ANDOVER, Mass., July 21, 2025 (GLOBE NEWSWIRE) -- Mercury Systems Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, will release its fourth quarter and full year fiscal year 2025 financial results after the market close on Monday, August 11, 2025. Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on the same day to discuss Mercury's quarterly financial results, business highlights, and outlook. In addition, Company re ...

INVESTOR CONTACT Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today's most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury's products and solutions are deployed in more than 300 programs and across 35 countries, enabling a ...

Core Insights - Mercury Systems, Inc. announced two new production awards in June totaling $36.9 million for ground-based radar programs, utilizing its Common Processing Architecture and cybersecurity software from the recently acquired Star Lab [1][2] Company Overview - Mercury Systems is a technology company focused on delivering mission-critical processing power to the edge, enhancing accessibility for aerospace and defense missions [2] - The Mercury Processing Platform enables customers to leverage innovative capabilities from silicon to system scale, facilitating timely data-driven decisions [2] - The company's products and solutions are deployed in over 300 programs across 35 countries, covering applications in mission computing, sensor processing, command and control, and communications [2] Market Demand - There is strong demand for secure, high-performance processing solutions at the edge, as indicated by follow-on programs with two U.S. defense primes [2]

Core Viewpoint - Mercury Systems, Inc. has been awarded an $8.5 million contract by the U.S. Department of Defense to develop a next-generation RF signal conditioning multi-chip package, enhancing the performance and cost-effectiveness of X-band AESA radars [1][2]. Group 1: Contract and Funding - The contract is part of the DoD's Industrial Base Analysis and Sustainment (IBAS) Program, which aims to improve the defense industrial base's readiness and competitiveness through investments in domestic technologies [1]. - The two-year contract involves collaboration with Systems Innovation Engineering to develop a solution that reduces the size, weight, and power requirements of radar systems by over 80% compared to existing hardware [2]. Group 2: Technological Advancements - The new signal conditioning module will leverage Mercury's expertise in microwave and mixed signal technologies, making it more producible and affordable while enabling high-volume missions [2]. - The initiative is expected to enhance RF sensor performance and readiness, supporting faster and more reliable threat detection for military applications [3]. Group 3: Company Overview - Mercury Systems is a technology company focused on mission-critical processing for aerospace and defense, with products deployed in over 300 programs across 35 countries [4]. - The company is headquartered in Andover, Massachusetts, and operates more than 20 locations worldwide, providing solutions in mission computing, sensor processing, command and control, and communications [4].

Company Overview - Mercury Systems (MRCY) shares have increased by approximately 7.6% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the key drivers behind this performance [1] Earnings Estimates - Estimates for Mercury Systems have trended upward in the past month, with a consensus estimate shift of 8.33% [2] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the upcoming months [4] VGM Scores - Mercury Systems has a Growth Score of B, but a low Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] - The overall aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3] Industry Performance - Mercury Systems is part of the Zacks Aerospace - Defense Equipment industry, where another player, Woodward (WWD), has seen a 20.8% increase in shares over the past month [5] - Woodward reported revenues of $883.63 million for the last quarter, reflecting a year-over-year increase of 5.8% [5] - Woodward's expected earnings for the current quarter are $1.60 per share, showing a year-over-year decline of 1.8% [6]

Core Insights - Mercury Systems (MRCY) reported third-quarter fiscal 2025 results with earnings in line with estimates and revenues exceeding expectations [1] - Non-GAAP earnings were 6 cents per share, a significant improvement from a loss of 26 cents in the same quarter last year [1] - Non-GAAP revenues increased by 1.5% year over year to $211.4 million, surpassing the consensus estimate by 4.07% [1] Financial Performance - Total bookings for the quarter were $200.4 million, resulting in a book-to-bill ratio of 0.95 [3] - Total backlog as of March 28, 2025, was $1.34 billion, up by $51 million from the previous year [3] - Gross profit rose to $57.1 million, reflecting a 40.5% year-over-year increase, with gross margin expanding from 19.5% to 27% [4] - Research and development (R&D) expenses decreased by 25.9% year over year to $16 million, representing 7.56% of revenues [5] - Selling, general and administrative (SG&A) expenses fell by 0.3% year over year to $43 million, accounting for 20.4% of revenues [5] - Total operating expenses decreased by 13.7% to $74.5 million, with operating expenses as a percentage of revenues down 620 basis points to 35.3% [6] - Adjusted EBITDA was $24.7 million, a turnaround from a negative EBITDA of $2.397 million in the prior year [6] Cash Flow and Balance Sheet - Cash and cash equivalents stood at $269.8 million as of March 28, 2025, up from $242.6 million at the end of December 2024 [7] - Long-term debt was reported at $591.5 million as of March 27, 2025 [7] - Cash flows from operating activities for the third quarter were $30 million, down from $85.5 million in the previous quarter [7] - Free cash flow for the quarter was $24.1 million, compared to $81.9 million in the second quarter [8] Future Estimates - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is $248.11 million, indicating a slight year-over-year decline of 0.18% [9] - The consensus estimate for earnings is 21 cents per share, reflecting an 8.7% decline from the same quarter last year [9] Market Performance - MRCY shares have gained 20% year to date, outperforming the Zacks Aerospace sector and peers such as Spirit Aerosystems and CAE [2] - Spirit Aerosystems and CAE have seen year-to-date growth of 8.1%, 4.9%, and 0.2%, respectively [2]

THIRD QUARTER FISCAL YEAR 2025 FINANCIAL RESULTS Bill Ballhaus Chairman and CEO David Farnsworth Executive Vice President and CFO May 6, 2025, 5:00 pm ET WEBCAST LOGIN AT WWW.MRCY.COM/INVESTOR WEBCAST REPLAY AVAILABLE BY 7:00 P.M. ET MAY 6, 2025 © Mercury Systems, Inc. 1 Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhance ...

