Kratos Defense and Security Solutions Inc (KTOS) 2021 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Kratos Defense & Security Solutions Second Quarter 2021 Earnings Conference Call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加 Kratos 國防與安全解決方案 2021 年第二季財報電話會議。（操作員說明）

I would now like to hand the conference over to your speaker today, Ms. Deanna Lund, Executive Vice President and CFO. Please go ahead.

現在我想將會議交給今天的發言人，執行副總裁兼財務長 Deanna Lund 女士。請繼續。

Thank you. Good afternoon, everyone. Thank you for joining us for the Kratos Defense & Security Solutions Second Quarter 2021 Conference Call.

謝謝。大家下午好。感謝您參加我們的 Kratos 防禦與安全解決方案 2021 年第二季電話會議。

With me today is Eric DeMarco, Kratos' President and Chief Executive Officer.

今天與我在一起的是 Kratos 總裁兼執行長 Eric DeMarco。

Before we begin the substance of today's call, I'd like everyone to please take note of the safe harbor paragraph that is included at the end of today's press release. This paragraph emphasizes the major uncertainties and risks inherent in the forward-looking statements we will make this afternoon. Please keep these uncertainties and risks in mind as we discuss future strategic initiatives, potential market opportunities, operational outlook and financial guidance during today's call.

在我們開始今天電話會議的實質內容之前，我希望大家注意今天新聞稿末尾包含的安全港段落。本段強調了我們今天下午將要做出的前瞻性陳述所固有的主要不確定性和風險。當我們在今天的電話會議上討論未來的策略舉措、潛在的市場機會、營運前景和財務指導時，請牢記這些不確定性和風險。

Today's call will also include a discussion of non-GAAP financial measures as that term is defined in Regulation G. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP. Accordingly, at the end of today's press release, we have provided a reconciliation of these non-GAAP financial measures to the company's financial results prepared in accordance with GAAP.

今天的電話會議還將討論 G 條例中定義的非 GAAP 財務指標。非 GAAP 財務指標不應被視為獨立於或取代根據 GAAP 提供的財務資訊。因此，在今天的新聞稿結尾，我們提供了這些非公認會計原則財務指標與根據公認會計原則編制的公司財務表現的調節表。

With that, I will now turn the call over to Eric DeMarco.

現在，我將把電話轉給埃里克·德馬科。

Great. Thank you, Deanna, and good afternoon. Kratos has continued to execute on and achieved important milestones, further positioning us for the successful execution of our stated mission, our business plan and our strategy. The organic growth we generated in Q2, including in our Unmanned Systems and space, satellite and cyber businesses, we believe is representative of this execution. Additionally, Kratos' last 12-month 1.2:1 book-to-bill ratio, which includes a 1.3:1 second quarter book-to-bill ratio in our space, satellite and cyber business, which is our company's largest, and an expected very strong second half of 2020 bookings provides us the confidence in the forecast and the continued up into the right organic growth trajectory.

偉大的。謝謝你，迪安娜，下午好。Kratos 繼續執行並實現了重要的里程碑，進一步為我們成功執行既定使命、業務計劃和策略奠定了基礎。我們認為，我們在第二季度實現的有機成長，包括我們的無人系統以及太空、衛星和網路業務，代表了這種執行力。此外，Kratos 最近 12 個月的訂單出貨比為 1.2:1，其中包括我們公司最大的太空、衛星和網路業務第二季 1.3:1 的訂單出貨比，預計2020 年下半年非常強勁的預訂量讓我們對預測和持續進入正確的有機成長軌跡充滿信心。

Since our last report, we achieved a successful series of flight tests with the Skyborg Autonomy Core System, or ACS, aboard Kratos' UTAP-22 Mako tactical unmanned aerial drone system at Tyndall Air Force Base in Florida, which was an incredibly important program milestone for the company.

自上次報告以來，我們在佛羅裡達州廷德爾空軍基地的 Kratos UTAP-22 Mako 戰術無人機系統上使用 Skyborg Autonomy Core System（ACS）成功進行了一系列飛行測試，這是一個極其重要的項目里程碑為公司。

As reported by the United States Air Force, the 96th test wing took part in a series of test flights of Kratos' Mako and inside the Kratos Mako, the Skyborg Autonomy Core System, or the brain of the autonomous aircraft, made its first 3 flights for the Autonomous Attritable Aircraft Experiment. The ACS is part of the AFRL Skyborg Vanguard program with Skyborg's goal to develop low-cost unmanned aircraft to provide increased combat capability by teaming unmanned drone aircraft with traditional manned fires.

根據美國空軍報道，第 96 測試聯隊參加了 Kratos' Mako 的一系列試飛，在 Kratos Mako 內部，Skyborg 自主核心系統（即自動飛機的大腦）進行了前 3 次飛行用於自主可消耗飛機實驗。ACS 是 AFRL Skyborg Vanguard 計畫的一部分，Skyborg 的目標是開發低成本無人機，透過將無人機與傳統載人火力相結合來提供增強的作戰能力。

During this demonstration flight series, aircraft controllers on the ground provided commands to the ACS. And in the future, the plan is for direct manned, unmanned teaming via commands, sent from a manned F-16 Fighting Falcon to the ACS onboard the unmanned aircraft. Related to the flight, Brigadier General Scott Cain, the 96th TW Commander reportedly said, the execution of this test flight is a great milestone for our closely integrated development and acquisition team. With the successful execution of this test, providing the knowledge needed to advance the technology, and we are highly motivated to bring war winning technology to the next fight. Major [Nathan Makowski] said, this is a significant step toward teaming manned and unmanned aircraft in combat in the not-too-distant future, with manned -- with unmanned aircraft using the autonomy system developed for this experiment going places where manned fighters cannot go, providing sensor information back to man teammates and increasing the power production capability of the United States Air Force.

在這次示範飛行系列中，地面飛機控制器向 ACS 發出命令。未來，計劃是透過從有人駕駛的 F-16 戰鬥機向無人機上的 ACS 發送命令，進行直接有人、無人編組。據報道，與此飛行相關的第 96 TW 指揮官斯科特凱恩準將表示，此次試飛的執行對於我們緊密整合的開發和採購團隊來說是一個重要的里程碑。隨著這次測試的成功執行，提供了推進技術所需的知識，我們非常有動力將贏得戰爭的技術帶入下一場戰鬥。少校[內森·馬科夫斯基]表示，這是在不久的將來將有人和無人機聯合作戰的重要一步，有人駕駛飛機使用為本次實驗開發的自主系統前往有人戰鬥機無法到達的地方向隊友提供感測器資訊並提高美國空軍的電力生產能力。

During the test flight series with the Kratos UTAP-22, Major Makowski, the lead pilot for the missions, flew the closest ever manned fighter to an unmanned aircraft under autonomous control in Department of Defense history.

在奎托斯 UTAP-22 的試飛系列中，該任務的首席飛行員馬科斯基少校駕駛了國防部歷史上最接近自主控制無人機的有人駕駛戰鬥機。

Also during the flight series, the ACS equipped Makos demonstrated proficiency in basic aviation abilities and responded to commands while navigating a shared airspace with up to 4 manned fighter aircraft, including F-16 and F-15Es. The military envisions at least 15 different missions for these types of drones, representative of the extremely large opportunity we are pursuing, and Kratos is working in unison with our customers to achieve this objective. Kratos' Mako flying the Skyborg ACS Core is also representative of the important first-to-market advantage we have with 4 classes of Kratos attritable, reusable or expendable drones flying today, and the customer integration of various sensors, systems, payloads and more into our aircraft now for flight testing, operational concepts and fielding.

此外，在系列飛行中，配備 ACS 的 Makos 展示了其基本航空能力的熟練程度，並在與多達 4 架有人駕駛戰鬥機（包括 F-16 和 F-15E）共享空域導航時響應命令。軍方預計此類無人機至少有 15 種不同的任務，這代表了我們正在追求的巨大機遇，Kratos 正在與我們的客戶共同努力實現這一目標。Kratos 的 Mako 飛行 Skyborg ACS Core 也代表了我們擁有 4 類 Kratos 可消耗、可重複使用或消耗性無人機的重要的首次上市優勢，以及客戶將各種感測器、系統、有效載荷等整合到我們的飛機現在正在進行飛行測試、操作概念和部署。

I cannot overemphasize the competitive importance of the various customer payloads being integrated into flown tested and demonstrated in Kratos' first-to-market high-performance jet drones today. The successful flight series with the Skyborg ACS and Kratos' Mako, we believe, is another important step in our strategic road map, including for ultimate volume production and fielding of Kratos' tactical jet drones as force multiplying loyal wingmen to the war fighter.

今天，Kratos 首款上市的高性能噴射無人機中，整合了各種客戶有效載荷並進行了飛行測試和演示，這一點我怎麼強調也不為過。我們相信，Skyborg ACS 和 Kratos 的 Mako 的成功飛行系列是我們戰略路線圖上的又一個重要步驟，包括最終批量生產和部署 Kratos 的戰術噴氣式無人機，作為戰鬥機的忠誠僚機的力量倍增。

In addition to the successful flights of the Skyborg Core, Skyborg Vanguard program-related systems and payloads are now being integrated into the first 2 Kratos Valkyries from the Oklahoma production line from the initial 12 lot with a flight series for the Skyborg equipped Valkyrie scheduled in the near future.

除了Skyborg Core 的成功飛行之外，Skyborg Vanguard 計畫相關的系統和有效載荷現在正被整合到俄克拉荷馬州生產線的前2 架Kratos Valkyries 中，從最初的12 批開始，配備Skyborg 的Valkyrie 的飛行系列計劃於不久的將來。

Under the Skyborg Vanguard and other programs, we have multiple additional flights with Kratos' tactical drones planned for the second half of this year as we move towards initial operating capability and fielding. These flights include the next Gremlins drone flight series with our DARPA customer and our prime partner, Dynetics, with several tactical fire jet and AirWolf program flights also scheduled for later this year. Related to Gremlins, it was recently reported that the Gremlins concept of operations continues to grow and evolve, including that the Gremlins are now expected to carry weapons, return to a mother ship, refuel, rearm and be sent back out on another mission. This, again, representative of the increasing market opportunity we're pursuing.

根據 Skyborg Vanguard 和其他計劃，隨著我們向初始作戰能力和部署邁進，我們計劃在今年下半年使用 Kratos 戰術無人機進行多次額外飛行。這些飛行包括與我們的 DARPA 客戶和我們的主要合作夥伴 Dynetics 合作的下一個 Gremlins 無人機飛行系列，還有幾架戰術消防機和 AirWolf 計畫飛行也計劃於今年稍後進行。與小精靈相關的是，最近有報導稱，小精靈的作戰概念不斷發展和演變，包括小精靈現在預計將攜帶武器、返回母艦、加油、重新武裝並被送回執行另一項任務。這再次代表了我們正在追求的不斷增加的市場機會。

As I've mentioned, with Kratos having the only 4 high-performance affordable jet drones in this class flying today with the Valkyrie, Mako, Gremlins and AirWolf, we're highly confident that as we continue to execute, we will be the leading drone provider in the class.

