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Kratos Demonstrates Fully Virtualized SATCOM Over LEO for U.S. Army

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Kratos Defense & Security Solutions successfully demonstrated a virtualized satellite communications ground system with partners Telesat Government Solutions and Cobham Satcom for the U.S. Army, showcasing interoperability and multi-mission capability. The OpenSpace Platform offers resiliency and agility for modern military operations, enabling seamless communication across different satellite orbits.
Positive
  • Successful demonstration of a fully virtualized satellite communications ground system
  • Dynamic support of simultaneous communication pathways for resilient SATCOM at Low Earth Orbit (LEO)
  • Importance of LEO constellations for military operations due to lower latency
  • Kratos' OpenSpace Platform provides resiliency and agility for multi-orbit, multi-mission support
  • Industry's only commercially available, fully software-defined satellite ground system
  • Flexible network architecture allowing connectivity with Telesat's LEO 3 satellite through Cobham antennas
  • Demonstrated interoperability and flexibility in other satellite orbits with different operators and equipment partners
Negative
  • None.

Insights

The recent demonstration by Kratos Defense & Security Solutions of a fully virtualized satellite communications ground system represents a significant technological advancement in the defense sector. This development is particularly relevant as the nature of military operations evolves, demanding rapid adaptability and interoperability across different satellite orbits and missions.

The introduction of Kratos' OpenSpace Platform, a software-defined satellite ground system, marks a departure from traditional hardware-based systems. This shift aligns with the broader trend in military technology towards virtualization and network-centric warfare. The ability to support multi-orbit, multi-mission operations with lower latency is a key factor that could lead to improved situational awareness and command and control capabilities for the U.S. Army.

Investors should note the potential for increased demand for such systems as nations modernize their defense infrastructure. Kratos' collaboration with Telesat Government Solutions and Cobham Satcom and the successful testing across GEO, MEO and LEO orbits, demonstrates a level of technical validation that could position the company favorably for future contracts and partnerships.

The successful demonstration of interoperable satellite communications at Low Earth Orbit (LEO) is a pivotal step towards enhancing military communications. LEO constellations offer lower latency compared to Geosynchronous Earth Orbit (GEO) satellites, which is important for time-sensitive military operations.

From a strategic perspective, the OpenSpace Platform's ability to integrate with different equipment, such as the Cobham Tracker 1300TT antenna and support standardized traffic, suggests a move towards a more unified and agile military communication infrastructure. This is particularly important as the possibility of future conflicts necessitating rapid information sharing among military branches and international partners becomes more likely.

For stakeholders, the implications of such technological advancements include the potential for reduced operational costs due to the shift from hardware to software systems and the enhanced ability to maintain communications superiority in various combat scenarios.

Kratos Defense & Security Solutions' recent demonstration could have a positive impact on investor sentiment, as it showcases the company's innovation in a niche but expanding market. The defense industry's move towards network-centric operations and the growing importance of space-based assets in military strategy could translate into a larger addressable market for Kratos' products and services.

Financially, the transition to software-defined systems like OpenSpace could lead to a more predictable revenue stream from software licenses and maintenance contracts. This is in contrast to the lumpier revenue from hardware sales. Additionally, the funding from the Army's Network Cross-Functional Team (N-CFT) for this project indicates confidence in Kratos' capabilities and may signal future funding for similar initiatives.

It is important for investors to monitor the company's ability to secure new contracts and partnerships following this demonstration, as these will be critical drivers of the company's financial performance and stock valuation in the defense sector.

Showcases Software Ground System to Support Interoperability and Multi-Mission Capability with Partners Telesat Government Solutions and Cobham Satcom

SAN DIEGO, April 04, 2024 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced today that it successfully demonstrated a fully virtualized satellite communications (SATCOM) ground system using Kratos’ OpenSpace® Platform for the U.S. Army’s Program Executive Office Command, Control, Communications-Tactical (PEO C3T). With demonstration partners Telesat Government Solutions and Cobham Satcom, the three companies showed dynamic support of simultaneous communication pathways for resilient SATCOM at Low Earth Orbit (LEO).

LEO constellations are strategic to military operations, delivering connectivity with lower latency than a traditional Geosynchronous Earth Orbit (GEO) satellite. These capabilities will be increasingly important as future military satellite communications (MILSATCOM) networks must quickly adapt to multiple missions and multiple orbits. A virtualized ground system such as OpenSpace provides far greater resiliency and agility needed for these modern military operations, including multi-orbit, multi-mission support when compared to traditional, hardware-based systems. Kratos’ OpenSpace Platform is the industry’s only commercially available, fully software-defined satellite ground system.

The demonstration showed a flexible network architecture that allowed soldiers to connect Telesat’s LEO 3 satellite through Cobham antennas. Kratos’ OpenEdgeTM 2500 digitizer was integrated with Cobham’s Tracker 1300TT antenna, enabling standardized traffic (DIFI) to pass directly from Cobham’s digital-ready antenna through virtualized modems at the network’s edge to the LEO 3 satellite.

In future conflicts, it will be crucial to have multi-orbit operations seamlessly share information among military branches and international partners. Kratos has worked with several satellite service operators over the past year to test and verify functionality of OpenSpace as a gateway and edge platform at each of the major orbital belts, GEO, MEO and LEO. Kratos has successfully demonstrated the openness, flexibility and interoperability of OpenSpace in other satellite orbits, with other satellite operators and equipment partners.

Chris Badgett, Vice President of Technology for Kratos Space, said, “Every mission has different requirements for space connectivity requiring maximum flexibility to leverage multiple satellites, networks and network elements. Only a software-defined platform can provide the levels of adaptability at mission speed along with the openness to maximize available network resources. Both Telesat and Cobham are at the forefront in this digital transformation of satellite ground systems.”

Funding for this project was through the Network Cross-Functional Team (N-CFT) established by the Army Future Command.

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, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. 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 31, 2023, 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


FAQ

What did Kratos Defense & Security Solutions successfully demonstrate?

Kratos successfully demonstrated a fully virtualized satellite communications ground system.

Who were the partners involved in the demonstration?

The partners involved in the demonstration were Telesat Government Solutions and Cobham Satcom.

What is the significance of LEO constellations for military operations?

LEO constellations are strategic for military operations due to lower latency compared to traditional GEO satellites.

What is the key feature of Kratos' OpenSpace Platform?

The key feature of Kratos' OpenSpace Platform is its fully software-defined nature, providing resiliency and agility for modern military operations.

How does the OpenSpace Platform enable multi-orbit, multi-mission support?

The OpenSpace Platform enables multi-orbit, multi-mission support through its flexible network architecture and interoperability with different satellite orbits and partners.

Kratos Defense & Security Solutions, Inc.

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