U.S. District Court approved the sale.

Berger Group Holdings, Inc. Acquired Ranger International Services Group, Inc., a provider of aviation, logistics, and engineering services both domestically and internationally, for an undisclosed amount. The acquisition is expected to increase Berger’s capabilities in government operations contracting, operations and maintenance, airfield operations, and specialized technical services. Ranger International Services Group, Inc., will now do business under the Louis Berger Services, Inc. name.

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Industry Week in Review – January 27, 2012

This week, Defense Secretary Leon Panetta held a news conference on defense budget cuts at the Pentagon. “The military will be smaller and leaner, but it will be agile, flexible, ready and technologically advanced; it will be cutting edge,” he told reporters. The U.S. Army will be reduced from 547,000 active-duty soldiers to 490,000, while the U.S. Marine Corps will be cut to 182,000. The Army also plans to remove at least eight brigade combat teams from its existing force structure. To reduce projected spending by $487 billion over the next 10 years, the Pentagon is eliminating what it describes as “poorly performing programs” and has identified an additional $60 billion in efficiencies. The first tranche of those spending cuts — $259 billion — will come over the next five years. These cuts do not take into consideration the possibility of sequestration which could initiate an additional $500 billion cut in January 2013 if Congress does not find an alternative way to reduce the country’s deficit. In 2013, the Pentagon is requesting $525 billion for its base budget, with an additional $88.4 billion for overseas contingency operations. Today’s five-year spending plan projects the Defense Department will need $567 billion for its base budget in 2017.

Big Movers

Textron Inc. (Up 17.3%) – Shares are up this week after the Company announced that it expects revenues of approximately $12.5 billion and earnings per share (“EPS”) from continuing operations to be in the range of $1.80 to $2.00. According to estimates, analysts were expecting the Company to report revenues of $11.9 million and EPS of $1.66 for fiscal 2012.

CIBER, Inc. (Up 13.6%) – Shares are up this week after the Company announced that it entered into a purchase agreement to sell its Federal Division and related assets to CRGT Inc.

Wesco Aircraft Holdings, Inc. (Up 9.3%) – Shares are up this week after the company announced results for its fiscal first quarter ended December 31, 2011. Revenue for the first fiscal quarter was $192.6 million, another quarterly record and an increase of 11.0% compared to $173.5 million in the prior year period. Wesco demonstrated strong international growth during the quarter with revenues in the Rest of World segment increasing by 29.7% compared to the prior year.

Relevant Transactions

CRGT, Inc. acquires Federal Division of CIBER, a provider of emerging technology solutions for the U.S. federal government for $40 million. CRGT is a portfolio company of Veritas Capital. The acquisition furthers CRTG’s strategic growth plan, positions the Company to better serve a broader spectrum of the Federal marketplace, and adds unique capabilities that are provided to a diverse customer base.

Sun Capital Partners to acquire Pacific Safety Products, Inc., a manufacturer of advanced armor and personal protection solutions. The acquisition allows Sun Capital Partners to enter into the person protection equipment market. Terms of the deal were not disclosed.

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Industry Week in Review – January 20, 2012

This week, U.S. Defense Secretary Leon Panetta removed the F-35B short take-off-and-vertical-landing (“STOVL) from probation. The F-35B had been placed on probation last year after it was troubled by schedule delays and cost overruns. Though there may not be significant production ramp-ups, the F-35B variant has caught up with the Air Force and Navy versions of the aircraft.

The Pentagon released a list of 30 priority capabilities it needs in order to conduct war anywhere on the globe in the future. The document, officially called the Joint Operational Access Concept (JOAC), outlines a more flexible integration of space and cyberspace operations into the traditional air-sea-land battle space. The 30 capabilities listed in the document are focused on command and control, intelligence, fires, movement and maneuver, protection, protection, sustainment, information and engagement. The document calls for more integration between the services at lower levels

Big Movers

Finmeccanica SpA (Up 16.8%) – Shares rose this week as subsidiaries of the company received positive news. Avions de Transport Regional (turbo props) announced its highest order intake in its 30-year history of 157 planes last year; AgustaWestland (helicopters) signed a EUR90 million (roughly $117 million) deal to supply 5 helicopters and 14 upgrades to the polish defense Ministry; and DRS Technologies announced award of a one year $48.4 million option.

OSI Systems Inc. (Up 11.1%) – Shares rose this week after the company announced that its security division, Rapiscan Systems, was awarded a six year authorization to provide inspection services throughout Mexico. The company is the sole provider for this agreement valued at approximately $400 million.

NCI, Inc. (Down 30.7%) – Shares fell this week after the company reported poor FY2012 guidance. NCI’s current expected revenue range for FY2012 is $340 million – $360 million, compared to the company’s previous guidance for FY2011 of $556 million – $564 million.

