Kratos Defense and Security Solutions Inc (KTOS) 2021 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Kratos Defense & Security Solutions First Quarter 2021 Earnings Conference Call. (Operator Instructions) I would now like to hand the conference over to your speaker today, Marie Mendoza, Senior VP and General Counsel. Please go ahead.

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 年第一季財報電話會議。（操作員指示）我現在想將會議交給今天的發言人，高級副總裁兼總法律顧問瑪麗·門多薩 (Marie Mendoza)。請繼續。

Thank you. Good afternoon, everyone. Thank you for joining us for the Kratos Defense & Security Solutions First Quarter 2021 Conference Call. With me today is Eric DeMarco, Kratos' President and Chief Executive Officer; and Deanna Lund, Kratos' Executive Vice President and Chief Financial Officer.

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 年第一季電話會議。今天與我在一起的是 Kratos 總裁兼執行長 Eric DeMarco；以及 Kratos 執行副總裁兼財務長 Deanna Lund。

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。

Thank you, Marie, good afternoon. Kratos is currently seeing accelerating organic growth across virtually our entire portfolio, including 33.1% in our Unmanned Systems Business and pro forma 11.6% overall for Kratos as we describe today in our release. We expect our organic growth trajectory to continue into 2021 for it to be industry leading with even stronger organic growth forecast for 2022, including growth in our Skyborg, LCAAT, LCASD, OPIR, GBSD, SSAT, Classified and other under contract and expected programs.

謝謝你，瑪麗，下午好。Kratos 目前幾乎整個產品組合都在加速有機成長，其中包括我們的無人系統業務 33.1%，預計 Kratos 整體成長 11.6%，正如我們今天在新聞稿中所述。我們預計我們的有機成長軌跡將持續到2021 年，因為它將成為行業領先者，2022 年的有機成長預測將更加強勁，包括我們的Skyborg、LCAAT、LCASD、OPIR、GBSD、SSAT、Classified 和其他合約和預期項目的成長。

Underpinning our confidence, Kratos' last 12 months book-to-bill ratio was 1.3:1, and we just received an $86 million single award contract for Drone Command and Control System through all options. And we are expecting to receive a number of large sole source production and other contract awards over the balance of 2021, including in our Unmanned Systems business in the second half of this year.

Kratos 過去 12 個月的訂單出貨比為 1.3:1，這增強了我們的信心，而且我們剛剛通過所有選項獲得了價值 8600 萬美元的無人機指揮和控制系統單項合約。我們預計在 2021 年剩餘時間裡將獲得許多大型獨家生產和其他合同，包括今年下半年我們的無人系統業務。

Additionally, we have seen no disruptions with Kratos customers or our order flow as a result of the new administration. And as we will go through today, we have reason to believe that Kratos' business will actually accelerate further with increased funding and opportunities based on actions to date by the Biden administration.

此外，我們沒有發現 Kratos 客戶或我們的訂單流因新政府的出現而受到干擾。正如我們今天將要討論的那樣，我們有理由相信，根據拜登政府迄今為止的行動，隨著資金和機會的增加，奎托斯的業務實際上將進一步加速。

The initial fiscal 2022 National Security Budget has been submitted at $753 billion, slightly below the previous administration's $760 billion, which is better than we were expecting, and we believe an overall positive sign for the next several years. In the Budget submission, the administration is clearly focused on the retirement of no longer relevant legacy systems, including Defense Secretary Austin and Deputy Defense Secretary Hicks making it clear that they intend to propose divesting legacy systems in favor of new technology approaches and systems, which is very positive for Kratos and our suite of affordable, innovative products and systems. Innovation and sustainment are also identified as priorities for Pentagon Acquisition, Research Development and Engineering, each also positive for Kratos as Kratos is recognized as the DoD innovation leader and in the rapid development and fielding of actual working systems and products.

初步提交的2022財年國家安全預算為7,530億美元，略低於上屆政府的7,600億美元，優於我們的預期，我們相信未來幾年整體出現正面跡象。在提交的預算中，政府顯然重點關注不再相關的遺留系統的退役，包括國防部長奧斯汀和副國防部長希克斯明確表示，他們打算提議剝離遺留系統，轉而採用新技術方法和系統，這這對於Kratos 以及我們經濟實惠的創新產品和系統套件來說非常積極。創新和維持也被認定為五角大廈採購、研究開發和工程的優先事項，每一項都對奎托斯有利，因為奎托斯被公認為國防部創新領導者，並且在實際工作系統和產品的快速開發和部署方面。

The administration's national security priorities include drones and artificial intelligence, space and satellite communications, strategic deterrence, hypersonic systems, operational readiness and microwave electronics, as you know, all Kratos' strategic focus areas.

政府的國家安全優先事項包括無人機和人工智慧、太空和衛星通訊、戰略威懾、高超音速系統、戰備狀態和微波電子學，如你所知，所有克雷托斯的戰略重點領域。

Also important for Kratos, Michael Brown, Director of the Defense Innovation Unit, formerly DIUX, a key strategic partner and customer of Kratos, has been picked to become the Pentagon's Acquisition Chief, clearly emphasizing Mr. Brown's previous career in Silicon Valley and as CEO of cybersecurity company, Symantec, further reflecting the change, innovation speed of acquisition and affordability the DoD is striving for.

對Kratos 來說同樣重要的是，國防創新部門主任Michael Brown（前身為DIUX，Kratos 的關鍵戰略合作夥伴和客戶）已被選為五角大樓的採購主管，這明確強調了Brown 先生之前在矽谷的職業生涯以及擔任執行長的經歷網路安全公司賽門鐵克的公司，進一步反映了國防部正在努力追求的變革、採購創新速度和可承受性。

The President has also nominated Frank Kendall as Secretary of the Air Force. Mr. Kendall, if confirmed, will be taking over the ongoing DoD reviews on tactical combat aircraft and global force posture. And based on his history, we expect that he will bring an engineer's show-me-the-data perspective, including to Autonomous Attritable weapons, networks and weapons mix, all positive for Kratos. Based on Mr. Kendall's prior record, including his better buying power initiatives and procurement system reform, we believe he recognizes that affordability is critical, that quantity has a quality all of its own and that he will be supportive of the development of new low cost weapon systems that utilize commercial approaches and technology to create more military mass, also positive for Kratos.

總統也提名弗蘭克·肯德爾擔任空軍部長。如果肯德爾被任命，他將接管國防部正在進行的戰術戰鬥機和全球部隊態勢評估。根據他的歷史，我們預計他將帶來工程師的「展示數據」視角，包括自主可消耗武器、網路和武器組合，所有這些都對奎托斯有利。根據肯德爾先生先前的記錄，包括他更好的購買力舉措和採購制度改革，我們相信他認識到負擔能力至關重要，數量本身就有質量，並且他將支持新的低成本的發展利用商業方法和技術來創造更多軍事力量的武器系統，對奎托斯來說也是積極的。

Additionally, the President's executive order and the Administration's focus on Made in America is also a very important positive for Kratos, including where Kratos is the only or one of the very few U.S. manufacturers of a certain system, product or capability. For competitive and other reasons, I will not be more specific here, but Kratos will be fully supporting the Biden administration's Made in America efforts, which we believe will be very beneficial to our country and our company, including in certain new product areas where Kratos is focused.

此外，總統的行政命令和政府對美國製造的關注對 Kratos 來說也是一個非常重要的積極因素，包括 Kratos 是唯一或極少數擁有某種系統、產品或能力的美國製造商之一。出於競爭和其他原因，我不會在這裡說得更具體，但奎托斯將全力支持拜登政府的“美國製造”努力，我們相信這對我們的國家和我們的公司非常有利，包括奎托斯在某些新產品領域是專注的。

In summary, since our last report to you, we are very pleased with the new administration's national security leadership, priorities and budget, and the clear focus on affordability, innovation, change and Made in America.

總之，自從我們向你們提交上次報告以來，我們對新政府的國家安全領導、優先事項和預算以及對負擔能力、創新、變革和美國製造的明確關注感到非常滿意。

From a geopolitical standpoint, the potential adversary threat to the U.S. and our allies continues to evolve, accelerating the recapitalization of strategic weapon systems, which Kratos is increasingly a direct and growing beneficiary of. In the tactical drone area, while others are re-imagining air power with models, renditions, cartoons and PR, Kratos is and has been, for the last several years, delivering and demonstrating flying air power with multiple systems that are operationally relevant for today's and the future operational threat environment including.

從地緣政治的角度來看，美國和我們的盟友面臨的潛在對手威脅不斷演變，加速了戰略武器系統的資本重組，而克雷托斯正日益成為其直接且日益增長的受益者。在戰術無人機領域，當其他人透過模型、表演、卡通和公關重新構想空中力量時，克雷托斯在過去幾年裡一直在透過與當今作戰相關的多個系統來提供和演示空中力量。以及未來的作戰威脅環境，包括。

Today, the United States Air Force announced that the Skyborg team conducted a successful 2-hour first flight with the Kratos Mako UTAP-22 high performance tactical drone at Tyndall Air Force Base in Florida. This flight, termed Milestone 1 of the Autonomous Attritable Aircraft Experimentation campaign, was extremely important to Kratos as the Skyborg Autonomy Core System, or ACS, aboard a Kratos Mako drone system performed a series of foundational behaviors necessary to characterize the system's operation.

今天，美國空軍宣布 Skyborg 團隊使用 Kratos Mako UTAP-22 高性能戰術無人機在佛羅裡達州廷德爾空軍基地成功進行了 2 小時的首次飛行。這次飛行被稱為自主可飛行飛機實驗活動的里程碑1，對Kratos 來說極為重要，因為Kratos Mako 無人機系統上的Skyborg 自主核心系統（ACS）執行了一系列表徵系統運作所需的基本行為。

In the Mako flight, the ACS demonstrated certain aviation capabilities, responded to navigational commands, reacted to geo fences, adhered to flight envelopes and demonstrated coordinated maneuvering while being monitored by both airborne and ground command and control stations.

在 Mako 飛行中，ACS 展示了一定的航空能力，對導航命令做出回應，對地理圍欄做出反應，遵守飛行包線，並在機載和地面指揮控制站的監控下展示了協調機動能力。

This most recent publicly available flight, which we believe is representative of the incredible partnership that Kratos has with our government customers and also representative of Kratos' first to market leading position with 4 high performance, low cost Attritable drones in this class flying today that we can discuss with you.

這次最新的公開飛行，我們相信它代表了Kratos 與我們政府客戶之間令人難以置信的合作夥伴關係，也代表了Kratos 憑藉4 架高性能、低成本Attritable 無人機首次進入市場的領先地位。可以和你討論。

Since our last report to you, the Kratos XQ-58A Valkyrie had its sixth publicly announced successful flight at the Yuma Proving Grounds in Arizona, where the Valkyrie launched a small drone from its internal weapons bay and where the Valkyrie flew higher and faster than ever before, demonstrating the expanding operational envelope of the system as we advanced toward potential initial operating capability.

