Category: Aerospace and Defense

Release – Kratos Defense & Security Solutions (KTOS) – Receives $55 Million C5ISR System Product Award

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Kratos Receives $55 Million C5ISR System Product Award from National Security Customer

 

SAN DIEGO, Feb. 19, 2021 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has recently received an approximate $55 million, Single Award Indefinite Delivery, Indefinite Quantity (IDIQ) C5ISR product related contract from a National Security Customer. The contract has a period of performance of approximately five years. Kratos’ C5ISR Business is a leading provider of Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR) related hardware, products, systems and solutions in support of unmanned drone, space and satellite communications, radar, missile defense, high power energy, strategic deterrence and other systems. Production and work under this new contract award will be performed primarily at a secure Kratos manufacturing facility. Due to customer related, competitive and other considerations, no additional information will be provided related to this contract award.

Tom Mills, President of Kratos C5ISR Division, said, “Our entire organization is focused on supporting our National Security Customer’s mission critical requirements, including in the unmanned aerial drone, strategic system and warfighter support areas, and we are proud to have received this recent contract award.”

Eric DeMarco, President and CEO of Kratos, said, “The entire Kratos Team continues to execute well, including as represented by this recent contract win. Over the past few years, we have been extremely focused on making the necessary investments to pursue and execute on large, new program opportunities and increasing our market share, and we believe that our recent strong book to bill ratio, total backlog and opportunity pipeline positions Kratos well for sustained organic growth.”

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information, go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687

investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

CoreCivic (CXW) NobleCon17 Presentation Replay

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CoreCivic (CXW) CEO Damon Hininger and CFO David Garfinkle at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 2021. Following the formal presentation, Noble Capital Markets Senior Research Analyst Joe Gomes joins Damon and David to moderate a Q&A session.

NobleCon 17 Complete Rebroadcast

Comtech (CMTL) NobleCon17 Presentation Replay

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Comtech (CMTL) CFO Michael Bondi and COO Michael Porcelain at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 2021. Following the formal presentation, Noble Capital Markets Senior Research Analyst Joe Gomes joins Michael and Michael to moderate a Q&A session.

NobleCon 17 Complete Rebroadcast

Vectrus (VEC) – Another Major Win: OMDAC-SWACA Award

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Thursday, December 31, 2020

Vectrus (VEC)
Another Major Win: OMDAC-SWACA Award

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    OMDAC-SWACA Award. Tuesday evening, the U.S. Army announced Vectrus was awarded an $882.5 million cost-plus-fixed-fee contract for operation, maintenance, and defense of Army communications (OMDAC-SWACA) with an estimated completion date of December 26, 2025. This is another major win for Vectrus, as OMDAC-SWACA accounted for approximately 15.6% of the Company’s 2019 revenues.

    Details.  The OMDAC-SWACA award of $882.5 million over the next five years is similar in value to what the contract provided Vectrus over the 2016-2020 period, which we estimate to have contributed a total of $932 million of revenue. The entire $882.5 million was obligated at the time of the …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Vectrus (VEC) – Zenetex Acquisition Expands and Deepens Offerings

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Wednesday, December 30, 2020

Vectrus (VEC)
Zenetex Acquisition Expands and Deepens Offerings

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Zenetex Acquisition. Monday evening, Vectrus announced it was acquiring Zenetex, accelerating its converged infrastructure strategy. Vectrus is paying $123 million, or $112 million, net, after $11 million of expected tax benefits, or approximately 8.4x 2020E adjusted EBITDA. The deal is expected to be accretive to VEC’s adjusted diluted EPS and adjusted EBITDA margin. The deal is expected to close before the end of 2020.

    Who is Zenetex? Zenetex is a leading provider of technical and strategic solutions focused on enabling mission readiness, performance, and enhanced protection for defense and national security clients globally. For 2020, the Company is expected to generate revenue in excess of $200 million and we estimate around $13 million of adjusted EBITDA. The Company is at the front end of significant new …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

DLH Holdings (DLHC) Scheduled To Present at NobleCon17

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Join DLH Holdings (DLHC) CFO Kathryn JohnBull & CEO Zach Parker at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Kathryn and Zach to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com.

NobleCon 17 Complete Presenting Company Schedule

Kratos Defense & Security (KTOS) – $37.7 million Skyborg Award

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Wednesday, December 09, 2020

Kratos Defense & Security (KTOS)
$37.7 million Skyborg Award

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Skyborg Award. Monday evening, Kratos was awarded a $37.7 million Skyborg Program contract from the USAF Advanced Aircraft Office to integrate, test, and deliver XQ-58A Valkyrie aircraft for the Skyborg program. Kratos will produce missionized prototypes with the ability to fly in experimentation events while teaming with manned aircraft. We view Monday’s announcement as a significant step in the Company’s unmanned systems program.

    One of 3, But No Northrup Grumman.  Kratos was one of three firms receiving an award, the others being Boeing ($25.7 million award) and General Atomics ($14.3 million award). Significantly, left out was Northrup Grumman, one of the original four firms announced in July to have received awards to move forward in the Air Force program to build an AI-enabled drone wingman …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Vectrus (VEC) – New Business Momentum Continuing

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Monday, December 07, 2020

Vectrus (VEC)
New Business Momentum Continuing

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    New Business. Vectrus continues to win new and expanded awards. Last week, the Department of Defense announced two new awards to the Company, one for work in Ft. Benning, Georgia, the other for work in Guantanamo Bay. We view the awards as further confirmation of Vectrus’ leadership position in the converged infrastructure market.

