Kratos Defense and Security Solutions Inc Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Eric, I wanted to start off, congratulations on the AI Valkyrie flight. Coming out of that flight, the Air Force specifically commented that they see direct transferability or applications of this flight and the technology to the CCA program. Can you provide any more color on how you see Kratos' involvement in the CCA program playing out? Any maybe milestones, incremental milestones, we should be thinking about? And specifically, how you see the technology sort of risk initially as you look to transfer this into -- or the Air Force looks to transfer this into CCA amongst other areas in the future?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay. Fair enough. Can you provide any comments on the test flight and maybe any lessons learned in particular or how it completed the flight relative to initial expectations?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay. Perfect. Appreciate that. And if I could, maybe just one for Deanna. In the second quarter, it looks like working capital, specifically accounts receivable, was a really nice source of cash. The guidance implies a nice inflection in the second half of the year in terms of cash generation. Was there anything sort of onetime in the quarter you'd call out around working capital that was a nice tailwind? And how do we think about maybe the upside for the full year expectations from a cash standpoint?