自從我們上次向您報告以來，奎托斯XQ-58A 瓦爾基里(Kratos XQ-58A Valkyrie) 在亞利桑那州尤馬試驗場進行了第六次公開宣布的成功飛行，瓦爾基里(Valkyrie) 從其內部武器艙發射了一架小型無人機，而且瓦爾基里(Valkyrie) 飛得比以往更高、更快之前，隨著我們向潛在的初始操作能力邁進，展示了系統不斷擴大的操作範圍。

Along with the Valkyrie's successful weapons release of the ALTIUS-600 SUAS, Kratos' Rattlesnake tactical drone has also successfully demonstrated the release of an AeroVironment Switchblade tactical munition system, further demonstrating the operational relevance of Kratos' family of tactical systems, including as force multiplying drone and weapon carriers.

隨著 Valkyrie 成功發布 ALTIUS-600 SUAS 武器，Kratos 的響尾蛇戰術無人機也成功展示了 AeroVironment Switchblade 戰術彈藥系統的發布，進一步展示了 Kratos 系列戰術系統的作戰相關性，包括作為力量倍增無人機和武器載體。

Kratos will be moving forward with both of these systems, and we will not comment further due to customer competitive and security related reasons. Kratos has previously demonstrated 2 of our UTAP-22 Mako jet tactical drones flying with a manned jet fighter aircraft in continuous collaborative airborne operations via tactical data link while flying information with one another and also flying with a third digital twin simulated Mako as the lead drone aircraft. The flight consisted of collaborative airborne operations, evaluated command and control through the tactical data link, execution of semi-autonomous tasks, execution of autonomous flight information with the manned fighter, transfer of Mako control between non-line of sight over the horizon operations in the tactical network and transfer of control handoff from the tactical network to an independent dedicated control link.

Kratos 將繼續推進這兩個系統，由於客戶競爭和安全相關的原因，我們不會進一步發表評論。Kratos 先前曾示範過我們的2 架UTAP-22 Mako 噴射戰術無人機與有人駕駛噴射戰鬥機一起飛行，透過戰術數據鏈進行連續協作空中作戰，同時相互傳遞訊息，並與第三架數位雙胞胎模擬Mako 作為領頭無人機一起飛行飛機。這次飛行包括協作機載作戰、透過戰術數據鏈評估指揮和控制、執行半自主任務、用有人駕駛戰鬥機執行自主飛行資訊、在非視距超視距作戰之間轉移 Mako 控制權。戰術網路以及從戰術網路到獨立專用控制鏈路的控制切換轉移。

The 2 unmanned Kratos drone system formation tests successfully coordinated semi-autonomous payload deployment. With the Kratos drones breaking formation to perform independently with the subsequent rejoin and loyal trusted wingman flight with one Mako being flown as a -- or a manned aircraft and the second Mako joining and sustaining autonomous formation. Throughout the mission, multiple Makos were controlled by a single operator.

兩架奎托斯無人系統編隊測試成功協調了半自主有效負載部署。隨著奎托斯無人機打破編隊獨立執行，隨後重新加入和忠誠可信僚機飛行，其中一架 Mako 作為有人駕駛飛機飛行，第二架 Mako 加入並維持自主編隊。在整個任務過程中，多個 Mako 由一名操作員控制。

In the last few weeks, it was reported that certain new systems are now installed in the U.S. Air Force's KC-135 Stratotanker, which will allow the aerial refueling aircraft to sort of as a communications node for other platforms, including armed drones, like Kratos' Valkyrie and Mako with plans to add underwing pods that will further expand this capability and increase its own effectiveness.

據報道，在過去幾週，美國空軍的 KC-135 Stratotanker 上安裝了某些新系統，這將使空中加油機能夠充當其他平台的通信節點，包括武裝無人機，例如 Kratos Valkyrie 和Mako 計劃添加翼下吊艙，這將進一步擴大這種能力並提高其自身的效率。

It was reported that in recent trials, the KC-135 received data from Kratos UTAP-22 Makos and it was reported that a certain Kratos drone is being utilized as a loyal wingman type drone also for the KC-135 in tests, demonstrations and experiments over the U.S. Navy test range at China Lake, California. It was reported that this is representative of the advancement of plans to defend vulnerable support aircraft, including tankers, utilizing Attritable low cost, high performance jet drones.

據報道，在最近的試驗中，KC-135 收到了來自Kratos UTAP-22 Makos 的數據，並且據報道，某種Kratos 無人機也被用作KC-135 的忠誠僚機型無人機進行測試、示範和實驗加州中國湖的美國海軍試驗場上空。據報道，這代表了利用Attritable低成本、高性能噴氣式無人機防禦包括加油機在內的脆弱支援飛機的計劃的進展。

It has been reported that Kratos' Mako has been evaluated by the Air Force Reserve Test Center in an air launched capacity from an F-15C Fighter as part of an additional loyal wingman testing program. And it was recently reported a few weeks ago that drone aircraft like Kratos' XQ-58A Valkyrie, the Mako and Air Wolf were included in and instrumental in the success of certain simulated war games conducted by the Pentagon.

據報道，作為額外忠誠僚機測試計劃的一部分，空軍預備役測試中心對奎托斯的 Mako 進行了從 F-15C 戰鬥機空中發射能力的評估。幾週前有報導稱，奎托斯的 XQ-58A Valkyrie、Mako 和 Air Wolf 等無人機被納入五角大樓進行的某些模擬戰爭遊戲中，並為其成功發揮了重要作用。

It was just recently publicly reported that there is a new previously undisclosed program that Kratos' tactical jet drones have been and are currently flying in that is extremely operationally relevant, and I encourage you to take a look at this as I am not able to discuss it.

最近有公開報導稱，奎托斯的戰術噴氣式無人機已經並正在執行一項先前未公開的新計劃，該計劃與操作極為相關，我鼓勵您看一下這個計劃，因為我無法討論它。

This is just a brief summary of what we believe is representative of the continued methodical progress Kratos has been making with the Valkyrie, Mako and other Kratos tactical drones to operational relevance and fielding and why we have increasing confidence in the ultimate success of our tactical drone initiative and a significant future organic growth trajectory.

這只是我們認為代表奎托斯在Valkyrie、Mako 和其他奎托斯戰術無人機在作戰相關性和部署方面所取得的持續有條理進展的簡要總結，以及為什麼我們對我們的戰術無人機的最終成功越來越有信心主動性和重要的未來有機成長軌跡。

since our last report to you, there has also been additional progression in total addressable market expansion for the Kratos class of affordable jet drones, including it was recently reported that the United States Navy is moving toward an air wing that has a 40-60 unmanned-manned aircraft split and over time intends to shift that to a 60-40 unmanned-manned split with the goal to ultimately drive an air wing that is at least 50% or more unmanned. And as the U.S. Navy also recently stated it would not be hard to imagine in the near future unmanned drones being adjunct missile carriers with missiles flying defensive combat spread missions, et cetera.

自從我們向您提交上一份報告以來，Kratos 級經濟型噴射無人機的整體潛在市場擴張也取得了額外進展，其中包括最近報道稱，美國海軍正在轉向擁有40-60 架無人機的航空聯隊-有人駕駛飛機拆分，隨著時間的推移，打算將其轉變為 60-40 架無人駕駛飛機拆分，目標是最終驅動至少 50% 或更多無人駕駛的機隊。正如美國海軍最近也表示的那樣，不難想像在不久的將來無人駕駛飛機將成為輔助飛彈運載工具，攜帶飛彈執行防禦性戰鬥傳播任務等。

It was also reported that the United States Marine Corps is now envisioning arming autonomous unmanned aircraft with long range anti-ship missiles for future conflicts.

另據報導，美國海軍陸戰隊目前正在設想為自主無人機配備遠程反艦飛彈，以應對未來的衝突。

On the Gremlins program, since our last report to you, our confidence in the ultimate success and fielding of Gremlins, similar to our increased confidence in Valkyrie and Mako, continues to increase, including that it was recently reported United States Air Force is now considering inflight rearming for the Gremlins, further expanding their operational capability. This inflight rearming capability would be an addition to inflight recovery for the Gremlins air vehicles. The Air Force reportedly stated that the Gremlins could be rearmed onboard the carrier aircraft or C-17, for example, and then relaunched to participate in defensive counter air and offensive counter air missions as described by the Air Force customer.

關於「小精靈」計劃，自從我們上次向您報告以來，我們對「小精靈」最終成功和部署的信心，就像我們對「瓦爾基里」和「馬科」的信心不斷增加一樣，繼續增加，包括最近報道的美國空軍正在考慮為“小魔怪”進行飛行中重新武裝，進一步擴大其作戰能力。這種飛行中重新武裝能力將是小精靈飛行器飛行中恢復的補充。據報道，空軍表示，例如，「小精靈」可以在艦載機或 C-17 上重新武裝，然後重新啟動，以參與空軍客戶所描述的防禦性反空和進攻性反空任務。

We believe that this is representative and an example of the Air Force's considering the use of carrier or mobility aircraft for an expanded set of missions, including with unmanned jet drones. Additional Gremlins flights with DARPA and our prime partner, Dynetics, are planned for the next several months with the expectation for a transition from DARPA to multiple services, including the Air Force thereafter.

我們認為，這是空軍考慮使用艦載機或機動飛機執行擴大的任務（包括無人駕駛飛機）的代表性和例子。計劃在接下來的幾個月內與 DARPA 和我們的主要合作夥伴 Dynetics 進行更多 Gremlins 飛行，預計此後將從 DARPA 過渡到多個軍種，包括空軍。

Customer funded flights are continuing with Kratos' Air Wolf and other programs, and other Kratos tactical drone programs, including Thanatos continue to progress. We are currently executing under multiple customer-funded drone related programs, including also as related to Kratos' jet engine business, including Skyborg, Golden Horde, LCASD, LCAAT, ABMS and others, and we will continue to update you on our progress as our customers allow.

客戶資助的飛行正在繼續進行，Kratos 的 Air Wolf 和其他項目，以及其他 Kratos 戰術無人機項目，包括 Thanatos 也在繼續取得進展。我們目前正在執行多個由客戶資助的無人機相關項目，包括與 Kratos 噴射發動機業務相關的項目，包括 Skyborg、Golden Horde、LCASD、LCAAT、ABMS 等，我們將繼續向您通報我們的進度客戶允許。

The initial production of 12 Kratos Valkyries continues with initial aircraft deliveries expected very shortly now and continuing thereafter. Kratos' Ghost Works top priority new system, which I have previously mentioned, is also progressing with first flight scheduled for Q1 of 2022.

12 架奎托斯女武神的初始生產仍在繼續，首批飛機預計很快就會交付，此後還將繼續。我之前提到的 Kratos 的 Ghost Works 首要新系統也在取得進展，預計將於 2022 年第一季進行首次飛行。

Since our last report to you, certain new tactical drone program opportunities for Kratos' class of drones have been released by the government that we are pursuing, certain of which may be awarded by the end of this year. In Kratos' tactical drone area, there are certain, we believe to be significant, potential catalysts or milestones that could be announced by our customers and/or by Kratos if we are successful, similar to the Air Force's Skyborg related announcement today occurring over the next few months.