Relevant Transactions

Symantec Corp. to acquire LiveOffice LLC, a provider of cloud-based email archiving, compliance, discovery, and continuity solutions for Fortune 500 companies in the U.S. for $115 million. The acquisition will allow Symantec to help organizations store, manage, and discover unstructured information including on-premise and cloud-based information sources such as email, instant message, social media and file sharing.

Lockheed Martin acquires Procerus Technologies, a company specializing in autopilot and other avionics for micro unmanned aerial systems. The acquisition expands Lockheed Martin’s capabilities into the small unmanned aerial vehicle market and helps the Company meet its customers’ strategic priorities. Terms of the deal were not disclosed.

Vishay Intertechnology to acquire HiRel Systems LLC, a provider of high reliability transformers, inductors, coils, and power conversion products for approximately $85 million. The acquisition further enhances Vishay’s inductor portfolio, particularly in the field of custom magnetics for medical, military, aerospace and aviation.

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Industry Week in Review – January 13, 2012

This week, Defense Secretary Leon Panetta announced that the U.S. will withdraw two combat brigades from Europe. In a press release from the Department of Defense, Panetta declared two permanently stationed Army combat brigades will be replaced with rotational units in order to retain a strong presence in the region. Currently, 40 thousand troops and over 100 thousand dependents are stationed in Europe. The adaptation to rotational units is a cost saving plan with the overall goal of meeting the new 10-year defense strategy announced last week.

President Obama unveiled a plan to consolidate six government agencies into one, effectively eliminating the Commerce Department and saving up to $3 billion in the next decade. The six departments and agencies – Commerce’s core business and trade functions, the Small Business Administration, the Office of the U.S. Trade Representative, the Export-Import Bank, the Overseas Private Investment Corporation, and the U.S. Trade and Development Agency – would cut up to 2,000 jobs through attrition and consolidate into one department with the mission of job creation and economy expansion.

Big Movers

Textron (Up 10.8%) – Shares are up this week after Reuters reported the aircraft maker was considering options including spinning off pieces of its business.

KBR, Inc. (Up 10.7%) – Shares are up this week after the company settled a lawsuit brought by an injured convoy driver who claimed the company sent civilians into a battle zone in Iraq in 2004 knowing they would be attacked and possibly killed, according to a court filing. Reginald Cecil Lane, the driver, reached a “confidential settlement” with KBR and its former parent, Halliburton Co. Lane and the defendants asked the court to dismiss the lawsuit, according to the filing.

Relevant Transactions

ManTech International Corp. acquired Evolvent Technologies, Inc., a provider of healthcare information technology services to the federal government. The acquisition will enable ManTech to deliver information technology solutions through Evolvent’s existing relationships with DoD Health organizations, the Veterans Administration and the Department of Health and Human Services. Terms of the deal were not disclosed.

BE Aerospace Inc. to acquire UFC Aerospace Corp., a provider of aerospace logistics and supply chain management services for $400 million. The acquisition expands BE’s capability to offer supply chain solutions, value-added inventory logistics services and customized kitting solutions, as well as further expanding its consumables product offering.

Gridiron Capital, LLC acquired Nex-Tech Aerospace, a manufacturer of components, structures, and assemblies for fixed wing and rotary aircraft for the aerospace industry globally. The acquisition will allow both companies to better serve a diversified customer base through additional resources, increased high-speed machining capacity and an enhanced product and service offering. Terms of the deal were not disclosed.

ASI Government acquired Frontline Solutions Corporation, a provider of Systems Engineering and Technical Assistance (SETA) and mission support services to the Intelligence Community and Department of Defense. The acquisition will allow ASI to fortify its acquisition, program management, and strategy and organizational performance capabilities, while adding additional expertise to address the unique needs of the Intelligence Community. Terms of the deal were not disclosed.

RTI International Metals to acquire Remmele Engineering, a global supplier of advanced titanium mill products and fabricated components for $182.5 million. The acquisition is expected to provide entrance to new contract manufacturing end markets, such as the fast-growing medical device market.

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Industry Week in Review – January 6, 2012

This week, President Obama unveiled a new plan for defense spending and strategy officially titled: Sustaining Global Leadership: Priorities for 21st Century Defense.  The plan outlines more than $487 billion in cuts and ultimately calls for a “leaner” and more “agile” military that uses smaller conventional ground forces amid cuts in federal spending.  With the shifting threat environment, the U.S. will no longer focus on the ability to fight two land wars at the same time, but rather strengthen new capabilities in special operations forces, C4ISR, unmanned systems, space and cybersecurity.  Furthermore, the military will shift its focus away from the Middle East and more towards the Asia Pacific region as growing threats and regional influence from China ensue.

