Naval Air Systems Command Exercises Option for an Additional $3.6 Million to Kratos for Contractor Logistics Support & Engineering Services for the BQM-177A Subsonic Aerial Target System

Rhea-AI Summary

Kratos Defense & Security Solutions (NASDAQ: KTOS) has been awarded an additional $3,570,194 from the U.S. Navy for its Contractor Logistics Support (CLS) and Engineering Services contract for the BQM-177A aerial target system. This funding supports operations and sustainment, enhancing the system's adaptability for Navy missions. The total contract value will reach $7,405,367 when fully funded. The work will be conducted mainly in Kratos facilities in California, marking a significant step in their operations and support strategy.

Positive

• Awarded an additional $3,570,194 for the BQM-177A aerial target system.
• Total contract value potentially reaching $7,405,367 strengthens financial outlook.

Negative

• None.

SAN DIEGO, Dec. 28, 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 Kratos will receive an additional $3,570,194 from the U.S. Navy for the next option of its Contractor Logistics Support (CLS) and Engineering Services contract supporting BQM-177A aerial target system operations.

Steve Fendley, President of Kratos Unmanned Systems Division, said, “Now that we’re beyond the Full Rate Production acquisition milestone, we’ve entered the operations and sustainment phase of the SSAT lifecycle. CLS and Engineering Services are vital to ensuring the continuing adaptation, operations, and maintenance of this agile, realistic, and highly configurable aerial target system designed specifically for the Navy’s challenging threat representation missions. Kratos is proud to be providing this support today and for the future as the number of missions and operational sites increase.”

The work under this contract will be incrementally funded and conducted primarily in Kratos facilities in both Sacramento and Point Mugu, CA. When fully funded, the total contract value after exercise of this option is $7,405,367.

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/38167b01-0061-41bd-9d1f-6df4f69e4fa1

FAQ

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

Kratos Defense has been awarded an additional $3,570,194 from the U.S. Navy for the BQM-177A aerial target system's Contractor Logistics Support and Engineering Services.

What is the total value of the contract for the BQM-177A system for Kratos?

The total contract value for the BQM-177A aerial target system will reach $7,405,367 when fully funded.

What will the funding from the U.S. Navy support?

The funding will support operations and sustainment of the BQM-177A aerial target system, enhancing its adaptability for Navy missions.

Where will the work under the contract predominantly take place?

The work will primarily be conducted in Kratos facilities located in Sacramento and Point Mugu, California.

What is the significance of the contract for Kratos Defense?

The contract represents a critical operational phase for Kratos, enhancing support for Navy operations and ensuring ongoing adaptability of the aerial target system.