Kratos Defense and Security Solutions Inc (KTOS) 2022 Q3 法說會逐字稿

Thank you for standing by, and welcome to the Kratos Defense & Security Solutions Third Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder today's program is being recorded.

感謝您的耐心等待，歡迎參加 Kratos 國防與安全解決方案 2022 年第三季財報電話會議。 （操作員說明）提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Marie Mendoza, Senior Vice President and General Counsel. Please go ahead.

現在我想介紹一下今天節目的主持人，高級副總裁兼總法律顧問瑪麗·門多薩 (Marie Mendoza)。請繼續。

Good afternoon, everyone, and thank you for joining us for the Kratos Defense & Security Solutions third quarter 2022 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.

大家下午好，感謝您參加我們的 Kratos 防禦與安全解決方案 2022 年第三季電話會議。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's 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。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. In the third quarter, Kratos successfully executed on what we could control in a continued and increasingly difficult operating environment, generating a 1.1:1 book-to-bill ratio, successfully executing a Valkyrie Block 2 flight and receiving a recent new hypersonic system related program award, MACH-TB or multiservice advanced capability Hypersonic test bed with our partner Dynetics, both which we were able to announce today.

謝謝你，瑪麗。第三季度，Kratos 在持續且日益困難的營運環境中成功執行了我們可以控制的任務，實現了1.1:1 的訂單出貨比，成功執行了Valkyrie Block 2 飛行並接收了最近的新高超音速系統相關計畫我們今天宣布了與我們的合作夥伴 Dynetics 合作的 MACH-TB 或多服務高級功能高超音速測試台獎。

We are currently positioned for additional upcoming milestones and significant contract awards including another important new hypersonic related program we hope to announce by the end of this year and the definitization of an approximate $250 million potential value microwave electronics C2 program award.

我們目前正準備迎接更多即將到來的里程碑和重大合約授予，包括我們希望在今年年底宣布的另一個重要的新高超音速相關計劃，以及確定約 2.5 億美元潛在價值的微波電子 C2 計劃授予。

Additionally, we now expect 2 new Valkyrie-related tactical drone system contract awards from two separate new customers from multiple aircraft. And we have just recently begun discussions with the potential fourth new customer also for multiple Valkyrie systems.

此外，我們現在預計來自多架飛機的兩個不同新客戶將獲得 2 個新的與 Valkyrie 相關的戰術無人機系統合約。我們最近剛開始與潛在的第四個新客戶討論多個 Valkyrie 系統。

The interest in Kratos' tactical drone systems has recently increased and is gaining momentum. I believe, in part due to the ongoing Russia-Ukraine conflict, the heavy use of drones involved, including jet drones, and the reality that quantities do matter and that Kratos is the only company with affordable high-performance jet drones flying today also with active production lines.

最近，人們對奎托斯戰術無人機系統的興趣增加，並且勢頭正在增強。我相信，部分原因在於持續不斷的俄羅斯-烏克蘭衝突、所涉及的無人機（包括噴氣式無人機）的大量使用以及數量確實很重要的現實，而奎托斯是當今唯一一家擁有價格實惠的高性能噴射無人機的公司活躍的生產線。

Since our last report to you, we have also faced challenges, including that we were recently informed that a certain Kratos satellite program related to software products expected to be delivered in 2022 to an existing under-contract government customer have now been delayed to a future period, and we were informed by another under contract customer that additional funding is now not available for the continuation of a certain non Valkyrie-related Kratos tactical drone program we have been working on. Both of these were previously forecast as important contributors to our fourth quarter.

自上次向您提交報告以來，我們還面臨著挑戰​​，包括我們最近獲悉，預計於 2022 年向現有合約下政府客戶交付的某個與軟體產品相關的 Kratos 衛星計劃現已推遲到未來期間，另一位合約客戶告知我們，現在無法提供額外資金來繼續我們一直在進行的某個與瓦爾基里無關的奎托斯戰術無人機計畫。此前預計這兩者都會對我們第四季的業績做出重要貢獻。

We also have now determined that as a result of the continuing incredibly tight labor market for qualified machinists, production and other skilled personnel, including those with security clearances, that we will not achieve by this fiscal year-end, our previous forecast net increased headcount target required to execute on our backlog and achieve our financial forecast which I discussed on last quarter's call as a key operational and execution imperatives.

我們現在還確定，由於合格機械師、生產人員和其他技術人員（包括具有安全許可的人員）的勞動力市場持續極其緊張，我們將無法在本財年末實現我們之前預測的淨增加員工人數執行我們的積壓工作並實現我們的財務預測所需的目標，我在上個季度的電話會議上將其作為關鍵的營運和執行要務進行了討論。

As a result of these issues and considering that the DoD just last week published the letter reiterating that they would not allow companies like Kratos to receive contract price adjustments, request for equitable adjustments or increases in funding for inflation and related cost growth on our existing contracts. We have reflected the financial impacts of each of these, related and other items in today's third quarter financial report and our updated fiscal 2022 forecast, which Deanna will discuss in her remarks.

由於這些問題，並考慮到國防部上週剛發布了這封信，重申他們不會允許像 Kratos 這樣的公司接受合約價格調整、要求公平調整或增加通貨膨脹資金以及現有合約的相關成本增長。我們在今天的第三季財務報告和更新的 2022 財年預測中反映了上述各項、相關項目和其他項目的財務影響，迪安娜將在她的演講中對此進行討論。

So we've been taking action to address these matters, including we have hired and continue to hire a large number of qualified personnel, which is a top priority across the entire company. Additionally, over the past several months in our new bids, proposals and contracts, we are increasing labor and other costs and escalators, which are making us more competitive in not only obtaining but also in retaining qualified and trained workers.

所以我們一直在採取行動來解決這些問題，包括我們已經聘請並將繼續聘用大量合格的人員，這是整個公司的首要任務。此外，在過去的幾個月裡，我們在新的投標、建議和合約中增加了勞動力和其他成本以及自動扶梯，這使我們不僅在獲得而且在留住合格和訓練有素的工人方面更具競爭力。

And we have adjusted the organization in certain areas to adjust customer-related delays, funding and other issues. We have taken these actions now in order to position Kratos to continue to compete for and win large new program opportunities, of which there are many. And execute a significant growth trajectory and expanding margins in 2023 and beyond.

並且我們對某些領域的組織進行了調整，以調整與客戶相關的延誤、資金等問題。我們現在採取這些行動是為了讓奎托斯能夠繼續競爭並贏得大量的新項目機會。並在 2023 年及以後實現顯著的成長軌跡並擴大利潤率。

And we remain confident in our mission of being the disruptive technology company in the national security market area, evidenced by our continued success, including having a 1.2:1 LTM book-to-bill ratio, as I mentioned, a 1.1:1 Q3 book-to-bill with multiple large new programs, both received and ramping like MACH-TB and having a record combined backlog and opportunity pipeline.

