Release – Kratos Reports Second Quarter 2022 Financial Results

Posted on August 4, 2022 by Admin

Kratos Reports Second Quarter 2022 Financial Results

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO, Aug. 04, 2022 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, today reported its second quarter 2022 financial results. For the second quarter of 2022, Kratos reported Revenues of $224.2 million, Operating Loss of $1.9 million, Net Loss of $4.7 million, Adjusted EBITDA of $17.7 million and a book to bill ratio of 1.2 to 1.0. Included in Net Loss is a $5.5 million litigation settlement related charge resulting from the resolution of a dispute with an international customer in our Unmanned Systems segment, which contractual arrangement was entered into in March 2011, prior to Kratos’ acquisition of CEi (Composite Engineering Inc.).

Second quarter 2022 Operating Loss includes non-cash stock compensation expense of $6.3 million, and Company-funded Research and Development expense of $9.2 million, reflecting significant ongoing development efforts being made, including in our Space and Satellite business to develop our virtual, software-based OpenSpace ground station solution.

Kratos reported a second quarter 2022 GAAP loss per share of $0.04, which includes the $5.5 million litigation settlement related charge noted above, compared to Net Income of $1.1 million and GAAP EPS income of $0.01 for the second quarter of 2021. Adjusted EPS was $0.07 for the second quarter of 2022, compared to $0.06 for the second quarter of 2021. Kratos has approximately $235 million of net operating loss carryforwards, which are expected to substantially shield the Company from paying future cash income taxes.

Second quarter 2022 Revenues of $224.2 million, which increased $19.1 million, or 9.3 percent, from second quarter 2021 Revenues of $205.1 million, were adversely impacted by continuing and increased supply chain disruptions and increased material costs, COVID-related employee absenteeism and increased challenges and costs associated with hiring, obtaining and retaining qualified employees, which resulted in approximately $14.5 million of second quarter 2022 revenues being deferred into future periods, with approximately $2.9 million of associated operating income, including increased inflationary costs. Second quarter 2022 revenues include an aggregate contribution of $21.5 million from the recent acquisitions of Cosmic Advanced Engineered Solutions, Inc. (Cosmic AES), CTT, Inc., (CTT), and the Engineering Division of Southern Research (SRE), offset by reductions in our Training Solutions business of $8.6 million as compared to the second quarter 2021 revenues, including the previously reported loss of an international training services contract which accounted for approximately $4.5 million of the reduction as well as the completion of certain large training system programs. On a proforma basis, excluding the impact of the Training Solutions business, revenues grew organically 3.2% in the second quarter of 2022 as compared to the second quarter of 2021.

Second quarter 2022 Cash Flow Used in Operations was $21.6 million, with the use including increases in receivables of $27.1 million primarily related to future milestone and other contractual payments and an increase of inventory balances of $10.5 million, primarily in our Unmanned Systems, Microwave Products and C5ISR businesses in anticipation of expected significant ramps in production in the second half of the year and to increase stock inventory levels and advance buys in larger lot sizes to gain pricing benefits where possible, to mitigate the impact of supply chain disruptions and price increases. Free Cash Flow Used in Operations was $32.7 million, after funding $11.1 million of capital expenditures, including in our high growth Unmanned Systems, Space, Satellite and Cyber and Turbine Technologies business areas.

For the second quarter of 2022, Kratos’ Unmanned Systems Segment (KUS) generated Revenues of $56.4 million, as compared to $60.3 million in the second quarter of 2021. KUS Operating Loss was $5.0 million in the second quarter of 2022, which included the $5.5 million litigation settlement related charge discussed above. Excluding the impact of the litigation settlement related charge, Operating Income was $0.5 million, compared to $4.1 million in the second quarter of 2021, reflecting a less favorable mix of revenues, including an increase in development programs which typically generate lower margins, an increase in SG&A costs of approximately $0.9 million resulting primarily from increased headcount, an increase of R&D expenses of approximately $1.3 million and increases in supply chain and employee related costs.

Excluding the litigation settlement charge, KUS Adjusted EBITDA for the second quarter of 2022 was $2.9 million, compared to second quarter 2021 Adjusted EBITDA of $6.9 million, reflecting increases in certain development programs which typically generate lower margins and increases in SG&A, R&D, supply chain related and employee costs.

KUS’s book-to-bill ratio for the second quarter of 2022 was 0.5 to 1.0 and 1.1 to 1.0 for the last twelve months ended June 26, 2022, with bookings of $242.6 million for the twelve months ended June 26, 2022. Total backlog for KUS at the end of the second quarter of 2022 was $203.3 million compared to $230.5 million at the end of the first quarter of 2022.

For the second quarter of 2022, Kratos’ Government Solutions Segment (KGS) reported Revenues of $167.8 million, compared to Revenues of $144.8 million in the second quarter of 2021. The increased revenues include the aggregate contribution of approximately $21.5 million from the recently acquired Cosmic AES, CTT and SRE, offset by a reduction of $8.6 million in our Training Solutions business, including the loss of an international training contract, continued and increased supply chain, COVID and employee sourcing and retention disruptions, which resulted in second quarter 2022 KGS revenues of approximately $13.9 million being deferred into future periods. On a proforma basis, excluding the Training Solutions business, KGS revenues grew organically 7.7 percent or $10.2 million, from $132.3 million in the second quarter of 2021 to $142.5 million in the second quarter of 2022.

KGS reported operating income of $9.5 million in the second quarter of 2022, compared to $5.9 million in the second quarter of 2021, primarily reflecting a more favorable revenue mix, offset partially by increased costs related to the supply chain and employee base.

Kratos’ Space, Satellite and Cyber business generated Revenues of $88.5 million in the second quarter of 2022, compared to $67.5 million in the second quarter of 2021. Excluding revenues generated of $15.0 million from the recent Cosmic AES acquisition, revenues for our Space, Satellite and Cyber business grew organically 8.9 percent in the second quarter of 2022.

Second quarter 2022 KGS Adjusted EBITDA was $14.8 million, compared to second quarter 2021 KGS Adjusted EBITDA of $10.7 million, reflecting a more favorable mix of revenues, including in our Space, Satellite and Cyber and Turbine Technologies businesses.

For the second quarter of 2022, KGS reported a book-to-bill ratio of 1.4 to 1.0, with a book to bill ratio of 1.2 to 1.0 for the twelve months ended June 26, 2022, and bookings of $713.9 million for the twelve months ended June 26, 2022. Included in KGS is Kratos’ Space, Satellite and Cyber business, which reported a book to bill ratio of 1.7 to 1.0 for the second quarter of 2022, and a book to bill ratio of 1.2 to 1.0 for the twelve months ended June 26, 2022. Bookings for the Space, Satellite and Cyber business for the last twelve months ended June 26, 2022, were $371.1 million. KGS’s total backlog at the end of the second quarter of 2022 was $846.9 million, as compared to $751.6 million at the end of the first quarter of 2022.

For the second quarter of 2022, Kratos reported consolidated bookings of $261.0 million and a book-to-bill ratio of 1.2 to 1.0, with consolidated bookings of $956.5 million and a book-to-bill ratio of 1.1 to 1.0 for the last twelve months ended June 26, 2022. Backlog on June 26, 2022 was $1.05 billion, as compared to $982.1 million at March 27, 2022, and Kratos’ bid and proposal pipeline was $9.9 billion at June 26, 2022, as compared to $9.4 billion at March 27, 2022. Backlog at June 26, 2022 was comprised of funded backlog of $713.6 million and unfunded backlog of $336.6 million.

Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ second quarter execution was solid in a challenging environment, including revenues of $224 million, Adjusted EBITDA of $17.7 million, a 1.2 to 1.0 book to bill ratio and a current opportunity pipeline of over $9 billion. We have now received each of the three important, large new satellite related program awards we discussed in our Q1 2022 report, including contracts with Blue Halo and Intelsat, which we believe position Kratos for future organic growth and increased margins beginning in the second half of this year. We believe these awards are representative of the increasing customer acceptance of Kratos’ first to market, internally funded and developed, software-based OpenSpace virtualized family of products and we are now in pursuit of several additional, large, new satellite program opportunities.”

Mr. DeMarco, continued, “Since our last report to you, the Air Force announced to Congress that the Skyborg Vanguard program, which includes Kratos’ Valkyrie, is now planned to be a Program of Record in 2023 and transition to acquisition. Additionally, Kratos’ tactical drone business continues to progress, including recent successful flights at the Burns Flat, Oklahoma range and other locations, and we are expecting to receive certain new tactical drone related contract awards in the second half of this year, including as related to Valkyrie. Also importantly, the Air Force recently announced that the Golden Horde Vanguard Program, which Kratos is also supporting, is now also slated to become a Program of Record in 2023, which includes networked, collaborative and autonomous munitions and drones.”

