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Articles by Asif Anwar, Program Director, Strategy Analytics

RF Market Opportunities from Defense Sector Still Growing

Military expenditure faces challenges with declining budgets impacting the introduction of new platforms. However, technology will be the differentiator for future global conflict scenarios, and budgetary constraints will not detract from the need to improve system capabilities through technology upgrades. Strategy Analytics forecasts the opportunity for RF technologies remains strong despite budgetary challenges as the focus shifts towards enhancing capabilities in the areas of radar, satellite communications and electronic warfare.
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Strong Focus on Defense Market at IMS 2013

Seattle was the venue for IMS 2013 providing a platform for the industry to discuss industry trends and launch strategies, products and processes. Strategy Analytics hosted a lunch session to discuss RF technology opportunities from the defense sector as well as leading a panel session looking at the impact of competing technologies on the GaAs industry. Read this summary of defense products offered or released at IMS2013.
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Healthy Defense Industry Activity Marred by Lackluster Revenues

Ongoing activity in March and April included mergers and acquisitions, product launches and milestones, as well as seemingly healthy contract activity, but financials continue to emphasize the difficulties faced by the defense industry. Strategy Analytics Advanced Defense Systems (ADS) service reports, "Defense Electronics Industry Review: March 2013," and "Defense Electronics Industry Review: April 2013," detail significant defense industry news, including product announcements, milestones, contract activity and defense industry financial performance as the first quarter of 2013 came to a close.


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Defense Industry Review YTD; Briefings with Ultra Electronics, 3eTI and Gilat Satellite Networks

The beginning of 2013 started to see revenue results for companies. Most companies reported results that were essentially stable with minor increases or declines year-on-year. Boeing was the exception with revenues growing 19% year-on-year on the back of the company's commercial business. Company results reflected a slowing defense market, but contract activity was surprisingly good in January with new contracts across all sectors including radar, communications and EW. There were a number of international shows in February providing the stage for companies to establish strategic relationships, form joint ventures and highlight their capabilities as well as signing major contracts. Asif reviews these early year trends along with some briefings with various defense companies.
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Steady Defense Industry Performance Projected in 2013

Maintaining Profitability as Revenues Slow will be the Primary Challenge
Strategy Analytics has released a series of reports, that bring together strategic analysis and commentary on twenty of the world’s major defense industry focused companies. The reports outline financial performance covering 2007-2012 and discuss activities within the defense sector, highlighting core strengths, perceived weaknesses and overall competitive positioning in the market.
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Military Satellite Trends and Outlook

Strategy Analytics presented at the 2012 Defence, Security and Space Forum during European Microwave Week on military satellite trends and future outlook. The use of space is increasing and becoming an essential component for infrastructure in communications, navigation and timing, agriculture and weather monitoring and disaster relief efforts. From a military perspective, space assets provide necessary resources to support troops including the provision of imagery, supporting communications, improving targeting and conversely reducing collateral damage. As a force multiplier, space assets can provide advanced capabilities and compensate for reductions in other conventional assets.
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Defense industry maintains summertime momentum

Positive financials and continuing contract activity; dark days ahead?
Despite the ongoing uncertainty with defense expenditure facing challenges and the threat of sequestration hanging over US companies there was positive news on the financial front as companies finished releasing results for the second quarter of the calendar year. Taking a snapshot of financial results and looking at quarterly revenue growth over the second and first quarters shows a turnaround with companies growing revenue as opposed to the quarter-to-quarter revenue declines observed after the first quarter of 2012.
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Defending the Fifth Domain

Briefing with 3eTI
Strategy Analytics’ lead defense analyst, Asif Anwar, caught up with 3eTI’s president, BengaErinle, to discuss a range of issues including how the move towards net-centricity in military operations needs to be balanced with the threats from cyber-security, the impact of budgetary constraints on developing a coherent cyber strategy and linking future cyber requirements with electronic warfare.
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