我們對成為國家安全市場領域顛覆性技術公司的使命仍然充滿信心，我們的持續成功證明了這一點，包括擁有1.2:1 的LTM 訂單出貨比，正如我所提到的，1.1:1 的第第三季訂單出貨比- 與多個大型新項目一起開單，這些項目都像 MACH-TB 一樣接收和增加，並且擁有創紀錄的積壓和機會管道組合。

Accordingly, we continue to forecast base case full year 2023 over 2022, 10% revenue growth and increased margins with potential accelerated growth opportunities in the tactical drone, space satellite, rocket, hypersonic system areas. Importantly, we have recently begun to see some improvement in the labor market including technology and other companies now executing layoffs and Kratos recently having a very successful job in recruiting fair with multiple qualified hires related to a key Kratos manufacturing location. So we believe that we may have seen the bottom here with things starting to turn around in the labor market.

因此，我們繼續預測 2023 年全年的基本情況是 2022 年，營收成長 10%，利潤率增加，戰術無人機、太空衛星、火箭、高超音速系統領域存在潛在的加速成長機會。重要的是，我們最近開始看到勞動力市場的一些改善，包括技術和其他公司現在正在執行裁員，而Kratos 最近在招聘會上取得了非常成功的工作，擁有與Kratos 關鍵製造基地相關的多名合格員工。因此，我們相信，隨著勞動力市場的情況開始好轉，我們可能已經看到了底部。

Operationally and directly related to Kratos' first-to-market affordable leading technology system and product-based strategy, Kratos remains an industry leader in virtually all of our business areas. We are the industry leader in providing affordable rocket, hypersonic and other systems to national security customers including as recently demonstrated by the successful intercept of a Kratos ballistic missile target in the Pacific Dragon '22 exercise.

在營運上，Kratos 與 Kratos 率先推向市場、價格實惠的領先技術系統和基於產品的策略直接相關，Kratos 在幾乎所有業務領域仍然是行業領導者。我們是為國家安全客戶提供價格實惠的火箭、高超音速和其他系統的行業領導者，最近在「太平洋龍」22 演習中成功攔截奎托斯彈道飛彈目標就證明了這一點。

Kratos' proprietary new and first-to-market Zeus and Erinyes affordable launch in Hypersonic systems continue to progress with initial flights with our customers planned for next year, which we anticipate will provide us with new program opportunities in addition to our current family of flight systems and vehicles.

Kratos 專有的新的、首次上市的Zeus 和Erinyes 高超音速系統價格實惠，在明年與我們的客戶計劃的首次飛行中繼續取得進展，我們預計除了我們當前的飛行系列之外，這還將為我們提供新的專案機會系統和車輛。

We expect Kratos' Rocket Systems business to be a solid future revenue and organic growth driver with increased margins as both the U.S. and our allies increased their exercising and testing of ballistic missile defense, radar space, satellite, hypersonic and other systems.

我們預計奎托斯的火箭系統業務將成為未來堅實的收入和有機成長動力，隨著美國和我們的盟友增加彈道飛彈防禦、雷達空間、衛星、高超音速和其他系統的演習和測試，利潤率將增加。

Kratos' industry-leading space and satellite business performance, our company's largest is critical to our forecast organic revenue, profit and cash flow growth trajectory and we are currently forecasting approximate 12% to 15% growth for this business in 2023 with significantly expanding margins, supported by recent and expected program awards.

Kratos 領先業界的太空和衛星業務表現是我們公司最大的業務，這對我們預測的有機收入、利潤和現金流成長軌跡至關重要，我們目前預測該業務到2023 年將成長約12% 至15% ，利潤率將顯著擴大，並得到最近和預期的項目獎項的支持。

The thousands of new satellites forecast to be placed into orbit over the coming years, including in LEO, MEO and GEO for both national security and commercial missions, are expected to provide a large, rapidly growing market and opportunity set for Kratos and for our proprietary first-to-market open space virtualized suite of C2, TT&C and other ground system software products.

預計未來幾年將有數千顆新衛星被送入軌道，包括用於國家安全和商業任務的近地軌道(LEO)、中地軌道(MEO) 和地球靜止軌道(GEO)，預計將為Kratos和我們的專有衛星提供龐大、快速成長的市場和機會。

Kratos' C5ISR business is also positioned for future organic growth and expanding margins with key growth drivers, including the IFPC, IBCS, SHORAD and Sentinel programs. On the Sentinel program, we expect to see a significant ramp in 2023.

Kratos 的 C5ISR 業務也為未來的有機成長和透過關鍵成長驅動因素（包括 IFPC、IBCS、SHORAD 和 Sentinel 計劃）擴大利潤做好了準備。對於 Sentinel 計劃，我們預計 2023 年將顯著成長。

Kratos' Microwave Electronics business is similarly positioned for future organic growth, also with expanding margins with a focus on well-funded mission-critical national security areas, including missile, radar, EW, [C-AD, D-AD] and C2 systems, several of which were in production and ramping.

Kratos 的微波電子業務同樣定位於未來的有機成長，利潤率也不斷擴大，重點關注資金充足的關鍵任務國家安全領域，包括飛彈、雷達、電子戰、[C-AD、D-AD] 和 C2 系統，其中一些已投入生產並正在量產。

Our Turbine Technologies and Engine business had a very strong third quarter, and 2023 also is looking strong with a focus on drones, missiles, powered munitions, spacecraft and strategic platforms including the B-52 Re-engine program which is ramping for Kratos.

我們的渦輪技術和發動機業務第三季表現非常強勁，2023 年看起來也很強勁，重點是無人機、飛彈、動力彈藥、太空船和戰略平台，包括為Kratos 加速推進的B-52 發動機再造專案.

Kratos' industry-leading target drone business also is very well positioned as the U.S. and our allies recapitalized strategic weapon systems and radars which need to be tested and their crews trained against the highest performance, most threat-representative target drone systems in the world. Those are Kratos targets.

克雷托斯行業領先的目標無人機業務也處於非常有利的地位，因為美國和我們的盟國對戰略武器系統和雷達進行了重組，這些系統和雷達需要進行測試，並且其人員需要接受針對世界上最高性能、最具威脅代表性的目標無人機系統的訓練。這些是奎托斯的目標。

Future program drivers and our target drone business include: the SSAT program with the U.S. Navy, which achieved full operational capability in Q3 and with full rate production now expected to continue to ramp, a confidential program that is now expected to transition from low rate initial production to full rate production. We have an expected sole-source $100 million contract award with the U.S. government agency coming in the next few months. And a number of new expected international contract awards, driven in part by the Russian-Ukraine conflict and the expected significant increase in NATO member and U.S. allies defense budgets.

