Release – Kratos’ OpenSpace® Satellite Ground Platform Achieves MEF 3.0 Carrier Ethernet Certification

Research News and Market Data on KTOS

October 10, 2023 at 8:00 AM EDT

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Industry First for a Satellite Ground System will Dramatically Enhance Satellite Communications Integration with Global Telecom Networks

SAN DIEGO, Oct. 10, 2023 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, announced today that its OpenSpace® Platform is the first commercially available, fully virtualized satellite ground system to achieve MEF 3.0 Carrier Ethernet certification. The OpenSpace Platform enables satellite operators to deliver and manage their services for applications including communications, MilSatcom, earth observation, remote sensing and more. Entirely software-defined and using the same industry standards adopted by global terrestrial and mobile network carriers, such as MEF’s Carrier Ethernet (CE) standard, OpenSpace makes satellite service networks interoperate seamlessly with terrestrial and cellular transport networks.

The convergence of satellite and telecom networks is predicted to lead to revenue gains of $35 billion by 2035 according to the GSMA, a global organization unifying the mobile ecosystem. Standards such as Carrier Ethernet play a critical role in this convergence by enabling satellite and telecommunications to integrate more easily. This convergence will benefit both industries: enabling terrestrial network providers to reach remote users who are inaccessible through fiber or cellular technologies while expanding the addressable market for satellite communications.

“Global communications carriers have traditionally viewed satellite as the ‘transport of last resort,’” according to Greg Quiggle, Senior Vice President of Product Management at Kratos. “The MEF 3.0 Carrier Ethernet certification validates that the OpenSpace Platform meets the highest telecom and cloud industry interconnectivity standards. With OpenSpace, satellite operators can mainstream their services for dynamic, performance-enhanced, orchestrated delivery through global telecom networks.”

MEF is a global industry association of network, cloud, security, and technology providers accelerating enterprise digital transformation. MEF 3.0 certifications offer a method for industry organizations to confirm compliance with industry-led MEF 3.0 standards for services, and the technology used to enable those services. OpenSpace is the first commercially available satellite communications ground system to be certified MEF 3.0 CE compliant.

Intelsat, one of the world’s largest commercial satellite operators, will employ the OpenSpace Platform as part of the advanced network being built to deliver services over their new family of software-defined satellites. According to Carmel Ortiz, Senior Vice President of Technology and Innovation at Intelsat, “Intelsat was the first GEO satellite operator to achieve MEF 3.0 Carrier Ethernet certification for our services, so we are very pleased to see OpenSpace meet the same standard, supporting our efforts toward end-to-end network interoperability. It also represents an important milestone for OpenSpace, demonstrating the ability to support interoperable service offerings in mobility and the eventual migration to 5G services.”

To receive MEF’s CE 3.0 certification for the OpenSpace Platform, Kratos passed a comprehensive set of test cases that ensure interoperability in a multi-vendor global network environment. The certification validates that the Platform supports the delivery of a broad range of MEF 3.0 portfolio of services including E-Line (point-to-point) and E-Tree (multipoint service) and operator services including Access E-Line (point-to-point).

According to Kevin Vachon, Chief Operating Officer, MEF, “Companies like Kratos understand the value that certification provides—simplified, pre-validated functionality for buyers and simplified, frictionless implementation and partnering. Achieving MEF 3.0 Carrier Ethernet certification is a step towards enabling the more seamless delivery of satellite services across global provider networks. Telecommunications operations require the service automation, scalability and end-to-end QoS and SLA visibility that Carrier Ethernet brings to network operations. We are delighted to see Kratos achieve MEF 3.0 certification.”

For more about OpenSpace dynamic ground visit: https://www.kratosdefense.com/Satcom.
For more information about telecom and satellite network integration, read NSR’s (an Analysys Mason company) white paper: https://www.kratosdefense.com/carrier-ethernet.

