Raytheon awarded $136.2 million Phalanx upgrade contract

TUCSON, Ariz., Sept. 11, 2013 /PRNewswire/ -- The U.S. Navy awarded Raytheon Company (NYSE: RTN) a $136.2 million contract for federal FY13 to remanufacture, overhaul and upgrade 19 Phalanx Close-in Weapon Systems and produce four SeaRAM Anti-ship Missile Defense Systems.

This contract includes a $94.8 million option for FY14 covering an additional 12 Phalanx and four SeaRAM systems. The option, if exercised, would bring the cumulative value of the contract to $231 million.

"Phalanx is a vital ship self-defense system, providing the critical inner-layer of protection to sailors, Marines and ships," said Rick Nelson, vice president of Raytheon Missile Systems' Naval and Area Mission Defense product line. "With SeaRAM comes a significant extension of that inner-layer battlespace and the capacity to effectively engage multiple high-performance threats. Raytheon's ability to remanufacture Phalanx equivalent to new manufacture condition -- in appearance, operation and performance -- provides a significant cost savings to our customers."

Close-in Defense Solutions
Phalanx is a rapid-fire, computer-controlled radar and 20 mm gun system that automatically acquires, tracks and destroys enemy threats that have penetrated all other ship defense systems. More than 890 systems have been built and deployed in the navies of 25 nations.

Intended to enlarge Phalanx's keep-out range against evolving anti-ship missiles, rotary- and fixed-wing aircraft and other threats, SeaRAM uses advanced Phalanx Block 1B sensors and replaces the gun with an 11-round Rolling Airframe Missile guide. SeaRAM is aboard the USS Independence (LCS 2) and USS Coronado (LCS 4).

About Raytheon
Raytheon Company, with 2012 sales of $24 billion and 68,000 employees worldwide, is a technology and innovation leader specializing in defense, security and civil markets throughout the world. With a history of innovation spanning 91 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @raytheon.

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SOURCE Raytheon Company