未來的計劃驅動因素和我們的目標無人機業務包括：與美國海軍的SSAT 計劃，該計劃在第三季度實現了全面作戰能力，目前預計全速生產將繼續增加，這是一項機密計劃，目前預計將從低速初始階段過渡生產到全速生產。預計我們將在未來幾個月內與美國政府機構簽訂價值 1 億美元的獨家合約。預計將授予一些新的國際合同，部分原因是俄羅斯-烏克蘭衝突以及北約成員國和美國盟國國防預算的預期大幅增加。

Also in the target drone area, there are currently multiple new programs in solicitation here in the United States that Kratos is pursuing, including NGAT, 5GAT and T Threat, all focused on affordability and innovation to address the increasing global threat profile.

同樣在目標無人機領域，Kratos 目前正在美國徵集多個新項目，包括 NGAT、5GAT 和 T Threat，所有項目都專注於可承受性和創新，以應對日益嚴重的全球威脅。

As I mentioned, the tactical drone or collaborative combat aircraft, CCA opportunity continues to evolve, including the Air Force recently announcing another new classified program initiative which includes a competitive fly off in 2024. Multiple recent statements and data points from the Pentagon signal of future with hundreds or thousands of drone systems consisting of several different types with different capabilities and at different cost points.

正如我所提到的，戰術無人機或協同作戰飛機、CCA 機會不斷發展，包括空軍最近宣布了另一項新的機密計劃舉措，其中包括2024 年的競爭性飛行。和數據點預示著未來數百或數千個無人機系統由幾種不同類型組成，具有不同的功能和不同的成本點。

As I mentioned before, Kratos remains the only company with a family of low-cost, expendable disposable and attritable drones flying today, also including active manufacturing facilities with each drone that we can publicly talk to you about at price points between approximately $400,000 and $5 million.

正如我之前提到的，Kratos 仍然是唯一一家擁有當今飛行的低成本、一次性和可消耗無人機系列的公司，還包括每架無人機的活躍製造設施，我們可以公開與您討論，價格在大約40 萬美元到5 美元之間百萬。

Being the only company with actual flying aircraft in this drone class, not having PowerPoints or renditions, concepts or computer models with hope for some day delivery dates and guestimate price points. We believe is a significant advantage for Kratos and to our customers and for the taxpayer.

作為此類無人機中唯一擁有實際飛行飛機的公司，沒有 PowerPoint 或表演、概念或電腦模型，希望有一天能夠交付日期和預估價格。我們相信這對 Kratos、我們的客戶和納稅人來說都是一個顯著的優勢。

At Kratos, better is the enemy of good enough and also to low cost. As we reported today, Block 2 Kratos Valkyrie production aircraft recently demonstrated extended capabilities by flying longer, higher at a heavier mission weight and at a longer range than ever before with the flight achieving a key milestone of the AFRL, Autonomous Collaborative Enabling Technologies portfolio.

在奎托斯，更好是夠好和低成本的敵人。正如我們今天報導的那樣，Block 2 Kratos Valkyrie 生產型飛機最近展示了比以往任何時候都更遠、更高、更重的任務重量和更遠航程的擴展能力，該飛行實現了AFRL（自主協作使能技術組合）的一個重要里程碑。

Simply stated, Kratos tactical drones continue to mature and progress. We remain on track to complete the initial Valkyrie 12 production lot next year and we are in process of deciding on a subsequent Valkyrie serial production run, including as things are definitized with our three new customer opportunities over the next few months.

簡而言之，奎托斯戰術無人機不斷成熟與進步。我們仍然預計在明年完成最初的 Valkyrie 12 生產批次，我們正在決定後續的 Valkyrie 系列生產，包括在接下來的幾個月內我們的三個新客戶機會確定的情況。

Kratos' Ghost Works had our recent successful test of a new system at the Burns Flat range complex with additional tests of these new systems planned over the coming months, and which system we currently hope to be able to unveil publicly next year. We are confident that this new Kratos Ghost Work system will significantly expand both our existing platform capability lead and affordability positioning to our customers and competitively.

奎托斯的幽靈工廠最近在伯恩斯平地綜合體成功測試了一個新系統，並計劃在未來幾個月內對這些新系統進行更多測試，我們目前希望能夠在明年公開推出該系統。我們相信，這個新的 Kratos Ghost Work 系統將顯著擴大我們現有的平台能力領先優勢和對客戶的可承受性定位，並提高競爭力。

We believe the macro and geopolitical backdrop for the national security industry is strong and is expected to remain so, including, importantly, for innovative and disruptive technology and growth companies like Kratos. I also believe that we are at the beginning of a long-term multiyear recapitalization of strategic weapon systems globally, where quantities, affordable mass, speed and survivability as is being demonstrated in the Russian-Ukraine conflict, will matter and where clearly Kratos is uniquely positioned.

我們認為，國家安全產業的宏觀和地緣政治背景強勁，並且預計將繼續如此，重要的是，對於像 Kratos 這樣的創新和顛覆性技術和成長型公司來說也是如此。我還相信，我們正處於全球戰略武器系統長期多年資本重組的開始，其中數量、可承受的質量、速度和生存能力（正如俄羅斯-烏克蘭衝突中所展示的那樣）將很重要，而且奎托斯顯然具有獨特的優勢定位。

We are not planning on making any acquisitions. We have successfully competitively bid on and received a number of large new program awards, as I mentioned before. And we expect to receive several more in the coming months.

我們不打算進行任何收購。正如我之前提到的，我們已經成功競標並獲得了許多大型新項目獎項。我們預計在未來幾個月會收到更多。

It has definitely been challenging the last couple of years with COVID, supply chain inflation, the labor market and other things. These issues will pass and Kratos is teeing it up, and we are ready to go do it.

過去幾年，新冠疫情、供應鏈通膨、勞動市場和其他問題無疑地為我們帶來了挑戰。這些問題都會過去，奎托斯正在做好準備，我們已經準備好要做。

With that, I'll turn it over to Deanna.

有了這個，我會把它交給迪安娜。

Thank you, Eric. Good afternoon. As we have included a detailed summary of the third quarter financial performance and fourth quarter and full year 2022 financial guidance in the press release, we published earlier today, I will focus on the highlights in my remarks today.

謝謝你，埃里克。午安.由於我們在今天早些時候發布的新聞稿中詳細介紹了第三季度財務業績以及第四季度和 2022 年全年財務指引，因此我將在今天的演講中重點介紹重點內容。

As Eric mentioned, the operating environment remained challenging with continued supply chain disruptions, inefficiencies, an extremely tight labor market and inflationary impacts. As a result, our third quarter revenues were impacted with $11.3 million being deferred into future periods with approximately $5.9 million of associated operating income, including increased inflationary costs.