The strategy also intends to reduce the U.S. nuclear stockpile, trim ground forces, and invest in weapons that can penetrate denied regions.  Though specific program cuts were not addressed, they are expected to be unveiled with the 2013 defense budget proposal, which the White House is scheduled to send to congress next month.

Big Movers

CPI Aerostructures Inc. (Up 9.7%) – Share rose this week after the company announced a purchase order from Boeing Defense, Space & Security valued at $12.7 million, as well as announcing that new business awards from all customers for 2011 was approximately $83.6 million compared to $61.7 million for all of 2010.

SPX Corporation (Up 8.5%) – Shares are up this week after the company announced a strategic joint venture with Shanghai Electric Group to supply products to the power sector in China. Shanghai Electric in one of China’s leading diversified heavy equipment manufacturers, with 2010 revenue of $9.5 billion. SPX aims to grow its presence in China through leveraging Shanghai Electric’s strong relationships among utilities, power plant builders, and engineering procurement companies.

Relevant Transactions

IBM Corporation to acquire Green Hat Software Limited, a provider of software quality and testing solutions for the cloud and other environments. The acquisition allows IBM to offer a complete software development and testing solution to its customers and capitalize on growing software testing markets. Terms of the deal were not disclosed.

Grey Mountain Partners acquires Global Security Glazing, a provider of security and architectural glazing solutions for correctional facilities, courthouses, and government security buildings. The acquisition demonstrates the heightened focus on safety and security for government buildings as well as the increasing demand for energy efficient glazing solutions. Terms of the deal were not disclosed.

Clearview Capital acquires Gregory C. Rigamer & Associates, Inc., a provider of consulting services and technology solutions for aviation, elections, energy, and public safety sectors. The acquisition will allow Clearview to provide consulting services for various growing industries. Terms of the deal were not disclosed.

Blue Wolf Capital Partners acquires Channel Technologies Group, a provider of piezo-electric ceramics, transducers and complex systems and services. The acquisition allows Blue Wolf Capital to take advantage of the increased requirements of the U.S. Government and other Channel Technologies customers. Terms of the deal were not disclosed.

Kratos Defense & Security Solutions acquires selected assets of an unnamed security and public safety system integration business, which designs, engineers, deploys, manages and maintains specialty security systems for the U.S. Government for $20 million. The acquisition is significant as Kratos essentially acquired one of its most formidable competitors. Furthermore, it will significantly expand its capabilities, qualifications, customer relationships, contract portfolio and geographic depth and breadth.

Electronic Consulting Services, Inc. (ECS) acquires Paradigm Technologies, Inc., a provider of product oriented management and technical services for federal government customers. The acquisition provides ECS with access to new customers, including the Missile Defense Agency, Navy PEO IWS 3.0, United States Marine Corps, and the US Marshal Service. Terms of the deal were not disclosed.

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Industry Week in Review – December 30, 2011

This week, the U.S. State Department announced a $29.4 billion sale of Boeing-made F-15 fighter jets to Saudi Arabia under the Foreign Military Sales program. The agreement includes 84 new aircraft, the modernization of 70 existing aircraft, as well as missiles, spare parts, training, maintenance and logistics. White House spokesman Joshua Earnest said the sale reinforces “the strong and enduring relationship between the United States and Saudi Arabia, and demonstrates the U.S. commitment to a strong Saudi defense capability as a key component to regional security.” According to a recent report from the Congressional Research Service, Saudi Arabia has remained one of the top three purchasers of U.S. defense articles and services since 2003.

After more than two years of delays, Russia delivers its nuclear-powered attack submarine, Nerpa, to the Indian military under a 10-year lease program. The lease has angered India’s arch-rival Pakistan and resulted in retaliation threats. Nerpa will be the first nuclear-powered submarine to be operated by India in nearly two decades since its last Russian-borrowed vessel was decommissioned in 1991. Russia supplies 70 percent of India’s military hardware.

Big Movers

Magellan Aerospace Corp. (Up 10.8%) – Shares are up this week after the company announced an agreement to deliver aluminum and titanium components to GKN Aerospace. The contract extension is projected to generate revenues in excess of £200 million (~$310 million) through December 2017.

Computer Sciences Corporation (Down 10.5%) – Shares are down this week after the company warned it may write down a $1.5 billion contract with Britain’s National Health Service. Implied volatility has increased as the company narrows its search for an outsider to be its CEO.

Relevant Transactions

Raytheon acquired Henggeler Computer Consultants, a cybersecurity and software engineer firm. The acquisition expands Raytheon’s capabilities to serve the cybersecurity, enterprise architecture and systems engineering needs of customers in the intelligence community as well as in the Department of Defense. Terms of the deal were not disclosed.

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