自從我們上次向您報告以來，我們正在尋求的政府已經發布了奎托斯級無人機的某些新戰術無人機計劃機會，其中某些機會可能會在今年年底授予。在 Kratos 的戰術無人機領域，我們認為，如果我們取得成功，我們的客戶和/或 Kratos 可能會宣布一些重要的潛在催化劑或里程碑，類似於空軍今天在接下來的幾個月。

It is important to reiterate that we believe that Kratos' first to market leader position in the tactical drone area with multiple variants in classes flying today, with systems payloads and weapons being integrated and tested today, all being built in America, all runway independent, which is a critical must-have capability in a combat situation, are representative of why we expect Kratos to be incredibly successful in the tactical drone area.

重要的是要重申，我們相信 Kratos 在戰術無人機領域處於市場領先地位，具有多種變體，今天正在飛行，系統有效載荷和武器今天正在集成和測試，全部在美國製造，所有跑道獨立，這是戰鬥情況下必須具備的關鍵能力，這代表了為什麼我們期望奎托斯在戰術無人機領域取得令人難以置信的成功。

Kratos' target drone programs continued to perform as expected with an opt-in to the right future growth trajectory forecast as certain programs continue the transition from development to low rate initial production to full rate production and as we are successful in new target drone opportunities, both domestic and international. We are expecting a large number of target drone program awards, including Sole Source Awards in the second half of this year.

奎托斯的目標無人機專案繼續按預期執行，並選擇加入正確的未來成長軌跡預測，因為某些專案繼續從開發過渡到低速初始生產再到全速生產，並且我們在新的目標無人機機會中取得了成功，國內和國際。我們期待大量的目標無人機項目獎項，包括今年下半年的獨家來源獎。

Kratos' space and satellite communication business continues to perform very well, including as related to bookings. And our confidence remains high for a base case minimum 10% year-over-year future organic revenue growth trajectory with expanding margins and the potential for even greater future organic growth above our base case, if we are successful in certain large new binary opportunities we are currently pursuing, certain of which may be awarded by the end of this year.

Kratos 的太空和衛星通訊業務持續表現良好，包括與預訂相關的業務。如果我們在某些​​大型新的二元機會中取得成功，我們對未來有機收入成長軌跡至少10% 的基本情況仍然充滿信心，並且利潤率不斷擴大，並且未來有機增長的潛力高於我們的基本情況.目前正在尋求，其中某些可能會在今年年底授予。

Certain key drivers of our confidence in our space business is the success and increased acceptance of Kratos' first to market software defined open space ground system platform and technology, our global owned and operated commercial space domain awareness network and the rapidly growing space market, including thousands of commercial and national security satellites plan for orbit, all of which will need ground command and control and Telemetry Tracking and Control, or TT&C, all of which are Kratos specialties.

我們對太空業務充滿信心的某些關鍵驅動因素是Kratos 首個推向市場的軟體定義開放空間地面系統平台和技術的成功和接受度的提高、我們在全球擁有和運營的商業太空領域認知網絡以及快速成長的太空市場，包括數千顆商業和國家安全衛星計畫進入軌道，所有這些衛星都需要地面指揮和控制以及遙測追蹤和控制（TT&C），所有這些都是奎托斯的專長。

Space is undergoing a renaissance where advancements in ground systems and satellite technologies are joining to form space networks that support multi-domain missions and broader data requirements. And Kratos is leading the digital transformation on the ground side by introducing into-space networks, proven technologies from other network-centric industries, enhancing performance and affordability for the Department of Defense and opening the door for the defense industry to better integrate with and capitalize on commercial space assets.

太空正在經歷復興，地面系統和衛星技術的進步正在共同形成支援多域任務和更廣泛資料需求的太空網路。Kratos 正在引領地面數位轉型，將其他以網路為中心的行業的成熟技術引入太空網絡，提高國防部的性能和承受能力，並為國防工業更好地整合和利用打開大門。關於商業空間資產。

We are currently expecting a strong second half of 2021 for Kratos' space and satellite business based on recent program awards, planned production and execution schedules and mix and significant year-over-year organic growth continuing thereafter.

基於最近的項目授予、計劃生產和執行時間表以及組合以及此後持續的顯著同比有機增長，我們目前預計 Kratos 的太空和衛星業務將在 2021 年下半年表現強勁。

Kratos' Microwave Electronics business is very strong, with new opportunities including in the space satellite, missile and radar areas. And we expect an up and to the right organic revenue and margin growth trajectory for this business.

Kratos 的微波電子業務非常強勁，在太空衛星、飛彈和雷達領域等領域都有新的機會。我們預計該業務將實現正確的有機收入和利潤成長軌跡。

Kratos' C5ISR business continues performing on GBSD and other strategic defense programs with GBSD forecast to be a significant future organic growth driver for Kratos. And there is now the possibility of certain additional large new program awards for Kratos' C5ISR business in the coming months if Kratos or our team are successful with these pursuits.

Kratos 的 C5ISR 業務繼續在 GBSD 和其他策略性防禦專案上表現出色，GBSD 預計將成為 Kratos 未來重要的有機成長動力。現在，如果 Kratos 或我們的團隊在這些追求上取得成功，Kratos 的 C5ISR 業務有可能在未來幾個月獲得某些額外的大型新專案獎項。

Our rocket system hypersonic and directed-energy businesses are all extremely well positioned in priority national security and funding areas. And we are forecasting future growth in each, with our rocket system business currently looking particularly strong for the second half of this year and into 2022 with multiple missions currently planned.

我們的火箭系統高超音速和定向能業務在國家安全和融資優先領域都處於非常有利的地位。我們預測每個專案的未來成長，我們的火箭系統業務目前看起來在今年下半年和 2022 年特別強勁，目前計劃執行多項任務。

Kratos' next generation engine business continue to make progress in our development programs, including those focused on drones, missiles and powered munitions. Every Kratos core strategic business is forecasting an up and to the right organic growth trajectory with increasing margins. And we saw this organic growth trajectory in the first quarter of 2021 across our core businesses with the exception of our training solutions business.

Kratos 的下一代發動機業務在我們的開發計劃中繼續取得進展，包括專注於無人機、導彈和動力彈藥的開發計劃。Kratos 的每項核心策略業務都預測，隨著利潤率的提高，將朝著正確的有機成長軌跡發展。我們在 2021 年第一季看到了除培訓解決方案業務之外的核心業務的有機成長軌跡。

We are focused on executing on a significant number of new core programs we have received, and we are currently in pursuit of a number of additional new program opportunities. And if we are successful, could further increase the future organic growth trajectory we are currently forecasting.

我們專注於執行我們收到的大量新核心計劃，目前我們正在尋求一些額外的新計劃機會。如果我們成功，可能會進一步增加我們目前預測的未來有機成長軌跡。

For example, we just learned that the team Kratos is on was one of the winners for the DARPA Demonstration Rocket for Agile Cislunar Operations, or DRACO, the nuclear space propulsion program, which is going to be an important future contributor for Kratos. We believe that Kratos could not be better positioned today with our existing portfolio of affordable systems, products and rapid development and fielding capabilities to address the existing and expected future threat environment and related customer requirements and funding areas.

例如，我們剛剛了解到，Kratos 所在的團隊是 DARPA 敏捷地每月操作示範火箭（DRACO）的獲獎者之一，該項目是核空間推進計劃，這將成為 Kratos 未來的重要貢獻者。我們相信，憑藉我們現有的經濟實惠的系統、產品組合以及快速開發和部署能力，Kratos 今天無法更好地定位，以解決現有和預期的未來威脅環境以及相關的客戶需求和資金領域。

Top execution focus areas right now are hiring qualified people with security clearances to execute our growing program portfolio, managing critical vendors and suppliers and related lead times which are constantly under pressure and monitoring the COVID situation, including in India, which is a large end customer for our Israeli microwave business.

目前最重要的執行重點領域是僱用具有安全許可的合格人員來執行我們不斷增長的專案組合，管理不斷面臨壓力的關鍵供應商和供應商以及相關的交貨時間，並監控新冠疫情的情況，包括印度這個大型終端客戶為我們的以色列微波爐業務。

I want to end by highlighting the number of new opportunities that Kratos is tracking, including classified programs, which is extremely strong and is expected to grow. And we believe that we are uniquely qualified for a number of these, including in the space, satellite, unmanned rocket system and C5ISR areas. At Kratos, affordability is a technology, and affordability of Kratos' products is an incredible advantage for our company in the current and expected to be future fiscal and budgetary environment. Quantities of fielded, technologically advanced systems have a quality all of their own, and we believe that Kratos is the best positioned company in the industry today to address this requirement. Deanna?

最後，我想強調奎托斯正在追蹤的新機會的數量，其中包括非常強大且預計會成長的機密項目。我們相信，我們在許多領域擁有獨特的資格，包括太空、衛星、無人火箭系統和 C5ISR 領域。在 Kratos，可負擔性是一項技術，而 Kratos 產品的可負擔性在當前和預期未來的財政和預算環境中對我們公司來說是一個令人難以置信的優勢。大量部署的、技術先進的系統都有自己的品質，我們相信 Kratos 是當今業界中最能滿足這項要求的公司。迪安娜？

Thank you, Eric. Good afternoon. Kratos' first quarter '21 revenues of $194.2 million were at the upper end of our estimated range of $185 million to $195 million. Our Q1 '21 consolidated operating income was $4.9 million, up from the first quarter of 2020 operating income of $4.7 million, which includes first quarter '21 increases in stock compensation expense of $1.5 million, increased R&D of $2.3 million, primarily in the space and satellite business and increased depreciation expense of $500,000 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 '21 年第一季的營收為 1.942 億美元，處於我們估計的 1.85 億至 1.95 億美元範圍的上限。我們21 年第一季的合併營業收入為490 萬美元，高於2020 年第一季470 萬美元的營業收入，其中包括21 年第一季股票補償費用增加150 萬美元，研發增加230 萬美元，主要在空間及本期衛星業務增加折舊費用50萬美元。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。

GAAP EPS was $0.01 per share for the first quarter compared to $0.00 in the first quarter of 2020. Included in GAAP net income is a $2.7 million tax benefit, primarily reflecting the benefit of tax deductions related to stock-based compensation expense. Adjusted EBITDA for the first quarter was $18.1 million, above our expectation of $12 million to $16 million, due primarily to a favorable mix of revenues, including certain programs and products in more mature life cycles.

第一季 GAAP 每股收益為 0.01 美元，而 2020 年第一季為 0.00 美元。GAAP 淨利潤包括 270 萬美元的稅收優惠，主要反映與股票補償費用相關的稅收減免優惠。第一季調整後 EBITDA 為 1,810 萬美元，高於我們 1,200 萬至 1,600 萬美元的預期，這主要是由於有利的收入組合，包括處於更成熟生命週期的某些項目和產品。

In the first quarter, our Unmanned Systems Segment reported revenues of $55.9 million, up 33.1% from the first quarter of 2020, due primarily to ramps in production in target programs, including the 177 program and work performed on the Valkyrie program. Unmanned Systems generated operating income of $4.2 million, up from $500,000 in the first quarter of 2020, primarily reflecting the increased drone system related revenues and leverage achieved on the fixed overhead manufacturing and G&A infrastructure. Unmanned Systems adjusted EBITDA of $6.4 million was up from $2.3 million in the first quarter of 2020.

