Industry Week in Review – July 5, 2013
Over the past week, the Senate passed a $46 billion immigration reform and border security bill. With the bill, the Senate approved an amendment that would require an additional $38 million investment in technologies and security personnel to be stationed along the U.S. southern border. If enacted, the amendment would double the number of personnel, add four drones, 30 marine vessels, 17 Huey helicopters, 15 Black Hawk helicopters, and hundreds of sensors and surveillance systems. Though the enactment of a final immigration bill has yet to occur, defense companies are already moving towards the homeland security sector. General Dynamics, Raytheon, Lockheed Martin, and Elbit are currently competing for the Customs and Border Protection’s Integrated Fixed Tower solicitation worth $1.1 billion, which is slated for award this fall.
This week predictions of further delays for the F-35 Joint Strike Fighter program arose. The delays are a result of software requirements for the previously announced initial operating capability plans and weapons integration concerns of inaccuracy. More specifically, the helmet-mounted display system and software regression testing are expected to result in an eight-month delay while weapons integration will push the timeline out by more than a year.
Intevac Inc. (Up 12.5%) – Shares were up this week after the Company’s ENERGi ion implantation production system was qualified by a Tier 1 solar company in Asia. Intevac fulfilled an order to the Tier 1 solar company in the first quarter of 2013 and expects the customer to add incremental cell production capacity through 2014.
Comtech Telecommunications Corp. (Up 7.3%) – Shares rose for the week after the Company received $3.6 million in orders for solid-state high-power amplifiers to a military integrator. The orders will be used in satellite communications systems to provide voice, data, video, and internet connectivity for deployed military forces world-wide.
Sensintel Inc. acquired BAE Systems Unmanned Aircraft Program business in order to expand the Company’s portfolio of offerings and quickly expand into new platforms and sensors. Sensintel, an Arizona based startup invested in the unmanned industry, will continue to design and manufacture its original three unmanned aerial systems. The terms of the deal were not disclosed.
Caltius Partners acquired SM&A, a provider of contract competition and program management services. The Company was previously owned by Odyssey Investment Partners. Caltius brought on Ajay Patel, SM&A’s former COO, as the company’s new CEO along with a new team of senior leaders to build upon SM&A’s 30 year history. The terms of the deal were not disclosed.