Mr. DeMarco concluded, “Based on important recent events and communications, we continue to believe that the global security environment and requirement for affordable, reusable, disposable and attritable high performance jet drones has never been stronger and is increasing. We view Kratos’ family of Made in America, demonstrated low-cost, runway independent, Collaborative Combat Aircraft, that have been flying with manned fighter aircraft since 2015, and are not concepts, power points or video presentations that are years away from reality, along with active Kratos serial production lines that can provide Affordable Mass now, are important differentiators for our Country, our customers and our Company.”

Financial Guidance
Our third quarter and Fiscal Year 2022 financial guidance we are providing today includes our current forecasted business mix, and our assumptions related to the expected continuing impact of: employee absenteeism, employee sourcing, hiring and retention; manufacturing, production and supply chain disruptions; parts shortages and related significant cost and price increases, including for employees, materials and components; travel restrictions and other COVID-19 related items that have and continue to impact the industry and Kratos. The growth expected in the fourth quarter of 2022 is largely driven by the forecasted execution and delivery schedules of 5 new programs, 4 of which have already been awarded: the three satellite program awards, GBSD and an expected Valkyrie award from a new customer.

The revised full Fiscal Year 2022 financial guidance reflects the expected revenue growth, including the impact of the recent SRE acquisition, as well as expected organic revenue growth driven by our recent bookings and backlog. Since our contract mix is predominantly firm fixed price, we are contractually obligated to absorb the impact of significant inflationary factors until we are able to include our revised costs in new contracts or the exercise of contractual options, which is reflected in our revised Fiscal Year 2022 Adjusted EBITDA guidance.

$M	Q322	FY22
Revenues	$220 – $230	$890 – $930
R&D	$9 – $10	$35 – $38
Operating Income	$0 – $3	$13 – $18
Depreciation	$7	$24 – $25
Amortization	$3	$8 – $9
Stock Based Compensation	$6 – $7	$25 – $26
Adjusted EBITDA	$16 – $20	$80 – $85
Operating Cash Flow		$15 – $25
Capital Expenditures		$45 – $55
Free Cash Flow Use		($30 – $40)

Throughout the second quarter of 2022, we continued to experience the effects of COVID–19, including on our employees, consultants, vendors, suppliers, customers, etc. We have assumed that these COVID–19 related impacts to our business, which significantly impacted our fiscal first and second quarters of 2022 and continue to impact our third quarter, will continue at least through the end of calendar 2022. Our previous assumption was that COVID-19 related impacts would begin to subside beginning in the third fiscal quarter and continue to improve throughout the second half of our fiscal year 2022.

We currently estimate that COVID, supply chain, work force and inflation related issues, including the availability and increased costs of certain raw materials and related components and materials, a lack of capacity at mills supporting Kratos’ hardware programs, the availability and significant increased costs to obtain and the ability to retain an experienced skilled workforce will continue to impact our financial performance throughout 2022. We expect these issues to impact our third quarter 2022 Revenues by approximately $10 to $14 million and Adjusted EBITDA by approximately $3 to $5 million, respectively. We also currently estimate these issues to impact our full fiscal year 2022 Revenues by approximately $22 to $26 million and Adjusted EBITDA by approximately $10 to $13 million, respectively. We will provide future updates as appropriate.

The forecasted financial trajectory in the second half of 2022 reflects the expected mix of revenues, including the expected timing of software product deliveries in our Space, Satellite and Cyber business, based upon the forecasted order flow and roll out of our new OpenSpace solution, and contract awards we have recently received or that we have been informed we will receive, with deliveries expected to occur predominantly in the fourth quarter of 2022 based upon current program execution plans.

Forecasted third quarter 2022 and fiscal year 2022 Operating Income and Adjusted EBITDA also reflect the expected mix of development-type contracts and expected investments, including in our Space, Satellite and Cyber, Unmanned Systems, C5ISR, Turbine Technologies and Rocket System businesses, where we have received, have been informed that we will receive, or are pursuing or expect to receive several new contract awards. Kratos’ fiscal year 2022 forecasted Revenues also include the final projected impact of the 2021 loss of a large international training contract, which contributed approximately $13.0 million to the Company’s fiscal year 2021 first and second quarter Revenues and include the estimated contribution from the recently closed CTT, Cosmic AES and SRE acquisitions.

Management will discuss the Company’s second quarter 2022 financial results, as well as its third quarter and full year 2022 guidance on a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern) today. The call will be available at www.kratosdefense.com. Participants may register for the call at
https://register.vevent.com/register/BId7480930af214120a135751b6240fd74. While not required, it is recommended you join 10 minutes prior to the event start. Instructions are provided to ensure the necessary audio applications are downloaded and installed. Users can obtain these programs at no charge. For those who cannot access the live broadcast, a replay will be available on Kratos’ website.

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 technologies 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 and 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
This news release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, express or implied statements concerning the Company’s expectations regarding its future financial performance, including the Company’s expectations for its third quarter and full year 2022 revenues, R&D, operating income, depreciation, amortization, stock based compensation expense, and Adjusted EBITDA, and full year 2022 operating cash flow, capital expenditures and other investments, and free cash flow use, the Company’s future growth trajectory and ability to achieve improved revenue mix and profit in certain of its business segments and the expected timing of such improved revenue mix and profit, the Company’s expectation of ramp on projects and that investments in its business will result in an increase in the Company’s market share and total addressable market and position the Company for significant future organic growth, profitability, cash flow and an increase in shareholder value, the Company’s bid and proposal pipeline, demand for its products and services, including the Company’s alignment with today’s National Security requirements, ability to successfully compete in the tactical unmanned aerial system area and expected new customer awards, including the magnitude and timing of funding and the future opportunity associated with such awards, and expected contract awards related to the Company’s Skyborg Vanguard program, Golden Horde Vanguard program and other new tactical unmanned programs, performance of key contracts and programs, including the timing of production and demonstration related to certain of the Company’s contracts and product offerings, the impact of the Company’s restructuring efforts and cost reduction measures, including its ability to improve profitability and cash flow in certain business units as a result of these actions and to achieve financial leverage on fixed administrative costs, benefits to be realized from the Company’s net operating loss carry forwards, the availability and timing of government funding for the Company’s offerings, including the strength of the future funding environment, the short-term delays that may occur as a result of Continuing Resolutions or delays in DoD budget approvals, timing of LRIP and full rate production related to the Company’s unmanned aerial target system offerings, as well as the level of recurring revenues expected to be generated by these programs once they achieve full rate production, market and industry developments, and the current estimated impact of COVID-19 and employee absenteeism, supply chain disruptions, availability of an experienced skilled workforce, inflation and increased costs, and delays on our financial projections, industry, business and operations, including projected growth. Such statements are only predictions, and the Company’s actual results may differ materially from the results expressed or implied by these statements. 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 the Company undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Factors that may cause the Company’s results to differ include, but are not limited to: risks to our business and financial results related to the reductions and other spending constraints imposed on the U.S. Government and our other customers, including as a result of sequestration and extended continuing resolutions, the Federal budget deficit and Federal government shut-downs; risks of adverse regulatory action or litigation; risks associated with debt leverage and cost savings and cash flow improvements expected as a result of the refinancing of our Senior Notes; risks that our cost-cutting initiatives will not provide the anticipated benefits; risks that changes, cutbacks or delays in spending by the U.S. DoD may occur, which could cause delays or cancellations of key government contracts; risks of delays to or the cancellation of our projects as a result of protest actions submitted by our competitors; risks that changes may occur in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks of the availability of government funding for the Company’s products and services due to performance, cost growth, or other factors, changes in government and customer priorities and requirements (including cost-cutting initiatives, the potential deferral of awards, terminations or reduction of expenditures to respond to the priorities of Congress and the Administration, or budgetary cuts resulting from Congressional committee recommendations or automatic sequestration under the Budget Control Act of 2011, as amended); risks that the UAS and UGS markets do not experience significant growth; risks that products we have developed or will develop will become programs of record; risks that we cannot expand our customer base or that our products do not achieve broad acceptance which could impact our ability to achieve our anticipated level of growth; risks of increases in the Federal government initiatives related to in-sourcing; risks related to security breaches, including cyber security attacks and threats or other significant disruptions of our information systems, facilities and infrastructures; risks related to our compliance with applicable contracting and procurement laws, regulations and standards; risks related to the new DoD Cybersecurity Maturity Model Certification (CMMC); risks related to contract performance; risks related to failure of our products or services; risks associated with our subcontractors’ or suppliers’ failure to perform their contractual obligations, including the appearance of counterfeit or corrupt parts in our products; changes in the competitive environment (including as a result of bid protests); failure to successfully integrate acquired operations and competition in the marketplace, which could reduce revenues and profit margins; risks that potential future goodwill impairments will adversely affect our operating results; risks that anticipated tax benefits will not be realized in accordance with our expectations; risks that a change in ownership of our stock could cause further limitation to the future utilization of our net operating losses; risks that we may be required to record valuation allowances on our net operating losses which could adversely impact our profitability and financial condition; risks that the current economic environment will adversely impact our business; currently unforeseen risks associated with COVID-19 and risks related to natural disasters or severe weather. These and other risk factors are more fully discussed in the Company’s Annual Report on Form 10-K for the period ended December 26, 2021, and in our other filings made with the Securities and Exchange Commission.