正如我所提到的，Kratos 擁有該級別中僅有的4 架高性能、經濟實惠的噴氣式無人機，今天與Valkyrie、Mako、Gremlins 和AirWolf 一起飛行，我們非常有信心，隨著我們繼續執行，我們將成為領先者課堂上的無人機提供者。

Kratos' Thanatos development is continuing, and we are hoping to successfully move from Phase 1 to Phase 2 of the program, either later this year or early next year. Kratos' Ghost Works continues to work on certain programs and initiatives with certain initial system tests on track for next year. On new tactical opportunities that we are able to discuss, Kratos has partnered with North American Wave Engine Corporation to develop a versatile air-launched platform, or VALP, which is an air-launched vehicle designed to leverage and demonstrate low-cost, high-impact technologies for future aerial systems. The VALP will use Wave Engine Corp, which is a strategic Kratos' partner, it will use their propulsion technology in an effort to bend the cost curve and reduce lead times for capabilities necessary to challenge near peer adversaries, which is exactly consistent with Kratos' mission and our strategy.

Kratos 的 Thanatos 開發仍在繼續，我們希望在今年稍後或明年初成功地從該計劃的第一階段進入第二階段。Kratos 的 Ghost Works 繼續致力於某些計劃和舉措，某些初步系統測試將於明年進行。在我們能夠討論的新戰術機會上，奎托斯與北美波浪發動機公司合作開發了一種多功能空射平台（VALP），這是一種空射飛行器，旨在利用和展示低成本、高未來航空系統的影響技術。VALP 將使用 Wave Engine Corp，該公司是 Kratos 的戰略合作夥伴，它將利用他們的推進技術來努力彎曲成本曲線並縮短挑戰同類對手所需能力的交付時間，這與 Kratos 的戰略完全一致使命和我們的戰略。

Kratos' partnership with American Wave and our responsibility for the air vehicle is representative of what we view as Kratos' industry-leading position for the development and production of affordable, high-performance, jet-powered drones and tactical systems. This new opportunity with American Wave is also representative of the increasing size of Kratos' tactical drone and powered weapon systems market opportunity.

Kratos 與 American Wave 的合作夥伴關係以及我們對飛行器的責任代表了我們認為 Kratos 在開發和生產經濟實惠、高性能、噴氣動力無人機和戰術系統方面的行業領先地位。American Wave 的這個新機會也代表了 Kratos 戰術無人機和動力武器系統市場機會規模的不斷擴大。

Another new attritable tactical drone program opportunity we are pursuing is OBSS, or Off-Board Sensing Station, which, if we are successful, we believe could ultimately be as significant and transformational to Kratos as we expect Valkyrie to be. Kratos' Ghost Works has been deeply involved in this system and vehicle approach for the last several months, and we expect to hear in the next several weeks, if we have been successful in receiving a contract in this very, very competitive solicitation. We believe that the OBSS opportunity is also representative of the total addressable market opportunity for Kratos' class of tactical drones is rapidly expanding and clarifying as the Department of Defense strives for affordable force multiplier systems and technologies.

我們正在尋求的另一個新的可消耗戰術無人機項目機會是OBSS，即場外感測站，如果我們成功的話，我們相信最終會對奎托斯產生像我們期望的瓦爾基里那樣的重大和變革性作用。奎托斯的 Ghost Works 在過去幾個月裡一直深入參與這個系統和車輛方法，我們希望在接下來的幾週內聽到我們是否在這場競爭非常激烈的招標中成功獲得合約的消息。我們相信，OBSS 機會也代表了隨著國防部努力開發負擔得起的力量倍增系統和技術，Kratos 級戰術無人機的整體潛在市場機會正在迅速擴大和明確。

This drone market is the same market that Kratos' turbine technologies is pursuing as drones need turbines and engines to power them, and analysis of the 2021 Pentagon budget revealed at approximately $7.5 billion of the budget was allocated to drones, robotics and related technologies.

這個無人機市場與Kratos 的渦輪技術所追求的市場相同，因為無人機需要渦輪和發動機為其提供動力，對2021 年五角大樓預算的分析顯示，大約75 億美元的預算分配給了無人機、機器人和相關技術。

Additionally and very exciting, the just release Senate Armed Services Committee, National Defense Authorization Act, authorized $201.6 million for the Skyborg program, including an increase of $75 million specifically called out the purchase of Valkyrie aircraft. It also authorized $125 million to accelerate the use of unmanned aircraft as augmented adversary support, which is a new market opportunity and one we believe Kratos is uniquely qualified for today with our Valkyrie and certain other aircraft. The recently released NDA also authorized an increase of $30 million for air force advanced aircraft propulsion development, another area we believe Kratos is uniquely positioned for as I'll discuss in a moment.

此外，非常令人興奮的是，剛發布的參議院軍事委員會《國防授權法案》為 Skyborg 計劃授權了 2.016 億美元，其中特別增加了 7,500 萬美元用於購買 Valkyrie 飛機。它還授權 1.25 億美元來加速使用無人機作為增強的對手支持，這是一個新的市場機會，我們相信奎托斯憑藉我們的“瓦爾基里”和某些其他飛機今天具有獨特的資格。最近發布的 NDA 還授權增加 3000 萬美元用於空軍先進飛機推進系統的開發，這是我們認為 Kratos 具有獨特優勢的另一個領域，我稍後將對此進行討論。

Additionally, and we believe related to the significant funding increases for drones, Skyborg and drone technology it was recently reported that the Air Force Chief of Staff said that the Air Force is considering building a fighter fleet with more drones than piloted aircraft, and that the Air Force is currently performing the analysis and war games needed to assess the appropriate mixture of the unmanned platforms and the manned platforms.

此外，我們認為，與無人機、Skyborg 和無人機技術的資金大幅增加有關，最近有報道稱，空軍參謀長表示，空軍正在考慮建立一支無人機數量多於有人駕駛飛機的戰鬥機隊，並且空軍目前正在進行必要的分析和兵棋推演，以評估無人平台和有人平台的適當組合。

It was also reported that Air Force leaders providing updates on the next-generation air dominance program, or NGAD, stress that NGAD and the 4 structure will include a variety of different platforms as well as powered munitions and other systems, including manned aircraft network together with Loyal Wingman drones, fully autonomous Unmanned Combat Air Vehicles, or UCAV, and swarms of low-cost unmanned aircraft. And it was reported that the U.S. military needs to immediately increase the size and technology of its unmanned aerial systems arsenal in order to be able to successfully fight 2 wars simultaneously with Russia and China, with Kratos' Valkyrie and Gremlins both being specifically mentioned.

另據報道，空軍領導人在提供下一代空中優勢計劃（NGAD）的最新資訊時強調，NGAD和第4架構將包括各種不同的平台以及動力彈藥和其他系統，包括有人駕駛飛機網絡包括「忠誠僚機」無人機、完全自主的無人作戰飛行器（UCAV）以及成群的低成本無人機。據報道，美軍需要立即增加其無人機系統武器庫的規模和技術，以便能夠成功地同時與俄羅斯和中國打兩場戰爭，其中特別提到了奎托斯的“瓦爾基里”和“小精靈」。

Also importantly, the Air Force has communicated that a key focus for the '23 and through 2027 budget will be the Agile Combat Employment, or ACE, initiative, which is the ability to operate away from established runways to be runway-independent and operate in a manner that presents a very difficult, distributed asset and lethality problem for our adversaries. ACE is an evolution of the United States Air Force Agile basing concept that I've discussed with you previously, which has been identified as a top priority for the Air Force Chief of Staff.

同樣重要的是，空軍已表示，23 年至 2027 年預算的重點將是敏捷作戰部署（ACE）計劃，即在遠離既定跑道的情況下獨立於跑道運行並在這種方式給我們的對手帶來了非常困難的、分散的資產和殺傷力問題。ACE 是我之前與大家討論過的美國空軍敏捷基地概念的演變，它已被確定為空軍參謀長的首要任務。

And related to the ACE initiative, the customer set reiterated directly to us just a few weeks ago that affordability, runway independence and survivability are critical requirements for Kratos' class of drones, each of which Kratos, of course, is the clear industry leader.

與 ACE 計畫相關的是，幾週前，客戶群直接向我們重申，經濟性、跑道獨立性和生存能力是 Kratos 級別無人機的關鍵要求，當然，Kratos 無疑是行業領導者。

These are just some of the recent customer demand signals we have received, and we remain absolutely committed to supporting the customers' needs, requirements and timetable. And we are confident that it is not a question of if, but only of when Kratos' drones will be utilized in large quantities. The first flight of Kratos' drones at the Oklahoma range facility is now scheduled for the second half of this year, with this valuable new range asset adding to Kratos' existing competitive advantage in speed of development, demonstration, testing, fielding and overall affordability.

這些只是我們最近收到的一些客戶需求訊號，我們仍然絕對致力於支援客戶的需求、要求和時間表。我們相信，這不是是否會被大量使用的問題，而只是何時會被大量使用的問題。Kratos 無人機目前計劃於今年下半年在俄克拉荷馬州靶場設施進行首次飛行，這一寶貴的新靶場資產將增強Kratos 在開發、演示、測試、部署和整體承受能力方面的現有競爭優勢。

Kratos' target drone business also continued strong performance, led by our industry-leading position in high-performance affordable threat representative target drones. The global recapitalization of strategic weapon systems by the United States and its allies to address peer threats is providing a robust and growing target drone market opportunity, both domestically and internationally, with the evolving threat environment contributing to extremely strong demand for Kratos' target drones. We are expecting several target drone program awards in the second half of the year, including from the U.S. Navy, the U.S. Air Force and the Army, arguably the target drone utilizes the largest ones in the world and also from international customers. The 2022 budget request in the target drone areas came in as we expected, and we expect continued future year-over-year growth for this business.

