Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q2 2023 Earnings Call August 3, 2023 5:00 PM ET

Company Participants

Marie Mendoza - Senior Vice President, General Counsel

Eric DeMarco - President and Chief Executive Officer

Deanna Lund - Executive Vice President and Chief Financial Officer

Conference Call Participants

Peter Osterland - Truist Securities

Mike Crawford - B. Riley Securities

Ken Herbert - RBC Capital Markets

Seth Seifman - JPMorgan

Sheila Kahyaoglu - Jefferies

Jan-Frans Engelbrecht – Baird

Operator

Good day and thank you for standing by. Welcome to the Kratos Defense & Security Solutions Second Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Marie Mendoza, Senior Vice President, General Counsel. Please go ahead.

Marie Mendoza

Thank you. Good afternoon, everyone, and thank you for joining us for the Kratos Defense & Security Solutions second quarter 2023 conference call.

With me today is Eric DeMarco, President and Chief Executive Officer, and Deanna Lund, Kratos' Executive Vice President and Chief Financial Officer.

Before we begin the subject 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.

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.

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

Eric DeMarco

Thank you, Marie. Good afternoon. Q2 came in better than forecasted which provides us additional confidence in achieving as our full year 2023 financial objectives, including increased second half profitability as our fixed price and other contract mix continues to improve. We are on plan for 2023 to be a transition year for Kratos including reduced internally funded investments and increased year-over-year financial performance.