Note Regarding Use of Non-GAAP Financial Measures and Other
Performance Metrics
This news release contains non-GAAP financial measures, including Adjusted earnings per share (computed using income from continuing operations before income taxes, excluding income (loss) from discontinued operations, excluding income (loss) attributable to non-controlling interest, excluding depreciation, amortization of intangible assets, amortization of capitalized contract and development costs, stock-based compensation expense, acquisition and restructuring related items and other, which includes, but is not limited to, legal related items and foreign transaction gains and losses, less the estimated impact to income taxes) and including Adjusted EBITDA (which includes net income (loss) attributable to noncontrolling interest and excludes, among other things, losses and gains from discontinued operations, acquisition and restructuring related items, stock compensation expense, foreign transaction gains and losses, and the associated margin rates). Additional non-GAAP financial measures include Free Cash Flow from Operations computed as Cash Flow from Operations less Capital Expenditures and Adjusted EBITDA related to our KUS and KGS businesses. Kratos believes this information is useful to investors because it provides a basis for measuring the Company’s available capital resources, the actual and forecasted operating performance of the Company’s business and the Company’s cash flow, excluding non-recurring items and non-cash items that would normally be included in the most directly comparable measures calculated and presented in accordance with GAAP. The Company’s management uses these non-GAAP financial measures, along with the most directly comparable GAAP financial measures, in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and investors should carefully evaluate the Company’s financial results calculated in accordance with GAAP and reconciliations to those financial results. In addition, non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. As appropriate, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP are included in this news release.

Another Performance Metric the Company believes is a key performance indicator in our industry is our Book to Bill Ratio as it provides investors with a measure of the amount of bookings or contract awards as compared to the amount of revenues that have been recorded during the period and provides an indicator of how much of the Company’s backlog is being burned or utilized in a certain period. The Book to Bill Ratio is computed as the number of bookings or contract awards in the period divided by the revenues recorded for the same period. The Company believes that the rolling or last twelve months’ Book to Bill Ratio is meaningful since the timing of quarter-to-quarter bookings can vary.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687

investor@kratosdefense.com

Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in millions, except per share data)

	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021

Service revenues	$	78.8			$	58.0				$	146.7		$	115.3
Product sales		145.4				147.1					273.7			284.0
Total revenues		224.2				205.1					420.4			399.3
Cost of service revenues		56.2				41.3					106.1			83.8
Cost of product sales		110.2				111.8					204.6			212.5
Total costs		166.4				153.1					310.7			296.3
Gross profit – service revenues		22.6				16.7					40.6			31.5
Gross profit – product sales		35.2				35.3					69.1			71.5

Total gross profit		57.8				52.0					109.7			103.0

Selling, general and administrative expenses		41.6				35.6					81.9			70.9
Acquisition and restructuring related items and other		6.0				0.3					6.6			0.5
Research and development expenses		9.2				10.2					18.4			18.2
Depreciation		1.3				1.4					2.6			2.6
Amortization of intangible assets		1.6				1.2					3.3			2.6
Operating income (loss)		(1.9	)			3.3					(3.1	)		8.2
Interest expense, net		(2.9	)			(5.7	)				(8.8	)		(11.6	)
Loss on extinguishment of debt		–				–					(13.0	)		–
Other income, net		–				–					0.1			0.2
Loss from continuing operations before income taxes		(4.8	)			(2.4	)				(24.8	)		(3.2	)
Provision (benefit) for income taxes from continuing operations		0.5				(3.6	)				(3.8	)		(6.3	)
Income (loss) from continuing operations		(5.3	)			1.2					(21.0	)		3.1
Income (loss) from discontinued operations, net of income taxes		0.9				(0.3	)				0.7			(0.3	)
Net income (loss)		(4.4	)			0.9					(20.3	)		2.8
Less: Net income (loss) attributable to noncontrolling interest		0.3		–		(0.2	)				0.3			(0.2	)
Net income (loss) attributable to Kratos	$	(4.7	)		$	1.1				$	(20.6	)	$	3.0

Basic income (loss) per common share attributable to Kratos:
Income (loss) from continuing operations	$	(0.04	)		$	0.01				$	(0.17	)	$	0.02
Income (loss) from discontinued operations		–				–					0.01			–
Net income (loss)		(0.04	)		$	0.01				$	(0.16	)	$	0.02

Diluted income (loss) per common share attributable to Kratos:
Income (loss) from continuing operations	$	(0.04	)		$	0.01				$	(0.17	)	$	0.02
Income (loss) from discontinued operations		–				–					0.01			–
Net income (loss)	$	(0.04	)		$	0.01				$	(0.16	)	$	0.02

Weighted average common shares outstanding:
Basic weighted average common shares outstanding		126.4				124.7					126.2			124.4
Diluted weighted average common shares outstanding		126.4				127.7					126.2			127.8

Adjusted EBITDA (1)	$	17.7			$	17.6				$	31.5		$	35.7



Unaudited Reconciliation of GAAP to Non-GAAP Measures

Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP net income (loss) attributable to Kratos adjusted for net income (loss)
attributable to noncontrolling interest, income (loss) from discontinued operations, net interest expense, provision (benefit) for income taxes, depreciation and
amortization expense of intangible assets, amortization of capitalized contract and development costs, stock-based compensation,
acquisition and restructuring related items and other, and foreign transaction gain (loss).


Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided
Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to
help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA
should not be construed as either an alternative to net income or as an indicator of our operating performance or an alternative to cash flows
as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below.
Please refer to the following table below that reconciles GAAP net income (loss) to Adjusted EBITDA.

The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

Interest income and interest expense, net. The Company receives interest income on investments and incurs interest expense on loans, capital leases and
other financing arrangements, including the amortization of issue discounts and deferred financing costs. These amounts may vary from period to period
due to changes in cash and debt balances.

Income taxes. The Company’s tax expense can fluctuate materially from period to period due to tax adjustments that may not be directly related to
underlying operating performance or to the current period of operations and may not necessarily reflect the impact of utilization of our NOLs.

Depreciation. The Company incurs depreciation expense (recorded in cost of revenues and in operating expenses) related to capital assets purchased,
leased or constructed to support the ongoing operations of the business. The assets are recorded at cost or fair value and are depreciated over the estimated
useful lives of individual assets.

Amortization of intangible assets. The Company incurs amortization of intangible expense related to acquisitions it has made. These intangible assets are
valued at the time of acquisition and are amortized over the estimated useful lives.

Amortization of capitalized contract and development costs. The Company incurs amortization of previously capitalized software development and non-
recurring engineering costs related to certain targets in its Unmanned Systems and ballistic missile target businesses as these units are sold.

Stock-based compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of selling,
general and administrative expense. Although stock-based compensation is an expense of the Company and viewed as a form of compensation, these
expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management,
such as the market price and volatility of the Company’s shares, risk-free interest rates and the expected term and forfeiture rates of the awards.
Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP
financial measures that exclude stock-based compensation.

Foreign transaction (gain) loss. The Company incurs transaction gains and losses related to transactions with foreign customers in currencies other than
the U.S. dollar. In addition, certain intercompany transactions can give rise to realized and unrealized foreign currency gains and losses.

Acquisition and transaction related items. The Company incurs transaction related costs, such as legal and accounting fees and other expenses, related to
acquisitions and divestiture activities. Management believes these items are outside the normal operations of the Company’s business and are not
indicative of ongoing operating results.

Restructuring costs. The Company incurs restructuring costs for cost reduction actions which include employee termination costs,
facility shut-down related costs and remaining lease commitment costs for excess or exited facilities. Management believes that these costs are not
indicative of ongoing operating results as they are either non-recurring and/or not expected when full capacity and volumes are achieved.

Legal related items. The Company incurs costs related to pending legal settlements and other legal related matters. Management believes
these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in
accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other
companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors
should not infer from the Company’s presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.

