Kratos Defense & Security Solutions Inc., a San Diego provider of security solutions to defense, government and industrial clients, completed a public stock offering of $100 million with B. Riley & Co. acting as sole underwriter, the company said May 15.

Earlier this month Kratos said it was issuing 20 million shares of common stock at $5 per share to generate gross proceeds of $100 million before deducting underwriting discounts and other expenses.

The firm said it plans to use the money to fund its pending acquisition of Composite Engineering Inc., a maker of aerial target drone systems. On May 8, Kratos said it agreed to pay $155 million in cash and stock for the company.

Kratos said it may use part of the proceeds for general corporate purposes, including possible acquisitions.

Also this month, Kratos reported a first quarter net loss of $3 million compared with a net loss of $3.5 million in the like quarter of 2011.

Kratos reported its first quarter results May 3. Revenue for the quarter that ended March 25 was $215 million, compared with $122.8 million in the like quarter of 2011. CEO Eric DeMarco affirmed the company’s fiscal year guidance for revenue this year to range from $950 million to $1 billion, and for its operating earnings to finish between $120 million and $130 million.

Shares of Kratos, traded under KTOS on Nasdaq, were at $5 in midday May 15, up a nickel from the prior day’s closing price. Its 52 week range is $4.61 to $12.49.