Keysight Technologies, Inc. KEYS recently announced that Indra, one of the leading defense, air traffic and space companies in Spain and Latin America, has opted to deploy its EW Advanced Simulation Platform (EWASP) to bolster and expedite the latter’s electronic warfare (EW) test and evaluation capabilities. This strategic move is part of Indra's ‘Leading the Future’ initiative, which aims to position the company as a leader in defense and aerospace in Europe.

Reason Behind Selecting KEYS’ Solution

As part of its defense market transformation, Indra is set to upgrade its validation and verification processes to ensure optimum product quality, particularly during the final stages of system validation in operational and relevant environments before delivery. Its EW systems are required to be tested against complex and dynamic electromagnetic environments. This demands flexible and scalable systems capable of accommodating varying sensor configurations and technologies to generate the angle of arrival (AoA). 

Keysight’s state-of-the-art EWASP meets these requirements, offering current and future capabilities across multiple domains. It supports automated and reusable verification between simulated dynamic scenarios, threat databases and real-world system performance.

What KEYS Brings to the Table?

With this partnership, Keysight equips Indra with significant advantages, including its Simulation View Software. It simplifies developing, integrating, and testing sophisticated EW Systems by combining data and Radio Frequency (RF) capture tools into an open, reusable format. 

The upgradable nature of the framework allows for system customization and scalability, enabling adaptation to evolving technologies and mission-specific needs. Furthermore, the multi-port analysis capabilities of the EWASP provide real-time detection and characterization of multiple signals, ensuring accurate assessments of complex EW scenarios. 

In addition, the EWASP’s advanced RF performance, which includes a frequency range of up to 54 GHz, 2.5 GHz modulation bandwidth and robust AoA simulation capabilities, offers sophisticated mission simulations with dynamic scenarios and closed-loop feedback. These features enhance the platform's ability to conduct automated RF verification, integrating both current and future threat models into the testing process.

Does KEYS Stock Stand to Gain From the Partnership?

Keysight is gaining from strong industry-wide growth. The company is witnessing solid adoption of its electronic design and test solutions. Its comprehensive suite of solutions is particularly valuable for microelectronics development, offering industry-leading expertise in RF and microwave design, which is critical for ensuring first-pass design success. By leveraging Keysight’s simulation, measurement and IP management capabilities, engineers can seamlessly correlate results across the design, simulation and testing phases, reducing risks and improving overall efficiency. 

Through this collaboration, Keysight aims to ensure that Indra remains at the forefront of EW testing and evaluation, providing it with the tools necessary to adapt to an ever-changing threat landscape. 

These advancements are expected to generate incremental demand for Keysight’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.

KEYS’ Stock Price Performance

Shares of Keysight have gained 7.6% over the past year compared with the industry’s growth of 3.5%.

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KEYS’ Zacks Rank and Other Key Picks

Keysight currently sports a Zacks Rank #1 (Strong Buy). 

Some other top-ranked stocks in the broader industry have been discussed below.

Celestica Inc. CLS sports a Zacks Rank #1 at present. In the last reported quarter, Celestica delivered an earnings surprise of 10.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.  

The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques.

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