Reconciliation of Net income (loss) attributable to Kratos to Adjusted EBITDA is as follows:

	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021

Net income (loss) attributable to Kratos	$	(4.7	)		$	1.1				$	(20.6	)	$	3.0
Loss (income) from discontinued operations, net of income taxes		(0.9	)			0.3					(0.7	)		0.3
Interest expense, net		2.9				5.7					8.8			11.6
Loss on extinguishment of debt		–				–					13.0			–
Provision (benefit) for income taxes from continuing operations		0.5				(3.6	)				(3.8	)		(6.3	)
Depreciation (including cost of service revenues and product sales)		5.3				5.8					10.6			10.7
Stock-based compensation		6.3				6.6					13.3			12.8
Foreign transaction loss		0.1				0.1					0.1			0.2
Amortization of intangible assets		1.6				1.2					3.3			2.6
Amortization of capitalized contract and development costs		0.3				0.3					0.6			0.5
Acquisition and restructuring related items and other		6.0				0.3					6.6			0.5
Plus: Net income (loss) attributable to noncontrolling interest		0.3				(0.2	)				0.3			(0.2	)

Adjusted EBITDA	$	17.7			$	17.6				$	31.5		$	35.7



Reconciliation of acquisition and restructuring related items and other included in Adjusted EBITDA:
	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021
Acquisition and transaction related items	$	0.1			$	0.1				$	0.4		$	0.3
Restructuring costs		0.2				0.2					0.3			0.2
Legal related items		5.7				–					5.9			–

	$	6.0			$	0.3				$	6.6		$	0.5


Kratos Defense & Security Solutions, Inc.
Unaudited Segment Data
(in millions)

	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021
Revenues:
Unmanned Systems	$	56.4			$	60.3				$	109.0		$	116.2
Kratos Government Solutions		167.8				144.8					311.4			283.1
Total revenues	$	224.2			$	205.1				$	420.4		$	399.3

Operating income (loss)
Unmanned Systems	$	(5.0	)		$	4.1				$	(4.5	)	$	8.3
Kratos Government Solutions		9.5				5.9					15.1			13.0
Unallocated corporate expense, net		(6.4	)			(6.7	)				(13.7	)		(13.1	)
Total operating income (loss)	$	(1.9	)		$	3.3				$	(3.1	)	$	8.2

Note: Unallocated corporate expense, net includes costs for certain stock-based compensation programs (including stock-based compensation costs for stock options, employee stock purchase plan and restricted stock units), the effects of items not considered part of management’s evaluation of segment operating performance, and acquisition and restructuring related items, corporate costs not allocated to the segments, legal related items, and other miscellaneous corporate activities.

Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA is as follows:

	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021
Unmanned Systems
Operating income (loss)	$	(5.0	)		$	4.1				$	(4.5	)	$	8.3
Other income		–				–					0.1			0.1
Depreciation		1.7				2.2					3.3			3.8
Amortization of intangible assets		0.2				0.3					0.5			0.6
Amortization of capitalized contract and development costs		0.3				0.3					0.6			0.5
Acquisition and restructuring related items and other		5.7				–					5.9			–
Adjusted EBITDA	$	2.9			$	6.9				$	5.9		$	13.3
% of revenue		5.1	%			11.4	%				5.4	%		11.4	%

Kratos Government Solutions
Operating income	$	9.5			$	5.9				$	15.1		$	13.0
Other income		0.1				0.1					0.1			0.3
Depreciation		3.6				3.6					7.3			6.9
Amortization of intangible assets		1.4				0.9					2.8			2.0
Acquisition and restructuring related items and other		0.2				0.2					0.3			0.2
Adjusted EBITDA	$	14.8			$	10.7				$	25.6		$	22.4
% of revenue		8.8	%			7.4	%				8.2	%		7.9	%

Total Adjusted EBITDA	$	17.7			$	17.6				$	31.5		$	35.7
% of revenue		7.9	%			8.6	%				7.5	%		8.9	%





Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in millions)


										June 26,			December 26,
											2022			2021
Assets
Current assets:
Cash and cash equivalents										$	142.4		$	349.4
Accounts receivable, net											315.0			284.7
Inventoried costs											118.2			91.7
Prepaid expenses											12.2			9.8
Other current assets											36.5			22.5
Total current assets											624.3			758.1
Property, plant and equipment, net											212.2			168.3
Operating lease right-of-use assets											38.1			38.5
Goodwill											551.9			493.9
Intangible assets, net											64.9			43.2
Other assets											91.9			87.5
Total assets										$	1,583.3		$	1,589.5
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable										$	58.2		$	50.4
Accrued expenses											36.0			27.2
Accrued compensation											50.1			47.3
Accrued interest											0.3			1.5
Billings in excess of costs and earnings on uncompleted contracts											59.2			58.1
Current portion of operating lease liabilities											10.6			10.1
Other current liabilities											12.5			25.7
Other current liabilities of discontinued operations											0.9			0.8
Total current liabilities											227.8			221.1
Long-term debt											293.8			296.7
Operating lease liabilities, net of current portion											31.5			32.7
Other long-term liabilities											82.9			76.2
Other long-term liabilities of discontinued operations											1.4			2.5
Total liabilities											637.4			629.2
Commitments and contingencies
Redeemable noncontrolling interest											7.8			15.2
Stockholders’ equity:
Additional paid-in capital											1,593.1			1,578.9
Accumulated other comprehensive loss											–			0.6
Accumulated deficit											(655.0	)		(634.4	)
Total Kratos stockholders’ equity											938.1			945.1
Total liabilities and stockholders’ equity										$	1,583.3		$	1,589.5



Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in millions)

										Six Months Ended
										June 26,			June 27,
											2022			2021
Operating activities:
Net income (loss)										$	(20.3	)	$	2.8
Less: income (loss) from discontinued operations											0.7			(0.3	)
Income (loss) from continuing operations											(21.0	)		3.1
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities from continuing operations:
Depreciation and amortization											13.9			13.3
Amortization of lease right-of-use assets											5.3			4.5
Deferred income taxes											0.4			(0.9	)
Stock-based compensation											13.3			12.8
Litigation related charges											5.5			–
Amortization of deferred financing costs											0.4			0.5
Loss on extinguishment of debt											13.0			–
Provision for (recovery of) doubtful accounts											–			(0.2	)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable											0.3			15.5
Unbilled receivables											(15.3	)		(7.9	)
Inventoried costs											(25.8	)		(6.8	)
Prepaid expenses and other assets											(13.2	)		(2.2	)
Operating lease liabilities											(5.5	)		(4.5	)
Accounts payable											5.6			5.8
Accrued compensation											(1.3	)		(1.8	)
Accrued expenses											7.7			(7.5	)
Accrued interest											(1.1	)		–
Billings in excess of costs and earnings on uncompleted contracts											1.3			9.6
Income tax receivable and payable											(6.2	)		(6.1	)
Other liabilities											(6.8	)		(5.2	)
Net cash provided by (used in) operating activities from continuing operations											(29.5	)		22.0
Investing activities:
Cash paid for acquisitions, net of cash acquired											(131.9	)		(6.2	)
Capital expenditures											(21.9	)		(20.5	)
Proceeds from sale of assets											0.1			–
Net cash used in investing activities from continuing operations											(153.7	)		(26.7	)
Financing activities:
Proceeds from the issuance of long-term debt											200.0			–
Repayment of debt											(309.8	)		–
Debt issuance costs											(3.2	)		–
Credit agreement borrowings											100.0			–
Payment under finance leases											(0.6	)		(0.4	)
Payments of employee taxes withheld from share-based awards											(11.5	)		(8.5	)
Proceeds from shares issued under equity plans											2.9			2.5
Net cash used in financing activities from continuing operations											(22.2	)		(6.4	)
Net cash flows from continuing operations											(205.4	)		(11.1	)
Net operating cash flows of discontinued operations											(0.4	)		(0.8	)
Effect of exchange rate changes on cash and cash equivalents											(1.2	)		(0.3	)
Net decrease in cash, cash equivalents and restricted cash											(207.0	)		(12.2	)
Cash, cash equivalents and restricted cash at beginning of period											349.4			381.5
Cash, cash equivalents and restricted cash at end of period										$	142.4		$	369.3



Kratos Defense & Security Solutions, Inc.
Unaudited Non-GAAP Measures
Computation of Adjusted Earnings Per Share
(in millions, except per share data)


Adjusted income from continuing operations and adjusted income from continuing operations per diluted common share (Adjusted EPS) are non-GAAP
measures for reporting financial performance and exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management
believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying continuing operations results and trends and allows
for comparability with our peer company index and industry. The Company uses these measures along with the corresponding GAAP financial measures
to manage the Company’s business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted
income from continuing operations before amortization of intangible assets, depreciation, stock-based compensation, foreign transaction gain/loss, and
acquisition and restructuring related items and other. The estimated impact to income taxes includes the impact to the effective tax rate, current tax provision and
deferred tax provision, and excludes the impact of discrete items, including transaction related expenses and release of valuation allowance, or benefit related to the add-backs.*
Adjusted EPS reflects adjusted income on a per share basis using weighted average diluted shares outstanding.

The following table reconciles the most directly comparable GAAP financial measures to the non-GAAP financial measures.

