#2 is more in-line with what we are looking for. We would like RECON to have at least some of the blue coloring in it. Also, we would prefer a more abstract graphic and a slightly irregular font; at least in the RECON lettering.
Thanks for the responses. The updated font is a good one. On the icon graphic, I am thinking of something like a swoosh, or just something that doesn't really look like a real world object. Having said that, I like what you did with the "gear" icon.