Kratos Receives Sole Source, Single Award $109 Million Maximum
Value Three Year Production Contract for Air Force Subscale Aerial
Target System (AFSAT) BQM-167A High Performance Unmanned Aerial
Target Drone Systems
SAN DIEGO, July 19, 2018 (GLOBE
NEWSWIRE) -- Kratos Defense & Security Solutions, Inc.
(Nasdaq:KTOS), a leading National Security Solutions provider,
announced today that it has negotiated and received an early
effective date of 29 June 2018 for a one year sole source, single
award, firm fixed price contract for Kratos' BQM-167A high
performance, jet powered unmanned aerial target drone system. The
contract includes two one year options for additional production
lots. This contract award represents AFSAT Lots 14-16
(corresponding to over 16 years of production) and Contractor
Logistics Support, with a possible maximum value of approximately
$109 million. Work will be performed at a Kratos manufacturing
facility. Fiscal year 2018 procurement funds in the amount of
$27 million are being initially obligated at the time of award for
thirty Lot 14 BQM-167A aerial targets and production support.
Air Force Life Cycle Management Center, Eglin Air Force Base,
Florida, is the contracting activity. Kratos is the industry
leading supplier of affordable, high performance unmanned aerial
target drone systems to all branches of the U.S. military, and many
nations around the world. Kratos is also a leading provider
of affordable, high performance jet powered unmanned aerial drone
systems for tactical applications and mission sets.
The BQM-167A is used by the United
States Air Force (USAF) to test and evaluate air-to-air and
surface-to-air weapons systems. The primary role of the BQM-167A is
to provide USAF aviators with the world's most realistic and
comprehensive end-to-end weapons-release evaluation and training.
The versatile design of AFSAT supports an extensive range of
mission requirements through its performance capabilities and wide
array of payloads, which are contracted and procured
separately.
Steve Fendley, President Unmanned
Systems Division of Kratos, said, "We're thrilled about this most
recent long-term contract to continue supporting our USAF customer
with unparalleled subscale unmanned aerial target drone
performance. The USAF is an extremely important customer to Kratos
and we value the importance of the AFSAT system and in continuing
to respond to the rapidly growing training and testing needs of the
USAF."
Eric DeMarco, CEO of Kratos, said,
"The receipt of this sole source contract for AFSAT production Lots
14 through 16 is a clear example of Kratos' strategy and business
plan to rapidly develop, demonstrate and field affordable, leading
technology platforms and systems which meet or exceed our customer
requirements, which result in long term partnership relationships.
Kratos' unmanned aerial target drone systems, including the
BQM-167A, are the highest performance unmanned aerial systems in
their class in the world, and are expected to be significant future
revenue, profit and cash flow growth drivers for our Company."
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. Kratos specializes
in unmanned systems, satellite communications, cyber
security/warfare, microwave electronics, missile defense,
hypersonic systems, training and combat systems. 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
31, 2017, 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