Kratos Defense & Security Solutions Reports Preliminary Q4 Revenue of $120M to $122M

Kratos Defense & Security Solutions, Inc. KTOS today reported preliminary fourth quarter 2010 revenues of $120 to $122 million and adjusted EBITDA of $12.5 to $13.0 million, or 10.2% to 10.8% of revenues, up sequentially from $11.7 million or 9.8% of revenues from the third quarter. Kratos also reported cash flow generated from operations of approximately $3 million for the fourth quarter, and approximately $28 million for 2010. The improvement in operating margins and adjusted EBITDA reflects a favorable contract mix of revenues including certain C5ISR and certain weapons systems related programs, continued leverage of the Company's SG&A infrastructure as the business grows, and the continued successful integration of the businesses Kratos has acquired. Adjusted EBITDA reflects earnings before interest, taxes, depreciation, and amortization, and excludes acquisition related and stock compensation expenses.