This makes me want to dig deeper into small companies such as Kratos Defense & Security Solutions (KTOS). Most of its business comes from defense and homeland security contracts, and one expects conditions to be awful. The truth is actually opposite that as the company works on secure programs such as drones, cyber warfare and defense as well as transportation infrastructure protection. Funding for these projects is not going away and the company should prosper as it now wins new contracts almost weekly.
Quoting Management: Eric DeMarco, Kratos’ President & CEO, said, “Kratos had a solid first quarter, with our Public Safety and Security business exceeding our revenue expectations, and we believe that we will see growth and EBITDA rate expansion in PSS throughout 2013, with strong demand for Kratos’ security and video surveillance system integration solutions as a result of heightened security awareness in the United States.
We also have a number of large DoD and international opportunities we are pursuing, including in the Cyber, Missile Defense, Electronic Warfare, Radar and ISR areas, where awards are currently expected to be made in the second half of 2013.