Kratos 的目標無人機業務也持續保持強勁表現，這得益於我們在高性能、經濟實惠的威脅代表性目標無人機方面的行業領先地位。美國及其盟國為應對同行威脅而對戰略武器系統進行全球重組，為國內外目標無人機市場提供了強勁且不斷增長的機會，不斷變化的威脅環境導致對奎托斯目標無人機的需求極其強勁。我們預計今年下半年將獲得多個目標無人機項目獎項，包括來自美國海軍、美國空軍和陸軍的目標無人機項目，可以說，目標無人機使用了世界上最大的目標無人機，也來自國際客戶。目標無人機領域的 2022 年預算請求符合我們的預期，我們預計該業務未來將持續年增。

For Kratos' unmanned systems business, we are expecting very significant bookings in the second half of this year, in both the target and tactical drone areas, and we are forecasting a second half book-to-bill ratio substantially in excess of 1:1 if the current timing holds. In Kratos' space and satellite business, our software-based OpenSpace operating system and architecture, which we released first to market last year, is seeing incredible success in customer acceptance as we strive to both disrupt and transform, the space ground system market, similar to how Kratos' affordable jet drones are disrupting the UAV market.

對於 Kratos 的無人系統業務，我們預計今年下半年目標無人機和戰術無人機領域的訂單量將非常可觀，並且我們預計下半年的訂單出貨比將大幅超過 1:1如果當前時間保持的話。在Kratos 的太空和衛星業務中，我們去年首次向市場發布的基於軟體的OpenSpace 作業系統和架構，在我們努力顛覆和轉型太空地面系統市場（類似）的過程中，在客戶接受度方面取得了令人難以置信的成功了解 Kratos 經濟實惠的噴射無人機如何顛覆無人機市場。

Since the beginning of this year, we have delivered products supporting the satellite industry's movement towards software-based, virtualized ground systems to approximately 30 customers around the world, including Kratos' quantum and SpectralNet lines, both of which are part of our OpenSpace software-based family of dynamic virtual ground solutions.

自今年年初以來，我們已經向全球約 30 個客戶交付了支援衛星產業向基於軟體的虛擬化地面系統發展的產品，其中包括 Kratos 的量子和 SpectralNet 系列，這兩者都是我們 OpenSpace 軟體的一部分 -基於動態虛擬地面解決方案系列。

Kratos' OpenSpace quantum products offer software versions of satellite ground system architecture, which traditionally have been implemented with hardware, such as modems and front-end processors, which are needed to communicate with the satellite or its payload. Kratos' previous quantum products have been used by hundreds of satellite operators around the globe, supporting tens of thousands of satellite passes per month, and Kratos' SpectralNet products provide the on-ramp to modern virtual ground operations by reliably digitizing the radio frequency signals from the satellite into an internet protocol format that can be processed by digital systems running in the cloud, on-prem and hybrid environments.

Kratos 的 OpenSpace 量子產品提供衛星地面系統架構的軟體版本，該架構傳統上是透過數據機和前端處理器等硬體實現的，這些硬體需要與衛星或其有效載荷進行通訊。Kratos 先前的量子產品已被全球數百家衛星營運商使用，每月支援數以萬計的衛星通行證，而 Kratos 的 SpectralNet 產品透過可靠地將射頻訊號數位化，為現代虛擬地面操作提供了入口。將衛星轉換為互聯網協定格式，可由在雲端、本地和混合環境中運行的數位系統進行處理。

So we have now transitioned both Kratos' quantum and SpectralNet previously hardware-centric products and technology of software, and we are exploiting our first-to-market position and clear technological advantage with our large existing global customer base.

因此，我們現在已經轉變了 Kratos 的量子和 SpectralNet 以前以硬體為中心的產品和軟體技術，並且我們正在利用我們現有的龐大全球客戶群的市場領先地位和明顯的技術優勢。

Kratos, which supports approximately 80% of the world's satellite providers, has relationships. We have the existing install base. We have the past performance qualifications, the credibility and the market confidence as we roll out our software-based OpenSpace systems. Our OpenSpace quantum products, which we refer to as virtual network functions, or VNFs, are less expensive than the hardware they replace. They operate at lower cost and with greater flexibility to adapt quickly to rapidly changing missions and conditions being driven by accelerating technological advances in the satellite and space area.

Kratos 為全球約 80% 的衛星供應商提供支持，並擁有良好的合作關係。我們有現有的安裝基礎。當我們推出基於軟體的 OpenSpace 系統時，我們擁有過去的績效、信譽和市場信心。我們的 OpenSpace 量子產品（我們稱之為虛擬網路功能或 VNF）比它們所取代的硬體便宜。它們的運作成本更低，靈活性更大，可以快速適應衛星和太空領域技術進步加速推動的快速變化的任務和條件。

For example, where previously could take weeks to deploy ground system hardware, Kratos' quantum VNFs can be deployed and configured to support different missions in just hours. Kratos' OpenSpace platform currently, the most advanced line in the OpenSpace family is designed to enable satellite operators to deploy, configure and adapt entire networks in just minutes, using its orchestrated software-defined network, or SDN architecture.

例如，先前部署地面系統硬體可能需要數週時間，而 Kratos 的量子 VNF 只需數小時即可部署和配置，以支援不同的任務。Kratos 的 OpenSpace 平台目前是 OpenSpace 系列中最先進的產品線，旨在使衛星營運商能夠使用其精心策劃的軟體定義網路或 SDN 架構在短短幾分鐘內部署、配置和調整整個網路。

So our plan. Our plan is to lead the disruption and the virtual transformation of the space and satellite industry with our first-to-market software-based and defined products, and we are currently transitioning a number of additional here to for hardware-based space and satellite ground infrastructure subsystems, systems, products and solutions to virtual software products.

所以我們的計劃。我們的計畫是透過首款上市的軟體和定義為基礎的產品來引領太空和衛星產業的顛覆和虛擬轉型，目前我們正在將一些額外的產品過渡到基於硬體的太空和衛星地面基礎設施子系統、系統、產品和虛擬軟體產品的解決方案。

Customers for Kratos' OpenSpace products include new space and satellite companies, satellite manufacturers, service providers, certain of the world's largest operators, United States government agencies and some leading prime contractors. So we see the OpenSpace quantum and SpectralNet product lines as stepping stones for space and satellite companies, seeking to take advantage of a digital transformation of their ground systems to support new space vehicles, customer requirements, roles and opportunities, and Kratos is the clear first-to-market industry leader in the virtualization of Space and Satellite round segment.

Kratos OpenSpace 產品的客戶包括新的太空和衛星公司、衛星製造商、服務供應商、某些全球最大的營運商、美國政府機構和一些領先的主承包商。因此，我們將 OpenSpace 量子和 SpectralNet 產品線視為航太和衛星公司的墊腳石，尋求利用地面系統的數位轉型來支援新的太空船、客戶需求、角色和機會，而 Kratos 顯然是第一個- 太空和衛星回合虛擬化領域的市場產業領導者。

OpenSpace is just another example of our strategy to disrupt the market with affordable transformational and truly innovative products and technology. Space domain awareness, including with Kratos' globally owned and operated SDA network, is another area also seeing significant growth, including an advanced spectrum and signal monitoring. With the rapid growth of new satellite networks, satellites in space and VSATs, there is the potential for significantly increased radio frequency interference in space. Interfering signals can be periodic or occur different frequencies over time, making the discovery identification, location and the removal or neutralizing of the source of the interference, a significant challenge for agencies operators and their customers.

OpenSpace 只是我們透過經濟實惠的轉型和真正創新的產品和技術擾亂市場的策略的另一個例子。空間域意識，包括 Kratos 在全球擁有和運營的 SDA 網絡，是另一個也出現顯著增長的領域，包括先進的頻譜和訊號監控。隨著新衛星網路、太空衛星和 VSAT 的快速發展，太空中的射頻幹擾有可能顯著增加。幹擾訊號可能是週期性的，也可能隨著時間的推移以不同的頻率出現，這使得發現識別、定位以及乾擾源的消除或消除成為機構運營商及其客戶面臨的重大挑戰。

Additionally, as space is becoming increasingly congested, it is also becoming more contested and competitive, and the ability to identify, locate and track potential threats to on-orbit space systems through a more comprehensive view of the space environment is absolutely critical, and it's increasing rapidly. Directly related to this issue, an example of the incredible value of Kratos' unique and one of a kind globally owned and operated space weigh and awareness network. As a recent announcement that we have received awards totaling approximately $46 million to support space domain awareness efforts for certain customers.

此外，隨著太空變得越來越擁擠，它也變得越來越有爭議和競爭，透過更全面的太空環境視圖來識別、定位和追蹤在軌太空系統潛在威脅的能力絕對至關重要，而且迅速增加。與這個問題直接相關的是，Kratos 獨特且獨特的全球擁有和運營的空間稱重和感知網絡的令人難以置信的價值的一個例子。最近宣布，我們已獲得總計約 4,600 萬美元的獎勵，以支持某些客戶的空間領域意識工作。

Kratos' SDA network is one of the most valuable and underappreciated assets in our company. Our SDA network consists of numerous RF monitoring sites, hosting fixed and steerable sensors and antennas, including an LSCX and KU bands and our 24/7/365 network operating center is a central hub for monitoring and integrating raw RF data from the global network.

Kratos 的 SDA 網路是我們公司最有價值且被低估的資產之一。我們的SDA 網路由眾多RF 監控站點組成，託管固定和可操縱感測器和天線，包括LSCX 和KU 頻段，我們的24/7/365 網路營運中心是監控和整合來自全球網路的原始RF 資料的中央樞紐。

With the increasing volume and velocity of threats, Kratos is now leveraging the technology behind our OpenSpace software platform to help satellite ground systems quickly adapt to changing conditions, including OpenSpace software-centric architecture being used in our global monitoring network, which is enabling assets to be reconfigured and redeployed virtually, delivering the potential for much faster responses to the potential threats in space. Kratos' R&D in Q2 was elevated in our space and satellite business as we accelerated our investment to exploit our first-to-market mover position with our software-defined virtualized products and our SDA network and to protect our critical intellectual property position.

隨著威脅的數量和速度不斷增加，Kratos 現在利用我們的OpenSpace 軟體平台背後的技術來幫助衛星地面系統快速適應不斷變化的條件，包括我們的全球監控網路中使用的以OpenSpace 軟體為中心的架構，這使得資產能夠虛擬地重新配置和重新部署，從而有可能更快地回應太空中的潛在威脅。Kratos 在第二季度在我們的太空和衛星業務方面的研發得到了提升，因為我們加快了投資，利用我們的軟體定義虛擬化產品和SDA 網路來利用我們的市場先驅地位，並保護我們的關鍵知識產權地位。

In our view, Kratos' Space and Satellite business' backlog and opportunity pipeline has never been greater or of such high quality. The total addressable market opportunity for Kratos' technology and product is large and it's rapidly expanding.

我們認為，Kratos 的太空和衛星業務的積壓訂單和機會管道從未如此之大或品質如此之高。Kratos 的技術和產品的整體潛在市場機會很大，並且正在迅速擴大。

On the market opportunity side, one data point, it was recently reported by Northern Sky Research, or NSR, that over the next 10 years, satellite manufacturing and launch order volumes will reach nearly 24,700, with virtually all of these satellites needing ground command and control, telemetry tracking and control and space domain awareness, all of which Kratos is the industry leader.

