Kratos Review Underway

Kratos Defense and Security Solutions said last week a strategic review of its business should be complete by the end of June.

Last year, the contractor announced its board retained an investment banking firm "to assist it in formally reviewing its businesses, markets and competitive positioning and to evaluate strategic alternatives, including the potential divestment of certain of its non-core businesses."

During a call with analysts last week, Eric DeMarco, Kratos' chief executive, said the company expects to share the review's findings at the end of its second quarter.

Due to that review, "Kratos' executives remain in a window where we cannot purchase or trade in Kratos stock," he added.

In the first quarter, Kratos reported sales declined nearly 9 percent to hit $182.5 million. The contractor reported a quarterly loss of $16.3 million, similar to the loss it reported in the same period the prior year.

Quarterly sales in its government solutions business were flat, but declined in Kratos' unmanned solutions group. That unit reported a loss for the three-month period.

Kratos executives said the company has been making significant cost cuts, including personnel reductions. DeMarco said Kratos will "continue to aggressively manage our cost structure."