    Fort Benning.  On Friday, Vectrus was awarded a $35.5 million cost-plus-fixed-fee contract for logistics support services at Fort Benning, Georgia. This was a competitive bid with Vectrus beating out eight other bidders. Work will be performed in Chattahoochee, Georgia, with an estimated completion date of December 9, 2025. Fiscal 2021 operation and maintenance (Army) funds in the amount of $2.1 …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Vectrus (VEC) – After a 3Q Beat, What’s Next?

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Wednesday, November 11, 2020

Vectrus (VEC)

After a 3Q Beat, What’s Next?

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    3Q20 Results. Vectrus continued to post strong results even in the face of COVID. Revenue of $352.4 million was down 2.1% y-o-y, but up 4.9% sequentially. COVID impacts reduced 3Q revenue by an estimated $12.9 million. EBITDA margin of 4.8% was the second highest in 10 quarters, even with a 40 bp COVID headwind. GAAP EPS was $0.88 versus $0.67. Adjusted EPS was $0.89 versus $0.71 last year. Third quarter 2020 adjusted EPS was impacted by $0.14 from COVID.

    Converging on the $2.5B/7% Goal.  Vectrus continues to move forward on its goal of $2.5 billion of revenue and 7% EBITDA margin by 2023. The new contracts highlight the Company’s move to diversify its revenue streams, while moving up the margin ladder. The Company is exhibiting its leadership position in the converged infrastructure market, in our view, which should lead to additional opportunities …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Kratos Defense And Security (KTOS) – Momentum Continues to Build; Exceeds 3Q Consensus Estimates

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Friday, October 30, 2020

Kratos Defense & Security (KTOS)

Momentum Continues to Build; Exceeds 3Q Consensus Estimates

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    3Q20 Results. Revenue of $202 million and adjusted EPS of $0.14 topped consensus estimates of $199.7 million and $0.09, respectively. We had projected $205 million and $0.07, respectively. In the third quarter last year, KTOS reported revenue of $184.1 million and adjusted EPS of $0.13. Adjusted EBITDA came in at $24.6 million, up 20.6% y-o-y. Revenues were in the middle of management’s guidance range while adjusted EBITDA exceeded the $17-$20 million guide.

    Program Momentum.  As we have outlined in previous reports, Kratos continues to pick up momentum among a number of programs. Key highlights in the quarter include going to full rate production on the BQM-177A Subsonic Aerial Target for the U.S. Navy, securing a contract to support the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) program as part of the team led by Northrop Grumman, and …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Kratos Defense & Security (KTOS) – Contract Momentum – Part 2

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Thursday, October 01, 2020

Kratos Defense & Security (KTOS)

Contract Momentum – Part 2

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Two More Announcements – This Time for Unmanned Drones. On September 29th Kratos announced it had received a multi-million dollar contract for 20 high-performance target drones. On the same day, the Department of Defense announced Kratos had been awarded a contract for full rate production of BQM-177A aerial targets. We view these announcements as substantial steps in driving the Company’s unmanned target drones to the $250 million of annual revenues goal.

    BQM-177A Award.  Tuesday evening, the Department of Defense announced it had awarded a $29.2 million contract to Kratos for the production of 35 full rate production Lot 1 BQM-177A target drones for the Navy. The achievement of full rate production is a key milestone as programs can last decades. The Company’s USAF AFSAT BQM 167 Program is in lot 14-16 production, for example. In addition, the …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Kratos Defense & Security (KTOS) – Recent Award Momentum

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Tuesday, September 29, 2020

Kratos Defense & Security (KTOS)

Recent Award Momentum

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Recent Award Activity. Kratos continues to experience positive award activity and collaborations, as evidenced by recent announcements on the Ground Based Strategic Deterrent (GBSD) program, the Air Force Advanced Battle Management System (ABMS), and the Microsoft Azure collaboration. We view the recent activity positively.

    GBSD Program.  Headed by Northrop Grumman, the $13.3 billion development phase begins the process of modernizing the U.S.’s intercontinental ballistic missile system. Kratos will provide engineering services and the manufacture and production of specialized ground support systems, including highly complex missile transporters and payload transporters. The development phase is expected to last over …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Vectrus (VEC) – New Contract Award

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Wednesday, September 16, 2020

Vectrus (VEC)

New Contract Award

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    New Award. On Monday, the DoD announced Vectrus has been awarded a $43.4 million ID/IQ contract for base operations support services at Naval Station Guantanamo Bay. The maximum dollar value including the base period and four option years is $196.1 million. Back in 2018, Vectrus had been awarded a two-year $60 million contract for these services.

    And Extension.  On August 27th, Vectrus was awarded an $116.8 million modification to its OMDAC-SWACA contract for continued support of critical operation, maintenance and defense of Army communications, which supports the Army Operational Base Communications Information Systems and infrastructure in support of U.S. Central Command forces. The extension is through February 28, 2021, although a new …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.