正如艾瑞克所提到的，由於供應鏈持續中斷、效率低下、勞動力市場極度緊張和通貨膨脹影響，營運環境仍然充滿挑戰。因此，我們第三季的收入受到影響，1,130 萬美元被推遲到未來各期，相關營業收入約為 590 萬美元，包括增加的通貨膨脹成本。

In addition, our operating results included a charge of approximately $3.4 million related to certain non-recoverable costs, including rate and cost growth items resulting from an inability to hire the required planned direct labor base, both internally and by our subcontractors to execute on our backlog due to a continuing challenging environment in both hiring and retaining skilled manufacturing personnel, including in our C5ISR business.

此外，我們的經營業績還包括與某些不可收回成本相關的約340 萬美元費用，包括由於無法在內部和我們的分包商僱用所需的計劃直接勞動力基礎來執行我們的計劃而導致的費率和成本增長項目。

For example, while we have been successful in hiring over 96 new still staff this year in this business, unfortunately, we are down net 14 staff members since the beginning of this year as we have lost 110 staff members in this business due to attrition from retirement including from employee decisions made related to COVID vaccination compliance and protocol-related policies and staff leaving for other employment due to the incredibly competitive and tight labor market and with significantly increasing compensation.

例如，雖然我們今年在該業務中成功招募了超過96 名新的蒸餾器員工，但不幸的是，自今年年初以來，我們淨減少了14 名員工，因為由於員工流失，我們在該業務中失去了110 名員工。

As Eric mentioned, we have recently seen more success in hiring and stabilization in the retention of our existing workforce and our entire organization is incredibly focused on this primary operational execution area. Additionally, as we are managing supply chain-related disruptions and shortages, our operating cash flow continues to be impacted by advanced inventory purchases we have made of over $27 million year-to-date which reflect increases in inventories across our product-based businesses, including unmanned systems, space and satellite, microwave products, the C5ISR.

正如艾瑞克所提到的，我們最近在招募和穩定現有員工方面取得了更大的成功，我們整個組織都非常關注這個主要的營運執行領域。此外，由於我們正在管理與供應鏈相關的中斷和短缺，我們的營運現金流量繼續受到我們今年迄今已購買超過 2,700 萬美元的預存庫存的影響，這反映了我們基於產品的業務的庫存增加，包括無人系統、太空和衛星、微波產品、C5ISR。

This inventory increase reflects actions we have taken to make advanced purchases in an attempt to mitigate the supply chain disruption, which now include lead times for certain critical parts of over 52 weeks. The conversion time for certain of these purchases from the inventory to products to sales is not expected to incur until next year.

庫存增加反映了我們為減輕供應鏈中斷而採取的提前採購行動，目前某些關鍵零件的交貨時間已超過 52 週。其中某些採購從庫存到產品再到銷售的轉換時間預計要到明年才會發生。

Also included in cash flows used in operating activities is approximately $7 million in investments and non-recurring engineering costs over the first 9 months of 2022 for new rocket systems and products, including for Kratos Zeus and Erinyes systems and is directly related to certain received and expected new contract awards in the Hypersonic system area.

經營活動使用的現金流量還包括2022 年前9 個月用於新火箭系統和產品（包括Kratos Zeus 和Erinyes 系統）的約700 萬美元的投資和非經常性工程成本，這些成本與某些已收到和預計高超音速系統領域將獲得新合約。

Our contract mix for the quarter was 69% from fixed price, 26% cost plus fixed fee contracts of 5% time and materials. Revenues generated from contracts with the U.S. federal government during the quarter were approximately 69%, including revenues generated from contracts with the DoD, non-DoD, federal government and government agencies and FMS contracts.

我們本季的合約組合包括 69% 的固定價格合約、26% 的成本加上 5% 的時間和材料的固定費用合約。本季與美國聯邦政府的合約產生的收入約為 69%，其中包括與國防部、非國防部、聯邦政府和政府機構的合約以及 FMS 合約產生的收入。

In Q3 '22, we generated 11% of revenues from commercial customers and 20% from foreign customers.

22 年第三季度，我們 11% 的營收來自商業客戶，20% 來自外國客戶。

Now moving on to financial guidance. Our fourth quarter and full year '22 financial guidance we provided today includes our current forecasted business mix, and our assumptions related to the expected continued impact of employee absenteeism, challenges related to obtaining and retaining qualified personnel supply chain disruptions, inflation and related expect -- expected cost and price increases and other COVID-related items that have impacted and are currently and expected to continue impacting both the industry and Kratos.

現在轉向財務指導。我們今天提供的22 年第四季和全年財務指引包括我們目前預測的業務組合，以及我們對員工缺勤的預期持續影響、與取得和留住合格人員相關的挑戰、供應鏈中斷、通貨膨脹和相關預期的假設 - - 預計成本和價格上漲以及其他與新冠疫情相關的項目已經影響並且目前和預計將繼續影響行業和 Kratos。

Throughout the first 9 months of the year, Kratos experienced a significant increase of the continued impacts from supply chain disruptions, including cost increases for materials, supplies, transportation and utilities, and fulfillment delays causing increased cost and inefficiencies related to manufacturing, included in our indirect manufacturing rate. We expect these issues to impact our fourth quarter revenues by approximately $7 million to $9 million and adjusted EBITDA by approximately $4 million to $6 million. Also additional increased costs we have absorbed this year include merit increases above our historical norm and financial forecast of over $5 million, which has been implemented across the entire personnel base.

在今年的前9 個月中，Kratos 經歷了供應鏈中斷的持續影響顯著增加，包括材料、供應、運輸和公用事業的成本增加，以及導致與製造相關的成本增加和效率低下的履行延遲，這些影響包括在我們的間接製造率。我們預計這些問題將影響我們第四季的營收約 700 萬至 900 萬美元，調整後的 EBITDA 影響約 400 萬至 600 萬美元。此外，我們今年吸收的額外增加成本包括高於歷史正常水平的績效成長和超過 500 萬美元的財務預測，這已在整個人員基礎上實施。

As our contract mix is predominantly firm fixed price, we are required to absorb these additional costs with the Pentagon issuing a letter just last week, reiterating its position that contractors like Kratos will not be able to submit requests for equitable adjustment to recover inflation related and other costs.

