4Q21 Results. Revenue of $211.6 million, up 2.5% y-o-y, and came in at the mid-point of the $205-$215 million guidance. Revenue increases in most business lines offset the decline in the Training business. Organic revenue growth was 7.7%, excluding the Training business. Adjusted EBITDA came in at $23.4 million versus $22.3 million a year ago. GAAP EPS loss was $0.02, adjusted EPS was $0.11. We had forecast revenue of $210 million, adjusted EBITDA of $21 million, $0.01 GAAP EPS, and adjusted EPS of $0.08.Unmanned, Space, Satellite, Cyber Key Drivers. Fourth quarter Unmanned Systems revenue jumped 9.9% to $54.4 million while the Space, Satellite and Cyber business experienced an organic 9.0% increase in revenue to $78.4 million. For the full 2021 year, Unmanned Systems revenue jumped 24% and the Space, Satellite and Cyber business saw its revenue rise by 19% in 2021.Solid Bookings. 4Q21 bookings were $323.1 million resulting in a book-to-bill ratio of 1.5 to 1.0 for the quarter. Full year book-to-bill was 1.0 to 1.0. Yearend backlog was $953.9 million, up sequentially from $839.1 million and from $922.2 million a year ago. Bid and pipeline proposal was $9.4 billion at yearend.Projections. 2022 is in the hands of the CR. The CR will already negatively impact 1Q22 and if it drags on past March 11th, it could hurt the rest of 2022. For the first quarter we are maintaining our $190 million revenue projection but reducing our adjusted EPS to $0.03 from $0.05. For the full year, we expect to see sequential improvement, with full year revenue now at $890 million, adjusted EPS of $0.41, and adjusted EBITDA of $85 million.Compelling Risk/Reward. We believe the current price level presents investors with a compelling risk/reward opportunity. We continue to believe it is a question of when, not if. We are maintaining our Outperform rating and $30.00 12-month price target. We continue to believe in the long-term prospects of Kratos and believe the Company to be well positioned to capitalize on new and emerging trends in defense. Read More >>