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The Defense Market to Benefit from Innovation and Government Spending

T.XTRA, GD, NOC, AXON

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 2, 2017 /PRNewswire/ --

A research report by PwC indicates that the defense industry reported modest revenue and profit growth in 2016, and the market is expected to benefit from stronger economic factors in 2017. According to the report, spending uncertainty that dominated the industry for a number of years is expected to have a clearer direction this year and beyond. Global merger and acquisition activity in the defense sector continued to focus on organizations realigning their portfolios and the consolidation of government services companies, Patriot One Technologies Inc. (OTC: PTOTF), Harris Corporation (NYSE: HRS), General Dynamics Corporation (NYSE: GD), Northrop Grumman Corporation (NYSE: NOC), Axon Enterprise, Inc. (NASDAQ: AAXN)

The new presidential administration included an increase in defense spending of about $25 billion in 2017 and is expected to add an additional 10% increase in US defense spending for 2018.Simultaneously, the administration is encouraging allies to increase defense spending as well, particularly NATO allies currently spending less than 2% of GDP on defense, which is expected to impact both the defense and aerospace markets. "Both commercial aerospace and the defense sectors expect improvement for the remainder of 2017, with the potential for new records in both revenue and operating profit. Aerospace's role in the global economy will drive more immediate growth. The years ahead look promising for the defense sector as well, as countries begin to reevaluate their defense spending and priorities," according to PwC.

Patriot One Technologies Inc. (OTCQB: PTOTF) is also listed on the TSX Venture Exchange under the ticker symbol "PAT". Just earlier today the company announced breaking news that it, "is extremely pleased to announce that its award-winning PATSCAN CMR™ (Cognitive Microwave Radar) concealed weapons detection system has achieved Federal Communications Commission (FCC) Declaration of Conformity certification, a copy of which can be found here: https://fccid.io/2ALZTCMR.

"This is a momentous occasion for us," states Patriot One Technologies CTO Dinesh Kandanchatha. "We now hold both FCC and Industry Canada (IC) certification allowing us to move into commercial roll-out across North America, with other countries soon to follow. The next stage of this exciting journey now begins with select deployments with key early adopters. Our system, which relies on machine learning algorithms, has graduated from the lab and is about to enter the arena of commercial distribution. Our strategy involves deployment through the remainder of the year to meet our backlog of commitments, and to immerse our engineering teams into an in-depth analysis of real-world threat scenarios in order to ensure that Patriot One offers the leading world-class solution for global threat detection.

"This is an important milestone for the Patriot One team for which they should be proud," said Governor Tom Ridge, first U.S. Secretary of Homeland Security and a member of the Patriot One Advisory Board. "I very much look forward to seeing the rollout of this game-changing technology across the United States and to supporting their efforts to improve public safety."

"We have used the waiting period for regulatory approval to assemble a team capable of meeting the go-to market challenges ahead." Kandanchatha continues, "I anticipate a phased rollout, and like any new technology we will advance carefully and deliberately, recognizing progress will come quickly as we learn from each installation. We have worked hard to ensure that our system would pass this rigorous hurdle and to have achieved it in less than a year is a testament to our team of dedicated engineers, researchers and support staff who have put in the huge effort to achieve today's news."

PATSCAN CMR sales efforts currently focus on markets encompassing houses of worship, academic institutions, event centres, casinos, commercial offices, hotel properties, government agencies and other locations at high risk of terrorist attack or random violence. Interest and orders have been received from around the globe and today's announcement will trigger a number of sales, marketing and support initiatives in major markets including the United Kingdom, Eurozone and Asia-Pacific regions.

"This is wonderful news for our company, our stakeholders and shareholders alike" states Company CEO Martin Cronin. "We well understand that there are hurdles with any new technology, especially when it is revolutionary. We are also very clear regarding the role that the investment community has played in getting us to where we are today and we will redouble our commitment as we move ahead to build shareholder value and to earn capital market support. Today we celebrate meeting a significant building block in our strategy for public safety through threat detection and our ongoing mission to make the world a safer place…"   

Harris Corporation (NYSE: HRS) is a leading technology innovator, solving customers' toughest mission-critical challenges by providing solutions that connect, inform and protect. On August 23, 2017, the company announced that BAE Systems has selected Harris Corporation's advanced electronic warfare transmitter technology to help protect the U.S. Air Force Special Operations AC/MC-130J aircraft from electronic threats. Harris' phased array antennas will provide the transmit capability for BAE's electronic warfare countermeasure systems. The active, electronically scanned arrays use next-generation semiconductor technology and provide fast, agile beam pointing and high reliability.

General Dynamics Corporation (NYSE: GD) is a global aerospace and defense company. Recently, the company announced that The U.S. Navy has awarded General Dynamics Electric Boat a $5.1 billion Integrated Product and Process Development (IPPD) contract to complete the design of the lead Columbia-class submarine, the nation's next-generation sea-based strategic deterrent. Electric Boat is a wholly owned subsidiary of General Dynamics. The IPPD contract includes funding for component and technology development as well as continued development of the Common Missile Compartment, which will be integrated into both the Navy's new SSBN and the Royal Navy's Dreadnought-class strategic missile submarine.

Northrop Grumman Corporation (NYSE: NOC) is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, strike, and logistics and modernization to customers worldwide. On September 18, 2017, the company and Orbital ATK, Inc. announced they have entered into a definitive agreement under which Northrop Grumman will acquire Orbital ATK for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt. Orbital ATK shareholders will receive all-cash consideration of $134.50 per share. Upon completion of the acquisition, Northrop Grumman plans to establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition into Northrop Grumman. 

Axon Enterprise, Inc. (NASDAQ: AAXN) is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. Recently, the company announced the receipt of multiple orders for its TASER X26P and TASER X2 Smart Weapons. "We are dedicated to developing technology that makes the world a safer place," says Rick Smith, Axon CEO and co-founder. "Our mission is to make a TASER CEW available to every officer, so they have the best options available to avoid injury or death. When we built the TASER Smart Weapon, our engineers had three thoughts in mind: safety, accountability, and performance."

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