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Kratos (KTOS) Receives Specialized Missile Defense System Equipment Order

 December 26, 2012 09:10 AM

(By Balaseshan) Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) said it has recently received a new order worth $8 million for specialized equipment related to a certain Missile Defense program.

Under this award, Kratos will design, engineer, manufacture and deliver specialized equipment related to the Missile Defense system. The equipment Kratos will be providing will be produced in a secure Kratos manufacturing facility. Due to customer-related and other considerations, no additional information will be provided related to the contract.

On December 21, the company said it has received a contract award with a potential value of $5 million to deploy a specialty security system that includes surveillance and access control security elements for an existing Kratos customer.

The customer making the contract award to Kratos is in the education sector and located in the northeastern United States. The requirements of the contract include the design, engineering, installation and integration of the comprehensive security system, as well as repairs, parts and preventative maintenance.

On December 20, Kratos has been awarded a contract from the U.S. Air Force for the Command and Control System -- Consolidated (CCS-C) Sustainment and Production Contract (CPASC) for current and future military communication satellites. $17.5 million was awarded for the first year of the contract, and if all options are executed over the six-year period the total value of the contract will be $133 million.

On December 18, the company said its Electronic Products division has received a follow-on order valued at $1.9 million from an existing international customer to provide high performance source used in an airborne application. No additional details are being provided due to customer-specific and other sensitivities.

On December 17, Kratos said it received new equipment orders related to a certain National Security program totaling $4.2 million. These recent equipment orders bring the total value of all orders Kratos has received under this program over the past year to about $33 million.

The specialized equipment that Kratos is supplying under these recent awards is expected to be delivered in the first half of 2013. The equipment for which Kratos is under contract will be produced in a secure Kratos manufacturing facility.

KTOS closed Monday's session at $4.99. The stock has been trading between $4.14 and $7.79 for the past 52 weeks.


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