Kratos Receives $46 Million Directed Energy Award in Support of U.S. Army

Rhea-AI Summary

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced a $46 million Other Transaction for Prototype Agreement (pOTA) with the U.S. Army's Rapid Capabilities and Critical Technologies Office. This three-year project aims to establish a Directed Energy Testbed focusing on High Energy Laser (HEL) and High Power Microwave (HPM) systems to counter Unmanned Aerial Systems (UAS). The project will enhance DE test methodologies and deploy reduced Size, Weight, and Power (SWaP) HEL and HPM systems at Kratos facilities and government locations in Huntsville, AL.

Positive

• Awarded a $46 million contract, enhancing revenue potential.
• Focus on innovative technology in military applications, positioning KTOS favorably in the defense sector.
• Three-year project duration supports sustained revenue generation and strategic partnership with the U.S. Army.

Negative

• None.

SAN DIEGO, June 16, 2020 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that the Kratos Defense & Rocket Support Services (KDRSS) Division has been awarded a $46 million Other Transaction for Prototype Agreement (pOTA) to support the U.S. Army Rapid Capabilities and Critical Technologies Office (RCCTO).  The new award has a three year period of performance. 

The prototype project is to establish a Directed Energy (DE) Testbed to accelerate military development capability in the focus areas of High Energy Laser (HEL) and/or High Power Microwave (HPM) systems. Air and Missile Defense (AMD) military utility will be demonstrated with a concentration on countering Unmanned Aerial Systems (UAS) using HEL and/or HPM on ground-based and airborne platforms. 

Additionally, this pOTA will perform research and experimentation related to DE test infrastructure and methodologies to improve the efficiency and accuracy of DE test programs.  The project improves the ability to deploy HEL and HPM systems by providing test beds for evaluation of emerging, reduced Size, Weight, and Power (SWaP) HEL and HPM systems.  Work under this pOTA is anticipated to be performed at Kratos facilities and at government locations in Huntsville, AL.

Dave Carter, President of the Kratos Defense & Rocket Support Services (KDRSS) Division, said, "This recent award is another important milestone in our commitment to continue providing superior  advanced technology solutions that is in keeping with our long term strategic goals supporting the U.S. Army in advancing and developing improved Directed Energy Technologies.  We are very pleased the U.S. Army has chosen Kratos to serve in this capacity."

About Kratos Defense & Security Solutions, Inc.
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, training and combat systems, and next-generation turbojet and turbo-fan engine development. For more information, go to www.KratosDefense.com.

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

Press Contact:
Yolanda White
858-812-7302 Direct 

Investor Information:
877-934-4687
investor@kratosdefense.com 

FAQ

What is the value of the contract awarded to Kratos Defense & Security Solutions?

The contract awarded to Kratos Defense & Security Solutions is valued at $46 million.

What is the duration of the pOTA awarded to Kratos?

The pOTA awarded to Kratos has a three-year period of performance.

What technology focus areas will the new project address?

The project will focus on Directed Energy technology, specifically High Energy Laser (HEL) and High Power Microwave (HPM) systems.

Who is the contract with for the pOTA awarded to Kratos?

The contract is with the U.S. Army's Rapid Capabilities and Critical Technologies Office.

What will the project improve in Directed Energy testing?

The project aims to improve testing methodologies and efficiency for Directed Energy systems.