由於我們的合約組合主要是固定價格，我們需要吸收這些額外成本，五角大廈上週剛發出一封信，重申其立場，即像奎托斯這樣的承包商將無法提交公平調整的請求，以恢復與通貨膨脹相關的和其他費用。

Our previous expectations for the second half of '22 and more specifically the fourth quarter of 2022, assumed we would be able to achieve significant net headcount additions in certain of our specialty manufacturing and hardware-related businesses. But as we previously mentioned, we have been unsuccessful in achieving our target.

我們之前對 22 年下半年，更具體地說是 2022 年第四季的預期，假設我們能夠在某些專業製造和硬體相關業務中實現大幅淨員工人數增加。但正如我們之前提到的，我們未能成功實現我們的目標。

Accordingly, this delay in the ramp in our net headcount and supply chain delays has resulted in the reduction of $12 million to $13 million for our forecasted FY '22 revenues in our C5ISR business.

因此，我們的淨員工人數增加和供應鏈延遲導致我們的 C5ISR 業務預計 22 財年收入減少 1,200 萬美元至 1,300 萬美元。

In addition, the recent notification by our customer of a delay or certain satellite program-related software deliverables to a future period had a significant impact on our Q4 forecast as this software deliverable was expected to contribute approximately $5 million to $6 million of revenue and approximately $4 million of EBITDA in Q4.

此外，我們的客戶最近通知延遲或某些衛星計畫相關的軟體可交付成果對我們第四季度的預測產生了重大影響，因為該軟體可交付成果預計將貢獻約500 萬至600 萬美元的收入，並且約第四季 EBITDA 為 400 萬美元。

Finally, the notification we recently received from a customer that additional funding is now not available for the continuation of a non-Valkyrie-related tactical drone program that was originally forecast to contribute an additional $7 million to $8 million to our FY '22 revenues.

最後，我們最近收到一位客戶的通知，稱目前無法提供額外資金來繼續執行非Valkyrie 相關的戰術無人機計劃，該計劃最初預計將為我們22 財年的收入額外貢獻700 萬至800 萬美元。

We have reflected the impact of these customer notifications in today's revised financial forecast. With our forecasted cash flows also being adjusted accordingly. Eric?

我們已在今天修訂後的財務預測中反映了這些客戶通知的影響。我們的預測現金流量也隨之調整。艾瑞克？

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) And our first question comes from the line of Mike Crawford from B. Riley.

（操作員說明）我們的第一個問題來自 B. Riley 的 Mike Crawford。

Given these delays in -- and in the tactical drone space, do you think that it's getting harder to cross the so-called Valley of Death or maybe one of them didn't make it? Or is it now that we're really focused on Valkyrie and maybe some of these newer iterations like that are coming down the pike?

考慮到戰術無人機領域的這些延誤，您是否認為穿越所謂的死亡之谷變得越來越困難，或者其中之一可能沒有成功？或者現在我們真的專注於《瓦爾基里》，也許其中一些類似的新版本即將推出？

No, it is not harder to get across the Valley of Death, Mike. And we still have a number of platforms, all of which we've talked about here previously that are still flying and that are still going across. As I mentioned over the past year, I think it started after the Reagan Forum last year, when the Secretary talked about 2 new classified programs. And he said that all the other programs or substantially all of them would be feeders into those programs, and it was all going to be buttoned up. I mentioned that it was going to be just difficult for us to talk about stuff anymore unless we got approval.

不，跨越死亡之谷並不難，麥克。我們仍然擁有許多平台，所有我們之前在這裡討論過的平台仍然在飛行和跨越。正如我在過去一年中提到的，我認為這是在去年的雷根論壇之後開始的，當時國務卿談到了兩個新的機密項目。他說，所有其他計劃或基本上所有計劃都將成為這些計劃的供給者，而這一切都將被敲定。我提到，除非得到批准，否則我們將很難再談論事情。

And that's one of the reasons we were able to put the -- what we put out today on the Valkyrie, we just recently cut approval for that press release. There is a lot going on in the CCA or tactical drone area, a lot, a lot, a lot.

這就是我們今天能夠在 Valkyrie 上發布的內容的原因之一，我們最近剛剛取消了對新聞稿的批准。 CCA 或戰術無人機領域正在發生很多事情，很多，很多，很多。

And as I indicated in my remarks, I think things are becoming a lot and they're accelerating because of what's going on in the Ukraine with Russia. It's become a war of attrition, General Hinote, recently, of the Air Force, recently, had an interview about that. It's a war of attrition. And I think that is what is causing momentum to start picking up here again.

正如我在演講中指出的那樣，我認為由於烏克蘭與俄羅斯之間發生的事情，事情正在變得越來越嚴重，而且正在加速。這已經成為一場消耗戰，空軍的希諾特將軍最近接受了有關此事的採訪。這是一場消耗戰。我認為這就是導致這裡的勢頭再次開始回升的原因。

Okay. And then in the space and satellite cyber business, so is there any takeaway from the change in leadership at the U.S. space force? And then I guess the second part to that is this one software delay, is that related to the continuing resolution? Or is that -- is there some other reason given for that delay?

好的。那麼在太空和衛星網路業務方面，美國太空部隊領導層的變化有什麼收穫嗎？然後我想第二部分是這個軟體延遲，這與持續解決有關嗎？或者是——還有其他原因導致延遲嗎？

Right. So let me take the second part of that first. It is not, as we understand it, related to the continuing resolution. That program is classified. So it's related to our understanding to a separate item. That's why it's been pushed out. That's all I can say, it's classified.

正確的。讓我先講第二部分。據我們了解，這與持續解決方案無關。該程序是機密的。所以這與我們對一個單獨項目的理解有關。這就是它被推出的原因。我只能說這麼多，這是機密。

Relative to any changes in personnel like at the space force, et cetera, I don't believe that, that has anything to do what's going on here or what it's going to have to do with the trajectory in the industry. The bottom line is that there are going to be fewer and fewer geosynchronous orbit satellites put up, and there are going to be hundreds and hundreds of MEOs and LEOs put up. And there are all types of reasons for that, technological reasons, distributing the assets, reasons, et cetera. And the more birds that are up there, whether -- it doesn't matter what size they are, the better that is for Kratos and our ground equipment, which is why we are seeing the traction we're seeing, and we're so optimistic.

相對於太空部隊等人員的任何變化，我不認為這與這裡發生的事情或與該行業的發展軌跡有任何關係。最重要的是，安裝的地球同步軌道衛星將會越來越少，而安裝的 MEO 和 LEO 將會越來越多。造成這種情況的原因有很多，技術原因、資產分配原因等等。那裡的鳥越多，無論它們有多大，對奎托斯和我們的地面設備就越好，這就是為什麼我們看到了我們所看到的牽引力，我們正在如此樂觀。

And our next question comes from the line of Noah Poponak from Goldman Sachs.

