As a leader in the defense sector, Lockheed Martin Corp. (NYSE: LMT) has to stay on top of its game with the newest hardware and software in the business. The company is now looking to Giga-tronics Inc. (NASDAQ: GIGA) to license and develop its newest threat emulation system.
Both companies announced on Tuesday morning that they have entered into a strategic software licensing arrangement to develop and license threat simulation software as a commercial product that brings advanced threat environment simulation capability to its new Advanced Signal Generator Hardware Platform.
Giga-tronics expects to be shipping the Advanced Signal Generator with the new software package within six months. The software and hardware will be sold together as a Real-Time Threat Emulation System (Real-Time TEmS), for distribution to U.S. customers only.
Giga-tronics produces instruments, subsystems and sophisticated microwave components that have broad applications in defense electronics, aeronautics and wireless telecommunications.
Mark Elo, Vice President of Marketing of Giga-tronics, said:
This is a win for the Electronic Warfare community, Lockheed Martin and Giga-tronics. The threat generation software is built by a team that has a strong legacy of program support and brings many new capabilities in a Commercial Off the Shelf solution that is both ready as a turnkey bench solution or a scalable alternative for larger projects.
John Regazzi, president and CEO of Giga-tronics, added:
Lockheed Martin was one of the initial Advanced Signal Generator customers, this partnership demonstrates their belief in its potential and capabilities.
So far in 2015, Giga-tronics has underperformed the market to Monday’s close, with the stock down 22% year to date. Over the past 52 weeks the stock is down over 33%.
ALSO READ: 6 Analyst Stock Picks With Massive Upside Targets
Lockheed Martin shares were trading at $220.34 Tuesday, with a consensus analyst price target of $225.19 and a 52-week trading range of $181.91 to $227.91.
Shares of Giga-tronics were trading up over 200% at $3.40, with a 52-week trading range of $0.86 to $3.85.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.