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. The family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals and business models. For more information about the OpenSpace family visit http://KratosDefense.com/OpenSpace.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology company that develops and fields transformative, affordable systems, products and solutions for United States National Security, allies and global commercial enterprises. At Kratos, affordability is a technology, and Kratos is changing the way breakthrough technology is rapidly brought to market – at a low cost – with products, systems and technologies rather than slide decks or renderings. Through proven commercial and venture capital backed approaches, including proactive, internally funded research and streamlined development processes, Kratos is focused on being first to market with our solutions, well in advance of competition. Kratos is the recognized technology disruptor in our core market areas, including Space and Satellite Communications, Cyber Security and Warfare, Unmanned Systems, Rocket and Hypersonic Systems, Next-Generation Jet Engines and Propulsion Systems, Microwave Electronics, C5ISR and Virtual and Augmented Reality Training Systems. For more information, visit 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 25, 2022, 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.

Kratos Defense & Security (KTOS) – An Acquisition, a Contract, and More Opportunity


Friday, October 06, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Acquisition. Wednesday night, Kratos filed an S-3 disclosing the acquisition of Sierra Technical Services, Inc. (“STS”) for 866,026 shares, with an additional 979,038 shares subject to an earnout. Based on Wednesday’s $14.81 closing price, the first share tranche is valued at $12.8 million, with the earnout portion valued at an additional $14.5 million.

Award. In early August, STS was named as a “major subcontractor” for a $77.2 million total value award from the Pentagon’s Test Resources Management Center. The program is a re-start of a previous program to develop a fighter-sized stealthy target drone that can serve as a stand-in for advanced adversary combat jets and their electronic warfare capabilities in particular. Significantly, according to the award, “Upon successful completion of this prototype effort, the Government anticipates that a follow-on production effort may be awarded via either contract or transaction, without the use of competitive procedures if the participants in this transaction successfully complete the prototype project as awarded.”


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Kratos Defense & Security (KTOS) – Reports Second Quarter Results


Tuesday, August 08, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

2Q23 Results. Results came in above expectations. Revenue totaled $256.9 million, up 14.6% y-o-y. Adjusted EBITDA came in at $21.6 million, up from $17.7 million in 2Q22. GAAP EPS loss was $0.02 and adjusted EPS was $0.09, compared to a EPS loss of $0.04 and adjusted EPS of $0.07, respectively, a year ago. We had forecasted $235 million, $16.5 million, $(0.03), and $0.06, respectively.

Solid Organic Growth In KGS. The Government Solutions Segment saw overall revenue increase 22.1% to $204.8 million. Organic growth for KGS grew 17.1% in the quarter, with organic growth across all businesses within KGS and notable increases in the Space and Satellite, Turbine Technologies, Microwave products, and C5ISR units.


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

Kratos Defense & Security (KTOS) – Awarded $95 Million Unmanned Target Contract


Monday, July 10, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Another Award. On Friday, the Department of Defense announced Kratos has been awarded a $95 million firm-fixed-price contract for fixed-wing, subscale, jet-propelled aerial, unmanned target systems. The U.S. Army was the contracting unit. Work locations and funding will be determined with each order, with an estimated completion date of July 6, 2028.

Further Proof. As Kratos CEO Eric DeMarco noted in the 1Q23 conference call, “Kratos’ target drone business is performing well, driven by Kratos’ producing and delivering what we consider to be the highest performance threat representative jet drone systems in the world, with our primary customers including the United States Navy, Air Force and Army. The global recapitalization of strategic weapon systems and the requirement to test and train on these weapon systems is providing a strong macro level catalyst for Kratos’ target drone business.” We view Friday’s award as further confirmation of the positive momentum in the target drone business.


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Kratos Defense & Security (KTOS) – A Successful Test and Expansion of Capabilities


Friday, June 23, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

A Busy Week. Kratos had two announcements this week, including the Company’s successful static test of its new Zeus 1 rocket motor at Aerojet Rocketdyne’s Camden, Arkansas facility and an expansion of the Company’s Space Domain Awareness (SDA) network locations into India.

