Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) failed to gain momentum even after announcing that its division as a key member of a team has bagged a contract worth $44 million. The security solutions provider released a press release stating that its division, Defense & Rocket Support Services (DRSS), which is a part of a team, has been entrusted with the responsibility of weapon systems upgrade and sustainment.
Contract value raised
The contract of value $44 million will stretch to a tenure of two years as per the company. Also, the company took pride in highlighting that the contract value has been raised from its previous contract, where it played a significant role as a prime subcontractor. The company added that it holds unique capabilities and qualifications to carry out weapon systems upgrade and has been actively participating in such activities since 2005.
Meanwhile, Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) President Dave Carter expressed satisfaction over the receipt of the new contract; he refused to share any more information due to customer-related considerations.
Missed revenues expectations
Earlier last month, the company had posted its third quarter results, where it missed to revenues as per the market estimates. The company reported earnings per share of ($0.02), which met the market consensus. However, revenues amounting $161.7 million came $13.3 million below the analysts’ expectations. Also, the revenues declined year-over-year by more than 15%. In its third-quarter report, the company stated its net income at $55.1 million, which is a welcome progress following the company’s losses in the previous year’s corresponding quarter.
During this year, the company had completed the sale of its U.S. and U.K. operations to Electronics Products Division (EPD) to a U.K. based firm Ultra Electronics Holdings for a consideration of $232.4 million. The stock of Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) fell by 4.81% to $4.35 during the previous day’s session.