Kratos Announces Award of BQM-177A Subsonic Aerial Target Drone System Low Rate Initial Production Contract of $37,091,710 fr...
June 28 2017 - 7:00AM
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), a
leading National Security Solutions provider, announced today that
its Unmanned Systems Division (USD) was awarded an amendment to a
previously awarded contract to exercise an option for Low Rate
Initial Production Year 1 (LRIP 1) from the U.S. Navy, for BQM-177A
Subsonic Aerial Target (SSAT) Drone Systems. The SSAT LRIP 1
order has an initial value of $34,553,229. Coincident with
the LRIP 1 order, Kratos was awarded a contract to provide
Contractor Logistics Support (CLS); initial value of the CLS award
is $2,538,481 for fiscal 2017. In addition, separate
contracts for Peculiar Support Equipment, Initial Systems Spares,
External Payload Systems and Flight Consumables will follow
shortly. Kratos’ USD is at the forefront in the design,
development, demonstration and delivery of Affordable, High
Performance, Jet Powered Unmanned Aerial Tactical and Target Drone
Systems. The BQM-177A is one of the highest performance
unmanned aerial drone systems in the world today, with unmatched
flight performance characteristics in multiple key mission
areas. SSAT LRIP 1, which coincides with the Fiscal 2017 U.S.
Department of Defense (DoD) Budget, is the initial annual
production order for this unmanned aerial target drone system,
which recently completed development. The Fiscal 2018
SSAT production order LRIP 2 is currently expected to be
approximately 25 percent higher than Fiscal 2017 SSAT LRIP 1.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/49dd9e0d-865b-46c5-8ba2-90cc11639438
The SSAT Program is designed to meet the U.S.
Navy’s requirements for a new High Fidelity Target to replicate
subsonic anti-ship cruise missile threats in direct support of
fleet training and weapon system testing and evaluation. The
BQM-177A will initially augment, and will eventually replace, the
existing BQM-74E Chukar Targets and will deliver longer range,
lower cruise altitudes and greater maneuverability.
The BQM-177A is based on Kratos’ BQM-167X
Aircraft, a derivative of the BQM-167A Skeeter Target currently
being supplied to the U.S. Air Force. While leveraging legacy
designs of the BQM-167A, the BQM-177A introduces a new fuselage
with area ruling, high mounted wings and an internally integrated
MicroTurbo TR-60-5+ turbo jet engine for reduced transonic
drag. The BQM-177A can support various mission requirements
by carrying a variety of internal and wing tip mounted payloads,
including electronic counter measures, active and passive radar
augmentation, infrared, identification friend or foe, internal
chaff and flare dispensing, threat emitter simulators, smoke and
scoring.
Steve Fendley, President of Kratos’ Unmanned
Systems Division, said, “We are extremely proud of the performance
capabilities of this target aircraft, arguably the most capable and
maneuverable low altitude high subsonic unmanned aircraft in
existence. Transitioning to production is a significant milestone
for our team and with this achievement it delivers a much needed
capability to the Navy in supporting our country’s National
Security requirements.”
About Kratos Defense & Security
SolutionsKratos Defense & Security Solutions, Inc.
(Nasdaq:KTOS) is a mid-tier government contractor at the forefront
of the Department of Defense’s Third Offset Strategy. Kratos
is a leading technology, intellectual property and proprietary
product and solution company focused on the United States and its
allies’ national security. Kratos is the industry leader in
high performance unmanned aerial drone target systems used to test
weapon systems and to train the warfighter, and is a provider of
high performance unmanned combat aerial systems for force
multiplication and amplification. Kratos is also an industry
leader in satellite communications, microwave electronics, cyber
security/warfare, missile defense and combat systems. Kratos
has primarily an engineering and technically oriented work force of
approximately 2,900. Substantially all of Kratos' work is performed
on a military base, in a secure facility or at a critical
infrastructure location. Kratos' primary end customers are National
Security related agencies. News and information are available at
www.KratosDefense.com.
Notice Regarding Forward-Looking
StatementsCertain 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
25, 2016, 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
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