"I am exceptionally pleased for Tod Brindlinger to join the Mercury Leadership Team, rounding out a series of significant changes to further integrate and align our business," said Roger Wells. "His leadership will be instrumental in our ongoing efforts to eliminate silos in our critical functions, improve the quality and timeliness of the mission-critical products and solutions we deliver to our customers, and drive operational performance that will contribute meaningfully to our financial results." ANDOVE ...

"Mercury's MOSA-aligned safety-critical mission computers based on SOSA and FACE open standards enable seamless integration of newer, more advanced technology across all aircraft," said Roya Montakhab, Senior Vice President and General Manager of Integrated Processing Solutions at Mercury. "The Green Hills FACEcertified INTEGRITY-178 tuMP RTOS is a critical component for our DAL A architecture and provides a lowrisk path to multicore certification, which supports multiple applications through a converged ar ...

A month has gone by since the last earnings report for Mercury Systems (MRCY) . Shares have added about 5.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Mercury Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Mercury Systems Q3 Earnings & Revenues Mis ...

Shareholders who purchased before February 3, 2021 should email: [email protected] The investigation concerns false and/or misleading statements and/or failure to disclose that: (i) Mercury Systems' serial acquirer strategy was not working and Mercury Systems was using improper revenue recognition practices such as changing to long-term contracts to mask deteriorating organic growth; (ii) Mercury Systems' acquisition of Physical Optics Corporation ("POC") caused POC to lose its small business accreditation, ...

Mercury Systems (MRCY) reported third-quarter fiscal 2024 results, wherein both the top and bottom lines missed the Zacks Consensus Estimate.The aerospace and defense tech firm reported a non-GAAP loss of 26 cents per share, wider than the Zacks Consensus Estimate of a loss of 15 cents. The bottom line plunged 165% year over year, mainly due to increased costs and higher interest expenses.Mercury Systems’ non-GAAP revenues decreased 21% to $208.26 million from $263.5 million reported in the year-ago quarter ...

Mercury Systems (MRCY) reported $208.26 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 21%. EPS of -$0.26 for the same period compares to $0.40 a year ago.The reported revenue represents a surprise of -1.78% over the Zacks Consensus Estimate of $212.03 million. With the consensus EPS estimate being -$0.15, the EPS surprise was -73.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMMISSION FILE NUMBER: 001-41194 ________________________________________________________________ ME ...