在市場機會方面，北方天空研究公司（NSR）最近報告的一個數據點是，未來10年，衛星製造和發射訂單量將達到近24,700顆，幾乎所有這些衛星都需要地面指揮和指揮。控制、遙測追蹤和控制以及空間域感知，所有這些奎托斯都是行業領導者。

For our space business, we expect significant growth and margin expansion in the second half of the year, in particular in the fourth quarter, based on customer delivery and execution schedules and our transition to more software-based content, which I have been discussing, with sustained year-over-year future growth and increasing margins expected.

對於我們的航太業務，我們預計下半年將出現顯著成長和利潤率擴張，特別是在第四季度，基於客戶交付和執行計劃以及我們向更多基於軟體的內容的過渡，我一直在討論這一點，預計未來將持續同比增長和利潤率增加。

Our second half growth forecast for our space and satellite business is supported by the recent and expected customer orders, including the 1.3:1 book-to-bill ratio I mentioned previously, and we are also forecasting a second half book-to-bill ratio also in excess of 1:1.

我們對太空和衛星業務下半年的成長預測得到了最近和預期客戶訂單的支持，包括我之前提到的 1.3:1 的訂單出貨比，我們還預測下半年的訂單出貨比也超過1: 1。

Kratos' microelectronics business, based in Israel, also continued its outstanding performance and continues to have a record or near-record backlog and an opportunity pipeline. Kratos' microwave products business is focused on space and satellite, missile, radar, communications and other weapon systems, certain of which market opportunity continues to expand, also driven by the recapitalization of strategic weapon systems. We are forecasting a strong second half of this business based on the current backlog and production and execution schedules.

Kratos 位於以色列的微電子業務也延續了其出色的業績，並繼續擁有創紀錄或接近創紀錄的積壓訂單和機會管道。Kratos的微波產品業務專注於太空和衛星、飛彈、雷達、通訊和其他武器系統，其中某些市場機會持續擴大，這也是受到戰略武器系統資本重組的推動。根據目前的積壓訂單以及生產和執行計劃，我們預計下半年該業務將強勁成長。

In Kratos' rocket systems business, where we performed ballistic missile target, hypersonic and other rocket system work and reflective of the strategic asset to the United States National Security of Kratos' rocket systems business in. We recently announced that we supported the United States Navy 6th fleet, NATO's navel striking and support forces and the Maritime Theater Missile Defense Forum and the successful execution of Formidable Shield 2021 at the U.K. Ministry of Defense Hebrides Range in Scotland. The exercise included 2 Kratos medium-range ballistic missile targets, which were presented at the same time as Kratos' MQM-178 Firejet aerial target drones from our Unmanned Systems division. Our ballistic missile targets met all the test objectives and were engaged by an SM-3 interceptors from the USS Paul Ignatius. The multinational exercise featured 16 ships, several aircraft and approximately 3,300 personnel from 10 countries.

在克雷托斯火箭系統業務中，我們執行彈道飛彈目標、高超音速和其他火箭系統工作，反映了克雷托斯火箭系統業務對美國國家安全的戰略資產。我們最近宣布，我們支援美國海軍第六艦隊、北約中央打擊和支援部隊以及海上戰區飛彈防禦論壇，並在英國國防部蘇格蘭赫布里底群島成功執行了「強大之盾 2021」計畫。此次演習包括 2 個 Kratos 中程彈道飛彈目標，與我們無人系統部門的 Kratos MQM-178 Firejet 空中目標無人機同時亮相。我們的彈道飛彈目標滿足了所有測試目標，並被保羅·伊格內修斯號航空母艦的 SM-3 攔截彈攔截。這次多國演習有來自 10 個國家的 16 艘艦艇、數架飛機和約 3,300 名人員參加。

Our rocket systems business also recently announced that we have received a contract from the Navy Surface Warfare Center, Port Hueneme Division White Sands detachment to develop hypersonic experimental test vehicle to perform flight tests for the maturation of high-speed flight technology for missile defense and hypersonic systems. Hypersonics and missile defense are priority areas of the DoD budget, and we are forecasting future year-over-year growth for our rocket systems business with strong demand in the targets, hypersonic systems and other rocket and weapon system-related areas, with numerous future missions and launches currently planned.

我們的火箭系統業務最近還宣布，我們已收到海軍水面作戰中心懷尼米港師白沙支隊的合同，開發高超音速實驗測試飛行器，進行飛行測試，以成熟導彈防禦和高超音速高速飛行技術系統。高超音速和飛彈防禦是國防部預算的優先領域，我們預計我們的火箭系統業務未來將同比增長，目標、高超音速系統和其他火箭和武器系統相關領域的需求強勁，未來有許多目前計劃的任務和發射。

Kratos' turbine technologies also continue to make important strategic process, including receipt of an $8.6 million task order under our Advanced Turbine Technologies for Affordable Mission, or ATTAM IDIQ contract. The program will be managed by the Turbine Engine division of the Air Force Research Lab. And under the contract, Kratos will complete the design, build, assembly and test of an affordable turboshaft engine for Group 3 UAVs. This award follows the successful completion of multiple programs where KTT completed concept and engine trade studies for Group 3 UAVs in conjunction with our partner, the [AFL RQT]. The objective of this task order is to complete the engine development for flight testing and to demonstrate the high power-to-weight high efficiency and increased durability of the engine design. This engine design is also convertible to produce the electrical power needed of advanced hybrid electric aircraft, which is also a key strategic growth focus area for the company.

Kratos 的渦輪機技術也持續進行重要的策略進程，包括根據我們的先進渦輪機技術實現經濟實惠的任務（即 ATTAM IDIQ 合約）收到 860 萬美元的任務訂單。該項目將由空軍研究實驗室渦輪發動機部門管理。根據合同，Kratos 將完成適用於第 3 組無人機的經濟型渦輪軸發動機的設計、製造、組裝和測試。該獎項是在成功完成多個項目之後獲得的，其中 KTT 與我們的合作夥伴 [AFL RQT] 一起完成了第 3 組無人機的概念和發動機貿易研究。此任務訂單的目標是完成用於飛行測試的引擎開發，並展示引擎設計的高功率重量比、高效率和更高的耐用性。這種引擎設計還可轉換為產生先進混合動力電動飛機所需的電力，這也是該公司的關鍵策略成長重點領域。

Also, KTT has now successfully completed a core engine test campaign under the ATTAM contract, also with the Turbine Engine division of the AFRL. And under this effort, testing of the engine core supports the development of small, affordable, high-performance jet engines for cruise missiles on unmanned aerial vehicles. During the test campaign, Kratos has successfully demonstrated key performance and operability targets of the core engine.

此外，KTT 現已根據 ATTAM 合約與 AFRL 渦輪發動機部門成功完成了核心發動機測試活動。在這項努力下，發動機核心的測試支持開發小型、價格實惠、高性能的噴氣發動機，用於無人機上的巡航導彈。在測試活動中，Kratos成功展示了核心引擎的關鍵性能和可操作性目標。

So these are important milestones and achievements by Kratos' next-generation turbojet and turbofan engine business, and we believe that we are on track to significantly disrupt the market with affordable, innovative and transformational engine technology and products.

因此，這些都是 Kratos 下一代渦輪噴氣發動機和渦輪風扇發動機業務的重要里程碑和成就，我們相信，我們有望透過經濟實惠、創新和轉型的發動機技術和產品顯著顛覆市場。

The total addressable market opportunity for KTT and our engine businesses, which include unmanned aerial vehicles, drones, cruise missiles and powered munitions, is extremely large and rapidly growing as the U.S. and our allies prepare for peer and near-peer adversaries. KTT is also heavily involved and under contract with multiple customers in the rapidly growing space launch and propulsion area where we are designing, developing and manufacturing leading technology products in support of space companies and government customers.

隨著美國和我們的盟友為應對同等和近乎同等的對手做好準備，KTT 和我們的發動機業務（包括無人機、無人機、巡航飛彈和動力彈藥）的總潛在市場機會非常巨大且迅速增長。KTT 也積極參與快速發展的航太發射和推進領域的多個客戶並與其簽訂合同，我們在該領域設計、開發和製造領先的技術產品，以支援航太公司和政府客戶。

Our C5ISR business is head down and focused on GBSD and several other major programs we are executing on and that we are pursuing. We are expecting very significant future year-over-year growth for Kratos' C5ISR business as we execute on several large new program wins and opportunities. On large new weapon system development program, that timing, execution and delivery schedules early on are typically fluid, which we are experiencing with GBSD and others, with our expected future strong and up and to the right growth trajectory and forecast intact and increasing now. We believe that the Biden administration and Congress are absolutely committed to the nuclear modernization to address peer and near-peer threats, and the congressional budget office recently estimated will cost $634 billion to operate, sustain and modernize the United States nuclear forces and certain of Kratos' largest programs are in this area, including in our C5ISR business.

我們的 C5ISR 業務專注於 GBSD 以及我們正在執行和追求的其他幾個主要項目。隨著我們執行多個大型新專案的勝利和機會，我們預計 Kratos 的 C5ISR 業務未來將實現非常顯著的同比成長。在大型新武器系統開發計劃中，早期的時間表、執行和交付時間表通常是不穩定的，我們正在與GBSD 和其他人一起經歷這一點，我們對未來的預期強勁且向上，並達到正確的成長軌跡，並且預測現在完好無損並在增加。我們相信，拜登政府和國會絕對致力於核現代化，以解決同等和近同等威脅，國會預算辦公室最近估計將花費6340 億美元來運營、維持和現代化美國核力量和克雷托斯的某些核力量。最大的項目都在這個領域，包括我們的 C5ISR 業務。

Biden Administration's 2022 defense budget requested a $5.5 billion increase in research and development and an $8 billion cut to procurement. This is a clear signal and a strong emphasis on new technologies and new future products and systems at the expense of older legacy programs is underway, and this is clearly a beneficial signal for innovative and affordable technology companies like Kratos. Nontraditional defense contractors like Kratos, we have a real incentive to innovate, to disrupt and drive affordability, and we are laser focused on exploiting this opportunity with our government customers.

拜登政府2022年國防預算要求在研發方面增加55億美元，削減採購80億美元。這是一個明確的信號，並且正在大力強調新技術和新的未來產品和系統，而犧牲舊的遺留項目，這對於像Kratos 這樣的創新且負擔得起的技術公司來說顯然是一個有益的信號。像奎托斯這樣的非傳統國防承包商，我們有真正的動力去創新、顛覆和提高可負擔性，並且我們專注於與政府客戶一起利用這一機會。

As we enter the second half of the year, our backlog expected strong second half bookings, and our record opportunity pipeline provide us excellent future visibility and confidence in our forecast. Accordingly, we're focused on execution with the major items including: since our last report to you, we have experienced a low number of COVID cases with Kratos' employees, and we are watching this very closely, including in our Florida, Texas and Oklahoma locations where we have just recently seen an increasing number of cases.

