Kratos Receives $50 Million Sole Source Contract Option Award for 65 Production BQM-177A Aerial Target Drones from U.S. Navy

Rhea-AI Summary

Kratos Defense & Security Solutions (Nasdaq: KTOS) announced a contract modification worth $50.9 million for the procurement of 65 BQM-177A Subsonic Aerial Targets. This includes 50 units for the Navy, seven for Japan, and eight for Saudi Arabia, supporting full rate production lot three. The modification underscores Kratos' commitment to national security and enhancing capabilities for both U.S. and allied nations. Steve Fendley, President of Kratos Unmanned Systems Division, expressed pride in their sustained support for U.S. Navy customers amid recent challenges.

Positive

• Awarded $50.9 million contract modification for 65 BQM-177A Subsonic Aerial Targets.
• Secures ongoing support for the U.S. Navy and allied nations with 15 units for foreign partners.
• Demonstrates continued business growth despite recent challenges.

Negative

• None.

SAN DIEGO, Dec. 28, 2021 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today following the Government announcement, that Kratos Unmanned Aerial Systems (KUAS) has been awarded a $50,917,490 contract modification (P00007) to a previously awarded firm-fixed-price contract (N0001920C0075). This modification exercises an option to procure 65 BQM-177A Subsonic Aerial Targets, 50 for the Navy, seven for the government of Japan, and eight for the government of Saudi Arabia, as well as associated technical and administrative data in support of full rate production lot three. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Due to customer-related, competitive, security, and other considerations, no additional information will be provided.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “The Kratos team is incredibly proud to receive this third consecutive full rate production option award supporting our U.S. Navy customer. We are also excited that 15 of these drone aircraft will support the U.S. Government’s foreign allies. Throughout the challenges of the last two years, Kratos has remained focused on developing, producing, and delivering target and tactical drone systems to support the established and forecasted customer needs.”

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 27, 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

FAQ

What is the contract value announced by Kratos Defense for the BQM-177A Subsonic Aerial Targets?

Kratos Defense announced a contract modification valued at $50.9 million.

How many BQM-177A Subsonic Aerial Targets are procured for the U.S. Navy?

The contract includes 50 BQM-177A Subsonic Aerial Targets for the U.S. Navy.

What countries are receiving the BQM-177A Subsonic Aerial Targets from Kratos Defense?

Japan and Saudi Arabia will receive seven and eight targets, respectively.

Who is the President of Kratos Unmanned Systems Division?

Steve Fendley is the President of Kratos Unmanned Systems Division.

What does the contract modification support for Kratos Defense?

The contract modification supports full rate production lot three of the BQM-177A Subsonic Aerial Targets.