Kratos Defense & Security Solutions, Inc. released its First Quarter (Q1) 2020 financial results on May 7, reporting revenues of $168.9 million, a 5.3% increase over Q1 2019. Its Q1 2020 Adjusted EBITDA was $16.3 million, a 6.9% decrease from the same time period in 2019, which the company attributed to $1.8 million in increased research and development in its space and satellite communications business. These investments were related to new software-based and open space platforms and technologies. The company’s operating income was $4.7 million.
Kratos adjusted its Full Year (FY) 2020 revenue guidance from between $740 million and $780 million, to between $720 million and $760 million, to reflect the expected impact of COVID-19 on its business, vendors, suppliers and customers. Also, the adjustment reflects that an international customer did not renew an option on a contract, and a previously protested U.S. Navy/RSNF Training Contract was extended through the end of 2020.
Kratos affirmed its Adjusted EBITDA guidance, forecasting an improved revenue mix and profitability in its U.S. Department of Defense (DoD) and national security business areas, including space, satellite, unmanned systems and microwave electronic operations.
Kratos President and CEO Eric DeMarcos said that in the first quarter, Kratos Unmanned Systems, Space and Satellite Communications, Microwave Electronics, C5ISR and Rocket System DoD focused businesses performed particularly well, with strong Q1 bookings that will provide increased visibility in the future.
“As Kratos addresses the challenges presented by COVID-19, we remain focused on providing mission critical, affordable, leading technology systems and solutions for our national security mission, while maintaining a safe and healthy environment for our employees. I am extremely proud of the commitment of Kratos employees to our customers and country and the value they continue to create for our Company and its shareholders in the current environment,” DeMarcos said.
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