Kratos Composite Engineering, Inc. (KTOS) Receives $20.2 Million Single Award Contract

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced that its newly acquired subsidiary, Composite Engineering, Inc. (CEI), has received an $11.9 million single award baseline contract from Swedish FMV for the supply of unmanned aerial targets and associated hardware to the Vidsel Test Range. Specialized hardware and equipment in support of the contract will be provided by three Kratos entities:

• CEI, located in Sacramento, CA, will lead the effort and provide high performance aerial target drones, launch equipment, ground support equipment, spares, training, integration support and program management.
• Micro Systems Inc., located in Ft. Walton Beach, FL, will support the program by providing the command and control ground station, target test set and avionics utilized on the target drone.
• Herley Industries, Inc., located in Lancaster, PA, will provide high performance radar altimeters.

Performance on the baseline contract will commence immediately, with deliveries scheduled to complete in 2013. In addition to the baseline contract, options exercisable for hardware through 2017 are valued at up to an additional $8.3 million. Unmanned aerial target drone systems are utilized as high fidelity enemy threat surrogates, simulating performance characteristics of the threat aircraft and missiles, by militaries around the globe for weapons testing and training requirements.

Richard Selvaggio, President of Kratos Unmanned Systems Solutions Division, said, “Providing target drones to the Swedish FMV marks yet another milestone in CEI’s already impressive penetration into international markets. With this award, CEI products will support friendly forces from around the world that deploy to this international location for test and training activities. The systems we will provide are planned to remain in service for decades to come at one of the finest test and evaluation ranges in Europe, located near the Arctic Circle.”

About Kratos Defense & Security Solutions – KTOS

Kratos Defense & Security Solutions, Inc. (KTOS) is a specialized National Security technology business providing mission critical products, services and solutions for United States National Security priorities.  Kratos’ core capabilities are sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. KTOS’ areas of expertise include Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR), satellite communication systems, unmanned systems, cyberwarfare, cybersecurity, information assurance, critical infrastructure security and weapons systems sustainment.  KTOS has primarily an engineering and technical oriented work force of approximately 4,400, many of whom hold an active National Security clearance, including Secret, Top Secret and higher.  The vast majority of Kratos’ work is performed on a military base, in a secure facility or at a critical infrastructure location.  Kratos’ primary end customers are United States Federal Government agencies, including the Department of Defense, classified agencies, intelligence agencies and Homeland Security related agencies.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.