Stockholders' Equity

3 Months Ended

Mar. 25, 2012

Stockholders' Equity

Stockholders' Equity

Note 5. Stockholders’ Equity

On February 11, 2011, the Company sold approximately 4.9 million shares of its common stock at a purchase price of $13.25 per share in an underwritten public offering. The Company received gross proceeds of approximately $64.8 million. After deducting underwriting and other offering expenses, the Company received approximately $61.1 million in net proceeds.

A summary of the changes in stockholders’ equity is provided below (in millions):

	Three MonthsEnded March 27, 2011			Three Months EndedMarch 25, 2012
Stockholders’ equity at beginning of period	$	169.9		$	312.6
Comprehensive loss:
Net loss	(3.5		)	(3.0		)
Total comprehensive loss	(3.5		)	(3.0		)
Additional paid-in-capital from the issuance of common stock for cash	61.1			—
Fair value of options assumed in acquisitions	1.4			—
Stock-based compensation	0.6			1.1
Employee stock purchase plan and restricted stock units settled in cash	0.4			—
Exercise of stock options and warrants	1.1			—
Kratos Defense & Security Solutions, Inc. stockholders’ equity	231.0			310.7
Noncontrolling interest	16.9			—
Stockholders’ equity at end of period	$	247.9		$	310.7

In prior reporting periods, the Company had two classes of outstanding stock, Series B Convertible Preferred Stock and common stock. On March 8, 2011, all of the 10,000 shares of the previously issued and outstanding shares of Series B Convertible Preferred Stock were redeemed for 100,000 shares of common stock. Common stock issued by the Company for the three months ended March 27, 2011 and March 25, 2012, was as follows (in millions):

	Three Months Ended March 27, 2011	Three Months Ended March 25, 2012
Shares outstanding at beginning of the period	18.6	32.4
Stock issued for employee stock purchase plan, stock options and restricted stock units exercised	0.2	0.1
Redemption of Series B Convertible Preferred Stock	0.1	—
Common stock issued for cash	4.9	—
Shares outstanding at end of the period	23.8	32.5