	Three Months Ended									Six Months Ended
	June 26,				June 27,					June 26,			June 27,
		2022				2021					2022			2021
Net income (loss) attributable to Kratos	$	(4.7	)		$	1.1				$	(20.6	)	$	3.0
Less: GAAP provision (benefit) for income taxes		0.5				(3.6	)				(3.8	)		(6.3	)
Less: Net (income) loss attributable to noncontrolling interest		0.3				(0.2	)				0.3			(0.2	)
Less: Income (loss) from discontinued operations, net of income taxes		(0.9	)			0.3					(0.7	)		0.3
Loss from continuing operations before taxes		(4.8	)			(2.4	)	$	–		(24.8	)		(3.2	)
Add: Amortization of intangible assets		1.6				1.2			–		3.3			2.6
Add: Amortization of capitalized contract and development costs		0.3				0.3					0.6			0.5
Add: Depreciation		5.3				5.8					10.6			10.7
Add: Stock-based compensation		6.3				6.6					13.3			12.8
Add: Loss on extinguishment of debt		–				–					13.0			–
Add: Foreign transaction loss		0.1				0.1					0.1			0.2
Add: Acquisition and restructuring related items and other		6.0				0.3					6.6			0.5
Non-GAAP Adjusted income from continuing operations before income taxes		14.8				11.9					22.7			24.1
Income taxes on Non-GAAP measure Adjusted income from continuing operations*		5.4				4.3					8.2			8.8
Non-GAAP Adjusted net income	$	9.4			$	7.6				$	14.5		$	15.3


Diluted earnings per common share	$	(0.04	)		$	0.01				$	(0.16	)	$	0.02
Less: GAAP provision (benefit) for income taxes		–				(0.03	)				(0.03	)		(0.05	)
Less: Net income (loss) attributable to noncontrolling interest		–				–					–			–
Less: Loss (income) from discontinued operations, net of income taxes		–				–					(0.01	)		–
Add: Amortization of intangible assets		0.01				0.01					0.03			0.02
Add: Amortization of capitalized contract and development costs		–				–					–			0.01
Add: Depreciation		0.04				0.05					0.08			0.08
Add: Stock-based compensation		0.05				0.05					0.11			0.10
Add: Loss on extinguishment of debt		–				–					0.10			–
Add: Foreign transaction loss		–				–					–			–
Add: Acquisition and restructuring related items and other		0.05				–					0.05			0.01
Income taxes on Non-GAAP measure Adjusted income from continuing operations*		(0.04	)			(0.03	)				(0.06	)		(0.07	)
Adjusted income from continuing operations per diluted common share	$	0.07			$	0.06				$	0.11		$	0.12

Weighted average diluted common shares outstanding		126.4				127.7					126.2			127.8

*The impact to income taxes is calculated by recasting income before income taxes to include the add-backs involved in determining Adjusted income from continuing
operations before income taxes and recalculating the income tax provision (benefit), including current and deferred income taxes, using the Adjusted income from continuing
operations before income taxes. The recalculation also adjusts for any discrete tax expense, including transaction related expenses and the release of valuation allowance, or
benefit related to the add-backs.

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Defense & Security Solutions Schedules Second Quarter 2022 Earnings Conference Call for Thursday, August 4th

Posted on July 26, 2022 by Admin

Kratos Defense & Security Solutions Schedules Second Quarter 2022 Earnings Conference Call for Thursday, August 4th

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO,
July 26, 2022 (GLOBE NEWSWIRE) —
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider, announced today that it will publish financial results for the second quarter of 2022 after the close of market on
Thursday, August 4^th. Management will discuss the Company’s operations and financial results in a conference call beginning at
2:00 p.m. Pacific (
5:00 p.m.
Eastern).

The call will be available at www.kratosdefense.com. Participants may register for the call using this Online Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos’ website.

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.

Press Contact: Yolanda White 858-812-7302 Direct

Investor Information:
877-934-4687

investor@kratosdefense.com

Release – Kratos Awarded $54M Task Order to Develop a Low Cost, Limited Life Engine for Attritable and Expendable Systems

Posted on July 25, 2022 by Admin

Kratos Awarded $54M Task Order to Develop a Low Cost, Limited Life Engine for Attritable and Expendable Systems

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO,
July 25, 2022 (GLOBE NEWSWIRE) —
Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that Kratos Turbine Technologies (KTT) Division has been awarded a task order contract to develop a low cost, limited life engine for attritable and expendable systems. The contract is part of the
Air Force Research Laboratory,
Aerospace Systems Directorate, Turbine Engine Division (AFRL/RQT), Attritable Cost Optimized Limited Life Engine Technologies (ACOLLET) program. Under prior and existing contracts, KTT has completed component rig and core engine testing and has recently begun full engine ground testing. The initial,
$6.8M, effort will focus on key component testing and engine optimization trade studies to validate the capabilities the engine can bring to future systems. Additional, unfunded, options are available to complete the engine design and testing for future flight demonstrations. The work will be performed by KTT in
Florida.

KTT’s Attritable and Expendable Turbofan Engine

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1c7b82ca-7df7-4034-99de-75990b2072c7

Stacey Rock, President of Kratos Turbine Technologies Division, said, “The new contract allows KTT to continue the great working relationship with AFRL’s Turbine Engine Division to bring disruptive engine technology to the warfighter. Both parties are focused on increasing system mission capability, while providing engines at a lower cost. All of Kratos is focused on supporting
the United States warfighter and industrial base, including making significant investments in the development and production of next generation engines and supporting STEM opportunities in the
USA. We look forward to continuing to support the AFRL in the development of transformative and affordable turbine engine technologies.”

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 26, 2021, 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

KTT’s Attritable and
Expendable Turbofan Engine

Source: Kratos Defense & Security Solutions, Inc.

Release – Kratos Awarded Contract from U.S. Army Future Command to Demonstrate Military SATCOM Modernization

Posted on July 20, 2022 by Admin

Kratos Awarded Contract from U.S. Army Future Command to Demonstrate Military SATCOM Modernization

Research, News, and Market Data on Kratos Defense & Security Solutions

Built on Kratos’ OpenSpace
Virtual Ground System Platform, will Support Interoperability, Multi-Mission
Support and Vendor Neutrality

SAN DIEGO,
July 20, 2022 (GLOBE NEWSWIRE) —
Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it was awarded a contract from the
U.S. Army’s Combat Capabilities Development Command to demonstrate a virtualized SATCOM ground system. Based upon Kratos’ OpenSpace Platform, the solution will enable the government to field SATCOM networks in line with modernization goals including streamlining gateway and remote terminal capabilities supported by multiple vendors, reducing life-cycle costs and supporting adaptive, dynamic space operations. Funding for this award was through the Network Command, Control, Communication, and Intelligence Cross-Functional Team (N-CFT) established by the Army’s Future Command.

Supporting a “fighting SATCOM” strategy, future military satellite communications (MilSatCom) networks will require dynamic capabilities such as resiliency, the ability to adapt to suddenly changing mission conditions on the fly and the ability quickly spin up and spin down resources for multi-mission support. Today’s hardware-based networks cannot deliver the speed, interoperability or agility to meet these goals, a situation that is driving digital transformation and modernization efforts across the space industry.

Kratos’ OpenSpace Platform is the only fully-orchestrated, COTS satellite ground system architected on modern, software-defined networking (SDN) principles. OpenSpace digitizes the RF signals flowing to and from satellites so they can be processed and managed in virtual environments such as the cloud. This means applications can be instantiated faster, support multiple missions and orbits, react on-the-fly to changing conditions and operate at lower cost. For example, space network components that typically take weeks or even months to implement in today’s hardware-based world are replaced by virtual network functions (VNF) that can be stood up in just minutes with the OpenSpace Platform. Because it is based on accepted industry standards, OpenSpace is compatible with standards compliant network resources from other companies, assuring interoperability and avoiding vendor lock-in.

Chris Badgett, Vice President of Technology for Kratos Space said, “A strategic goal of the military is to operate an integrated SATCOM enterprise, which increases assured SATCOM access for the warfighter and improves the effectiveness of the infrastructure by enhancing resilience. Kratos’ OpenSpace Platform will show how critical satellite network operations can be made interoperable across domains.”

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.

Press Contact: Yolanda White 858-812-7302 Direct

Investor Information:
877-934-4687

investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – Defense Contractor Kratos Announces Plan to Add 76 Jobs at its Birmingham Advanced Concepts Engineering Facility

Posted on July 19, 2022 by Admin

Defense Contractor Kratos Announces Plan to Add 76 Jobs at its Birmingham Advanced Concepts Engineering Facility

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO,
July 19, 2022 (GLOBE NEWSWIRE) —
San Diego Based Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider announced plans today to expand its newly established business unit in
Birmingham, Alabama
. With the support of critical enhancement programs provided by the
State of Alabama,
Jefferson County
and the
City of Birmingham, Kratos expects to add 76 jobs and make approximately
$8.6 million
in capital investments in its
Birmingham facility over the next five years.

Kratos acquired the engineering division of
Birmingham-based
Southern Research
in an
$80 million
asset transaction in May. The acquisition establishes Kratos SRE, an advanced concept group within Kratos’ Defense &
Rocket Support Services (KDRSS) Division. SRE currently employs about 140 engineers, technicians and program support professionals conducting work in support of the space community, the
Department of Defense and other national security customers.

The Kratos SRE Birmingham growth plan is part of the company’s overall strategy to expand leading-edge technology capabilities in areas specifically related to hypersonics. The new positions, with an average annual salary of
$95,000, will be a mixture of engineers, technicians and support staff.