Overview of Q3 FY2024 Performance [Management Commentary](index=1&type=section&id=Management%20Commentary) The company is progressing on four priorities: shifting to production, expanding backlog, optimizing costs, and reducing working capital - The company is focused on four key priorities: shifting development to production, growing backlog, streamlining operations, and reducing working capital[2](index=2&type=chunk) - **Working capital decreased by 8.0% year-over-year**, reversing a multi-year growth trend[2](index=2&type=chunk) - The company expects to enter FY25 with a clearer path to predictable organic growth, expanding margins, and strong cash flow[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The company reported a book-to-bill ratio of 1.06 and a record backlog of $1.3 billion despite a GAAP net loss **Q3 FY2024 Key Metrics** | Metric | Value | Note | | :--- | :--- | :--- | | Bookings | $219.9 million | - | | Book-to-bill Ratio | 1.06 | - | | Revenue | $208.3 million | - | | GAAP Net Loss | ($44.6) million | - | | Adjusted EBITDA | ($2.4) million | - | | Record Backlog | $1.3 billion | Up 17% YoY | Detailed Financial Results [Third Quarter Fiscal 2024 Results](index=2&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) Q3 FY2024 saw a significant downturn with decreased revenue, a swing to a GAAP net loss, and negative adjusted EBITDA **Q3 FY2024 vs Q3 FY2023 Financial Performance** | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Revenues | $208.3 million | $263.5 million | | GAAP Net (Loss) Income | ($44.6) million | $5.2 million | | GAAP (Loss) EPS | ($0.77) | $0.09 | | Adjusted (Loss) EPS | ($0.26) | $0.40 | | Adjusted EBITDA | ($2.4) million | $43.5 million | **Q3 FY2024 vs Q3 FY2023 Cash Flow** | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Cash flows used in operating activities | ($17.8) million | ($3.2) million | | Free cash flow | ($25.7) million | ($12.7) million | [Backlog](index=2&type=section&id=Backlog) The company's total backlog reached a record $1.29 billion, with $761.2 million expected to convert to revenue within 12 months - Total backlog increased by $190.5 million year-over-year to a **record $1.29 billion**[9](index=9&type=chunk) - **$761.2 million** of the total backlog is expected to be converted to revenue in the next 12 months[9](index=9&type=chunk) Business Outlook [Fiscal Year 2024 Guidance](index=3&type=section&id=Fiscal%20Year%202024%20Guidance) The company maintains its full-year revenue guidance and expects bookings to exceed $1 billion with positive free cash flow **Full Fiscal Year 2024 Outlook** | Metric | Guidance Range / Expectation | | :--- | :--- | | Revenue | $800.0 million to $850.0 million | | Bookings | Exceed $1 billion | | Free Cash Flow | Positive | Financial Statements [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets remained stable while total liabilities increased, leading to a decrease in shareholders' equity **Balance Sheet Summary (in thousands)** | Account | March 29, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,378,178** | **$2,391,367** | | Cash and cash equivalents | $142,645 | $71,563 | | Goodwill | $938,093 | $938,093 | | **Total Liabilities** | **$905,385** | **$824,682** | | Long-term debt | $616,500 | $511,500 | | **Total Shareholders' Equity** | **$1,472,793** | **$1,566,685** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) The company's Q3 operating results show a significant decline in revenue and a shift from operating income to a loss **Q3 Statement of Operations Summary (in thousands, except per share data)** | Account | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net revenues | $208,258 | $263,479 | | Gross margin | $40,642 | $90,289 | | (Loss) income from operations | ($45,656) | $1,954 | | Net (loss) income | ($44,574) | $5,156 | | Diluted net (loss) earnings per share | ($0.77) | $0.09 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased year-over-year, contributing to a decrease in total cash and cash equivalents **Q3 Statement of Cash Flows Summary (in thousands)** | Account | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($17,805) | ($3,217) | | Net cash used in investing activities | ($7,938) | ($9,398) | | Net cash provided by financing activities | $0 | $0 | | Net decrease in cash | ($26,001) | ($12,503) | | Cash and cash equivalents at end of period | $142,645 | $64,441 | Non-GAAP Financial Measures [Reconciliation of GAAP to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20EBITDA) Adjusted EBITDA turned negative at ($2.4) million, a sharp decline from the prior year's positive result **Adjusted EBITDA Reconciliation Summary (in thousands)** | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net (loss) income (GAAP) | ($44,574) | $5,156 | | Adjustments (Net) | $42,177 | $38,305 | | **Adjusted EBITDA (Non-GAAP)** | **($2,397)** | **$43,461** | [Reconciliation of GAAP to Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20GAAP%20to%20Free%20Cash%20Flow) Free cash flow remained negative and worsened compared to the same period last year **Free Cash Flow Reconciliation (in thousands)** | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($17,805) | ($3,217) | | Purchases of property and equipment | ($7,938) | ($9,446) | | **Free cash flow** | **($25,743)** | **($12,663)** | [Reconciliation of GAAP to Adjusted Income and EPS](index=15&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Income%20and%20EPS) The company reported a non-GAAP adjusted loss per share, reversing the adjusted income from the prior-year quarter **Adjusted (Loss) Income and EPS Reconciliation** | Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Net (loss) income (GAAP) | ($44.6) M | $5.2 M | | Adjusted (loss) income (Non-GAAP) | ($15.1) M | $22.6 M | | Diluted (loss) EPS (GAAP) | ($0.77) | $0.09 | | Adjusted (loss) EPS (Non-GAAP) | ($0.26) | $0.40 | [Reconciliation of GAAP to Organic Revenue](index=17&type=section&id=Reconciliation%20of%20GAAP%20to%20Organic%20Revenue) All reported net revenues for the quarter were classified as organic, with no contribution from recent acquisitions - For Q3 FY2024, total net revenues of **$208.3 million were entirely organic**, with no contribution from acquired revenue[60](index=60&type=chunk) Other Information [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call was scheduled to discuss the quarterly results and provide a business outlook - A conference call to discuss financial results was scheduled for 5:00 p.m. ET on May 7, 2024[13](index=13&type=chunk) [Forward-Looking Safe Harbor Statement](index=6&type=section&id=Forward-Looking%20Safe%20Harbor%20Statement) The report contains forward-looking statements that are subject to various risks and uncertainties - The report includes a safe harbor statement cautioning that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ[20](index=20&type=chunk)