第一季度，我們的無人系統部門報告收入為 5590 萬美元，比 2020 年第一季度增長 33.1%，這主要是由於目標項目的產量增加，包括 177 項目和 Valkyrie 項目的工作。無人機系統的營業收入為 420 萬美元，高於 2020 年第一季的 50 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。無人系統公司調整後 EBITDA 為 640 萬美元，高於 2020 年第一季的 230 萬美元。

KGS reported revenues of $138.3 million. up from $126.9 million in the first quarter of 2020, reflecting $8.6 million from the recent ASC acquisition and organic growth across all KGS businesses with the exception of our training solutions business, including in our space and satellite defense rocket, C5ISR microwave products and turbine engine businesses. This increase was offset partially by a net reduction of approximately $5 million in our training solutions business, which was related to the previously disclosed reduction in scope of certain international contracts. KGS reported operating income of $7.1 million, down from $9.3 million in the first quarter of 2020.

KGS 報告收入為 1.383 億美元。高於2020 年第一季的1.269 億美元，反映了最近ASC 收購帶來的860 萬美元以及除培訓解決方案業務外所有KGS 業務的有機增長，包括我們的太空和衛星防禦火箭、C5ISR 微波產品和渦輪發動機企業。這一增長被我們的培訓解決方案業務淨減少約 500 萬美元所部分抵消，這與先前披露的某些國際合約範圍的減​​少有關。KGS 報告營業收入為 710 萬美元，低於 2020 年第一季的 930 萬美元。

KGS first quarter '21 adjusted EBITDA was $11.7 million, down from $14 million in the first quarter of '20, reflecting a less favorable mix of revenues, including an increase in product and equipment-related revenues contributed from the recent ASC acquisition, coupled with increased R&D costs of approximately $2.3 million related to our space and satellite business.

KGS 21 年第一季調整後 EBITDA 為 1,170 萬美元，低於 20 年第一季的 1,400 萬美元，反映出營收組合不太有利，包括最近收購 ASC 帶來的產品和設備相關收入的增加，以及與我們的太空和衛星業務相關的研發成本增加了約230 萬美元。

Our consolidated adjusted EBITDA for the first quarter is from consolidated continuing operations, including net income or loss attributable to noncontrolling interest and excludes noncash stock-based compensation costs of $6.2 million, acquisition and restructuring related costs of $200,000 and foreign transaction loss of $100,000.

我們第一季的合併調整後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620 萬美元的非現金股票補償成本、20 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 onto the balance sheet and liquidity, our cash balance was $383.6 million at March 28, and we had 0 amount 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 $83.3 million.

轉向資產負債表和流動性，截至 3 月 28 日，我們的現金餘額為 3.836 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。截至季末，未償債務為 3.003 億美元。季末淨現金為 8,330 萬美元。

Cash flow generated from operations for the first quarter was $22.7 million, less CapEx of $9.6 million or free cash flow generated from operations of $13.1 million.

第一季營運產生的現金流為 2,270 萬美元，減去 960 萬美元的資本支出或營運產生的自由現金流 1,310 萬美元。

Our contract mix for the quarter was 70% from fixed-price contracts, 24% from cost-plus type contracts and 6% from time and material contracts. Revenues generated from contracts with the U.S. Federal government during the quarter were approximately 73%, which includes revenues generated from contracts with the DoD, non-DoD federal government agencies and FMS contracts, which were approximately 6%. We generated 7% from commercial customers and 20% from foreign customers.

本季我們的合約組合中，70% 來自固定價格合同，24% 來自成本加成型合同，6% 來自時間和材料合約。本季與美國聯邦政府的合約產生的收入約為 73%，其中包括與國防部、非國防部聯邦政府機構和 FMS 合約產生的收入，約佔 6%。我們的 7% 來自商業客戶，20% 來自外國客戶。

Backlog at quarter end was $892.9 million, down sequentially from fourth quarter end backlog of $922.2 million, with bookings of $164.9 million and a book-to-bill ratio of 0.8:1 for the first quarter of '21. Funded backlog at quarter end was $620.7 million with $272.2 million unfunded.

季度末的積壓訂單為 8.929 億美元，比第四季末的積壓訂單 9.222 億美元有所下降，21 年第一季的預訂量為 1.649 億美元，訂單出貨比為 0.8:1。截至季末，已籌措資金的積壓金額為 6.207 億美元，其中 2.722 億美元尚未籌措資金。

For the last 12 months ended March 28, 2021, our book-to-bill ratio was 1.3:1, with total bookings of $982.6 million. Our book-to-bill ratio for the last 12 months ended 3/28/21 was 1.2:1 for our Unmanned Systems segment and 1.3:1 for our KGS segment.

截至 2021 年 3 月 28 日的過去 12 個月，我們的預訂與出貨比為 1.3:1，預訂總額為 9.826 億美元。截至 21 年 3 月 28 日的過去 12 個月，我們的無人系統部門的訂單出貨比為 1.2:1，KGS 部門的訂單出貨比為 1.3:1。

And now for our financial guidance. We are providing our initial second quarter guidance of revenues of $195 million to $205 million and adjusted EBITDA of $14 million to $18 million. As previously discussed, our guidance reflects impact of the recent loss of an international training contract, which had contributed over $34.5 million in revenue in 2020 and which is expected to generate approximately $14 million in '21 or a decrease of $20 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。我們提供的第二季營收初步指引為 1.95 億美元至 2.05 億美元，調整後 EBITDA 為 1,400 萬美元至 1,800 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，預計在 21 年產生約 1400 萬美元，同比減少 2000 萬美元。年度，包括最近於2020 年中期完成的ASC Signal 收購的全年。

Kratos' revenue mix for '21 is expected to be more developmentally weighted, including as a result of the large number of new contract awards that we have received and includes discretionary investments versus a more mature product life cycle in 2020.

Kratos '21 的收入組合預計將更加註重發展，包括由於我們收到了大量新合同，並且包括可自由支配的投資，而不是 2020 年更成熟的產品生命週期。

As a reminder, our 2021 fiscal year guidance includes the current forecast, financial contribution from the recent Skyborg, AFRL and other tactical drone pro system contract awards, including those related to Valkyrie.

提醒一下，我們的 2021 財年指引包括當前預測、最近 Skyborg、AFRL 和其他戰術無人機專業系統合約授予（包括與 Valkyrie 相關的合約）的財務貢獻。

Kratos' fiscal year '21 guidance excludes any contribution from potential additional Valkyrie or other tactical drone production or system contracts with potential additional orders to be taken into consideration. And our financial forecast adjusted once such contracts or orders are received and the related financial contribution can be estimated, which would be dependent on criteria, including the type of contract vehicle, scope, timing and period of performance. Eric?

Kratos '21 財年的指導不包括潛在的額外 Valkyrie 或其他戰術無人機生產或系統合約的任何貢獻，並考慮潛在的額外訂單。一旦收到此類合約或訂單，並且可以估計相關的財務貢獻，我們的財務預測就會進行調整，這將取決於標準，包括合約工具的類型、範圍、時間表和履約期限。艾瑞克？

Thank you Deanna. With that, we'll turn it over to the moderator for any questions.

謝謝迪安娜。這樣，如果有任何問題，我們會將其轉交給主持人。

(Operator Instructions) And our first question comes from Josh Sullivan of Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 Josh Sullivan。

Eric, you mentioned quantity as having a quality all its own with drones. Really, a couple of your customers have said that. You have a number of flight tests going on here with various drone applications. But when does the customer start to show interest in your manufacturing capacity? Or when do we get close enough where that quantity in manufacturing capacity becomes kind of relevant?

艾瑞克，你提到無人機的數量本身就具有品質。確實，您的一些客戶已經這麼說了。您在這裡正在進行各種無人機應用的多次飛行測試。但客戶什麼時候開始對你的製造能力表現出興趣呢？或者我們什麼時候才能足夠接近製造能力的數量變得相關？

I believe toward the end of this year we're going to start -- as I mentioned, we're going to start delivering Valkyries off the line in the next couple of months and then we're going to be delivering them around monthly thereafter. There are a number of opportunities that we have been working on that are coming close to fruition. I believe they're coming close to fruition because the company recognizes that we have a hot production line. We're not building prototypes. We are already talking about the second, I'm going to use the term variant based on customer input to it.

我相信今年年底我們將開始 - 正如我所提到的，我們將在接下來的幾個月內開始交付 Valkyries，然後我們將每月交付它們。我們一直在努力的許多機會即將實現。我相信他們即將取得成果，因為公司意識到我們擁有一條熱門的生產線。我們不是在建造原型。我們已經在討論第二個，我將根據客戶的輸入使用術語「變體」。

So I think as we've been evolving here, Josh, the customer, I believe they've obviously been aware of it. They're becoming more and more focused on it as we're nearing the initial operating capability dates that the Air Force has talked about.

所以我認為，隨著我們在這裡不斷發展，喬希，客戶，我相信他們顯然已經意識到了這一點。隨著空軍討論的初始作戰能力日期的臨近，他們變得越來越關注這一點。

Got it. Okay. And then the KC-135 tanker trial that you mentioned, is that part of Skyborg or is that a different program? Can you just provide some color around that?

知道了。好的。然後你提到的 KC-135 加油機試驗是 Skyborg 的一部分還是不同的計畫？你能提供一些顏色嗎？

That's not part of Skyborg. That's part of a different program. It was publicly released what that is. I'm unable to talk about that program.

那不是 Skyborg 的一部分。這是另一個計劃的一部分。這是公開發布的。我無法談論該計劃。

Okay. And then maybe just one on KGS, the commercial space ground opportunity, how do we size that? How should we think about that rolling out? How many ground stations are you expecting over the next 12 to 18 months?

好的。然後也許只是 KGS 上的一個，商業太空地面機會，我們如何衡量它？我們該如何看待這項推出？您預計未來 12 到 18 個月內會有多少個地面站？

Yes. Josh, I don't -- I'm not looking at it from the ground station standpoint and let me tell you why, because it's evolving more to a software model with OpenSpace because OpenSpace can run on a standard computer, it can run on the internet, it can run on the web. So we're looking at it. What we have mapped out is we've won a lot of contracts, most -- a lot of which I can't talk about because they're classified. So this is both on the commercial and the military side. We have the delivery schedules. I forget offhand what our book-to-bill on our space business was in Q1, but I think it was very strong and it looks very strong for the rest of the year. So -- it was 1.3:1, Deanna tells me, in space business. So the way we're looking at it is year-over-year revenue growth.

是的。喬希，我不——我不是從地面站的角度來看待它，讓我告訴你原因，因為它更多地發展為 OpenSpace 的軟體模型，因為 OpenSpace 可以在標準電腦上運行，它可以在互聯網，它可以在網絡上運行。所以我們正在研究它。我們計劃的是，我們贏得了很多合同，大多數——其中很多我不能談論，因為它們是機密。所以這既是商業方面的，也是軍事方面的。我們有交貨時間表。我立即忘記了第一季我們太空業務的訂單出貨量是多少，但我認為它非常強勁，而且在今年剩餘時間裡看起來也非常強勁。所以——迪安娜告訴我，在太空業務中，比例是 1.3:1。因此，我們看待它的方式是年收入成長。

And as I've said, we're very comfortable with the base case that we're going to grow year-over-year 10%, 10%, 10%. And if we hit some of these new big ground infrastructure opportunities we're going after that we never could before because we didn't have the system. Now we do. We could do some little step functions along the way. We're really excited about this because of the just the number of satellites that are going up, the LEOs and MEOs in particular, which has drove in a whole new architecture on the ground. And similar to the drones, similar to our engines, we're first to market.

