Boston, MA 10/07/2014 (wallstreetpr) – Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS)’ Unmanned Systems division received a new contract award from the U.S. Government to support their customers such as National Security related agencies.
New Government contracts
According to the contract, the company will supply spares, assemblies and related items to the unmanned drone system operations of the Government customers. Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS)’s high-performance unmanned drone aircraft systems will support their aerial drone target system programs and platform.
Kratos will manufacture the products in a secure manufacturing facility and then, it delivers the spares and related items in the next two years as per the contract terms. However, Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) did not provide the detailed information related to the contract award due to consideration of its customers.
Jerry Beaman, President, Unmanned Systems Division, Kratos, said that the company delighted over the support from the U.S. Government. Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) committed to delivering spares and other items to support unmanned aerial system platform and continued to provide long-term relationship with the customers in the forthcoming years.
Favorable prospects
In January 2014, the appropriation committee of the U.S. Government passed a law that offset the sequester cuts significantly. In addition, on February 2014, the U.S. Government signed the legislation to raise the debt limit to March 2015. So, the favorable conditions will provide a better outlook of the defense industry in 2014 and 2015.
Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) is already well-positioned in C5ISR, electronic warfare, satellite communication systems; cyber warfare and cyber security. It also designs and manufactures aerial target systems and equipments to support the requirements of the customers.
So, the addition of new awards with the U.S. Government’s national security related agencies will further enhance the relationship while offering the benefits of its high-performance unmanned aerial platforms. It will also provide additional revenues to Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS)’s Government Solutions (KGS) business.