Zeus 1 Motor. Kratos’ Zeus 1 motor is an affordable commercial solid rocket motor (SRM) in development, with the SRM being able to operate as launch vehicle stages for Kratos’ research, hypersonic, ballistic missile target, and “other” vehicles. The preliminary hardware and data inspection of the test showed the robustness of the motor design and its applicability for multiple customer applications. The Zeus 1 is one of two solid rocket motors being developed and funded, with the larger Zeus 2 motor scheduled for static test later this year.


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

Kratos Defense & Security (KTOS) – $46.7 Million Navy Award


Tuesday, June 06, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Navy Award. Yesterday, Kratos announced it was awarded a contract by the Naval Surface Warfare Center Dahlgren Division (NSWCDD) for thermo-mechanical and aerothermal ground testing of thermal protection system materials in ballistic reentry and reentry-like environments in its Kratos SRE business unit in Birmingham, Alabama. The five-year contract includes options with a total value up to $46.7 million, with an initial award of $8.6 million under a cost-plus-fixed-fee contract.

Details. Under the award, Kratos will test materials supporting technical efforts for the U.S. and the U.K. with direct oversight from the NSWCDD Reentry Systems Office. The contract enables Kratos SRE to conduct ground testing of thermal protection materials at external ground test facilities and produce flight hardware for the Navy. It requires the unique ability to test and collect data at maximum temperatures of 5,500 degrees Fahrenheit to properly test materials in reentry-like environments.


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

Kratos Defense & Security (KTOS) – Solid 1Q23 Results; Growth Opportunities Expanding


Monday, May 08, 2023

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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

1Q23 Results. Results came in at the high end of guidance. Revenue totaled $231.8 million, up 18.1% y-o-y. Organic growth was 12%. Adjusted EBITDA came in at $17 million, up from $13.8 million in 1Q22. GAAP EPS loss was $0.05 and adjusted EPS net income was $0.06, compared to a net loss of $0.13 and adjusted EPS of $0.04, respectively, a year ago. We had forecasted $220 million, $15.5 million, $(0.03), and $0.07, respectively.

Expanding Opportunity Set. Kratos’ opportunity set continues to expand. As part of the 5-year defense spend plan, the USAF has requested approximately $6 billion reflecting an increased prioritization with it being reported that the Air Force is looking to ultimately procure up to 2,000 drone systems. The Navy has been reported as stating they envision up to 60% of the future Navy Air Wing being comprised of drones.


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

Kratos Defense & Security (KTOS) – Another Award


Monday, April 10, 2023

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.

Joe Gomes, Managing Director – Generalist 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.

New Award. On Friday, the Department of Defense, through its daily contract award release, announced Kratos Unmanned Aerial Systems has been awarded a shared $400 million ceiling, indefinite-delivery/indefinite-quantity contract for research and development for the Advanced Aerospace Systems Technology Research (AASTR) program. This contract has multiple awardees to be awarded at different dates. Work under the contract is expected to be complete by April 7, 2030.

What is AASTR? The primary objective of the program is to conduct research toward the development, demonstration, integration, and transition of new aerospace vehicle technologies, designs, and integrated systems that will provide advanced capabilities to the Department of the Air Force. The program will support the Aerospace Systems Directorate’s core competency areas of Aerospace Vehicles; Control Sciences; High Speed Systems; Turbine Engines; and Systems Integration and Flight Test.


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

Kratos Defense & Security (KTOS) – Building Momentum


Monday, February 27, 2023

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.

Joe Gomes, Managing Director – Generalist 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.

4Q22 Results. Revenue totaled $249.3 million, up 17.8% y-o-y, and at the upper end of the $231-$251 million guidance. Organic growth was 4.1%. Adjusted EBITDA came in at $19.2 million, at the lower end of guidance, versus $23.4 million a year ago. GAAP EPS loss was $0.07 and adjusted EPS net income was $0.08, compared to a net loss of $0.02 and adjusted EPS of $0.11, respectively, a year ago.

