Mr. DeMarco concluded, “Kratos is a hardware, software and system company, and we are vertically integrating in critical areas to ensure our ability to deliver products that work, at planned cost and on schedule, while also enhancing our physical and cyber security posture. Kratos engineers and develops our hardware up front, for reliability and rapid, low cost manufacturing, in order to provide large quantities and affordable mass to our customers and partners. Delivering reliable hardware for National Security applications, on time and on budget is hard, and a core competency and differentiator of Kratos. We are working closely with our customers, traditional large system integrator partners and new industry entrants to rebuild the U.S. Industrial Base, deter our adversaries and deliver value to each of our stakeholders.”

Financial Guidance
We are providing our initial 2024 third quarter financial guidance and affirming our full year 2024 guidance today, which ranges include our current forecasted business mix assumptions and expected contract execution and delivery schedules. Our financial guidance also includes our expectations and assumptions for our supply chains execution, and for employee sourcing, hiring, retention and the related cost. We have also taken into consideration in our affirmed fiscal 2024 guidance a Federal Fiscal Year 2025 Continuing Resolution Authorization (CRA) commencing on October 1, 2024, and under such expected CRA, no new program/contract awards, no increases in existing production contract funding, and no transition from program development to production.

Our third quarter and full year 2024 guidance ranges are as follows:

Management will discuss the Company’s financial results, on a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern) today. The call will be available at www.kratosdefense.com. Participants may register for the call using this Online Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos’ website.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets.  Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements.  At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions.  We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers.  Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.  For more information, visit www.KratosDefense.com

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