Naval Air Systems Command Accepts Delivery of 100th Production BQM-177A Subsonic Aerial Target System

Rhea-AI Summary

Kratos Defense & Security Solutions (NASDAQ: KTOS) announced the delivery of its 100^th BQM-177A Subsonic Aerial Target, marking a milestone in its third Low Rate Initial Production contract. The delivery is part of a successful year, overcoming COVID-19 challenges, with a new $29.2 million Full Rate Production contract awarded for 35 additional units. The operational site at Pacific Missile Range Facility in Hawaii is set to enhance anti-ship missile training. The program is on track to achieve Full Operational Capability by the end of the fiscal year.

Positive

• Delivery of the 100^th BQM-177A target demonstrates a solid production line.
• Secured a $29.2 million Full Rate Production contract for 35 additional units.
• Operational site activation at Pacific Missile Range Facility enhances military training capabilities.

Negative

• None.

SAN DIEGO, Nov. 19, 2020 (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 delivered the 100^th production BQM-177A Subsonic Aerial Target (SSAT), nearing completion of its third and final Low Rate Initial Production (LRIP) contract.

Captain Molly Boron, Program Manager, Aerial Targets Program (PMA-208) stated, “I am proud to accept delivery of this 100^th aircraft on behalf of the U.S. Navy. The government-industry team of PMA-208 and Kratos Unmanned Aerial Systems (KUAS) has worked hard to deliver this capable target on time and on budget. 2020 has been a successful year despite COVID-19 challenges. We are completing LRIP III deliveries, have awarded the $29.2M Full Rate Production (FRP) Lot 1 contract on 29 September for 35 more BQM-177A SSATs, and are currently activating the operational site at Pacific Missile Range Facility (PMRF) in Kauai, HI. The combined PMA-208 and KUAS team is positioned to successfully achieve Full Operational Capability this fiscal year. We are delivering targets and support equipment to Atlantic Target & Marine Operations at Dam Neck, VA in anticipation of their transition to the BQM-177A this winter. We will complete the transition of this capability when the PMRF Detachment Far East site in Okinawa, Japan is activated with a ship-launch capability. The delivery of the 100^th target signifies a well-performing production line but also represents an incredible amount of teamwork enabling relevant anti-ship cruise missile training and combat system testing for the Fleet.”

Steve Fendley, President of Kratos Unmanned Systems Division, said, “The delivery of this 100^th aircraft represents the very hard work of many dedicated Navy and KUAS engineering, production, program, logistics, financial, and supply chain professionals. We stand shoulder-to-shoulder with our Navy customers as we activate additional sites and operationalize this capability around the world. The KUAS team remains committed to the mission of providing the most capable systems and realistic training possible to the warfighters.”

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, please 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 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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e99ef0b3-35bf-4e74-92e5-b517c28ec9af

FAQ

What recent milestone did Kratos (KTOS) achieve?

Kratos announced the delivery of its 100^th BQM-177A Subsonic Aerial Target.

What is the value of the new contract awarded to Kratos (KTOS)?

Kratos received a $29.2 million Full Rate Production contract.

When is Kratos (KTOS) expected to achieve Full Operational Capability?

Kratos is on track to achieve Full Operational Capability by the end of the fiscal year.