Industry Week in Review – October 7, 2011
The White house this week released an executive order establishing an Insider Threat Task Force aimed at better protecting the country’s classified information. Along with the task force, the order will require every agency to designate a senior official to oversee classified information sharing and implement an insider threat detection and prevention program. The order is in direct response to WikiLeaks’ publications of classified government documents, but will have an effect on all government information.
Additionally, the order was made just a few days after the U.S. Air Force reported that a computer virus has infected the cockpits of the military’s Predator and Reaper drones. The virus was first detected by the military’s Host-Based Security System and is believed to have originated from disks and removable drives used to upload map updates and transport mission videos from one computer to another. The drives are severely restricted throughout the military, but Creech Air Force base in Nevada was one of the few exceptions where they were allowed.
This virus is not the first security breach the military has experienced relating to unmanned vehicles—noting specifically the Predator and Reaper unencrypted video found on laptops of Iraqi insurgents—and further reinforces the government’s increased investment in cyber security research and acquisitions.
CPI Aerostructures (Up 14.2%) – Shares were up this week after the company announced authorization for an existing program that will add more than $15.7 million to current backlog.
Comtech Telecommunications Corp. (Up 10.3%) – Shares are up this week after an activist shareholder pressures the company to evaluate a sale. No bid has been made yet, however potential acquirers include, EADS, General Dynamics Corp, L-3 Communications, and BAE Systems Plc.
Macdonald Dettwiler & Associates Ltd. (Down 9.6%) – Shares were down this week after the company closed a deal to buy back more than 20% of its stock. The company had previously told investors it would use its cash to diversify its business.
Salient Federal Solutions to acquire the Electronic Security Systems Division of Dataline LLC, a provider of IT solutions, engineering and intelligence analysis services to the Department of Defense, military and federal customers. The acquisition provides Salient with a full spectrum and lifecycle of emergency response system requirements including, access control, alarm monitoring, intrusion detection, video surveillance, asset tracking and other capabilities. Terms of the deal were not disclosed.
McAfee to acquire NitroSecurity Inc., a provider of security information and event management solutions that provide complete visibility and situational awareness to protect critical information and infrastructure. The acquisition will expand McAfee’s Risk and Compliance and Global Threat Intelligence capabilities. Terms of the deal were not disclosed.