正如我所說，我們對同比增長 10%、10%、10% 的基本情況感到非常滿意。如果我們抓住了一些新的大型地面基礎設施機會，我們就會追求以前從未實現過的機會，因為我們沒有這個系統。現在我們做到了。我們可以在過程中執行一些小步驟功能。我們對此感到非常興奮，因為正在上升的衛星數量，特別是近地軌道和中軌道衛星，已經在地面上形成了全新的架構。與無人機類似，與我們的引擎類似，我們是第一個進入市場的人。

Our next question is from Ken Herbert of Canaccord.

我們的下一個問題來自 Canaccord 的 Ken Herbert。

I just wanted to first start with the margins in the KGS business. I know, Deanna, you called out a step up in R&D relative to last year, and it sounds like ASC is a bit of a mix headwind. But how do we -- how should we think about margins progressing here sequentially to the second and third quarter and the rest of the year within that segment? Do we maybe get back up to the high single digits, is that realistic? Or what's the outlook for margins in the KGS business?

我只想先從 KGS 業務的利潤開始。我知道，Deanna，你提到研發相對於去年有所進步，聽起來 ASC 有點混合逆風。但是，我們應該如何考慮該細分市場中第二季、第三季以及今年剩餘時間的利潤率進展？我們是否可能回到高個位數，這現實嗎？或者 KGS 業務的利潤前景如何？

Yes. We expect it to be stronger in the second house based on delivery and execution schedules for the second half, and that's primarily driven in our space business and what we see from an execution standpoint in the schedule for the second half.

是的。根據下半年的交付和執行時間表，我們預計第二宮的表現會更強，這主要是由我們的航太業務以及我們從下半年時間表的執行角度看到的推動的。

Okay. And is the elevated R&D spend, is that expected to continue?

好的。研發支出的增加是否預計會持續下去？

That will -- that's expected to remain at that same level. But as the revenue ramps, then we would get leverage off of some of that cost structure, if you will.

預計將保持在同一水平。但隨著收入的增加，如果你願意的話，我們將從某些成本結構中獲得槓桿作用。

Yes. Okay. Perfect. And if I could, just on the flip side in Unmanned, nice margins in the quarter. Was there anything unusual that benefited the quarter in terms of margins?

是的。好的。完美的。如果可以的話，在無人駕駛方面，本季的利潤率不錯。就利潤率而言，有什麼不尋常的事情使本季受益嗎？

Nothing that is significant to call out. No.

沒有什麼重要的事情需要指出。不。

Okay. So this run right here is a good starting point as we go through the rest of the year?

好的。那麼，這次跑步是我們今年剩餘時間的一個很好的起點嗎？

It's going to depend on mix each quarter as far as what we're shipping and building. So it was a favorable mix in the quarter. So obviously, we don't give margin forecast for -- on a segment perspective, but it was particularly strong in the first quarter.

就我們正在運輸和建造的產品而言，這將取決於每個季度的混合。因此，這是本季有利的組合。顯然，我們沒有從細分市場的角度給出利潤率預測，但第一季的利潤率尤其強勁。

Your next question is from Mike Crawford of B. Riley Securities.

您的下一個問題來自 B. Riley Securities 的 Mike Crawford。

Could you give a rough size order of magnitude of these different business units within KGS? Like microwave electronics, rockets, space, maybe on a run rate or annual basis?

您能否給出 KGS 內這些不同業務部門的粗略規模？例如微波電子、火箭、太空，也許是以運行率或按年計算？

So Mike, I can comment on just size wise what it was in 2020. And as we've talked about, we've said we expect an up into the right trajectory across all the business units. I'll respond to your question accordingly. So for our C5 business, that was approximately $75 million last year, our microwave business was approximately $60 million to $65 million, our rocket support business was approximately $70 million, our turbine business was approximately $50 million to $55 million, and that was negatively impacted most significantly by COVID, and we still saw some of that impact on the commercial side of KTT, but it was actually offset by some growth on the government side. So we did see organic growth this quarter, but it was on the defense side, on the government side, on the turbine. And then our space and training business combined with ASC, that approximately was about $320 million -- I'm sorry about $300 million. With just space and then with training, that was about another $70 million.

麥克，我可以就 2020 年的規模發表評論。正如我們所討論的，我們已經說過，我們期望所有業務部門都能步入正確的軌道。我將相應地回答你的問題。因此，對於我們的C5 業務來說，去年約為7500 萬美元，我們的微波業務約為6000 萬至6500 萬美元，我們的火箭支援業務約為7000 萬美元，我們的渦輪機業務約為5000 萬至5500 萬美元，這些都受到了負面影響最顯著的是新冠疫情，我們仍然看到了 KTT 商業方面的一些影響，但實際上它被政府方面的一些增長所抵消。因此，本季我們確實看到了有機成長，但這是在國防方面、政府方面、渦輪機方面。然後我們的空間和培訓業務加上 ASC，大約價值 3.2 億美元——抱歉，大約是 3 億美元。如果加上空間和培訓，大約又需要 7,000 萬美元。

I'm sorry, Deanna. Is $230 million with space and then $70 million with training?

對不起，迪安娜。2.3 億美元用於空間，7000 萬美元用於培訓？

No. So space including ASC was just under $300 million and then training was just under $70 million.

不。因此，包括 ASC 在內的空間費用略低於 3 億美元，培訓費用略低於 7,000 萬美元。

Okay. Then just further on space, in the past, I think you've said that revenues could be flattish there, so margins would be increasing as the model transitions to software. But for example, with these ground opportunities, is this the case where you're providing hardware like quantum radios and software? Or it's just a big mix or exactly what's going on with that business currently?

好的。然後，在過去的空間上，我想你曾經說過，那裡的收入可能持平，因此隨著模型過渡到軟體，利潤率將會增加。但例如，透過這些地面機會，您是否提供量子無線電和軟體等硬體？或者這只是一個大組合，或者該業務目前到底發生了什麼？

Yes. We are providing both. So the legacy business where geosynchronous orbit satellites that have a particular mission, they have very specialized ground equipment that are dedicated to that satellite and the mission of that satellite. We're still delivering under those programs. So think SBIR, WGS, AEHF, things like that, okay? Those are more hardware or firmware intensive, the legacy GEOs, okay? Newer GEOs, LEOs and MEOs, are moving more to software, where we're not providing big racks of ground equipment for earth station to command and control or telemetry and track it. We're tracking -- we're providing maybe some boards with a lot of software or the software is being installed literally on the web to be able to do it. So more of a software-defined radio model. And so right now it's a mix because there are still a lot of legacy systems up there. And in certain areas, there are still a lot of systems like that still going up.

是的。我們兩者都提供。因此，在傳統業務中，地球同步軌道衛星具有特定的任務，他們擁有非常專業的地面設備，專門用於該衛星和該衛星的任務。我們仍在根據這些計劃進行交付。所以想想 SBIR、WGS、AEHF 之類的東西，好嗎？這些是更多的硬體或韌體密集型，傳統的 GEO，好嗎？較新的 GEO、LEO 和 MEO 正在更多地轉向軟體，我們不為地球站提供大型地面設備機架來進行命令和控製或遙測和追蹤。我們正在追蹤——我們可能正在為一些主機板提供大量軟體，或者這些軟體實際上是安裝在網路上才能做到這一點。所以更多的是軟體定義的無線電模型。所以現在它是一個混合體，因為仍然有很多遺留系統。在某些領域，仍有許多類似的系統仍在運作。

Okay. That's helpful. And then just switching gears for last question. As you have these multiple programs move into initial operating capability, but you don't have production -- full rate production orders in hand for them and you have these Valkyries coming up the line in a couple of months. So when you do get such orders, particularly for the Valkyries that you've been building on your own dime, does that mean then that that would represent potential upside to the guidance that you've issued today or is some of that factored in?

好的。這很有幫助。然後換個話題來回答最後一個問題。當你有這些多個項目進入初始營運能力，但你沒有生產——他們手上有全速生產訂單，而這些瓦爾基里將在幾個月內上線。因此，當您確實收到此類訂單時，特別是對於您自費建造的 Valkyries 而言，這是否意味著這將代表您今天發布的指導的潛在優勢，或者是否已考慮其中的一些因素？

If we were to get contracts in addition to the Skyborg program contracts we've won and the LCASD, LCAAT contracts we've won, that include deliveries of airplanes, that include deliveries of the 12 that we're building. If we were to get additional tasking for additional aircraft, that will be upside to our model this year.

如果我們除了我們贏得的 Skyborg 項目合同和我們贏得的 LCASD、LCAAT 合同之外還獲得合同，其中包括飛機的交付，其中包括我們正在建造的 12 架飛機的交付。如果我們要為更多的飛機分配額外的任務，這將有利於我們今年的模型。

And Mike just to correct that statement I had made on the $300 million that I gave, that does include training of about $70 million. So just wanted to correct that.

麥克只是想糾正我關於我所捐贈的 3 億美元的說法，其中確實包括約 7000 萬美元的培訓。所以只是想糾正這一點。

Our next question comes from the line of Peter Arment of Baird.

我們的下一個問題來自貝爾德 (Baird) 的彼得·阿門特 (Peter Arment)。

Eric, so Milestone 1 completed for AAAX campaign, and it sounds like the Air Force is really describing the Skyborg program as kind of coming up with a marathon of tests here in the many months, I guess. How are you looking at it from your seat in terms of the pace of testing? Is it going to be something where we're going to start to see a lot more testing on a monthly basis across the board? Maybe you could describe it how you're seeing it.

艾瑞克，AAAX 活動的里程碑 1 已完成，我想，聽起來空軍確實將 Skyborg 計畫描述為在幾個月內進行馬拉松式的測試。您如何看待測試的進度？我們是否會開始每月看到更多的全面測試？也許你可以描述一下你是如何看待它的。

Testing has definitely increased, and it is expected and forecast to continue to increase literally as we speak across multiple programs that we have. So it is ramping up significantly.

測試肯定有所增加，當我們在多個項目中進行討論時，預計和預測將繼續增加。所以它正在顯著增加。

Has there been any disruption from COVID this quarter?

本季新冠疫情有造成任何干擾嗎？

No. It was all last year. Last year set us back -- set the programs back. But no, none this year, thus far.

不。這都是去年的事了。去年讓我們倒退了──讓計畫倒退了。但沒有，今年到目前為止還沒有。

And outside of Valkyrie, is there anything else that's moving towards where we could potentially think about an LRIP award or something like that? And what kind of timeframe do you think about when you think about that?

除了 Valkyrie 之外，還有其他事情正在朝著我們可能考慮設立 LRIP 獎項或類似獎項的方向發展嗎？當你考慮這個問題時，你會想到什麼樣的時間框架？

I have to answer this very carefully because I cannot, and I will not get ahead of the customers. And obviously, we are aware of a lot more than we can talk to you about publicly, okay? I have every expectation that the Valkyrie is going to be deployed and we are going to go into production on the Valkyrie. I have every expectation that the Gremlin is going to transition from DARPA from the research agency to a service or multiple services after we complete the retrieval demonstration later this year, I have every expectation of that. And I have more confidence than ever now that Mako is also going to go into production. And Peter, to me, it's this simple. We are the only company in the world that has jet drones in this class flying today. No one else has any, and that includes the BATS. It's not in this class. It's not even close, all right?

