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 December 29, 2023 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 ________________________________________________________________ ...

Financial Performance Q1 FY24 - Bookings decreased by 28% from $266.9 million in Q1 FY23 to $191.5 million in Q1 FY24[4] - Revenue declined by 20% from $227.6 million in Q1 FY23 to $181.0 million in Q1 FY24[4] - Organic revenue also declined by 20% from $227.6 million in Q1 FY23 to $181.0 million in Q1 FY24[4] - Gross margin decreased by 640 basis points from 34.3% in Q1 FY23 to 27.9% in Q1 FY24[4] - Adjusted EBITDA decreased by 94% from $31.2 million (13.7% of revenue) in Q1 FY23 to $2.0 million (1.1% of revenue) in Q1 FY24[4] - Free cash flow was negative $47.1 million in Q1 FY24, compared to negative $73.4 million in Q1 FY23[4] - GAAP net loss increased from $14.3 million in Q1 FY23 to $36.7 million in Q1 FY24[4] Working Capital and Cash Flow - The company is focused on transitioning to a more cash-efficient approach to reduce working capital[3] - Efforts are underway to improve the long-term working capital posture[2] FY24 Outlook - Revenue is projected to be between $950.0 million and $1,000.0 million, representing a decrease of 2% to an increase of 3% compared to FY23 revenue of $973.9 million[34] - Adjusted EPS is expected to be between $1.19 and $1.54, compared to $1.00 in FY23[34] - Adjusted EBITDA is projected to be between $160.0 million and $185.0 million, representing 16.8% to 18.5% of revenue, compared to $132.3 million (13.6% of revenue) in FY23[34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the quarterly period ended September 29, 2023 FORM 10-Q ________________________________________________________________ OR ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ 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: 0-23599 ________________________________________________________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED June 30, 2023 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 0-23599 MERCURY SYSTEMS, INC. (Exact name of registrant as specified in its charter) Massachusetts 04-2741391 (State or other jurisdiction of incorpor ...

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 31, 2023 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: 0-23599 ________________________________________________________________ MERC ...

2 © Mercury Systems, Inc. Does not contain Technical Data. / /Mercury Proprietary/ No Tech Data/ / | --- | --- | |-----------------------------------------------------------------------------------------------------|-------| | | | | Focus on operational excellence, execution continues | | | Leadership driving continuous improvement in key operations, execution areas | | | Progress on late-stage development programs, new product introductions to continue in Q4, FY24 | | | Efforts continue to further enhance ...

Financial Data and Key Metrics Changes - Q3 total revenue increased by 4% year-over-year, reaching approximately $263 million compared to $253 million in Q3 2022 [41][11] - GAAP net income for Q3 was $5.2 million or $0.09 per share, an increase from $4.1 million or $0.07 per share in the same quarter last year, primarily due to a tax benefit of over $10 million [60] - Adjusted EBITDA for Q3 was $43.5 million, down from $52.5 million year-over-year, reflecting lower gross margins [61][11] - Gross margins decreased to 34.3% from 39.4% in Q3 last year, attributed to a higher concentration of development program revenues and pandemic-related execution delays [42][43] Business Line Data and Key Metrics Changes - The proportion of development program revenues increased from approximately 20% in fiscal 2021 to about 40% in fiscal 2023, impacting gross margins negatively [49][58] - Bookings for Q3 totaled $245 million, yielding a book-to-bill ratio of 0.93, which is lower than the first half of the fiscal year [46][13] - Q3 backlog grew by 10% year-over-year, indicating strong future revenue visibility [40][13] Market Data and Key Metrics Changes - The defense spending outlook remains positive, with expectations for growth in both domestic and international defense spending [35][36] - Supply chain conditions are beginning to improve, with a 30% reduction in supplier decommits observed in Q3 [64][31] - Semiconductor lead times have decreased from a peak of 52 to 99 weeks to a range of 13 to 78 weeks, although constraints still exist in certain areas [31][32] Company Strategy and Development Direction - The company is focused on transitioning from development to production contracts, which is expected to improve gross margins and cash flow in fiscal 2024 [75][76] - A strategic review of alternatives is ongoing, with no new developments disclosed during the call [9] - The company aims to leverage its strong backlog and increased defense spending to drive high single-digit to low double-digit revenue growth in the coming years [80][75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about overcoming current execution challenges and returning to pre-pandemic margin levels as supply chain conditions normalize [26][76] - The company anticipates a significant reduction in unbilled receivables and improved cash flow as development programs are completed [105][66] - Management highlighted that the challenges faced are not related to end-market demand, which remains strong [26][31] Other Important Information - The company expects fiscal 2023 revenue to be in the range of $990 million to $1.01 billion, reflecting flat to 2% growth year-over-year [70] - Free cash flow is expected to be negative for fiscal 2023, influenced by cash outflows related to R&D tax legislation [72][62] - The company has made progress in improving manufacturing yields and expects to see continued improvements in Q4 and fiscal 2024 [28][31] Q&A Session Summary Question: Concerns about the change in adjusted EBITDA guidance - Management explained that delays in development programs and follow-on award delays for high-margin business contributed to the change in guidance [87][88] Question: Future bidding approach for development programs - Management indicated a shift towards cost-plus fixed fee structures for new development programs where feasible, to mitigate risks associated with cost growth [90][89] Question: Specific programs driving current challenges - Management refrained from disclosing specific programs but confirmed that the capabilities being developed are critical and unique [94][92] Question: Working capital release expectations - Management projected a reduction of about $30 million from unbilled receivables as development programs are completed, with an additional $60 million expected from other programs [104][99] Question: Confidence in resolving yield issues - Management expressed confidence in resolving yield issues and ramping up production, with significant improvements already noted [108][107]

☐ 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: 0-23599 ________________________________________________________________ MERCURY SYSTEMS, INC. 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 ...

Mercury Systems, Inc. (NASDAQ:MRCY) Q4 2022 Earnings Conference Call January 31, 2023 5:00 PM ET Company Participants Mark Aslett - President & Chief Executive Officer Michael Ruppert - Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants Peter Arment - Baird Seth Seifman - JPMorgan Ken Herbert - RBC Jonathan Ho - William Blair Sheila Kahyaoglu - Jefferies Michael Ciarmoli - Truist Securities Austin Moeller - Canaccord Noah Poponak - Goldman Sachs Operator Good day, eve ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | SECOND QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS | | | | | Mark Aslett | | | | | President and CEO | | | | | Michael Ruppert Executive Vice President and CFO | | | | | January 31, 2023, 5:00 pm ET | | | | | Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET January 31, 2023 | | | | | © Me ...