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Eric DeMarco admits he was holding something back in spring 2012 when he announced that his company, Kratos Defense & Security Solutions Inc., was buying Composite Engineering Inc., a Sacramento aerospace business.
What he didn't say was that he wanted to turn CEI from a maker of supersonic target drones into a maker of unmanned
combat aerial systems, or UCAS. Such a conversion was absolutely part of the plan, DeMarco says now.
"Sometimes you don't want to say things too early," he said.
That perhaps understandable considering what's at stake. The market for unmanned aircraft market is expected to grow from 2,500 units in mid-2013 to more than 7,000 units in 2020, one analyst noted, citing data from Arizona-based Composite Forecasts and Consulting LLC.
Kratos, nevertheless, tipped its hand with a recent announcement that it hired newly retired Vice Adm. Gerald Beaman, recently commander of the U.S. Navy's 3rd Fleet, as president of a new UCAS division.
Kratos Defense (Nasdaq: KTOS) said it plans to spend at least $5 million during the second half of...