我必須非常仔細地回答這個問題，因為我不能，也不會領先客戶。顯然，我們知道的事情比我們可以公開與您談論的要多得多，好嗎？我非常期待「瓦爾基里」將被部署，我們將在「瓦爾基里」上投入生產。我非常期待在今年稍後完成檢索演示後，Gremlin 將從 DARPA 的研究機構轉變為一項或多項服務，我對此充滿期待。現在我比以往任何時候都更有信心 Mako 也將投入生產。彼得，對我來說，就是這麼簡單。我們是當今世界上唯一一家擁有此類噴射無人機飛行的公司。其他人都沒有，包括 BATS。不屬於這班。還差得很遠，好嗎？

We have 4 that I can talk to you about, and I always say it that way. We have the Valkyrie, we have the Mako, we have the Gremlins and we have Air Wolf, that I can talk to you about, okay? I'm going to emphasize it, there's none else out there. That's why you don't read about any other company testing weapons, deploying payloads, doing what the Air Force announced today. And this is why I'm so confident of the end game. And so long as we execute, we don't get distracted, we hold our price points, which the competition cannot come close to, we are going to win.

我們有 4 個可以跟你討論的話題，我總是這麼說。我們有瓦爾基里，我們有灰鯖鯊，我們有小魔怪，我們有空中狼，我可以跟你談談，好嗎？我要強調的是，沒有其他人了。這就是為什麼你不會讀到任何其他公司測試武器、部署有效載荷、做空軍今天宣布的事情的原因。這就是為什麼我對最終遊戲如此有信心。只要我們執行，不分心，保持競爭對手無法接近的價格點，我們就會獲勝。

And just for clarification, Eric. You mentioned on the bookings, the an unmanned, you had booked and there was an $86 million award that came in, I guess, in early April. So that was not part of the book-to-bill where the -- in unmanned for it at 0.7, correct for the quarter?

只是為了澄清，埃里克。你在預訂時提到，你已經預訂了一架無人駕駛飛機，並且有 8600 萬美元的獎勵，我猜是在 4 月初。那麼，這不是訂單到帳單的一部分，其中無人值守的比率為 0.7，該季度正確嗎？

That is not included in our book-to-bill. Let me tell you that contract, okay? And I think we put out a press release on it. That was a competitive award we won. It's a single award MAC, okay? It is for drone command and control systems and other systems. I believe it's a $60 million base, with two $10 million or something like that options to get it to the $85 million, okay? I fully expect that, over the life of that contract, I do, me, to be fully or substantially funded, all right? Because I know what that is for, we're the only guy that's got it, we're the only guy that can do it and the United States Army needs it.

這不包括在我們的訂單到帳單中。讓我告訴你那份合同，好嗎？我想我們就此發布了一份新聞稿。這是我們贏得的一個有競爭力的獎項。這是一個單一的獎項MAC，好嗎？它適用於無人機指揮控制系統和其他系統。我相信這是一個 6000 萬美元的基礎，還有兩個 1000 萬美元或類似的選項可以達到 8500 萬美元，好嗎？我完全希望，在該合約的有效期內，我確實能夠獲得全額或大部分資金，好嗎？因為我知道它的用途，我們是唯一擁有它的人，我們是唯一能夠做到這一點的人，而且美國陸軍需要它。

But just to further clarify that, Peter, although we expect it to be fully funded since it is a MAC, under the new guidelines for backlog under ASC…

但為了進一步澄清這一點，彼得，儘管我們預計它會得到全額資助，因為它是一個 MAC，但根據 ASC 下的積壓工作新準則…

It's an IDIQ too, single award IDIQ, yes, sorry.

這也是一個 IDIQ，單項獎 IDIQ，是的，抱歉。

Okay. Since it's an IDIQ, it would most likely not be included in our bookings until actual funding is received, as it's incrementally funded. That would be when we would record it as a booking.

好的。由於它是 IDIQ，因此在收到實際資金之前，它很可能不會包含在我們的預訂中，因為它是增量資助的。那時我們會將其記錄為預訂。

Yes. And Peter, I may have misspoken. It's a single award, it is not a MAC, IDIQ, $60 million base, options to get to $86 million.

是的。彼得，我可能說錯了。這是一個單一獎項，不是 MAC、IDIQ、6000 萬美元的基礎，以及達到 8600 萬美元的選項。

Your next question is from Sheila Kahyaoglu of Jefferies.

您的下一個問題來自 Jefferies 的 Sheila Kahyaoglu。

Eric, I wanted to follow up on a few questions that have already been asked in a way. Can you just maybe talk about your expectations, whether for '21 or '22, in terms of your revenue contribution from Mako, Valkyrie and Air Wolf. How do we think about when those opportunities convert into revenue dollars in the cadence of that? I know Valkyrie's already contributing.

艾瑞克，我想以某種方式跟進一些已經被問到的問題。您能否談談您對 Mako、Valkyrie 和 Air Wolf 的收入貢獻的期望，無論是 '21 還是 '22。當這些機會以這樣的節奏轉化為收入時，我們該如何思考？我知道瓦爾基里已經做出了貢獻。

Right. So -- Valkyrie is -- right now Valkyrie is contributing. Obviously, Mako is contributing. Gremlins had slowed down because of the delay in testing. I expect that to pick back up very soon as we can advance the test regime. Air Wolf is funded, and we have done a number of tests in the last few months. I'm going to say between 5 and 10, that is fully funded. To answer -- with that as the backdrop, to answer your question significantly directly, I expect the Valkyrie revenue to continue to increase as we head toward the end of this year. I think Gremlins is going to increase somewhat but not materially to the end of this year, okay? The one that is going to increase is Thanatos, is increasing. And of course, successful between now and the end of the year. We're going to get the second big block of funding on that. So that means 2022 on Thanatos will be a significant step up. I think Valkyrie is going to be a very significant step up from '21 to '22. It's possible Gremlins will be a significant step up from '21 to '22. And Air Wolf, I don't want to comment on Air Wolf yet because there are 2 -- there are a couple of elements that we have to demonstrate that are sporty. And until we demonstrate them, I don't want to get ahead of myself on that one.

正確的。所以——瓦爾基里——現在瓦爾基里正在做出貢獻。顯然，Mako 做出了貢獻。由於測試的延遲，小魔怪的速度已經放慢了。我預計，只要我們能夠推進測試制度，這種情況就會很快回升。Air Wolf 得到了資助，我們在過去幾個月裡做了很多測試。我想說的是 5 到 10 個，資金充足。以此為背景，直接回答你的問題，我預計隨著今年年底的臨近，《瓦爾基里》的收入將繼續增加。我認為小魔怪會增加，但到今年年底不會大幅增加，好嗎？即將增加的就是塔納托斯，正在增加。當然，從現在到年底都是成功的。我們將為此獲得第二筆大筆資金。因此，這意味著 2022 年 Thanatos 將是一個重大進步。我認為 Valkyrie 將是從 21 世紀到 22 世紀的一個非常重要的進步。Gremlins 可能會是從 21 世紀到 22 世紀的重大進步。至於Air Wolf，我還不想評論Air Wolf，因為我們必須證明有兩個元素是運動型的。在我們展示它們之前，我不想在這一點上超前。

Okay. No, that's fair. And then maybe one for Deanna. Just because Q1 free cash flow was really good, and I think you hit your OCF number for the year in the first quarter. So how do we bridge it? Is there massive investment and working capital use over the next 3 quarters?

好的。不，這很公平。然後也許是給迪安娜的。只是因為第一季的自由現金流非常好，而且我認為您在第一季就達到了全年的 OCF 數字。那我們要如何橋接它呢？未來三個季度是否會有大量投資和營運資金使用？

Sure. So it was very particularly strong in the first quarter. CapEx was less than what we had originally anticipated for the first quarter. So Q2 and the remainder of 2021 CapEx is expected to be at a much higher run rate than Q1 was. As a reminder, we guided $55 million to $60 million of CapEx for the year and we've spent about $8 million or $9 million in the first quarter. So the next 3 quarters CapEx is going to be particularly higher.

當然。所以第一季的表現非常特別強勁。第一季的資本支出低於我們最初的預期。因此，第二季和 2021 年資本支出的剩餘時間預計將比第一季高得多。提醒一下，我們今年指導的資本支出為 5,500 萬至 6,000 萬美元，第一季我們花費了約 800 萬至 900 萬美元。因此，未來三個季度的資本支出將特別高。

There's also about $10 million of nonrecurring engineering that we're investing for new rocket systems and that is just starting to ramp. So we'll see a pickup on that working capital use, and that will be all in cash flow from ops in Q2, Q3, Q4. Then we've got the payback on the $5 million of deferred payroll taxes, and that will be in the fourth quarter. So our cash flow guidance that we gave on our last call for FY '21, that remains unchanged. So you would expect with the strong cash flow in the first quarter, we would see some uses of working capital in the next couple quarters.

我們也為新火箭系統投資了約 1,000 萬美元的非經常性工程，而且這項投資剛開始增加。因此，我們將看到營運資金使用量增加，這將全部體現在第二季、第三季、第四季營運產生的現金流中。然後，我們將在第四季償還 500 萬美元的遞延薪資稅。因此，我們在上次電話會議中給予的 21 財年現金流指引保持不變。因此，您可以預期，隨著第一季強勁的現金流，我們將在接下來的幾個季度看到營運資金的一些使用。

And our next question is from Michael Ciarmoli of Truist Securities.

我們的下一個問題來自 Truist Securities 的 Michael Ciarmoli。

Eric, in your opening monologue, you were very optimistic, talking about the organic growth, sounds like the budget came in above expectations, growth accelerating, book-to-bill below 1x. Are there any surprises there? And maybe despite all the optimism, what prevented you from raising the guidance?

艾瑞克，在你的開場獨白中，你非常樂觀，談到了有機成長，聽起來預算超出了預期，成長加速，訂單出貨比低於 1 倍。那裡有什麼驚喜嗎？也許儘管大家都很樂觀，但是什麼阻止了您提高指導意見？

Right. So on the book-to-bill, there was no surprise at all. As you know, the last couple 3 quarters, we just killed it. And as I laid out in my prepared remarks, the second half of this -- and it may begin in Q2, we're going to kill it. We've got some extremely large programs, most of which are sole source we're expecting to book in the second half of next year. You're going to see -- imminently, we're going to be ripping off a number of large satellite wins we've won, that we're waiting for customer approval to announce. So our pipeline is incredibly strong. And unless something occurs, that I just don't foresee, so, for example, another variant of COVID shows up and shuts the United States down again, we are very, very comfortable in our forecast for this year and we are very, very comfortable in me saying, even though we're not going to give the guidance yet, I'm looking for a step function in organic growth '22 over '21, literally a step function. Your question on why we don't raise the guidance? I don't want to do it right now. I want to stay comfortable. I want to execute. And if we keep knocking off quarters like this one, that will take care of itself, if you know what I mean.

