Kratos Defense plans to take its experience building target drones — such as this U.S. Air Force model — and develop unmanned combat aerial systems. Kratos bought drone maker Composite Engineering Inc. last year.

Kratos Defense plans to take its experience building target drones — such as this U.S. Air Force model — and develop unmanned combat aerial systems. Kratos bought drone maker Composite Engineering Inc. last year.

Eric DeMarco admits he was holding something back in spring 2012 when he announced that his company, Kratos Defense & Security Solutions Inc...