我們的下一個問題來自高盛 (Goldman Sachs) 的諾亞·波波納克 (Noah Poponak)。

It's Gavin on for Noah. Can you hear me?

加文替補諾亞。你聽得到我嗎？

Yes.

是的。

In terms of the 10% revenue growth target next year, I think you'd said previously that, that doesn't consider too much upside in tactical drones. So what are you expecting in tactical drones there? How much visibility do you have into that business returning to growth? And when do you think that returns to growth?

至於明年10%的營收成長目標，我想你之前說過，這並沒有考慮到戰術無人機有太多的上升空間。那麼您對戰術無人機有何期待？您對該業務恢復成長的了解程度如何？您認為什麼時候會恢復成長？

Yes. So you're absolutely right. The base case does not include any significant production at all of or orders of tactical drones. It is -- as I said on the last call, but it's a continuation of RDT&E and S&T initiatives, both that we're on and future ones that we expect to get. And as I said on the last few calls, I'm not getting ahead of myself anymore on this. We have gone through it. We've got the right aircraft at the right price points at the right time, and we're going to hang around the hoop until we win, and that's what we're doing. And so nothing significant other than RDT&E and S&T.

是的。所以你是完全正確的。基本情況不包括任何戰術無人機的大量生產或訂單。正如我在上次電話會議上所說，這是 RDT&E 和 S&T 舉措的延續，無論是我們正在進行的還是未來我們期望獲得的舉措。正如我在最近幾次電話中所說的那樣，我不會再在這方面超前了。我們已經經歷過了。我們在正確的時間以正確的價位擁有正確的飛機，我們將堅持不懈，直到獲勝，這就是我們正在做的事情。因此，除了 RDT&E 和 S&T 之外，沒有什麼重要的了。

Got it. And then in terms of the non-recoverable costs, I mean, what time frame does that capture? I mean does that capture future expected cost growth? And is there any risk that, that number just kind of continues to trend higher unless the DoD gives RBA relief?

知道了。然後就不可收回的成本而言，我的意思是，該時間範圍是多少？我的意思是，這是否反映了未來的預期成本成長？除非國防部給予澳洲央行救濟，否則這個數字是否會繼續呈現上升趨勢？

Gavin, that does not take into consideration future cost growth, that is current period growth that we are not passing through the contract. So we are absorbing that in the current period.

加文，這沒有考慮未來的成本成長，也就是我們沒有透過合約傳遞的當期成長。所以我們在當前時期正在吸收這一點。

And relative to the future as we've been talking about for the last few quarters, and I emphasized today, we're substantially firm fixed price. And we -- because as you said, the plant came out with another letter last week and said there will be no relief on this on, existing contracts. Well, as I tried to emphasize today, we've been winning a lot of new contracts, including the last 2 quarters, and we have been building into those escalates existing costs and escalators to capture future increases, most importantly, in labor and in the indirect rates that, that labor base drives. So we've been building that in. And we think that point is going to start to cross in Q1 or Q2 of next year, and then we'll be okay unless, of course, inflation goes to 25%, then we're fried. But that's our plan.

相對於我們過去幾季一直在談論的未來，以及我今天強調的，我們的固定價格基本上是堅定的。我們——因為正如你所說，該工廠上週又發出了一封信，並表示現有合約不會有任何減免。嗯，正如我今天想強調的那樣，我們贏得了很多新合同，包括過去兩個季度，我們一直在努力提高現有成本和自動扶梯，以抓住未來的增長，最重要的是，在勞動力和勞動力基礎驅動的間接比值。所以我們一直在考慮這一點。但這就是我們的計劃。

(Operator Instructions) And our next question comes from the line of Sheila Kahyaoglu from Jefferies.

（操作員說明）我們的下一個問題來自 Jefferies 的 Sheila Kahyaoglu。

This is [Ellen] on for Sheila. Just a little bit -- looking at that 10% growth next year in a little bit more detail I know you mentioned 12% to 15% space and satellite growth. But are there any programs that you can walk us through that drive that return to growth?

這是[艾倫]為希拉主持的節目。只是一點點——更詳細地看看明年 10% 的成長，我知道你提到了 12% 到 15% 的太空和衛星成長。但是，是否有任何計劃可以引導我們完成恢復成長的驅動力？

Yes, absolutely. Sentinel comes to mind immediately. We're in development on Sentinel, our partners or GBSD, our partner, of course, is Northrop Grumman and they are an outstanding partner, by the way. And we are ramping right along with Northrop on Sentinel.

是的，絕對是。我立刻想到了哨兵。我們正在開發Sentinel，我們的合作夥伴或GBSD，我們的合作夥伴當然是諾斯羅普·格魯曼公司，順便說一句，他們是一個傑出的合作夥伴。我們正與諾斯羅普一起在哨兵號上加速前進。

I mentioned the SSAT program in the target drones. As I mentioned in Q3, we achieved initial operating capability, with the United States Navy, we're in full rate production, and it is ramping significantly now significantly. So SSAT is going to be a very, very big driver. We've announced a number of space and satellite programs. But in addition to the ones we've announced, there's a number that we have won that we can't talk about. Those are all ramping for us in 2023. And as I mentioned, that's tying directly to what's going on with the OPTEMPO in the space and satellite area.

我提到了目標無人機中的 SSAT 計畫。正如我在第三季度提到的，我們在美國海軍的幫助下實現了初步營運能力，我們正在全速生產，現在正在顯著提升。因此，SSAT 將成為一個非常非常大的推動力。我們已經宣布了許多太空和衛星計畫。但除了我們已經宣布的那些之外，我們還無法談論我們贏得的一些數字。這些都將在 2023 年實現。

And the other one that we're doing is in our C5ISR business. I mentioned a couple of them like SHORAD and IBCS, IFPC to a less extent next -- first half next year but ramping, we are on some big new programs of record that we've won, and they're beginning to go. And the last area is in the hypersonic area. We are the absolute leader in the industry and affordably putting something in the right place at the right time at the right speed. And as the hypersonic off tempo picks up we are going right along with it because we're the guy that can do it. Those are the primary areas and then to a lesser extent, the B-52 Re-engine program. That's big, it's several tens of millions of dollars. That's also ramping, but to a lesser extent than say, GBSD.

我們正在做的另一項工作是 C5ISR 業務。我提到了其中的一些項目，例如 SHORAD 和 IBCS、IFPC，明年上半年的程度會有所下降，但會有所增加，我們正在進行一些我們已經贏得的大型新項目，並且它們正在開始實施。最後一個區域是高超音速區域。我們是行業中的絕對領導者，能夠以經濟實惠的方式在正確的時間以正確的速度將產品放置在正確的位置。隨著高超音速失速的加快，我們將繼續前進，因為我們是能夠做到這一點的人。這些是主要領域，其次是 B-52 引擎再造計劃。這個金額很大，有好幾千萬美元。這也在增加，但程度低於 GBSD。

That's helpful. And then as we think about some of the contract changes you've put into place, is there a path back to double-digit margins in the next couple of years? Or how do we think about profitability from here?

