Although Kratos Defense & Security Systems (NASDAQ:KTOS) is primarily a national security contractor whose work is typically performed on a military base, in a secure facility, or at a critical infrastructure location, it announced today that it's ready to cook up sales in the health-care field, after being awarded an $18 million contract from a major health-care and medical-equipment provider for high-power microwave amplifiers used in oncology therapy systems.
The initial award is valued at more than $6 million, but it also received the service and maintenance contract for the amplifiers, which has a minimum value of $12 million. With the amplifiers to be built at Kratos' Herley Lancaster facility, the expected delivery date is for the third quarter of this year. The service and maintenance performance portion of the contract runs through 2022.
Kratos Electronics Product Division President Rich Poirier said: "Kratos continues to execute on its strategy to apply proven products and technology in certain very specific commercial applications, and these contract awards are representative of the continued success of this initiative."
Shares of the company closed 3.75% higher, finishing the day at $6.37.
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