Company Performance - Mercury Systems reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.26 per share a year ago [1] - The company posted revenues of $211.36 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.07% and showing an increase from $208.26 million year-over-year [2] - Over the last four quarters, Mercury Systems has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Movement and Outlook - Mercury Systems shares have increased approximately 21.8% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $248.11 million, and for the current fiscal year, it is $0.39 on revenues of $878.75 million [7] Industry Context - The Aerospace - Defense Equipment industry, to which Mercury Systems belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Mercury Systems (MRCY) Q3 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Tyler Hojo - VP - Investor RelationsWilliam Ballhaus - Chairman & CEODavid Farnsworth - Executive VP & CFOMichael Ciarmoli - Managing Director - Aerospace & Defense Equity ResearchPete Skibitski - Director - Aerospace & Defense Equity ResearchKen Herbert - Managing DirectorConor Walters - US Aerospace & Defense and Airlines Equity Research AssociateGarrett Burkam - Equity Research Associate Conference Call Participant ...

Financial Performance - Consolidated revenues for the third quarter ended March 28, 2025, were $211.4 million, a 1.5% increase from $208.3 million in the same quarter of the previous year[129]. - The company reported a net loss of $19.2 million for the third quarter, compared to a net loss of $44.6 million in the same quarter last year[129]. - Total revenues rose by $52.2 million, or 8.9%, to $638.9 million for the nine months ended March 28, 2025, compared to $586.7 million in the prior year[148]. - Net loss narrowed to $54.3 million, or 8.5% of revenue, for the nine months ended March 28, 2025, compared to a net loss of $126.9 million, or 21.6% of revenue, in the prior year[147]. - For the third quarter ended March 28, 2025, the net loss was $19,170,000, resulting in a loss per share of $0.33, compared to a net loss of $44,574,000 and a loss per share of $0.77 for the same period in 2024[189]. - For the nine months ended March 28, 2025, the net loss was $54,274,000, with a loss per share of $0.93, compared to a net loss of $126,863,000 and a loss per share of $2.20 for the same period in 2024[191]. Expenses and Cost Management - Gross margin improved to 27.0%, up 750 basis points from 19.5% in the prior year, driven by a net estimate at completion change impact of approximately $3.7 million[135]. - Research and development expenses decreased by 25.9% to $16.0 million, primarily due to headcount reductions of 185 R&D employees[138]. - Selling, general and administrative expenses decreased by 0.4% to $43.0 million, attributed to lower bad debt expense and compensation costs[137]. - Total operating expenses were $74.5 million, down from $86.3 million in the prior year, reflecting cost-saving measures[132]. - Selling, general and administrative expenses decreased by $6.7 million, or 5.4%, to $116.7 million during the nine months ended March 28, 2025[153]. - Research and development expenses decreased by $26.2 million, or 32.0%, to $55.7 million for the nine months ended March 28, 2025[154]. - Interest expense decreased to $25.4 million during the nine months ended March 28, 2025, from $25.9 million in the same period of 2024[159]. - Other expense, net decreased to $2.9 million during the nine months ended March 28, 2025, compared to $5.7 million in the prior year[160]. Cash Flow and Liquidity - The company had a net cash inflow of $100.8 million from operating activities for the nine months ended March 28, 2025, compared to an outflow of $11.4 million for the same period in 2024[174]. - Cash and cash equivalents increased by $89.3 million from June 28, 2024, to March 28, 2025, totaling $269.8 million at the end of the period[173]. - Free cash flow for the third quarter ended March 28, 2025, was $24,060,000, compared to a negative free cash flow of $25,743,000 for the same period in 2024[195]. - For the nine months ended March 28, 2025, free cash flow was $85,071,000, while for the same period in 2024, it was a negative $35,322,000[195]. - The company reported net cash provided by operating activities of $29,974,000 for the third quarter ended March 28, 2025, compared to a cash used in operating activities of $17,805,000 for the same period in 2024[195]. Investments and Strategic Initiatives - The company invested $11.1 million in investing activities during the nine months ended March 28, 2025, a decrease of $12.8 million compared to $23.9 million in the same period in 2024[175]. - The company is exploring acquisitions or strategic alliances as part of its growth strategy[180]. Employee and Workforce Management - The company had 2,200 employees as of March 28, 2025, focusing on engineering and research to maintain technological leads[128]. - Restructuring and other charges amounted to $4.9 million, down from $9.8 million in the prior year, related to workforce reductions[140]. Tax and Regulatory Matters - The effective tax rate for the nine months ended March 28, 2025, was impacted by federal and state research and development credits and return to provision adjustments[162]. - The company maintains a valuation allowance on the majority of foreign net operating loss carryforwards and state research and development tax credit carryforwards[163]. Debt and Financing - As of March 28, 2025, the company had a borrowing capacity of approximately $900.0 million, with outstanding borrowings of $591.5 million[169]. - The company executed Amendment No. 5 to the Revolver, increasing the Consolidated Total Net Leverage Ratio covenant from 4.50 to 5.25 for Q2 2024[167]. Litigation and Market Risk - The company experienced litigation and settlement expenses of $5,467,000 for the third quarter ended March 28, 2025, compared to $2,096,000 for the same period in 2024[189]. - There were no material changes in the company's exposure to market risk from June 28, 2024, to March 28, 2025[199].