正確的。所以從訂單到帳單來看，一點也不奇怪。如你所知，過去的三個季度，我們剛剛結束了它。正如我在準備好的演講中所闡述的那樣，下半年可能會在第二季度開始，我們將扼殺牠。我們有一些非常大的項目，其中大部分是我們預計在明年下半年預訂的唯一來源。你將會看到——很快，我們將剝奪我們已經贏得的許多大型衛星勝利，我們正在等待客戶批准宣布。所以我們的管道非常強大。除非發生我無法預見的事情，所以，例如，新冠病毒的另一種變種出現並再次導緻美國關閉，我們對今年的預測非常非常滿意，我們非常非常放心地說，儘管我們還不打算提供指導，但我正在尋找“22 年至21 年”有機增長的階躍函數，實際上是一個階躍函數。您的問題是我們為什麼不提出指導意見？我現在不想這樣做。我想保持舒適。我想執行。如果我們繼續拆除像這樣的宿舍，事情就會自行解決，如果你明白我的意思的話。

Got it, Got it. How many variants or platforms do you think the Air Force wants to fly Skyborg on before making a significant commitment? And maybe, to put that, not just Kratos' platforms.

明白了，明白了。在做出重大承諾之前，您認為空軍希望 Skyborg 能搭載多少型號或平台？或許，不只是奎托斯的平台。

If you could see me, I'm grinning ear to ear. I'm going to answer it this way, I have to answer it this way. I am extremely comfortable with Kratos' position right now on Skyborg and every related or ancillary program with our drones, very comfortable, okay? No one else has anything flying in this class, nobody. The Boeing BATS has flown once. It's made in Australia. I continue to believe that is a significant handicap, that it's made in Australia. It has wheels. The requirement is for no wheels. It's for runway independence. I don't know what they were thinking. They must have a different con-ops in mind. So I am extremely comfortable where we are at.

如果你看得到我，我會笑得合不攏嘴。我要這樣回答，我必須這樣回答。我對 Kratos 目前在 Skyborg 上的位置以及我們無人機的每個相關或輔助項目感到非常滿意，非常舒服，好嗎？沒有其他人在這個級別上飛行過任何東西，沒有人。波音 BATS 已經飛行過一次。它是澳大利亞製造的。我仍然認為這是一個重大障礙，因為它是澳大利亞製造的。它有輪子。要求是沒有輪子。這是為了跑道獨立。我不知道他們在想什麼。他們一定有不同的想法。所以我對我們所處的位置感到非常舒服。

Got it. Last one for me. What is the latest -- you kind of talked about it last quarter, the drone port, that being a strategic asset, what's the latest on that facility?

知道了。最後一張給我。最新的情況是什麼——您上個季度談到了無人機港口，這是一項戰略資產，該設施的最新情況是什麼？

Yes. I'm grinning ear to ear. Hopefully, when we report next quarter, I am going to tell you about drone flights that are at Kratos' drone port in Oklahoma. That's the plan.

是的。我笑得合不攏嘴。希望當我們下個季度報告時，我將向您介紹俄克拉荷馬州奎托斯無人機港口的無人機飛行情況。這就是計劃。

And our next question is from Seth Seifman of JPMorgan.

我們的下一個問題來自摩根大通的賽斯‧塞夫曼。

First question I have is, I think in the last quarter you talked about there being some significant M&A opportunities out there, and I was just wondering if you could update us on that.

我的第一個問題是，我認為上個季度您談到了一些重大的併購機會，我只是想知道您是否可以向我們介紹最新情況。

Absolutely. And -- you guys have me laughing today. That's because at the end of the call, I was asked if I was looking at smaller ones or bigger ones and I said, bigger ones. Seth, right now we are heads down on our current contract portfolio that we've won our program portfolio, and we've got a number of bids. I think we're going to win. I really think we're going to win. The -- we're one of only 2 guys that can bid on some of these, that have the clause. I do not see us doing anything of size, anything of size for the foreseeable future, okay? There are a couple of opportunities. These are not auctions. These are people we know, people I know that are right in our bailiwick. One of them, if we are able to do it, this is 1 plus 1 equals 4. And I'm not going to tell you guys about it because it's an incredibly competitive differentiator for us, that would take us to the next level with something. So -- but these are small, these aren't big. And so that don't -- never say never, but highly, extremely unlikely we do anything of size.

絕對地。而且──今天你們讓我笑了。那是因為在通話結束時，有人問我是否正在考慮較小的還是較大的，我說，較大的。塞斯，現在我們正專注於我們目前的合約組合，我們已經贏得了我們的專案組合，並且我們已經收到了許多投標。我想我們會贏。我真的認為我們會贏。我們是僅有的兩個可以競標其中一些且具有該條款的人之一。我不認為我們會在可預見的未來做任何規模的事情，好嗎？有幾個機會。這些不是拍賣。這些是我們認識的人，我認識的人，他們就在我們的轄區內。其中之一，如果我們能夠做到這一點，那就是1 加1 等於4。我不會告訴你們這一點，因為這對我們來說是一個令人難以置信的競爭差異化因素，這將把我們帶到一個新的水平某物。所以——但這些都很小，也不大。所以，永遠不要說永遠不會，但我們極不可能做任何規模的事情。

Okay. That's helpful. And then for -- just a final question. Maybe if you could help a little bit. Just to walk through what one of these open space wins might entail. The larger ones that you're talking about sort of. So let's say, you win a contract, what's kind of the scale that we're talking about? And then what's kind of the duration? Is it that then you do software development for some period of time? Is this a step function in margins then for KGS? Maybe just walk us through what one of these wins would look like in terms of what the company is actually going to do?

好的。這很有幫助。然後是——最後一個問題。也許如果你能幫忙一點的話。只是為了了解這些開放空間勝利之一可能會帶來什麼。你所說的較大的。假設您贏得了一份合同，我們所說的規模是多少？那麼持續時間是怎麼樣的呢？是不是那你做了一段時間的軟體開發？對 KGS 來說，這是邊際中的階躍函數嗎？也許只是讓我們了解這些勝利中的一項在公司實際要做什麼方面會是什麼樣子？

Okay. I expect to win more than one. They're between $50 million and $100 million each. The period of performance is approximately 3 years, all right? Some of them may include antennas from ASC. So that will give you an idea of something there. So there's going to be a hardware component. I'm not going to get into accounting on how revenue would work, whether it's delivery or whatever, but I'll tell you, this is how I would see it. It's going to be shaped like a bell curve over 3 years. So it will ramp up as we're building the hardware.

好的。我預計會贏得不只一場比賽。每張的價格在 5,000 萬到 1 億美元之間。演出期限大概是3年吧？其中一些可能包括 ASC 的天線。這會讓你對那裡有一些了解。所以將會有一個硬體組件。我不會考慮收入如何運作，無論是交付還是其他什麼，但我會告訴你，這就是我的看法。三年內它將形成鐘形曲線。因此，隨著我們建立硬件，它將會加速。

And as we're modifying the software, the core software that we have for that specific application, so let's say, that application is somebody is putting up satellites, they're putting them up. They want to be able to command and control them and do TT&C remotely. They don't want a big fixed earth station infrastructure. They want to do it via software. We will design that architecture for them. We probably do a lot of that in the RFP process. We'll design that architecture for them. We're awarded it. We will develop a limited amount of hardware. If there's antennas, there'll be a little bit more hardware, but nothing like there used to be on earth station ground control stations like this. We will modify the software. In the first year, we will deliver it all out. In year 2, the Bell curve goes up. We complete delivery. In year 3, the Bell curve comes down and then it goes into a sustainment mode with the customer. And then, it is possible with our space domain awareness, global system, lot of our customers then are buying from us a service off of that so we can monitor their satellites globally where they're at, how they're performing, if anybody's interfering with them on the commercial side, stuff like that. That's what it looks like.

當我們修改軟體時，我們為該特定應用程式提供的核心軟體，所以可以說，該應用程式是有人正在放置衛星，他們正在放置它們。他們希望能夠遠端指揮和控制它們並進行 TT&C。他們不需要大型固定地球站基礎建設。他們想透過軟體來做到這一點。我們將為他們設計該架構。我們可能在 RFP 流程中做了很多這樣的事情。我們將為他們設計該架構。我們被授予了它。我們將開發有限數量的硬體。如果有天線，就會有更多的硬件，但不會像以前那樣有像這樣的地球站地面控制站。我們將修改軟體。第一年，我們將全力以赴。在第二年，貝爾曲線上升。我們完成交貨。在第三年，貝爾曲線下降，然後進入與客戶的維持模式。然後，憑藉我們的太空領域意識、全球系統，我們的許多客戶可能會向我們購買一項服務，這樣我們就可以在全球範圍內監控他們的衛星在哪裡、它們的表現如何、是否有人在商業方面乾擾他們，諸如此類。看起來就是這樣。

And our next question is from Pete Skibitski of Alembic Global.

我們的下一個問題來自 Alembic Global 的 Pete Skibitski。

Congrats, Eric and Deanna. Nice quarter. Let me start. Eric, the largest number of target drone awards in the second half of the year that you spoke to, how are you feeling about schedule risk on those? And if they stick to schedule, do you end up hitting your $250 million in revenue target in 2022? And maybe you can just kind of validate -- my recollection is once classified, I think maybe in international and one of the U.S. Services. I was wondering if you could just fill up the color for us around that?

恭喜埃里克和迪安娜。不錯的季度。讓我開始吧。Eric，您採訪過的下半年目標無人機獎項數量最多，您對這些專案的進度風險有何看法？如果他們堅持按計劃進行，您最終能否在 2022 年實現 2.5 億美元的收入目標？也許你可以驗證一下——我的記憶曾經被分類過，我想可能是在國際和美國的一項服務中。我想知道你是否可以為我們填滿周圍的顏色？

Yes. On the last, we had talked about that there's a certain international target drone program we have won. A matter of fact, the contract has been executed. My opinion, if the presidential administration's hadn't changed that we would have that contract by now. But the administration's changed. So it's in state department and U.S. Government review for approval. I fully expect us to get that. I have put that assumption, I think, out into the second half of this year, all right, where that won't contribute until 2023, okay? That's piece number one.

是的。最後，我們談到了我們贏得了一個國際目標無人機計畫。事實上，合約已經履行完畢。我認為，如果總統政府沒有改變的話，我們現在就已經拿到這份合約了。但政府已經改變了。因此，它正在等待國務院和美國政府的審查批准。我完全希望我們能做到這一點。我想，我已經把這個假設放到了今年下半年，好吧，直到 2023 年才會有所貢獻，好嗎？這是第一件。

Okay. The other 2 major pieces is, I think it's year 3, and then there are going to be multiple years after this, of SSAT program full rate production. We expect to get that in the second half of this year, okay? That we'll start building out in 2022. And we are right now in negotiations with the Air Force on the next multi-year ABS sat program. We expect to get that in the second half of this year. If all of those pieces fall into place, okay, and I believe they will, okay, and then there's one other thing we need to get, I'm not going to get into it here because it is competitive, it's proprietary, next year we should get there.