隨著我們進入今年下半年，我們的積壓訂單預計下半年預訂量將強勁，而我們創紀錄的機會管道為我們提供了出色的未來可見性和對我們的預測的信心。因此，我們專注於主要項目的執行，包括：自從我們上次向您報告以來，我們與Kratos 的員工一起經歷了少量的新冠病例，我們正在密切關注這一情況，包括在我們的佛羅裡達州、德克薩斯州和我們最近剛在俄克拉荷馬州發現了越來越多的病例。

Additionally, certain DoD-related COVID restrictions have recently begun to tighten up again. This is also an important watch item for us. We continue to have some issues with the supply chain, including COVID-related issues, with product lead times increasing on certain of our programs and systems and increasing prices and costs from our vendors. We are also focused on the hiring of qualified people, primarily engineers and employees with technical and manufacturing experience, including with the ability to obtain security clearances, primarily in our space, satellite and our unmanned systems business.

此外，某些與國防部相關的新冠病毒限制最近又開始收緊。這對我們來說也是一個重要的手錶項目。我們的供應鏈仍然存在一些問題，包括與新冠肺炎相關的問題，我們的某些計劃和系統的產品交付週期延長，供應商的價格和成本增加。我們也專注於招募合格的人員，主要是具有技術和製造經驗的工程師和員工，包括有能力獲得安全許可的人員，主要是在我們的太空、衛星和無人系統業務中。

We are in the process of standing up several new facilities, including in our drones, space and satellite areas to accommodate certain large new programs we have received or that we expect to receive in the second half '22. We have taken all of these items into consideration in our execution planning or estimating the financial forecast and the guidance range we are providing today.

我們正在建立一些新設施，包括我們的無人機、太空和衛星領域的設施，以適應我們已經收到或預計在 22 年下半年收到的某些大型新項目。我們在執行計劃或估計財務預測以及我們今天提供的指導範圍時考慮了所有這些項目。

In closing, we're focused on disrupting and transforming the national security industry with rapidly developed, demonstrated and fielded affordable technology and systems. We believe no other company in the industry is as well positioned as Kratos, and as a result, we are internally focused on successfully executing on our backlog and our $9 billion opportunity pipeline. And we do not expect to pursue or make acquisitions of any size, only potential small or tuck-ins in the current areas of expertise. We believe that Kratos is at the beginning of a long up and to the right growth trajectory, and we are focused on successfully executing for our customers, our country, our employees, which are truly invaluable and for our stakeholders.

最後，我們致力於透過快速開發、展示和部署的經濟型技術和系統來顛覆和變革國家安全產業。我們相信業內沒有其他公司能像 Kratos 一樣處於有利地位，因此，我們內部專注於成功執行我們的積壓訂單和 90 億美元的機會管道。我們預計不會進行任何規模的收購，而只會在當前的專業領域進行潛在的小型收購或收購。我們相信，Kratos 正處於長期上升和正確成長軌蹟的開端，我們專注於為我們的客戶、我們的國家、我們的員工成功執行，這對我們的利害關係人來說確實是無價的。

Deanna?

迪安娜？

Thank you, Eric. Good afternoon. Kratos' second quarter 2021 revenues of $205.1 million were at the upper end of our estimated range of $195 million to $205 million. Our Q2 '21 consolidated operating income was $3.3 million, up from the second quarter of 2020 operating income of $2.9 million, which includes second quarter '21 increases in stock compensation expense of $1.8 million, increased R&D of $4.2 million, primarily in the space and satellite business and increased depreciation expense of $1.6 million in the current period. As a reminder, over 80% of our total R&D is typically invested in our space and satellite business.

謝謝你，埃里克。午安.Kratos 2021 年第二季的營收為 2.051 億美元，處於我們估計的 1.95 億美元至 2.05 億美元範圍的上限。我們21 年第二季的合併營業收入為330 萬美元，高於2020 年第二季營業收入290 萬美元，其中包括21 年第二季股票補償費用增加180 萬美元，研發費用增加420 萬美元，主要在以下領域：本期衛星業務增加折舊費用 160 萬美元。需要提醒的是，我們 80% 以上的研發總額通常投資於我們的太空和衛星業務。

Net income was $1.1 million for the quarter, which included a tax benefit of $3.6 million, primarily reflecting tax benefits related to stock compensation expense. GAAP EPS was $0.01 per share compared to a loss of $0.01 in the second quarter of 2020.

該季度淨利潤為 110 萬美元，其中包括 360 萬美元的稅收優惠，主要反映與股票補償費用相關的稅收優惠。GAAP 每股收益為 0.01 美元，而 2020 年第二季虧損 0.01 美元。

Adjusted EBITDA for the second quarter was $17.6 million, in the range of our expectation of $14 million to $18 million, reflecting increased investments in internally funded R&D, primarily of our software-defined OpenSpace and virtualized products as well as a revenue and product mix of more developmental projects as we begin to ramp a new developmental programs.

第二季調整後EBITDA 為1,760 萬美元，在我們預期的1,400 萬美元至1,800 萬美元範圍內，反映出內部資助的研發投資增加，主要是我們的軟體定義OpenSpace 和虛擬化產品，以及營收和產品組合當我們開始推出新的發展計畫時，會有更多的發展項目。

The second quarter operating results include over $400,000 of negative foreign exchange impact resulting from an increased shekel against the U.S. dollar in our Israeli-based Microwave business. Excluding this adverse foreign exchange, the second quarter adjusted EBITDA was $18 million.

第二季的經營業績包括以色列微波業務謝克爾兌美元升值而造成的超過 40 萬美元的負面外匯影響。排除不利的外匯影響，第二季調整後的 EBITDA 為 1800 萬美元。

In the second quarter, our Unmanned Systems segment reported revenues of $60.3 million, up 43.6% from the second quarter of 2020, due primarily to ramps in production and target programs, including the 177 and were performed on the Valkyrie program. Unmanned Systems generated operating income of $4.1 million, up from $1 million in the second quarter of 2020, primarily reflecting the increased drone system-related revenues and leverage achieved on the fixed overhead manufacturing and G&A infrastructure.

第二季度，我們的無人系統部門的收入為 6,030 萬美元，比 2020 年第二季度增長 43.6%，這主要是由於生產和目標項目的增加，包括 177 和 Valkyrie 項目的實施。無人機系統的營業收入為 410 萬美元，高於 2020 年第二季的 100 萬美元，主要反映了無人機系統相關收入的增加以及固定管理費用製造和 G&A 基礎設施所實現的槓桿作用。

Unmanned Systems generated adjusted EBITDA of $6.9 million, up from $3 million in the second quarter of 2020. KGS reported revenues of $144.8 million in the second quarter, up from $128.4 million in the second quarter of 2020, reflecting $11.8 million from the ASC acquisition and organic growth across our space, satellite and cyber, defense, rocket and microwave product businesses. This increase was offset partially by a net reduction of approximately $4.7 million in our training solutions business, resulting from the previously disclosed reduction in scope of certain international contracts.

無人系統公司的調整後 EBITDA 為 690 萬美元，高於 2020 年第二季的 300 萬美元。KGS 報告第二季營收為1.448 億美元，高於2020 年第二季的1.284 億美元，反映了ASC 收購以及我們的太空、衛星和網路、國防、火箭和微波產品業務的有機成長帶來的1180萬美元收入。這一增長被我們的培訓解決方案業務淨減少約 470 萬美元所部分抵消，這是由於先前披露的某些國際合約範圍的縮小所致。

KGS reported operating income of $5.9 million, down from $7.7 million in the second quarter of 2020. KGS' second quarter 2021 adjusted EBITDA was $10.7 million, down from $12.3 million in the second quarter of 2020, reflecting a less favorable mix of revenues, including an increase in product and equipment revenues contributed from the recent ASC acquisition and negative impacts in our commercial aero business, coupled with increased R&D costs of approximately 49 -- excuse me, $4.3 million, primarily related to our space and satellite business.

KGS 報告營業收入為 590 萬美元，低於 2020 年第二季的 770 萬美元。KGS 2021 年第二季調整後EBITDA 為1,070 萬美元，低於2020 年第二季的1,230 萬美元，反映出營收組合不太有利，包括最近收購ASC 帶來的產品和設備收入增加以及對我們商業的負面影響航空業務，再加上研發成本增加約 49 - 對不起，430 萬美元，主要與我們的太空和衛星業務有關。

Our adjusted EBITDA for the second quarter is from consolidated continuing operations, including net income or loss attributable to noncontrolling interest and excludes noncash stock-based compensation costs of $6.6 million, acquisition and restructuring-related costs of $100,000 and a foreign transaction loss of $100,000.

我們第二季調整後的EBITDA 來自合併持續經營業務，包括歸屬於非控股權益的淨利潤或虧損，不包括660 萬美元的非現金股票補償成本、10 萬美元的收購和重組相關成本以及10 萬美元的海外交易損失。

Moving on to the balance sheet and liquidity. Our cash balance was $369.3 million at June 27, and we had 0 amounts outstanding on our bank line of credit and $5.9 million of letters of credit outstanding. Debt outstanding was $300.3 million at quarter end, and net cash at quarter end was $69 million.

接下來是資產負債表和流動性。截至 6 月 27 日，我們的現金餘額為 3.693 億美元，銀行信用額度中的未償還金額為 0，未償還信用證金額為 590 萬美元。季末未償還債務為 3.003 億美元，季末淨現金為 6,900 萬美元。

Cash flow used from operations for the quarter was $700,000, less CapEx of $10.9 million or a use of free cash flow from operations of $11.6 million. Our contract mix for the quarter was 70% generated from fixed-price contracts, 25% from cost plus fixed fee contracts and 5% from time and material contracts.

本季營運使用的現金流量為 70 萬美元，減去 1,090 萬美元的資本支出或使用的營運自由現金流量為 1,160 萬美元。我們本季的合約組合 70% 來自固定價格合同，25% 來自成本加固定費用合同，5% 來自時間和材料合約。

Revenues generated from contracts with the U.S. federal government during the quarter were approximately 72%, including revenues generated from contracts with the DoD, non-DoD federal government agencies and FMS, or Foreign Military Sales contracts, which were approximately 4%. We generated 8% from commercial customers and 20% from foreign customers.