Building Momentum. We believe 2023 will be a transformative year for Kratos as programs will be transitioning from development RDT&E or LRIP to funded programs, contracts, or full rate production, driving greater revenue and cash flow.


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

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

Kratos Defense & Security (KTOS) – $49.6 Million Contract for Unmanned Targets


Wednesday, February 01, 2023

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.

Joe Gomes, Managing Director – Generalist 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.

BQM-177A Targets. Last night, the Department of Defense announced it has awarded Kratos a $49.6 million firm-fixed-price contract for the production and delivery of 55 full rate production Lot 4 BQM-177A Surface Launched Aerial Targets. Included in the award are 55 rocket assisted takeoff attachment kits, 277 mission kits, and associated technical and administrative data. The work is being conducted for the U.S. Navy, as well as the governments of Canada and Australia. The contract is expected to be completed in April 2024.

Valkyrie Flying at Eglin. Eglin Air Force Base recently conducted an operational experimentation test flight of the Valkyrie. Recall, this past fall, two government-owned Kratos XQ-58A Valkyries were transferred to Eglin. Notably, Eglin is an Air Force base as opposed to the Yuma Proving Ground, were the majority of the Valkyrie testing has been done, which is operated by the Army. The resources available at Eglin are a major reason XQ-58A testing found a new home at the base. The Eglin Range communications support infrastructure will allow engineers at the ground station in the Central Control Facility to monitor the vehicle’s performance during flight.


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

Kratos Defense & Security (KTOS) – Mayhem, and More


Wednesday, January 11, 2023

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.

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.

Mayhem. Yesterday, Kratos stated that it received a contract from its prime teammate and partner Leidos to support the Expendable Hypersonic Multi-Mission ISR and Strike Program, known as Mayhem. This new contract award will support the Air Force Research Laboratory’s development of an air-breathing hypersonic weapon system over its initial 51-month period of performance.

What Is Mayhem? The Mayhem program is focused on delivering a larger class air-breathing hypersonic system capable of executing multiple missions with a standardized payload interface, providing a significant technological advancement and future capability, according to the Department of Defense. The initial task award is $24 million, with a program cap of $334 million.


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

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

Kratos Defense & Security (KTOS) – Selected for Symphony Engine Design Team


Wednesday, December 14, 2022

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.

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.

Symphony Design Team. Kratos announced its Florida Turbine Technologies (FTT) unit has been chosen as the engine design team for the Boom Supersonic-led collaboration on Symphony, a new propulsion system to be designed and optimized for Boom’s Overture supersonic airliner.

Who Is Boom? Founded in 2014, Boom Supersonic is transforming air travel with Overture, the world’s fastest airliner, optimized for speed, safety, and sustainability. Designed to carry 65-80 passengers, the first Overture is projected to rollout in 2026. Overture’s order book, including purchases and options from American Airlines, United Airlines, and Japan Airlines, stands at 130 aircraft.


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

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

Kratos Defense & Security (KTOS) – Overcoming Near-term Challenges


Tuesday, November 08, 2022

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.

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.

3Q22 Results. Revenue of $228.6 million, up 14% y-o-y, and in upper end of the $220-$230 million guidance. Revenue from acquisitions offset supply chain issues and staffing challenges. Adjusted EBITDA came in at $20 million, at the top end of guidance, versus $23.8 million a year ago. GAAP EPS loss was $0.06 and adjusted EPS net income was $0.08, compared to a net loss of $0.01 from continuing operations and adjusted EPS net income of $0.09, respectively, a year ago.

Where Have All the Workers Gone? An ongoing inability to hire the required planned direct labor base, both internally and by the Company’s subcontractors, is impacting the business and causing Kratos to take excess charges. Management believes the worst is behind the Company, but it remains to be seen.


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

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