Kratos Defense & Security Solutions Inc. reported a net loss of $7.7 million on revenue of $151.2 million during the company’s second quarter, which ended on July 1.

The same quarter one year ago saw Kratos (Nasdaq: KTOS) report a net loss of $6.2 million on revenue of $147.9 million.

The defense contractor said it recast its financial results to reflect the recent divestiture of its Public Safety & Security business.

The corporation reported financial results Aug. 2.

The most recent quarter’s net loss of $7.7 million included a $3.9 million loss from discontinued operations.

Kratos’ Unmanned Systems Division, which makes target drones and tactical drones, turned in $35.6 million in revenue in the recent quarter, up 60 percent from $22.2 million in the same quarter of 2017.

The San Diego-based defense contractor affirmed its financial guidance for fiscal 2018, saying it expects $640 million to $650 million in revenue. The numbers exclude the public safety business.

Kratos said it expects fiscal 2018’s adjusted EBITDA to be $55 million to $59 million. EBITDA stands for earnings before interest, taxes, depreciation and amortization; Kratos adds other adjustments including stock-based compensation, foreign transaction gains and losses, legal costs and excess capacity and restructuring costs.

Kratos also said its Unmanned Systems Division booked $54.3 million in contracts during the second quarter.