這很有幫助。然後，當我們考慮你們所實施的一些合約變更時，是否有辦法在未來幾年內恢復兩位數的利潤率？或者我們如何看待這裡的獲利能力？

Yes, there definitely is, because as I've mentioned before, and I'll mention it again, now the government on the new contracts -- on new contracts and on options that we're pricing now, they are fine with escalators and cost increases. So long as we give them a reciprocal that if inflation turns out to be transitory, or it goes back to 3% or 2% next year, that they can have relief on the other side. That's literally what's happening here. And we are absolutely amenable that's a very fair offer by the government and we are building that in. So we're very confident, we're going to -- our rates will start getting back up next year, as I mentioned, as our contract mix moves more to the newer ones, the more recent ones with higher costs built into them.

是的，肯定有，因為正如我之前提到的，我會再次提到，現在政府在新合約上 - 在新合約上和我們現在定價的選項上，他們對自動扶梯和成本增加。只要我們給他們一個倒數，如果通膨結果是暫時的，或者明年回到3%或2%，他們就可以在另一邊得到緩解。這就是這裡發生的事情。我們絕對願意接受政府提出的非常公平的提議，我們正在將其納入其中。在明年開始回升。

And our next question comes from the line of Joe Gomes from Noble Capital.

我們的下一個問題來自 Noble Capital 的 Joe Gomes。

Good afternoon, Eric. I guess a quick kind of big picture-type question seeing is some of the announcements today with some of the contracts that have been pushed out or there's no more funding for them. You previously talked about some business, the self-driving trucks that you're doing with Min-DAC, the truck-mounted attenuators. Where do those types of products stand? And could they potentially be a growth driver here to help cover our -- some of these projects that have gone away?

下午好，埃里克。我想一個快速的宏觀問題是今天發布的一些公告，其中一些合約已被推遲，或者沒有更多的資金。您之前談到了一些業務，您正在與 Min-DAC 合作的自動駕駛卡車，卡車安裝的衰減器。這些類型的產品處於什麼位置？它們是否有可能成為這裡的成長動力，以幫助涵蓋我們的一些已經消失的項目？

Yes. If you could see me if I was on a video, you would see both Deanna and I are smiling, obviously, we haven't been talking much about that, but it is progressing and revenue there in that area in 2023 is going to start to become material to Kratos and then in '24 and '25 as we roll out these kits to convert the existing manned trucks and vehicles to unmanned at a very low cost with our technology. This is happening. Don't quote me on this, on the -- in the state work we're doing. I think we're in approximately -- our trucks are on the road in 10 states now with certain states now coming back for production orders. So it is moving. It's happening.

是的。如果你能看到我，如果我在影片中，你會看到 Deanna 和我都在微笑，顯然，我們還沒有談論太多，但它正在取得進展，該領域的收入將於 2023 年開始成為Kratos的材料，然後在24 年和25 年推出這些套件，利用我們的技術以非常低的成本將現有的有人駕駛卡車和車輛轉換為無人駕駛。這正在發生。不要在這一點上、在我們正在做的國家工作中引用我的話。我認為我們的卡車現在正在 10 個州上路，某些州現在正在返回生產訂單。所以它正在移動。它正在發生。

And I want to reemphasize our target market is the one that's being ignored by everybody else. We're taking the existing trucks and the existing vehicles, the millions of them that are out there and because of the incredible driver shortage, and I think I saw like 1 million truck drivers are retiring and aging out in the next 8 years. There aren't going to be enough. So that's where our technology is coming in, and we're focused on the agricultural, the mining and the mineral markets right now.

我想再次強調我們的目標市場是被其他人忽略的市場。我們正在利用現有的卡車和現有的車輛，由於司機嚴重短缺，現有的數以百萬計，我想我看到在未來 8 年內將有 100 萬卡車司機退休和老化。還不夠。這就是我們的技術發揮作用的地方，我們現在專注於農業、採礦和礦物市場。

(Operator Instructions) Our next question comes from the line of Pete Skibitski from Alembic Global.

（操作員說明）我們的下一個問題來自 Alembic Global 的 Pete Skibitski。

Guys, can you talk about the sensitivity in your guidance to a further delay in the '23 budget, right? We've got the CR through mid-December and there's I know it's probably a 50-50 chance that we maybe go into January. And I'm just wondering if that would impact guidance at all?

夥計們，您能談談您的指導意見中對進一步推遲 23 年預算的敏感度嗎？我們已經在 12 月中旬收到了 CR，我知道我們可能會進入 1 月份，可能性是 50-50。我只是想知道這是否會影響指導？

All right. So the way the '23 budget sits today, okay, if it is approved substantially in its current form, say, by the end of December, early January, we're okay, right? If it has changed significantly, if content has changed significantly, and we have another 6-month continuing resolution like we did last year then we're going to have to analyze what that budget looks like, what's the timing of getting those funds obligated under contract looks like, and then we'll map that into what we think.

好的。因此，按照 23 世紀預算今天的情況，好吧，如果它以目前的形式得到實質批准，比如說，到 12 月底、1 月初，我們就可以了，對吧？如果它發生了重大變化，如果內容發生了重大變化，並且我們有另一個為期6 個月的持續決議，就像我們去年那樣，那麼我們將不得不分析預算是什麼樣子，什麼時候讓這些資金承擔義務合約看起來像這樣，然後我們會將其映射到我們的想法中。

Okay. I appreciate the color there. And then I also want to ask kind of where are you guys at now if I missed this, in terms of your labor target, how far away are you on the labor target and kind of what the forward goal is?

好的。我很欣賞那裡的顏色。然後我還想問一下，如果我錯過了這一點，你們現在在哪裡，就你們的勞動目標而言，你們距勞動目標還有多遠，以及未來的目標是什麼？

And associated with that, I thought I heard you guys mention people leaving because of COVID compliance. But I thought the government drop that provision that defense employees get vaccinated. So maybe kind of clarify that.

與此相關的是，我想我聽到你們提到人們因為遵守新冠病毒規定而離開。但我認為政府放棄了國防僱員接種疫苗的規定。所以也許可以澄清一下。

Sure. So that was earlier in the year when we had those requirements that the government had not dropped. So that was part of the attrition that we saw earlier in the year, Pete. So our targets -- the specific target that we're all focused on is in our C5ISR business. The target was to have a net increase of 100 heads by the end of this year and we're currently down net 14. That target is obviously going to be pushed out into the first quarter. We've recently seen some stabilization in the attrition because, as I've mentioned, we have been able to hire just about 96 people, but we've had net reductions just because of all those different factors. With the market, I think, stabilizing, we are seeing some more recent more positive trends in that arena.