Mercury Systems (MRCY) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On ...

Financial Data and Key Metrics Changes - The company reported bookings of $325 million for the quarter, with a book-to-bill ratio of 1.65, resulting in a backlog of $1.3 billion, which is up over $160 million or 14% year-over-year [13][27] - Revenues for the quarter were $197 million, down $32 million or 14% compared to the prior year, primarily due to a shift in focus towards challenge programs and a higher mix of development programs [13][14] - Gross margin for the second quarter decreased to 16% from 35.3% in the prior year, largely due to cost growth impacts and higher manufacturing adjustments [14][15] - GAAP net loss was $45.6 million, compared to a loss of $10.9 million in the prior year, driven by approximately $48 million of costs incurred in the quarter [15][17] - Free cash flow for the quarter was $37.5 million, an increase from $22.2 million in the prior year, attributed to strong collections and favorable billing terms [16][29] Business Line Data and Key Metrics Changes - The company made progress in retiring risks associated with challenge programs, completing or exiting four additional programs, totaling eight out of approximately 20 challenge programs [5][30] - The challenge program cost growth was primarily driven by one specific program, which included development, low-rate production, and a long production run [54][61] - The company is transitioning from a high mix of development programs to production programs, which is expected to improve margins and predictability in the future [30][38] Market Data and Key Metrics Changes - The company anticipates strong demand and bookings momentum to continue through the year, with full-year bookings expected to exceed $1 billion [32][37] - The company has a record backlog, indicating robust customer health and demand for its products [57][59] Company Strategy and Development Direction - The company is focused on four priority areas: enhancing execution for predictable performance, driving organic growth, addressing cost structure to expand margins, and improving free cash flow [38] - A reorganization was announced to streamline operations and eliminate redundancy, consolidating multiple business units under a single operating structure [24][28] - The company aims to complete the majority of challenge programs by the end of the fiscal year, which is critical for transitioning to higher-margin production programs [30][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that fiscal '24 is a transitional year, with expectations for revenue and earnings to be below prior year levels due to higher-than-expected cost growth [30][37] - The company is withdrawing its full-year GAAP and non-GAAP net earnings guidance, focusing instead on revenue guidance due to ongoing volatility [49][50] - Management remains optimistic about the long-term growth potential, targeting low to mid-20% adjusted EBITDA margins as the business stabilizes [61][62] Other Important Information - The company reported a significant improvement in net working capital, decreasing by approximately $70 million in the quarter [29][36] - Cash and cash equivalents at the end of the quarter were $169 million, with net debt of $448 million, reflecting free cash flow generation [29][48] Q&A Session Summary Question: What is the status of the challenge program that caused the $14 million cost growth? - Management indicated that the program will remain active for a while, but they have gained a clearer understanding of the production costs and execution requirements moving forward [54][61] Question: Are any of the businesses impaired due to the cost growth? - Management stated that impairment assessments are conducted at a gross level, and they do not see significant impairment risks at this time [56] Question: What does the decrease in sales to key customers indicate? - Management noted that fluctuations in sales percentages to key customers are normal and reflect a diversified backlog, emphasizing the strength of their current backlog and bookings [57][58]