“We appreciate the support that Kratos has received from the
State of Alabama and the
Birmingham local government,” said Dave Carter , President of KDRSS. “Training grants and other key incentives allow us to accelerate our capabilities expansion and enhance the already impressive workforce at Kratos SRE. The
Birmingham advanced concepts business unit is a key enabler to expanding Kratos’ leadership in hypersonics and other technology areas.”

The growth plans for Kratos’
Birmingham advanced concepts business unit were announced in conjunction with the 2022 Farnborough International Airshow, held just outside of
London. Company representatives met with the
Alabama team today at the “Made in Alabama” booth on the opening day of the high-profile trade event.

“Over many decades, the talented workforce in the Southern Research Engineering Division has made many important contributions to the nation’s space program and critical national defense programs,” said Greg Canfield , Secretary of the
Alabama Department of Commerce. “I look forward to seeing the Birmingham Kratos SRE business unit continue their record of amazing accomplishments as Kratos makes investments in advanced concepts and expands their technical capabilities.”

Kratos plans to continue enhancing SRE’s industry-leading expertise in the testing and evaluation of how advanced materials behave in extreme environments to ensure the nation’s industrial base is prepared to address the unique challenges associated with space, hypersonics, missiles, propulsion systems and more.

Kratos SRE also specializes in intelligence surveillance and reconnaissance (ISR) sensor development, electromechanical systems design, aerospace engineering and other technical disciplines.

“Kratos is the perfect home for my engineering team. From hypersonics to ISR applications, Kratos brings tremendous synergies across all of our technical platforms,” said Michael Johns , former Southern Research Engineering Division Vice President and now Kratos SRE Senior Vice President. “We have long been the leader in understanding materials in extreme environments for applications, including hypersonics, but now as part of Kratos, we are able to support programs all the way through flight test and beyond, substantially increasing our total addressable market opportunity.”

Local officials welcomed Kratos’ expansion plans at the
Birmingham facility.

“As Birmingham and
Jefferson County
continues to expand its aerospace and defense industry footprint, we welcome Kratos and its plans for new jobs and investment,”
Jefferson County
Commissioner Steve Ammons said. “Southern Research’s Engineering Division was a powerful leader in defense and strategic deterrence system development, and we will continue to support Kratos in its new and innovative solutions.”

Emily Jerkins Hall, President and Chief Operating Officer of the
Birmingham Business Alliance, said the organization is grateful that Kratos not only committed to staying in the city but also to growing there.

“Our team enjoyed working with
Southern Research and the project team to help Kratos establish and scale their operations here,” she said. “Their investment in our community will continue to make the
Greater Birmingham Region an attractive destination for top engineering talent from around the globe.”

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.

About the Department of
Commerce
The Alabama Department of Commerce is the state’s lead economic development agency, working with economic development allies throughout the state to fulfill the objectives of Accelerate Alabama, the state’s strategic economic development growth plan. In addition to its business development activities, Commerce divisions promote exporting and international investment opportunities for
Alabama businesses, assist small businesses, and position the state as a location for film and television productions. Commerce is home to the state’s primary non-education workforce development programs, including AIDT, a nationally known job-training agency.

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 30, 2020, 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.

Release – Kratos, USAF Complete Successful XQ-58A Valkyrie Skyborg Flight Series

Posted on July 18, 2022 by Admin

Kratos, USAF Complete Successful XQ-58A Valkyrie Skyborg Flight Series

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO,
July 18, 2022 (GLOBE NEWSWIRE) —
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today that it has recently completed a successful series of flights with two production XQ-58A Valkyrie aircraft for the Skyborg Program. The program team includes the
U.S. Air Force (USAF) Fighters and
Advanced Aircraft Directorate,
Air Force Research Laboratory (AFRL), USAF 40^th
Flight Test Squadron (FLTS), USAF 46^th
Test Squadron
, and Kratos.

Steve Fendley,
President of the Kratos Unmanned Systems Division, said, “The continued evolution and demonstration of the USAF Skyborg system is charting the course for the range of tactical applications Skyborg is intended to address and inform. These most recent Skyborg flights, with production Valkyrie aircraft being delivered on the Skyborg contract, illustrate the benefits and utility of these uncrewed systems while informing the operational concepts and Concepts of Employment (CONEMPS). The entire Kratos team is excited to be a part of this game-changing application space for military uncrewed aircraft systems.”

The XQ-58A Valkyrie was initially developed in cooperation with AFRL on the Low Cost Attritable Strike Demonstrator (LCASD) Program with multiple follow-on programs and projects for several customers and applications. These multiple program applications continue with the Skyborg Program, as well as several others related to production, specific mission applications, and operational development of the XQ-58A family of affordable, high speed, tactical UAVs.

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. Kratos specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, small to mid-sized jet engines and technology, training, and combat systems. 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 30, 2020, 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

The GEO Group (GEO) – A USMS Contract Renewal

Posted on July 5, 2022 by Admin

Tuesday, July 05, 2022

The GEO Group (GEO)
A USMS Contract Renewal

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

USMS Renewal. On Thursday, GEO reported that the U.S. Marshals Service has exercised the current contract option period to continue to utilize the 770-bed Western Region Detention Facility in San Diego, California, which is effective through September 30, 2023. The existing contract also has two additional two-year contract option periods, which if exercised by the USMS, would be effective through September 30, 2025 and September 30, 2027, respectively. GEO’s Western Region Detention Facility contract with the USMS had been operating under a 90-day contract extension which was scheduled to end on June 30, 2022.

A Precedent? Western was under a direct contract with the USMS. It was renewed in spite of the Executive Order given the lack of alternatives in the region, in our opinion. GEO has two additional direct contracts with the USMS, both expiring in 2023. Its possible we could see the same outcome at renewal, although it is too early to tell.…

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.

Release -Defense Metals Diamond Drilling Update – Pit Slope Geotechnical Preparations Underway

Posted on June 17, 2022 by Admin

Defense Metals Diamond Drilling Update – Pit Slope Geotechnical Preparations Underway

News, and Market Data on Defense Metals

News Release – Vancouver,
British Columbia – June 17, 2022: Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to provide an update for ongoing diamond drilling at its Wicheeda Rare Earth Element (REE) deposit. The 2022 diamond drilling campaign commenced in the northern resource area with the first two resource delineation drill holes totalling approximately 615 metres now nearing completion.

The initial two drill holes were collared from the same site oriented southwest at -50 and -60 degree dips. The holes are designed to establish the eastern carbonatite contact near surface, and for the purpose of resource infill near 2021drill hole WI21-33 that yielded 3.17% TREO over 196 metres;
including 4.29% TREO over 55 metres[1] at depth that expanded high-grade REE mineralization beyond the mineral resource pit shell. Both holes intersected significant intervals of visually REE mineralized dolomite carbonatite between as predicted by the geological model (Image 1).

[1]The true width of REE mineralization is estimated to be 70-100% of the drilled interval

Image 1: Visibly REE Mineralized Dolomite Carbonatite from
Drill Hole WI22-62 (approximately 120 metres downhole)

As announced in its June 7, 2022, drilling commencement news release, the Company plans to complete up to 5,000 metres of diamond drilling designed to further delineate existing resources, assess near deposit exploration targets, collect geotechnical and hydrogeological drilling for the purpose of optimization of open pit slope design, and generate additional REE mineralized material for continued metallurgical testwork.

Kristopher Raffle, P.Geo., Director and QP of Defense Metals commented:

“With the second drill hole of our 2022 resource infill
campaign nearing completion, we look forward in the coming days to
initiating co-purposed infill and pit slope geotechnical drill holes in
the main deposit and PEA mine schedule pit highwall areas, in addition to
continuation of pad building for planned exploration holes. With 2022
drilling operations once again based at the Wicheeda Deposit site field
camp, we expect to be able to take advantage of logistical efficiencies;
most notably a reduction on helicopter utilization.”

Other Company Updates

The Company attended the Prospectors & Developers Association of Canada Convention (PDAC) in Toronto, Ontario from June 13, 2022 to June 15, 2022 and met with several industry stakeholders including shareholders, investment firms, and strategic industry companies.

Defense Metals recently staked additional mineral claims contiguous to the Wicheeda REE Property. The 100% owned Wicheeda REE Property is now 4,244-hectares.

Further to the Company’s news release dated May 24, 2022, the Company paid US$100,000 to Digitonic Limited, an arm’s-length party to provide investor relations services and to provide content creation, digital and video marketing services.

About the Wicheeda REE Property

The 100% owned 4,244-hectare Wicheeda REE Property, located approximately 80 km northeast of the city of Prince George, British Columbia, is readily accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway, and major highways.

The Wicheeda REE Project yielded a robust 2021 PEA that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR[1]. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade flotation-concentrate. The PEA contemplates a 1.8 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life producing and average of 25,423 tonnes REO annually. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and payback of $440 million initial capital within 5 years.

Qualified Person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE Project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and a “Qualified Person” as defined in NI 43-101. Mr. Raffle verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained therein.