當然。今年早些時候，我們提出了政府沒有放棄的要求。這就是我們今年早些時候看到的人員流失的一部分，皮特。所以我們的目標——我們都專注的具體目標是我們的 C5ISR 業務。我們的目標是到今年年底淨增加 100 頭，但目前淨減少 14 頭。我們最近看到人員流失情況有所穩定，因為正如我所提到的，我們只能僱用大約 96 名員工，但由於所有這些不同的因素，我們的員工數量出現了淨減少。我認為，隨著市場趨於穩定，我們在該領域看到了一些最近更積極的趨勢。

And let me add on that, that the people we have, they're all trained up and they know how to work and they know how to do it, and they're on a learning curve. And then they leave, and then we have to hire new people and get them trained up and that takes time and that generates incredible inefficiencies, which also increases cost. And so it's a multi-dynamic thing we've been dealing with. Why it's been so important that on the new bids and new opportunities, we're building in higher rates so we can be competitive with, for example, some of these new space companies that are paying very, very high rates for people. These are the guys that want to go to Mars, and we can be competitive there.

讓我補充一點，我們擁有的人員都經過培訓，他們知道如何工作，他們知道如何做，而且他們正處於學習曲線上。然後他們離開，然後我們必須僱用新人並對他們進行培訓，這需要時間並且會產生令人難以置信的低效率，這也增加了成本。所以這是我們一直在處理的一個多動態的事情。為什麼在新的投標和新的機會上，我們正​​在建立更高的費率，這樣我們就可以與一些新的航太公司競爭，這些公司為人員支付非常非常高的費率。這些人想去火星，我們可以在那裡具有競爭力。

Okay. And this is GBSD that's driving a lot of the hiring needs in C5?

好的。這就是 GBSD 推動了 C5 的大量招募需求嗎？

It's in C5. It's multiple programs. It's not one in particular. It really isn't. It's multiple programs. I mean like take a missile system or a radar system. Typically, those guys or gals they need very high security clearances in that manufacturing environment. And we're finding people refuse for multiple reasons. They want to get a security clearance is these days to work on a missile -- surface to air missile system. That's another aspect we're dealing with.

它在C5。這是多個程序。這不是特別的一個。事實並非如此。這是多個程序。我的意思是採用飛彈系統或雷達系統。通常，這些人在製造環境中需要非常高的安全許可。我們發現人們出於多種原因拒絕。如今，他們想要獲得安全許可，以便從事飛彈——地對空飛彈系統的工作。這是我們正在處理的另一個方面。

And our next question comes from the line of Austin Moeller from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Austin Moeller。

So I guess just my first question here. It seems like on the tactical drone side, the 2 horses that are sort of the closest to the end of the race here are the Valkyrie and the AirWolf. So -- I mean, you've kind of touched on there's three potential customers for Valkyrie and that we could have some kind of production contracts happening in the next few months? So do we expect a production contract there? Do we expect an outlined program in the fiscal year '23 budget? Or is this all sort of pushed to the right and you're now going after and bidding on cloud or combat aircraft, which is not expected until like 2024, right?

所以我想這只是我的第一個問題。看起來在戰術無人機方面，最接近比賽終點的兩匹馬是「瓦爾基里」和「飛狼」。那麼 - 我的意思是，您已經談到了 Valkyrie 的三個潛在客戶，我們可能會在接下來的幾個月內簽訂某種生產合約？那麼我們期望在那裡簽訂生產合約嗎？我們是否期望在 23 財年的預算中有一個概述的計劃？或者這一切都被推到了右邊，你現在正在追逐並競標雲或戰鬥機，預計要到 2024 年才會出現，對嗎？

Right. So as I set up front off and I'm just going to be very cautious. I'm not -- I don't expect anything anymore until we get it in this area. But the customer has been very, very fickle, okay? There are -- in addition to the, I'll call them -- I can't say a lot about them because they're highly classified, the Kendall programs, which are -- when people think of CCAs, they think of the Kendall programs. In addition to those, there are multiple other drones in the jet class that are going to be out there, I'll call them all CCAs that are not related to what I'll call the Kendall programs. We are -- I have to be careful on how I say this. One would think that we are actively involved in all of those other programs. That's how I have to say it.

正確的。因此，當我開始準備時，我會非常謹慎。在我們在這個領域取得進展之前，我不再期待任何事情。但客戶非常非常善變，好嗎？還有——除了我稱之為——我不能對它們說太多，因為它們是高度機密的——肯德爾計劃——當人們想到 CCA 時，他們會想到肯德爾計劃。除此之外，噴射機中還有多種其他無人機，我將它們全部稱為 CCA，與我所說的肯德爾計劃無關。我們——我必須小心我的說話方式。人們可能會認為我們積極參與了所有這些其他計劃。我就是這麼說的。

Okay. That's helpful. And then just another question. The satellite program that was delayed and pushed out of Q4, was that 1 of the 3 big contracts that you guys have been talking about as necessary for the guidance at the end of the year? Or was that a different program?

好的。這很有幫助。然後還有一個問題。被推遲並從第四季度推出的衛星計劃，是你們一直在談論的年底指導所必需的 3 個大合約之一嗎？或者那是不同的程式？

Yes, it was. It was an aspect, an aspect of one of them. The program has not -- the program is moving forward. It's revenue generating. That was an aspect that's been deferred.

是的，確實如此。這是一個方面，其中一個的一個面向。該計劃還沒有——該計劃正在向前推進。這是創造收入的。這是一個被推遲的方面。

Okay. And then just one more, if I may. Are you still expecting some Sentinel revenues in Q4 on the development side? I know most of the ramp is next year, but I think you've had said some of that will start coming in the fourth quarter?

好的。如果可以的話，然後再講一首。您是否仍期望 Sentinel 第四季在開發方面獲得一些收入？我知道大部分的成長是在明年，但我想你已經說過其中一些將在第四季開始？

Yes, we are expecting some in the fourth quarter, just not as much as we originally had forecasted.

是的，我們預計第四季會出現一些情況，只是沒有我們最初預測的那麼多。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Eric DeMarco for any further remarks.

今天節目的問答環節到此結束。我想將程序交還給埃里克·德馬科 (Eric DeMarco) 以供進一步評論。

Thank you. Thank you all for joining us this afternoon, and we'll talk to you shortly. Thank you.

謝謝。感謝大家今天下午加入我們，我們很快就會與你們交談。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。