本季與美國聯邦政府簽訂的合約產生的收入約為 72%，其中包括與國防部、非國防部聯邦政府機構和 FMS 或對外軍售合約產生的收入，約佔 4%。我們的收入 8% 來自商業客戶，20% 來自外國客戶。

Our backlog at quarter end was $865.6 million, down sequentially from first quarter '21 and backlog of $892.9 million with bookings of $177.8 million and a book-to-bill ratio of 0.9:1 for the second quarter of '21. Funded backlog at quarter end was $630.6 million with $235 million funded. For the last 12 months ended June 27, '21, our book-to-bill ratio was 1.2:1, with total bookings of $953.4 million. Our book-to-bill ratio for the last 12 months ended June 27, '21 was 1.0:1 for Unmanned Systems segment and 1.2:1 for our KGS segment.

截至季末，我們的積壓訂單為8.656 億美元，比21 年第一季有所下降，21 年第二季的積壓訂單為8.929 億美元，預訂量為1.778 億美元，訂單出貨比為0.9: 1。截至季末，積壓資金為 6.306 億美元，已融資 2.35 億美元。截至 2021 年 6 月 27 日的過去 12 個月，我們的預訂與出貨比為 1.2:1，預訂總額為 9.534 億美元。截至 21 年 6 月 27 日的過去 12 個月，我們的無人系統部門的訂單出貨比為 1.0:1，KGS 部門的訂單出貨比為 1.2:1。

And now for our financial guidance. We are providing our initial third quarter '21 guidance of revenues of $195 million to $205 million, and adjusted EBITDA of $16 million to $20 million. As previously discussed, our guidance reflects the impact of the recent loss of an international training contract, which had contributed over $34.5 million in revenue in 2020, and which generated approximately $13 million in '21, for a decrease of over $21 million year-over-year and includes a full year of the recent ASC signal acquisition closed in mid-2020.

現在我們的財務指導。我們提供的 21 年第三季營收初步指引為 1.95 億美元至 2.05 億美元，調整後的 EBITDA 為 1,600 萬美元至 2,000 萬美元。如前所述，我們的指導反映了最近失去國際培訓合約的影響，該合約在 2020 年貢獻了超過 3450 萬美元的收入，並在 21 年產生了約 1300 萬美元，同比減少了超過 2100 萬美元- 年，包括最近於2020 年中期完成的ASC 訊號收集的一整年。

Our forecasted revenue mix for '21 is expected to be increased developmental program weighted based on the large number of new contract awards that we have received and expect to receive and include discretionary investment as compared to a more mature overall product life cycle in 2020.

與2020 年更成熟的整體產品生命週期相比，我們對21 年的預測收入組合預計將是根據我們已收到和預計收到的大量新合約而增加加權的開發計劃，並包括可自由支配的投資。

For our third quarter and full year '21 guidance with our backlog and recent and expected bookings, we are comfortable with our revenue and EBITDA forecast, including the fourth quarter increase with execution and delivery timing assumptions driving the range we provided. Expected ramp and margin profile in the second half of 2021 is similar to the trajectory in 2020, which is evident in our LTM, or last 12 months, adjusted EBITDA of nearly $83 million. Key assumptions included in our forecast include our supply chain's ability to deliver on time and on budget and our ability to hire the resources that Eric discussed, in line with our program and execution plans. Our space business is forecasting an extremely strong second half of '21 and fourth quarter in particular with successful execution on its backlog, including driving significantly increased margins from a favorable mix expected to include increased software and high profit-based deliverable.

對於我們第三季和21 年全年的指導，包括我們的積壓訂單以及最近和預期的預訂，我們對我們的收入和EBITDA 預測感到滿意，包括第四季度的成長，執行和交付時間假設推動了我們提供的範圍。2021 年下半年的預期成長和利潤率狀況與 2020 年的軌跡相似，這一點從我們的 LTM（即過去 12 個月）近 8,300 萬美元的調整後 EBITDA 中可以明顯看出。我們的預測中包含的關鍵假設包括我們的供應鏈按照我們的計劃和執行計劃按時、按預算交付的能力，以及我們僱用埃里克討論的資源的能力。我們的航太業務預計 21 年下半年和第四季度將非常強勁，特別是在成功執行其積壓訂單後，包括透過預計包括增加軟體和高利潤可交付成果的有利組合推動利潤率顯著增加。

In summary, we believe that the backlog, bookings to date and expected bookings and pipeline is in place for Kratos to deliver within our 2021 financial forecast.

總而言之，我們認為，Kratos 的積壓訂單、迄今為止的預訂量以及預期的預訂量和管道已到位，可以在我們的 2021 年財務預測內交付。

Great. Thank you, Deanna. We'll turn it over to the moderator for any questions.

偉大的。謝謝你，迪安娜。如有任何問題，我們會轉交給主持人。

(Operator Instructions)

（操作員說明）

Your first question will come from Mike Crawford with B. Riley Securities.

您的第一個問題將由 B. Riley 證券公司的 Mike Crawford 提出。

Eric, you talked about the markup to the Cascade on the defense bill, including for Skyborg. What -- how would you characterize Kratos' position within Skyborg versus competitors, like GA and Boeing?

艾瑞克，你談到了國防法案中 Cascade 的加價，包括 Skyborg。與 GA 和波音等競爭對手相比，您如何評價 Kratos 在 Skyborg 中的地位？

I believe that our position is far and ahead the best. The press releases relative to the GA vehicle is, it's a surrogate vehicle. So the vehicle they're using is by -- I'm assuming by that word is not even the vehicle, they're planning on finally utilizing, if it even exists. Boeing, there hasn't been a peak from Boeing about Boeing or anything about Boeing since their first flight of their vehicle, I think, at the end of February or early March. So we're coming up on 5, 6 months, not a peak from Boeing. So I don't know what they're doing. We were first to fly the core. As I mentioned, we've closest flown to a manned fighter in history that we did. We're integrating Skyborg payloads on the new Valkyries now, and we are extremely confident and comfortable with our position on this program.

我相信我們的地位是遙遙領先的。與通用汽車相關的新聞稿是，它是一輛替代車輛。所以他們使用的車輛是——我假設這個詞甚至不是他們計劃最終使用的車輛，如果它存在的話。波音公司，自從二月底或三月初他們的車輛首次飛行以來，波音公司關於波音公司或任何關於波音公司的事情都沒有達到高峰。因此，我們即將迎來 5、6 個月的時間，而不是波音的高峰。所以我不知道他們在做什麼。我們是第一個駕駛核心的。正如我所提到的，我們是歷史上最接近載人戰鬥機的飛行者。我們現在正在將 Skyborg 有效載荷整合到新的 Valkyries 上，我們對此計劃的立場非常有信心和滿意。

Okay. And then related -- you mentioned OBSS as potentially as transformational to Kratos as Valkyrie. And given that you're already a leader with these various other classes of drones, what is it that separates OBSS from the rest?

好的。然後相關的 - 你提到 OBSS 與瓦爾基里一樣對奎托斯具有潛在的變革作用。鑑於您已經是各種其他類別無人機的領導者，那麼 OBSS 與其他無人機的區別是什麼？

Yes. There is very little publicly out there on this opportunity, very little. But it is an attritable low-cost system. And if we -- this is very competitive. We are successful in receiving a contract on this. This has legs. This program has legs. And I really can't say much more about it, Mike, because there's only that one piece of paper out there on the program, but it's expected to be awarded very soon now.

是的。很少有人公開談論這個機會，非常少。但它是一個可消耗的低成本系統。如果我們——這將是非常有競爭力的。我們成功地獲得了這方面的合約。這個有腿啊這個程式有腿。我真的不能對此說太多，麥克，因為該計劃只有一張紙，但預計很快就會被授予。

Okay. So well, hopefully, you're 1 of the 2 winners of that down select. And then final question just goes back to OpenSpace. What is it about Q4 milestones that you're expecting a bigger ramp in that quarter versus Q3?

好的。好吧，希望您是該次選擇的 2 名獲勝者之一。最後一個問題回到 OpenSpace。您預計第四季的里程碑與第三季相比有何更大的成長？

Yes. It's the transition to the software deliverables. We've -- and it has to do with the bookings, including the big ones we just had in Q2. We're going to be delivering product in Q4, and it's more software-intensive. And so the margins are higher on it. And we've been talking about this probably for about a year now. And when we started releasing the product, I think, in Q2 or Q3 of last year, and the uptake by the customer community has been incredible. This is brand new. What we're basically doing is, we're taking the soft -- the ground satellite infrastructure might turn from a 2G cellphone network to 5G. We're going from legacy hardware-based systems to software virtual systems, and we're first to market and the customers are buying it. And we're going to be delivering it in Q4, and that's why we see a significant margin uptick in that quarter.

是的。這是向軟體可交付成果的過渡。我們已經——這與預訂有關，包括我們在第二季度剛剛收到的大訂單。我們將在第四季度交付產品，軟體更加密集。因此利潤率更高。我們可能已經討論這個問題大約一年了。當我們開始發布該產品時，我認為是在去年第二季度或第三季度，客戶社群的接受程度令人難以置信。這是全新的。我們基本上正在做的是，我們正在採取軟性——地面衛星基礎設施可能從 2G 手機網路轉向 5G。我們正在從傳統的基於硬體的系統轉向軟體虛擬系統，並且我們是第一個進入市場的公司，客戶正在購買它。我們將在第四季度交付它，這就是為什麼我們看到該季度的利潤率大幅上升。

Your next question will come from Peter Arment with Baird.

您的下一個問題將由貝爾德和彼得·阿門特提出。

You actually have Eric Ruden on the line for Peter today. Eric, just in terms of framing up the second half bookings, obviously, you're expecting pretty significant pickup at unmanned specifically. Could you just provide any color around some of the big moving pieces there? And I know you mentioned book-to-bill well in excess of 1, do you think it's enough to make book-to-bill for the year over 1, given the softer first half?

事實上，今天埃里克·魯登（Eric Ruden）接聽了彼得的電話。艾瑞克（Eric），就下半年的預訂而言，顯然，您預計無人駕駛領域將出現相當大的成長。你能在一些大的移動部件周圍提供一些顏色嗎？我知道您提到訂單出貨比遠遠超過 1，考慮到上半年較疲軟，您認為這足以使全年的訂單出貨比超過 1 嗎？

Yes. So on the first part of your question, the space and satellite business forecast is extremely strong in Q3 and extremely strong in Q4. And as what Deanna and I said, it's coming off of the bookings that we had in -- recently, including, I think, 1.3:1 in Q2. And we're off to an extremely strong start in Q3 for bookings in that space and satellite business. And if we can get the people, and we can deliver it, we're going to achieve it. We are going to do it.

