Kratos Reports Q2 Financial Results; Overall Revenue Down 21.4%
Kratos’ Public Safety and Security (PSS) business margins are down sharply year-over-year.
SAN DIEGO – Kratos Defense & Security Solutions (NASDAQ:KTOS) reported second quarter earnings per share (EPS) of 2 cents on Thursday (Aug. 6), topping analysts’ consensus estimate of 4 cents by 2 cents, AnalystRatings.Net reports.
The firm earned $160.5 million during the quarter, compared to analyst estimates of $185.4 million. During the same quarter in the previous year, the company posted 2 cents EPS on total revenues of $204.2 million. The company’s revenue for the quarter was down 21.4% on a year-over-year basis.
In a press release, Kratos said its second quarter results “have been recast to reflect the pending divestiture of the company’s U.S. and U.K. operations of its Electronic Products (EP) businesses as discontinued operations.” The sale and divestiture of the EP businesses is expected to close during the company’s third fiscal quarter of 2015.
The company reported revenues and adjusted EBITDA for the second quarter generated by the discontinued EP businesses were $22.3 million and $4.1 million, respectively. Total combined revenue and adjusted EBITDA from continuing and discontinued operations for the second quarter were $182.8 million and $16.2 million, respectively.
Kratos’ systems integration Public Safety and Security (PSS) business margins increased over the first quarter, with June’s gross margins being the highest generated in 2015, according to the company. The PSS business generated revenues of $35.5 million in the second quarter, compared to $63.7 million during the same period last year.
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.
A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!