About Defense Metals Corp.

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

For further information, please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: todd@blueskycorp.ca

Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this news release.

Cautionary Statement Regarding “Forward-Looking”
Information

This news release contains “forward?looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, statements relating to advancing the Wicheeda REE Project, completion of drilling, receipt of drill results including anticipated timeline of such results/assays, the Company’s plans for its Wicheeda REE Project, expanded resource and scale of expanded resource, expected results and outcomes, the technical, financial and business prospects of the Company, its project and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company’s profile on SEDAR at www.sedar.com. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of personnel, materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological and engineering assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to, the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, loss of key employees, consultants, or directors, increase in costs, delayed drilling results, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward?looking statements or forward?looking information, except as required by law.

[1] Independent Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project, British Columbia, Canada, dated January 6, 2022, with an effective date of November 7, 2021, and prepared by SRK Consulting (Canada) Inc. is filed under Defense Metals Corp.’s Issuer Profile on SEDAR (www.sedar.com).

Release – SKY Perfect JSAT Jointly with Kratos Awarded Contract to Build C-band Spectrum Monitoring Facility for the Japan Ministry of Internal Affairs and Communications

Posted on June 16, 2022 by Admin

SKY Perfect JSAT Jointly with Kratos Awarded Contract to Build C-band Spectrum Monitoring Facility for the Japan Ministry of Internal Affairs and Communications

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO, June 16, 2022 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it was awarded a contract to build a state-of-the-art C-band Geostationary Orbit (GSO) Satellite Spectrum Monitoring Facility. Kratos is implementing this solution as part of a joint project with Japan’s main satellite operator, SKY Perfect JSAT Corporation (SKY Perfect JSAT), for the Ministry of Internal Affairs and Communications (MIC) in Japan.

The system will address MIC’s need to implement a new location for spectrum monitoring, protected from 5G interference, that will help in assuring the spectrum and reducing the potential for signal congestion, RF interference and illegal usage. Kratos is working closely with SKY Perfect JSAT, the prime contractor who is coordinating with the Japanese government to implement the project and to host the C-band antennas. Kratos hardware and software products incorporated in this turnkey integrated ground system include Monics® for spectrum monitoring, satID® for geolocation of satellite transmitters, Compass® for network Monitor & Control (M&C), Geomon for ITU missions automation and a big data analysis platform for ground system analytics. This platform will enable operators to collect performance data across ground systems and use business intelligence to analyze satellite measurements from both regulatory and technical perspectives. These products and solutions will be integrated with Kratos antennas covering C frequency band to provide an end-to-end management solution. “Increasing space traffic continues to impact spectrum reliability worldwide,” said Susumu Fujimoto, President of Kratos Communications Japan. “Kratos will help the MIC and regulators around the globe to minimize interference, check licensing and assure the spectrum. The MIC’s new spectrum monitoring facility will enable the delivery of reliable, interference-free licensed satellite services.” Kratos has worked with numerous government spectrum regulators around the world to build advanced spectrum monitoring solutions. Kratos offers comprehensive turnkey capabilities and a broad portfolio of products for end-to-end ground operations including networks, RF management, and Space Domain Awareness (SDA) from office locations around the globe. About SKY Perfect JSAT SKY Perfect JSAT Corporation is Asia’s largest satellite operator with a fleet of 16 satellites, and Japan’s only provider of both multi-channel pay TV broadcasting and satellite communications services. SKY Perfect JSAT delivers a broad range of entertainment through the “SKY PerfecTV!” platform, the most extensive in Japan with a total of approximately 3 million subscribers. SKY Perfect JSAT’s satellite communications services, which cover Asia, Indian Ocean, Middle East, Pacific Ocean and North America, play a vital role in supporting communications infrastructures for mobile backhaul, government, aviation, maritime, oil & gas and disaster recovery. For more information, visit its corporate website (https://www.skyperfectjsat.space/en/) and Space Business website (https://www.skyperfectjsat.space/jsat/en/). 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 26, 2021, 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

Release – Vectrus Shareholders Approve Combination with Vertex

Posted on June 15, 2022 by Admin

Vectrus Shareholders Approve Combination with Vertex

Research, News, and Market Data on Vectrus

Following Transaction Close, Newly
Combined Company Will be Renamed V2X, Inc.; to Trade on NYSE under New Ticker:
VVX

COLORADO SPRINGS, Colo., June 15, 2022 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) today announced that based on voting results from the Special Meeting of Shareholders held today, Vectrus shareholders voted to approve the combination with Vertex. Following the close of the transaction, the combined company will be renamed V2X, Inc, and its common stock will trade on the NYSE under a new ticker symbol, “VVX”.

“Today’s overwhelming approval marks a significant step toward completing our merger with Vertex, and creating one of the leading providers of critical mission solutions and support to defense clients globally,” said Chuck Prow, Chief Executive Officer of Vectrus. “Vectrus and Vertex – together as V2X – will be better positioned to meet the mission-essential needs of our clients while delivering cost efficiencies, increased security and resiliency, with more strategic use of resources. We thank all of our stakeholders for their continued support and look forward to completing the pending combination so we can begin unlocking the incredible potential of our combined platform.”

As previously announced, under the terms of the merger agreement, Vertex shareholders will own approximately 62% of the combined company on a fully diluted basis, while Vectrus shareholders will own approximately 38%. The merger is expected to close early in the third quarter of 2022, and remains subject to satisfaction of customary closing conditions, including receipt of regulatory approvals.

The final voting results will be reported in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission after certification by Vectrus’ inspector of elections.

About Vectrus
For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair, and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of approximately $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

FORWARD-LOOKING STATEMENTS
Certain material presented in this press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statements include, but are not limited to, conditions to the closing of the Transaction may not be satisfied; the possibility that anticipated benefits of the Transaction may not be realized or may take longer to realize than expected; the possibility that costs related to Vectrus’s integration of Vertex’s operations may be greater than expected and/or that revenues following the Transaction may be lower than expected; Vectrus’s business may suffer as a result of uncertainty surrounding the Transaction and disruption of management’s attention due to the Transaction; the outcome of any legal proceedings that are related to the Transaction; Vectrus may be adversely affected by other economic, business, and/or competitive factors; the risk that Vectrus may be unable to obtain governmental and regulatory approvals required for the Transaction, or that required governmental and regulatory approvals may delay the Transaction or result in the imposition of conditions that could reduce the anticipated benefits from the Transaction or cause the parties to abandon the Transaction; the impact of legislative, regulatory, competitive and technological changes; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; the effect of the Transaction on the ability of Vectrus to retain and maintain relationships with both Vectrus’s and Vertex’s customers, including the U.S. Government; other risks to the consummation of the mergers, including the risk that the mergers will not be consummated within the expected time period or at all; responses from customers and competitors to the Transaction; the risk that the integration of Vertex may distract management from other important matters; results from the Transaction may be different than those anticipated; statements about Vectrus’s 2022 performance outlook, five-year growth plan, revenue, DSO, contract opportunities, the impacts of COVID-19, and any discussion of future operating or financial performance.

Whenever used, words such as “may,” “are considering,” “will,” “likely,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “could,” “potential,” “continue,” “goal” or similar terminology are forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission.

Vectrus undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact Information

Mike Smith, CFA
michael.smith@vectrus.com
(719) 637-5773

Jim Golden / Scott Bisang / Tim Ragones
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

Release – Comtech to Showcase 911 Solutions for States and Local Jurisdictions at NENA 2022

Posted on June 7, 2022 by Admin

Comtech to Showcase 911 Solutions for States and Local Jurisdictions at NENA 2022

Research, News, and Market Data on Comtech Telecommunications

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 7, 2022– June 7, 2022 — Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today that it will be showcasing all of the Company’s Next Generation 911 (“NG911”) solutions at the annual National Emergency Number Association (“NENA”) Conference & Expo, June 13-14, 2022, at the Kentucky International Convention Center in Louisville, KY.

With decades of experience, Comtech has developed an extensive portfolio of emergency call routing, call handling, location data delivery and text messaging solutions, and has strengthened its one-stop-shop NG911 capabilities for state and local jurisdictions. Comtech is the only company in the industry offering a single-source, next-generation 911 approach that includes comprehensive in-house capabilities spanning the entire deployment and ongoing systems management.