是的。因此，關於您問題的第一部分，太空和衛星業務預測在第三季度非常強勁，在第四季度也非常強勁。正如迪安娜和我所說，這來自我們最近的預訂，我認為包括第二季的 1.3:1。我們在第三季的太空和衛星業務預訂方面取得了非常強勁的開局。如果我們能夠吸引到人才，並且能夠提供這些人才，我們就能實現這一目標。我們將會這麼做。

Now on your question on the second half book-to-bill. Across the company, we have some big programs we're expecting to book in the second half. Let me give you some example of them. One of them is an Air Force target drone program. We're expecting to receive a multiyear award, which would be base years plus options to -- and this would -- I hope this is sole source that will carry us through. We're expecting a very large Navy target drone award in the second half of the year. That also, we expect to be multiple years, base year plus options. There is a confidential program that I think is going to fall into Q3. There's that large international one that I've been talking about. I didn't mention it in the prepared remarks today where we've received the contract, but with the change in administration, it was going through some type of a government review. We expect that review to be successful, and we'll receive that award in the second half of the year.

現在回答你關於下半年訂單到帳單的問題。在整個公司範圍內，我們預計將在下半年預訂一些大型專案。讓我舉一些例子。其中之一是空軍目標無人機計畫。我們期望獲得多年期獎項，這將是基準年加上選項——這將是——我希望這是能夠幫助我們渡過難關的唯一來源。我們預計今年下半年將獲得非常大的海軍目標無人機獎。此外，我們預計將是多年、基準年加上選項。我認為有一個機密計劃將屬於第三季。我一直在談論那個大型國際組織。我在今天收到合約的準備​​好的發言中沒有提到這一點，但隨著政府的更迭，它正在接受某種類型的政府審查。我們預計審核會成功，我們將在今年下半年獲得該獎項。

In the engine area, we have a very large contract we are expecting to receive. And I forget if it's Q3 or Q4 that will put our engine business in a positive over 1.0:1. So we got a lot of big ones that -- most of which are sole source, which is why we're so confident second half bookings are going to be so strong.

在引擎領域，我們預計會收到一份非常大的合約。我忘記了是第三季度還是第四季度，我們的引擎業務的獲利比率將超過 1.0:1。因此，我們有很多大訂單，其中大部分都是唯一來源，這就是為什麼我們如此有信心下半年的預訂量將如此強勁。

Okay. And then on the -- just the comments about the rising case counts of COVID and concerns about delta variant. Are you anticipating or what do you think the biggest risk is there in terms of both the order environment pace there? And then are you seeing any further delays on the testing ranges?

好的。然後是關於新冠病例數不斷上升的評論以及對 Delta 變種的擔憂。您是否預期或您認為就訂單環境速度而言最大的風險是什麼？那麼您是否發現測試範圍有任何進一步的延遲？

Okay. So last one first. Thus far, as of today, we have not seen or been informed of any test range delays as of right now. Now as I mentioned and you probably saw, the DoD is starting to tighten up certain restrictions at certain locations, including at the Pentagon. Those are not problematic right now. Now we are seeing some issues on the commercial side, on travel, the commercial SATCOM business internationally. As you know, we've got over 80%, 85% of the global operators.

好的。所以先說最後一個。到目前為止，截至今天，我們尚未看到或收到任何測試範圍延遲的通知。現在，正如我所提到的，您可能已經看到，國防部開始在某些地點加強某些限制，包括五角大廈。這些目前都不是問題。現在我們在商業方面、旅行方面、國際商業衛星通訊業務方面看到了一些問題。大家知道，我們擁有全球80%、85%以上的業者。

So we're seeing some delays there. We've factored that into our range. This is one of the reasons we have a range. We've got puts and takes all over the place. The primary issue I'm probably concerned about right now based on what I see is that travel one. Can we travel internationally to get the sign off on certain things, and we've tried to incorporate that in. Like all other companies, we're seeing delays in the supply chain. We're seeing price increases in the supply chain on new contracts. We can build those prices into our new contracts. On existing contracts, if they're firm fixed price, we just have to figure out how to be more efficient. So it doesn't impact our margin. So these are all the moving pieces we've got going on.

所以我們看到了一些延誤。我們已將其納入我們的範圍內。這是我們擁有產品系列的原因之一。我們到處都有看跌期權和認購期權。根據我所看到的情況，我現在擔心的主要問題可能是旅行問題。我們是否可以進行國際旅行以獲得某些事情的批准，我們已經嘗試將其納入其中。與所有其他公司一樣，我們也看到供應鏈延誤。我們看到新合約的供應鏈價格上漲。我們可以將這些價格納入新合約中。在現有合約中，如果它們是固定價格，我們只需要弄清楚如何提高效率。所以這不會影響我們的利潤。這些就是我們正在進行的所有活動。

Your next question will come from Austin Moeller with Canaccord.

您的下一個問題將來自 Canaccord 的 Austin Moeller。

Eric, just my first question here. So China is building 230 new ICBM silos out in the desert. How does this impact your rocket support contracts with Northrop for GBSD for the missile transporters? Do you think it's unlikely that we're going to get to less than 400 ground-deployed GBSDs because of this?

艾瑞克，這只是我的第一個問題。因此，中國正在沙漠中建造 230 個新的洲際彈道飛彈發射井。這對您與諾斯羅普的導彈運輸機 GBSD 火箭支援合約有何影響？您是否認為因此我們的地面部署 GBSD 數量不可能少於 400 個？

Yes, Austin. So you're exactly right. In the past 3 weeks, satellite shops have identified 2 new Chinese ICBM fields in 2 locations over 100 each. And I personally believe that we, the United States, were in the very early innings of the next cold war and the next arms race. And I'm not going to get specific with certain programs or customers, but to answer your question, yes. I see what China is doing is going to be directly related positively to Kratos, our programs, specifically in the rocket area you talked about, which has to do with ballistic missile targets, hypersonic systems, potential hypersonic targets, launching payloads at affordable cost rapidly for our customers.

是的，奧斯汀。所以你是完全正確的。在過去 3 週內，衛星商店在 2 個地點發現了 2 個新的中國洲際彈道飛彈發射場，每個發射場的數量超過 100 個。我個人認為，我們美國正處於下一場冷戰和下一場軍備競賽的早期階段。我不會具體說明某些計劃或客戶，但要回答你的問題，是的。我認為中國正在做的事情將與奎托斯、我們的計劃直接相關，特別是在你談到的火箭領域，這與彈道飛彈目標、高超音速系統、潛在的高超音速目標、以可承受的成本快速發射有效載荷有關為我們的客戶。

All of this is a plus. And I don't think I said it, Austin, in the remarks, but our book and our anticipated launch schedule of missions for the rest of this year and through next year is very, very strong. And I believe it's directly related in part to what you're talking about.

所有這些都是一個優點。奧斯汀，我想我在演講中沒有說過，但我們的書和我們預計今年剩餘時間和明年的任務發射時間表非常非常強大。我相信這與你所談論的內容部分直接相關。

Okay. Great. And then you discussed that you have 2 of the 12 Valkyrie of the Oklahoma factory or currently being outfitted with the Autonomy Core System. So an Air Force contract to pay for those 12 aircraft contingent upon some forthcoming tests with the Valkyrie using the Autonomy Core System just like the Mako did? Or how do we think about that?

好的。偉大的。然後您談到，您擁有俄克拉荷馬州工廠的 12 架 Valkyrie 中的 2 架，或目前正在配備自主核心系統。那麼，空軍合約是否會支付這 12 架飛機的費用，取決於即將對 Valkyrie 進行的一些使用自主核心系統的測試，就像 Mako 所做的那樣？或者我們如何看待這個問題？

So we have a number of those -- a number of the 12 that are coming off the line are already under contract. The 2 that I mentioned, those are under contract, all right? So those are already spoken for. When the customers announce the quantities under -- and we're under 2 contracts now for Valkyrie, for those 12 Valkyrie. Some of the 12, we have 2 contracts. When the customers become public with the quantities and what they're doing, then obviously, we're going to talk about it. But those 2 -- I mentioned in the prepared remarks, those 2 are under contract. Those are 2 of a number that are under contract or the ones that are coming off the line.

因此，我們有許多這樣的設備——即將下線的 12 台設備中，有些已經簽訂了合約。我提到的那兩個，都是有合約的，好嗎？所以這些已經談過了。當客戶宣布數量時——我們現在簽訂了 2 份 Valkyrie 合同，即 12 架 Valkyrie。在這 12 份合約中，我們有 2 份合約。當客戶公開其數量和他們正在做的事情時，顯然我們會討論它。但是那兩個人——我在準備好的發言中提到過，那兩個人是有合約的。這些是合約期間內或即將下線的兩個。

Okay. And just one last one. Should we anticipate that there's going to be a Skyborg Valkyrie flight with the Autonomy Core System installed within the balance of the year here? Or should we expect longer than that?

好的。還有最後一張。我們是否應該預計今年剩餘時間內將會有一架安裝了自主核心系統的 Skyborg Valkyrie 航班？或者我們應該期待比這更長的時間？

Yes.

是的。

Your next question will come from Joe Gomes with NOBLE Capital.

您的下一個問題將來自 NOBLE Capital 的 Joe Gomes。

So just I wanted to circle back here on the second half. And obviously, given the guidance that you provided, the fourth quarter is heavily weighted. And just trying to get your comfort zone. Oftentimes here in the fourth quarter, we see a lot of political gains around budgets and things of that nature. And I mean we're seeing it today. How confident are you that -- or what's your worry level that things of that nature could impact fourth quarter?

所以我想在下半場回到這裡。顯然，鑑於您提供的指導，第四季度的權重很大。只是想找到你的舒適圈。在第四季度，我們經常看到圍繞預算和此類性質的事情取得了許多政治成果。我的意思是我們今天看到了。您對此有多大信心？或者您對這種性質的事情可能影響第四季度的擔憂程度如何？

The vast majority of our third and fourth quarter are in backlog. So the vast majority -- this is not a book and burn situation, these are in backlog on funded contracts. It's execution. That's what this is. And the key parts of the execution are, I think we have approximately 300 open recs right now or something like that. And we have some strategies, including taking advantage of other companies that are having some programmatic issues. We're hiring their people, and we're so far so good on that hiring side.

我們第三季和第四季的絕大多數時間都處於積壓狀態。因此，絕大多數——這不是書本燒毀的情況，而是資金合約積壓的情況。這是執行。就是這樣。執行的關鍵部分是，我認為我們現在有大約 300 個開放建議或類似的東西。我們有一些策略，包括利用其他存在一些程序問題的公司。我們正在招募他們的員工，到目前為止，我們在招募方面做得很好。

The wild cards that I see are supply chain, okay? We have done the best we can to order and advance the safety stock amounts, but the safety stock ordering now is pushing out. I think we were at like 6 to 12 weeks and now some things are like 24 to 30 weeks. Deanna is nodding that that's correct. So we're seeing things slide to the right, and there are global supply chain issues as we all know. So that's one.

