Raytheon Emphasizes Work on Small Satellites

Raytheon Co., seeking to grow its defense business, hopes to edge out rivals by emphasizing development of a new generation of small, experimental satellites.

Two Raytheon-built mini-satellites designed for imaging are slated for launch later this year, while a separate optical sensor is waiting for its own ride into space.

At an industry conference here, Raytheon is expected to stress the importance of stepping up both corporate and government funding for such technologies. Small, technology demonstration satellites can cost less than $15 million to develop, and take less than two years to build.

"It is going to take a little while longer" to establish so-called operationally responsive space projects "as a real capability," Brian Arnold, a senior Raytheon executive, said last week.

"If you really want to get into" smaller satellites, "your company is going to have to invest" its own research funds, Arnold said. The Air Force has projected spending about $400 million to develop small satellites and launchers through 2013.

With other defense contractors striving to tap into the small-satellite segment, Raytheon argues it has the edge over rivals partly because its El Segundo, Calif., manufacturing facility is optimized to work on smaller satellites. (Dow Jones)