Comtech invites attendees to visit booth 115, meet its team of 911 industry experts, and learn more about the following:

Call Routing and
Location Delivery: Comtech designs, implements, and operates secure, highly available, carrier agnostic Emergency Services IP Networks (“ESInets”) across the United States. Our NENA i3 NG911 Next Generation Core Services (“NGCS”) applications enable end-to-end Internet Protocol (“IP”) call completion and data delivery, and our multiple operational models put our customers in control of their regional or statewide deployment.
Call Handling and
Management Solutions: Purpose-built with more than 30 years of research and innovation, Comtech Solacom’s line of NG911 solutions leverage advanced hardware and software technologies that are trusted to streamline processes and enable a more efficient collection of critical information in emergency situations. Live demonstrations for our industry-leading 911 solutions include Guardian Call Handling, Map, and our latest workload planning and management application, Insights.
Cybersecurity: Comtech’s CyberStronger™
solutions include up-skill, re-skill, and training systems to increase the cybersecurity skills of any mission-critical workforce or public safety staff. These solutions provide education, hands-on training, and live online knowledge assessment and skills-building programs in all cybersecurity areas.
Situational
Awareness: Comtech’s SmartResponse™ situational awareness platform is an in-cloud geospatial solution with real time, contextual, and actionable intelligence for public safety answering points (“PSAPs”) and security agencies. This powerful application collates human and device-generated data into a flexible mapping interface, providing actionable insights into emergency situations for efficient and effective management of crisis situations.
Text Messaging
Capabilities: Comtech offers multiple options for Text to 911, including an interim web-based solution (“
EMedia®”) and Session Initiation Protocol (“SIP”) Message Session Relay Protocol (“MSRP”) connectivity from the Comtech Text Control Center (“TCC”) to PSAPs’ call handling equipment (“CHE”). Additionally, Messenger—readies call takers with the ability to collect, process and share previously unavailable live incident information such as text, photos, and video via short message service (“SMS”)/multimedia messaging service (“MMS”), from one integrated desktop.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in Melville, New York and with a passion for customer success, Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com (and preview its new website at www.comtech.com).

Forward-Looking
Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

PCMTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20220606005934/en/

Investor
Relations:
Robert Samuels
631-962-7102

robert.samuels@comtech.com

Source: Comtech Telecommunications Corp.

Release – Comtech Strengthens Leadership Team for Its U.S. Based Satellite-Focused Business Line

Posted on June 2, 2022 by Admin

Comtech Strengthens Leadership Team for Its U.S. Based Satellite-Focused Business Line

Research, News, and Market Data on Comtech Telecommunications

Appointments
of New Divisional Chief Operating Officer and General Manager Lend Deep
Communications & Defense Experience to Comtech

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 2, 2022– June 2, 2022– Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today that it has appointed a new divisional Chief Operating Officer (COO) in Jon Opalski and created a new General Manager of Digital Products position that will be filled by Bob Pescatore. Both individuals bring deep communications and military expertise to Comtech’s satellite business line and will report to Daniel Gizinski who was named President of Comtech’s U.S. based satellite product line in January 2022.

Mr. Opalski will be responsible for driving operational excellence at both Comtech’s existing Santa Clara site and for the new state-of the-art Chandler, Arizona high-volume manufacturing and technology facility. Mr. Pescatore will lead the Satellite Network Technologies Digital Products Team in continuing development of industry leading satellite modems, network products, and cybersecurity support, ensuring flawless program execution and high customer satisfaction.

“Jon and Bob’s record of success and proven leadership skills make them highly qualified and ensure that we will strengthen our ability to serve government and commercial customers who have a need for integrated satellite-based solutions developed and manufactured in-house at facilities based in the United States,” said Michael Porcelain, CEO and President of Comtech.

About Jon
Opalski and Robert (“Bob”) Pescatore

Opalski joins Comtech from Benchmark Electronics, Inc. a multi-billion-dollar, world-class technology, engineering, and manufacturing service company that includes focus on next-generation technology and defense products. He served as General Manager of the Lark RF Technology Group where he oversaw a team of engineering and production personnel focused on RF/Microwave products. Opalski has also held several senior executive roles at REMEC Broadband Wireless Networks, including President and COO, where he managed hundreds of millions of dollars of RF and microwave solutions for the wireless telecom infrastructure market.

Pescatore joins Comtech from Cubic Corporation, a multi-billion-dollar defense company. At Cubic, Pescatore held a variety of executive level positions including Sr. Director of Halo Enterprise, Vice President and General Manager of Ground Training Solutions, Program Director for Air Ranges, and Business Development Director for Airborne Systems and Information Superiority. His earlier career was with the United States Marines Corps where he served 20 years as a Marine F/A 18 pilot.

About Comtech

PCMTL

View source version on
businesswire.com: https://www.businesswire.com/news/home/20220601006312/en/

Contacts
Investor
Relations
Robert Samuels
631-962-7102

robert.samuels@comtech.com

Source: Comtech Telecommunications Corp.

Release – Kratos Acquires Southern Research Engineering Division Adding Unique Capabilities in Hypersonic, Ballistic Missile, Space and ISR Areas

Posted on May 24, 2022 by Admin

Kratos Acquires Southern Research Engineering Division Adding Unique Capabilities in Hypersonic, Ballistic Missile, Space and ISR Areas

Research, News, and Market Data on Kratos Defense & Security Solutions

SAN DIEGO, May 24, 2022 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has acquired the Birmingham, Alabama based Engineering Division of Southern Research for approximately $80 million, subject to reduction based on working capital, including $75 million in cash and $5 million in shares of Kratos common stock. Southern Research’s Engineering Division (SRE) is the market leader in assisting customers in the development, modeling and deployment of advanced materials for extreme environments, including hypersonic, space, missile, missile defense, strategic deterrence, propulsion systems, and energy applications. SRE also specializes in Intelligence Surveillance and Reconnaissance (ISR) sensor development, electromechanical systems design and integration, aerospace engineering, materials engineering, artificial intelligence and machine learning, directed energy, RF systems design and integration, advanced manufacturing, and computational sciences.

Approximately 25 percent of the SRE purchase price was paid for the one-of-a-kind, unique 54-acre campus, with 102,000 square feet of laboratory, material assessment, technology, prototype development, secure, and other facilities, and the machinery and equipment needed to perform the core, sole source test and evaluation analysis and extreme environment characterization of materials for Hypersonic, Missile Defense, Strategic Deterrent, Space-related and other Systems. The balance of the purchase price represents approximately 1.6 times SRE’s historical, trailing twelve-month revenue, which includes approximately $15 million in annual ISR and other unique product development initiatives that are currently in development and expected to transition to production. The acquisition establishes Kratos SRE, a new business unit within Kratos’ Defense and Rocket Support Services Division.

The acquisition brings to Kratos a team of approximately 140 engineers, technicians and program support professionals, substantially all of which hold national security clearances. This dedicated group of professionals strengthens Kratos’ Hypersonic and Missile System-related capabilities by virtue of its market-leading advanced materials testing and evaluation capabilities and experience. The SRE group plays a unique and critical role in assisting the U.S. Government and defense industry contractors to characterize and select strategic materials for certain applications. SRE is also used widely by the space community for launch, re-entry and other vehicles, systems, and capabilities. “Kratos is the perfect home for my engineering team,” said Michael Johns, former Southern Research Vice President of Engineering and new Kratos SRE Senior Vice President. “From Hypersonics to ISR applications, Kratos brings tremendous synergies across all of our technical platforms. We have long been the leader in understanding materials in extreme environments for applications including Hypersonics, and as a result of this acquisition by Kratos, we can carry those programs all the way through flight testing and beyond, substantially increasing our total addressable market opportunity.”

Dave Carter, President of Kratos’ Defense & Rocket Support Services Division, said, “Kratos continues to lean forward to develop and acquire capabilities and solutions that expand our ability to support a diverse range of national security customers. We are very excited about the technical capabilities and synergies gained through this acquisition. Kratos SRE will continue to provide independent, unbiased laboratory and ground testing evaluation for unique and critical materials, and we will be working to expand Kratos SRE’s testing and technology maturation offerings to include affordable live fire tests using Kratos’ family of proven subscale launch vehicles. I am confident that our similar cultures and values will enable a smooth transition and lead to collaborative business opportunities with the Navy and other customers. Establishing Kratos SRE as our Advanced Concepts group demonstrates our commitment to Alabama and the growing aerospace and defense community in Birmingham.”

Eric DeMarco, Kratos’ President and CEO, said, “The acquisition of SRE enhances Kratos’ position related to the anticipated significant future funding increases for the recapitalization of Strategic Weapon Systems, including Hypersonic, Space, Strategic Deterrence, Propulsion and Missile Defense Systems. A priority of Kratos’ strategic thesis is being the market leader, and Mike and his team clearly satisfy that requirement. Once integrated with Kratos, based on recent program awards, funding under the Department of Defense’s recently approved 2022, and anticipated 2023, budget, and prospective customer acceptance of certain SRE products in development that are nearing completion, we expect an up and to the right future year-over-year organic growth trajectory for the business beginning in 2023.”

DC Advisory served as exclusive financial advisor and Maynard, Cooper & Gale, P.C. served as outside legal counsel to Southern Research in this transaction.

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 based on 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 26, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Kratos.

Press
Contact:
Yolanda White
858-812-7302 Direct

Investor
Information:
877-934-4687

investor@kratosdefense.com

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Comtech Strengthens Leadership Team for Its U.S. Based Satellite-Focused Business Line

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KTT’s Attritable and
Expendable Turbofan Engine

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Expendable Turbofan Engine

The GEO Group (GEO)
A USMS Contract Renewal