我看到的不確定因素是供應鏈，好嗎？我們已盡最大努力訂購和預付安全庫存量，但安全庫存訂購現在正在推遲。我想我們當時是 6 到 12 週，現在有些是 24 到 30 週。迪安娜點頭表示這是正確的。因此，我們看到事情向右滑，並且存在眾所周知的全球供應鏈問題。這就是其中之一。

And the second one is COVID two-pronged. Does it -- do any of our major facilities get impacted where a number of people have to quarantine, et cetera. I don't see that right now. And the other one is what the other gentleman asked on the DoD side. If DoD restrictions tighten up, in particular related to range access. But again, in our range, our guidance, our range, we've tried to take all of that worst case to normal case to a good case in that range. And so that's why I'm very comfortable with how we've come at this, and we're going to be rock solid in that range.

第二個是新冠肺炎雙管齊下。我們的主要設施是否受到影響，導致許多人必須隔離等等。我現在還沒有看到這一點。另一個是另一位先生向國防部方面提出的要求。如果國防部限制收緊，特別是與範圍存取有關的限制。但同樣，在我們的範圍、我們的指導、我們的範圍內，我們試圖將所有最壞的情況轉化為正常情況，再轉化為該範圍內的良好情況。這就是為什麼我對我們的進展感到非常滿意，並且我們將在這個範圍內保持堅如磐石。

Okay. And on the turbines, you're talking about the ATTAM program and contract. And one of the things I think in the press release that you're talking about is affordability given the huge amount of -- or the huge percentage that engines cost as part of a drone. I mean can you kind of give us some example or detail as to what kind of cost breaking are you looking at here under the -- your KTT versus the existing engines?

好的。關於渦輪機，您正在談論 ATTAM 計劃和合約。我認為您在新聞稿中談論的一件事是可負擔性，因為作為無人機一部分的引擎成本很高，或者說佔很大比例。我的意思是，您能否給我們一些示例或詳細信息，說明您在 KTT 與現有引擎的對比下，會考慮哪種成本突破？

Yes. So we're in our engine businesses, it's a range. There were certain engines. We're looking at orders of magnitude 3, 4 and 5x less costly. Other ones, we're looking at 30%, 40% less costly. It just depends on the type of the engine. Most of these are turbojets and turbofans and the application.

是的。所以我們的引擎業務是一個範圍。有某些引擎。我們正在考慮將成本降低 3、4 和 5 倍。其他方面，我們希望成本降低 30%、40%。這僅取決於引擎的類型。其中大部分是渦輪噴射發動機和渦輪風扇發動機及其應用。

Now on the first part of your question, I do want to comment on. The decline of the U.S. industrial base, especially for engine technology related to space systems is really bad. And the ability -- and in the past couple of weeks, there have been a number of articles on the ability of U.S. companies to build very specialized machined or cast subsystems and components for rocket engines. It's that. We have that capability. You've heard me say in the prepared remarks, we're under a number of contracts. We're under NDAs, but people that are going to space, people that are launching things, we're probably under contract with them, building engine components for them. And that business is ramping very rapidly right now: Number one, because of the demand; but number two, the competition. There's not a lot of people out there that can do it anymore. We've lost that capability in the country, and so we're looking at it as a business opportunity and a national security opportunity.

現在，關於你問題的第一部分，我確實想發表評論。美國工業基礎的衰落，尤其是與太空系統相關的引擎技術的衰落，實在是太糟糕了。在過去的幾周里，有許多文章介紹美國公司為火箭引擎製造非常專業的機械加工或鑄造子系統和組件的能力。就是那個。我們有這個能力。你們已經聽到我在準備好的發言中說過，我們簽訂了許多合約。我們有保密協議，但是那些要去太空的人，那些正在發射東西的人，我們可能與他們簽訂了合同，為他們製造發動機組件。該業務目前正在快速成長：第一，因為需求；第二，因為需求。但第二，競爭。能做到這一點的人已經不多了。我們在該國失去了這種能力，因此我們將其視為商業機會和國家安全機會。

Great. And one last one for me, if I may. Just perusing the queue before the call, I saw that you had a nice increase in the commercial revenue in KGS segment. Is that related to open source? Or is there other things behind driving those commercial revenues higher for the quarter?

偉大的。如果可以的話，還有最後一張給我。仔細查看通話前的隊列，我發現您在 KGS 領域的商業收入有了很大的成長。這與開源有關嗎？或者還有其他因素推動本季的商業收入增加嗎？

That's a big piece of it is on the commercial SATCOM piece.

其中很大一部分是商業衛星通訊部分。

(Operator Instructions)

（操作員說明）

Your next question will come from Pete Skibitski with Alembic Global.

您的下一個問題將來自 Alembic Global 的 Pete Skibitski。

I wanted to follow up on the engine line of thoughts. Just, Eric, your -- you mentioned in the second half of the year, a potential -- you called it a large engine contract. And I just want to get my expectations in order because I think of your KTT business in the past is getting a lot of task orders, maybe $5 million to $10 million for development type. What are we talking about in the second half? Are we talking about a production contract? Or are we talking about maybe an advanced development contract that's more -- okay, go ahead.

我想跟進引擎的思路。只是，埃里克，你——你在下半年提到了一個潛力——你稱之為大型發動機合約。我只是想讓我的期望井然有序，因為我認為你們的 KTT 業務過去收到了很多任務訂單，可能是 500 萬到 1000 萬美元的開發類型。下半場我們在談論什麼？我們在談生產合約嗎？或者我們正在談論的可能是一份高級開發合同，這更多的是——好吧，繼續吧。

It's multiple tens of millions.

已經有好幾千萬了。

Okay. Is this like an LRIP-type contract?

好的。這類似於 LRIP 類型的合約嗎？

I cannot get ahead of the customer, but it is several tens of millions is the size of the engine project.

我無法領先客戶，但引擎專案的規模是幾千萬。

That's a nice breakthrough for the business, I would say, right?

我想說，這對業務來說是一個很好的突破，對嗎？

The business is doing great and the opportunity, the number of new missiles and powered munitions for the range that has to be achieved in the Pacific is incredible.

這項業務做得很好，在太平洋地區必須實現的射程範圍內的機會、新型飛彈和動力彈藥的數量令人難以置信。

Will we see a press release when you get this? Or is this too close hold kind of a thing? Or...

當您收到此訊息時，我們會看到新聞稿嗎？或者這是一種太過緊密的事情？或者...

I believe, I'm hopeful the customer will announce it. I'm hopeful.

我相信，我希望客戶會宣布這一點。我充滿希望。

Okay. Okay. Last one for me on KGS. I just want to -- I feel like maybe I need to understand this business better. On the EBITDA margins at KGS, when we talk about -- they're in kind of the upper single digits for the first half of the year, I guess, due to space R&D. What I'm wondering is, every business within KGS in normal times, can that be or is it kind of a mid-teens type of an EBITDA margin business that generates free cash? And it's just being suppressed right now because of space R&D? Or is there a big range there and some businesses are maybe more important than others?

好的。好的。KGS 上我的最後一篇。我只是想——我覺得也許我需要更了解這個行業。關於 KGS 的 EBITDA 利潤率，當我們談論時，我想，由於太空研發，它們在今年上半年處於較高的個位數。我想知道的是，在正常情況下，KGS 內的每項業務是否可以或是否是一種可以產生自由現金的 EBITDA 利潤率業務？現在只是因為太空研發而受到壓制？或者是否存在很大的範圍，並且某些業務可能比其他業務更重要？

So across the board, there are different margin rates within the businesses. So on the space and satellite side, those are on the higher end of the range on some of our -- we still have some legacy services business. And right now, our engine business, most of that's in development. Those are on the lower end of the margin rate range. So it's a blend right now. And what we're expecting for the second half is that, that space and satellite business is going to be more software-focused, which would lift those margins in the second half and more specifically, in the fourth quarter. So that's what we see driving some of that margin uptick for the second half.

因此，整體而言，企業內部存在著不同的保證金率。因此，在太空和衛星方面，這些屬於我們的一些業務範圍的高端——我們仍然擁有一些傳統服務業務。目前，我們的引擎業務大部分都在開發中。這些處於保證金率範圍的下限。所以現在它是一個混合體。我們對下半年的預期是，太空和衛星業務將更加重視軟體，這將提高下半年，更具體地說，第四季的利潤率。這就是我們認為下半年利潤率上升的原因。

Okay. And if we think more so in the midterm -- and this is my last one, I apologize. But if we think more in the midterm, with engine getting a larger contract with space maybe moving more so into production type of stuff on the new space stuff. Is your expectation that KGS in the midterm can be kind of a mid-teens margin business? Or is that...

好的。如果我們在中期考慮更多——這是我的最後一次，我深表歉意。但如果我們在中期考慮更多，隨著發動機與太空簽訂更大的合同，可能會更多地進入新太空產品的生產類型。您是否期望 KGS 在中期能成為一個中等利潤率的業務？或者說是…

As you know, in our C5 business with GBSD, which I believe, we announced contract was something like the -- it's a development contract before production is $180 million, and we've got a couple of other ones in there. Those development contracts margins are typically lower than production. I think in the second half, we're going to win. We're going to be awarded another large multiple tens of millions of dollar weapon system contract for development that will then go into production.

如你所知，在我們與 GBSD 的 C5 業務中，我相信我們宣布的合同是這樣的——這是一份生產前的開發合同，價值 1.8 億美元，我們還有其他幾個合同。這些開發合約的利潤通常低於生產合約的利潤。我認為下半場我們會贏。我們將獲得另一份價值數千萬美元的武器系統開發合同，然後將投入生產。

So those are going to offset a little bit some of the margin increases we're seeing like in the space and satellite area. So answer to your question. One, if everything gets into production like we predict and there are no more large development programs, it could be a low teen business. But hopefully, we're going to continue to win development programs that put us in a position for additional programs to drive the organic growth. You know what I mean? It's a cycle.

因此，這些將抵消我們在太空和衛星領域看到的一些利潤成長。所以回答你的問題。第一，如果一切都像我們預測的那樣投入生產，並且沒有更多的大型開發項目，那麼它可能是低青少年業務。但希望我們能夠繼續贏得發展計劃，使我們能夠開展更多計劃來推動有機成長。你知道我的意思？這是一個循環。

At this time, there are no further questions. I would now like to turn the call back over to Eric DeMarco for closing remarks.

目前，沒有其他問題了。我現在想將電話轉回給埃里克·德馬科（Eric DeMarco），讓其致閉幕詞。

Great. Thank you very much for joining us, and looking forward for our next report. Thank you, sir.

偉大的。非常感謝您加入我們，並期待我們的下一次報告。謝謝你，先生。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。