好的。另外兩個主要部分是，我認為這是第三年，然後在此之後的許多年裡，SSAT 計畫都會全速生產。我們預計今年下半年就能實現，好嗎？我們將於 2022 年開始擴建。我們目前正在與空軍就下一個多年 ABS 衛星計畫進行協商。我們預計將在今年下半年實現這一目標。如果所有這些部分都落實到位，好吧，我相信他們會的，好吧，然後我們還需要得到另一件事，我不會在這裡討論它，因為它具有競爭力，它是專有的，明年我們應該會到達那裡。

Okay. Even with the international. I thought you -- the international you said won't execute till 2023...

好的。即使與國際接軌。我以為你說的國際賽要到 2023 年才會執行...

No. Because, I believe -- Deanna will help me. I believe that one's a unit of delivery one.

不。因為，我相信──迪安娜會幫助我。我相信這是一個交付單位。

Yes. With the new accounting rules, especially with international contracts, if you don't meet certain criteria, then what would have historically been percent of completion is now in units of delivery or as revenue was shipped, and those shipment schedules are not scheduled until '23. And that's why Eric is commenting that it would not impact until '23.

是的。根據新的會計規則，特別是國際合同，如果您不滿足某些標準，那麼歷史上的完成百分比現在以交付單位或收入發貨，並且這些發貨時間表不會安排到“ 23.這就是為什麼 Eric 評論說它要到 23 年前才會產生影響。

Okay. So you can hit $250 million in 2022 you're saying just with SSAT, with Air Force One and you're kind of…

好的。所以你可以在 2022 年達到 2.5 億美元，你說的是 SSAT、空軍一號，你有點…

Yes. Let's say we have a significant extended continuing resolution, okay? That -- I don't know this, I don't know. That could impact SSAT, that could impact ABS sat. If that pushes that out, then it's later in '22 or '23. You see what I mean? The cards are all laying there. It's the funding timing for the U.S. Government ones.

是的。假設我們有一個重要的擴展持續決議，好嗎？那個——我不知道這個，我不知道。這可能會影響 SSAT，也可能會影響 ABS sat。如果這推遲了，那就是 22 年或 23 年晚些時候。你明白我的意思嗎？卡片都放在那裡。這是美國政府的資助時機。

Yes. Okay. Okay. Fair enough. Last one for me. The potential new C5 program opportunities you mentioned. I think also (inaudible) second for those. Any color at all about services -- size or timing or missionary…

是的。好的。好的。很公平。最後一張給我。您提到的潛在的新 C5 計劃機會。我認為（聽不清楚）第二個。關於服務的任何顏色——規模、時間或傳教士…

So there are 2 of them. They're both over $100 million for us, all right? Okay. Now I have to be very careful here. Think missile defense stuff, missile defense related stuff, think that.

所以有 2 個。他們對我們來說都超過 1 億美元，好嗎？好的。現在我必須非常小心。想想導彈防禦的東西，導彈防禦相關的東西，想想。

(Operator Instructions) Our next question is from Joe Gomes of NOBLE Capital.

（操作員指示）我們的下一個問題來自 NOBLE Capital 的 Joe Gomes。

So I know you've talked about this, a couple of the other questions, but just wanted to drill down just a little bit more on the Skyborg. If I recall correctly, and please correct me if I am wrong, part of the requirement was demonstration by May of this year of at least flight and maybe even more attributes for the drones. Is that correct, outside of your drone has anybody else been able to demonstrate what is required under the contract?

我知道您已經討論過這個問題以及其他幾個問題，但只是想進一步深入了解 Skyborg。如果我沒記錯的話，如果我錯了，請糾正我，部分要求是在今年五月之前展示無人機的至少飛行能力，甚至可能更多屬性。這是正確的嗎？除了您的無人機之外，還有其他人能夠證明合約所要求的內容嗎？

No one else has demonstrated anything. And your memory was spot on correct.

沒有其他人展示過任何東西。而且你的記憶完全正確。

Okay. So -- I don't know if there was a date in May. But if there was, there's just a couple -- 3 weeks that the competitors or the other companies have to demonstrate whatever needs to be demonstrated under the award.

好的。所以——我不知道五月是否有約會。但即使有的話，競爭對手或其他公司也只需幾週——三週的時間來展示該獎項下需要展示的任何內容。

So as you know, there were 2 other competitors, Boeing and GA. Boeing's plane is in Australia that's flown one time, okay? So that should gives you an idea of what I think about that one. And there has been some information that GA has put out on their avenger, which is what they're going to be utilizing. You can go, take a look at that. But this ties into my response to Mr. Ciarmoli why I am literally more confident than I've ever been because we're the only guy that has airplanes in this class flying today.

如您所知，還有另外兩個競爭對手：波音和通用航空。波音的飛機在澳洲飛過一次，好嗎？所以這應該能讓你了解我對此的看法。GA 已經發布了一些關於他們的復仇者的信息，這就是他們將要利用的信息。你可以去看看那個。但這與我對 Ciarmoli 先生的回應有關，為什麼我比以往任何時候都更有信心，因為我們是今天唯一擁有此類飛機飛行的人。

Right. Okay. And last quarter you mentioned a potential Valkyrie opportunity. I mean kind of termed it where you would own the drones and the government would "lease" the drones. Any movement on that or any more detail you can give us on that?

正確的。好的。上個季度您提到了一個潛在的 Valkyrie 機會。我的意思是，你可以擁有無人機，政府可以「租賃」無人機。對此有何進展或您可以向我們提供更多細節嗎？

I can tell you that a solicitation is coming, and source selection is going up again for that opportunity. And we intend -- we believe we're the only person that is going to be able to satisfy that aspect and we intend on going after it.

我可以告訴你，招標即將到來，為了這個機會，來源選擇將再次增加。我們打算——我們相信我們是唯一能夠滿足這一方面的人，並且我們打算追求它。

Okay. And one last one. You did mention a whole lot here on engine opportunities on the call. I was wondering maybe give us a little more color detail on KTT and where do you see the most promising near-term opportunities for that segment?

好的。還有最後一張。您確實在電話會議上提到了很多關於引擎機會的內容。我想知道能否為我們提供更多關於 KTT 的顏色細節，您認為該細分市場近期最有前途的機會在哪裡？

I'm glad you asked that, Joe, I really am. I'm surprised I wasn't asked about our team's DARPA award on that nuclear engine space program. We have incredible capability in this company, a lot of it. I don't talk about because I talk too long on some of these earnings calls. We -- on the engine side, we -- it's very competitive because we're looking to replace some people. We -- if we're successful this year, we will be delivering engines that are going to be integrated into systems that are going to be flying before the end of this year. And if we're successful when we pull that off, I believe, this is my opinion, that is going to be substantially similar to October, November, December of 2015 when Kratos flew the Mako. And we demonstrated we could do it, and it's no longer a PowerPoint and then we started winning all the programs. I believe that is the opportunity we have on our engine business where we are about to do something. And if we're successful, that is going to be the impetus for it to begin for us next year.

我很高興你這麼問，喬，我真的很高興。我很驚訝我沒有被問到我們團隊在核子引擎太空計畫上獲得的 DARPA 獎項。我們公司擁有令人難以置信的能力，很多。我不談論這些是因為我在其中一些財報電話會議上談論了太長時間。我們——在引擎方面，我們——競爭非常激烈，因為我們正在尋找替代一些人。如果我們今年取得成功，我們將提供將整合到今年年底前飛行的系統中的引擎。如果我們成功的話，我相信，這是我的觀點，這將與 2015 年 10 月、11 月、12 月奎托斯駕駛 Mako 時的情況基本相似。我們證明了我們可以做到，它不再是一個 PowerPoint，然後我們開始贏得所有專案。我相信這就是我們在引擎業務上所擁有的機會，我們將在其中有所作為。如果我們成功了，這將成為我們明年開始的動力。

Our next question is from Ken Herbert of Canaccord.

我們的下一個問題來自 Canaccord 的 Ken Herbert。

Eric, I just had a quick follow-up. In your opening comments, you sounded very confident with new DoD leadership and their ability to fund innovation. Historically, Congress has kept a lot of legacy programs going maybe at the expense of innovation. How do you see that playing out through this budget cycle as the top line gets a little tighter?

艾瑞克，我剛剛進行了快速跟進。在您的開場白中，您對國防部新領導層及其資助創新的能力非常有信心。從歷史上看，國會一直在以犧牲創新為代價來維持許多遺留項目。隨著收入變得更加緊張，您如何看待這個預算週期的情況？

Yes, I think we're all going to have a front row seat for an incredible battle between legacy systems and the guys that make them and the states and the congressional districts that they're in versus those legacy systems. They're wonderful. They're the best on the planet, but they're not the right ones to address the Russia and China threat. They're just not. And the sustainment costs to operate them, maintain them and keep them working are incredibly high, incredibly high. And as we know, and I can get into more details on this if you want, technology now specifically related to weapons systems, it evolves every couple of years. That's why it's moving more and more to software, okay? And the hardware is a truck and the software or the sensor is the killer app of it that makes it so lethal.

是的，我認為我們都將在遺留系統和製造它們的人以及它們所在的州和國會選區與這些遺留系統之間進行一場令人難以置信的戰鬥。他們很棒。他們是地球上最好的人，但他們不是解決俄羅斯和中國威脅的合適人選。他們只是不是。營運、維護和維持其正常運作的維持成本非常高。據我們所知，如果你願意的話，我可以詳細了解這一點，現在的技術專門與武器系統相關，它每隔幾年就會發展一次。這就是為什麼它越來越多地轉向軟體，好嗎？硬體是一輛卡車，軟體或感測器是它的殺手級應用程序，這使得它如此致命。

And so we have with the Russia and China threat, the Biden administration and the previous administration, they recognized the only way we can address these threats to offset them is we have to pivot away from a lot of these legacy systems, and there are a lot of them because we've been at war with asymmetric warfare for the past 25 years. We've got to pivot away from them. We've got to free that money up to get into new technologies and new systems that are not designed for asymmetric warfare. They're designed for strategic warfare, long range warfare, cyber hardened warfare, TEMPEST tightened -- hardened systems, things like that. That's what this is all moving back towards. And we are extremely fortunate that when Deanna and I set the company up, that is how we positioned this company. We didn't position it for the OCO budgets. We positioned it for strategic competition and here we are.

因此，我們面對俄羅斯和中國的威脅，拜登政府和前政府，他們認識到，我們能夠解決這些威脅並抵消它們的唯一方法是我們必須擺脫許多這些遺留系統，並且有一個其中很多是因為過去25年來我們一直在進行不對稱戰爭。我們必須遠離他們。我們必須騰出這筆錢來開發並非為不對稱戰爭設計的新技術和新系統。它們是為戰略戰、遠程戰、網路強化戰、TEMPEST 強化系統等而設計的。這就是這一切正在回歸的方向。我們非常幸運，當迪安娜和我成立公司時，我們就是這樣定位這家公司的。我們沒有將其納入 OCO 預算。我們將其定位為戰略競爭，我們就在這裡。

And there are no further questions on queue. I would like to turn the call over to Eric DeMarco for closing remarks.

並且隊列中沒有其他問題。我想將電話轉給埃里克·德馬科（Eric DeMarco），讓他發表結束語。

Great. Thank you. Thank you very much for joining us today. And we truly are going to look forward to talking to you guys again at the end of Q2 to update you on additional progress. Thank you.

偉大的。謝謝。非常感謝您今天加入我們。我們真誠地期待在第二季末再次與你們交談，向你們通報更多進展。謝謝。