Financial Data and Key Metrics Changes - In Q4 FY '24, the company reported bookings of $284 million, resulting in a book-to-bill ratio of 1.14, and a full-year book-to-bill of 1.22, indicating strong demand [7][24] - Q4 revenue was $249 million, slightly down 2% year-over-year, while full-year revenue was $835 million, a decline of 14% compared to the previous year [17][24] - Adjusted EBITDA for Q4 was $31.2 million, up 42% year-over-year, while full-year adjusted EBITDA decreased to $9.4 million from $132.3 million in the prior year [23][26] - Free cash flow in Q4 reached $61.4 million, marking the highest quarterly free cash flow in the company's history, compared to $3.8 million in the prior year [23][29] Business Line Data and Key Metrics Changes - The company made significant progress in its four priority areas, including delivering predictable performance, driving organic growth, expanding margins, and improving free cash flow [5][8] - The backlog increased to a record $1.3 billion, up 16% year-over-year, with approximately 80% of firm fixed-price bookings being production-related [11][24] - The company retired risk on 13 of the original 19 challenged programs, with plans to ramp up production in the first half of FY '25 [10][14] Market Data and Key Metrics Changes - The company noted strong demand in growth markets, including sensors, electronic warfare, avionics, and C4I, which align with customer priorities [11] - The company is experiencing a shift towards production bookings, with 80% of firm fixed-price bookings being production in nature, indicating a positive trend in market positioning [11][36] Company Strategy and Development Direction - The company aims to achieve above-market top-line growth, adjusted EBITDA margins in the low-to-mid 20% range, and free cash flow conversion of 50% [14][42] - The focus for FY '25 includes reducing working capital and transitioning from a high mix of development programs to a more balanced production program mix [15][42] - The company is optimistic about its strategic positioning as a leader in mission-critical processing at the edge, with expectations for predictable organic growth and expanding margins [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver results in line with its target profile, despite not providing specific guidance for FY '25 [14][15] - The company anticipates that the first half of FY '25 will be relatively flat year-over-year, with an increase in run rate as operational capacity shifts towards production programs [15][16] - Management highlighted the importance of successful execution of development programs and the ramp-up of production as key factors influencing future performance [34][36] Other Important Information - The company ended Q4 with $181 million in cash after paying down $25 million of debt, with total funded debt at $592 million [27] - Working capital decreased by approximately $93 million year-over-year, reflecting efforts to reverse the trend of growth in working capital [28] Q&A Session Summary Question: Details on the Common Processing Architecture (CPA) programs - Management confirmed confidence in ramping up to full rate production in the first half of FY '25, with significant progress made in reliability testing and corrective actions [30] Question: Factors influencing FY '25 results - Management discussed visibility improvements due to a record backlog and progress in reducing volatility and improving cost structure, with a focus on development program execution [32][34] Question: Transitioning to a 20:80 split of development to production programs - Management indicated that the transition is expected to occur over the next 12 months, with a focus on pursuing new business opportunities while managing risk appropriately [36] Question: Impact of CPA-related programs on margins - Management stated that CPA-related programs are not expected to be margin dilutive and may even be additive due to strong market demand [37] Question: Expectations for EBITDA margins in FY '25 - Management expects to start FY '25 with high single-digit EBITDA margins, improving in the second half as backlog transitions and volume increases [39][40] Question: Tracking unbilled receivables and KPIs for FY '25 - Management emphasized the importance of KPIs related to top-line growth, margin improvement, and free cash flow conversion as indicators of progress in FY '25 [42]

Core Insights - Mercury Systems, Inc. reported a fourth quarter FY24 revenue of $248.6 million, a decrease from $253.2 million in the same quarter of FY23, with total bookings of $284.4 million, resulting in a book-to-bill ratio of 1.14 [4][5][8] - The company achieved a record backlog of $1.3 billion, reflecting a 16% year-over-year increase [3][10] - For FY24, the company reported total revenues of $835.3 million, down from $973.9 million in FY23, with total bookings of $1.02 billion and a book-to-bill ratio of 1.22 [8][9] Financial Performance - The GAAP net loss for Q4 FY24 was $10.8 million, or $0.19 per share, compared to a net loss of $8.2 million, or $0.15 per share, in Q4 FY23 [5][20] - Adjusted EBITDA for Q4 FY24 was $31.2 million, an increase from $21.9 million in Q4 FY23 [6][38] - Free cash flow for Q4 FY24 was $61.4 million, significantly up from $3.8 million in Q4 FY23 [7][41] Operational Highlights - The company made progress in addressing challenges in its business, focusing on mission-critical processing and organic growth with expanding margins [2][3] - Cash flows from operating activities in Q4 FY24 were $71.8 million, compared to $12.6 million in Q4 FY23 [7][41] - The company reversed a multi-year trend of growth in working capital, producing a record free cash flow [3] Yearly Overview - For FY24, the company reported a GAAP net loss of $137.6 million, or $2.38 per share, compared to a net loss of $28.3 million, or $0.50 per share, in FY23 [9][46] - Adjusted EPS for FY24 was ($0.69), down from $1.00 in FY23 [9][46] - The total backlog at the end of FY24 was $1.33 billion, with $758.9 million expected to be recognized as revenue within the next 12 months [10]

ANDOVER, Mass., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, today announced the appointment of Brad Whittington as its Senior Vice President of Engineering, effective Aug. 12, 2024. Reporting to Chief Operating Officer Roger Wells, Whittington is responsible for the strategic planning, leadership, and execution of Mercury's recently integrated Engineering organization. Whittington has ...

Mercury Systems, Inc. MRCY is expected to release earnings results for its fourth quarter, after the closing bell on Tuesday, Aug. 13. Analysts expect the Andover, Massachusetts-based company to report quarterly earnings at 2 cent per share, versus a year-ago profit of 11 cents per share. Mercury Systems is projected to report quarterly revenue of $230.69 million, compared to $253.24 million a year earlier, according to data from Benzinga Pro. On June 18, Mercury named Tod Brindlinger as Senior Vice Preside ...

In its upcoming report, Mercury Systems (MRCY) is predicted by Wall Street analysts to post quarterly loss of $0.07 per share, reflecting a decline of 163.6% compared to the same period last year. Revenues are forecasted to be $223.2 million, representing a year-over-year decrease of 11.9%. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections ov ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Mercury Systems (MRCY) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 13, 2024, might help the stock move higher if these key numbers are better than ex ...

Core Insights - Mercury Systems Inc. will release its fourth quarter and full fiscal year 2024 financial results on August 13, 2024, after market close [1] - A conference call and webcast will be held on the same day at 5:00 p.m. ET to discuss the financial results and business outlook [2] - The company specializes in delivering mission-critical processing power for aerospace and defense applications, with products deployed in over 300 programs across 35 countries [4] Financial Results Announcement - The financial results will be available after market close on August 13, 2024 [1] - A replay of the webcast will be accessible two hours post-call and archived for six months [3] Conference Call Details - Participants must register online at least 15 minutes before the call [3] - The call will cover quarterly financial results, business highlights, and future outlook [2] Company Overview - Mercury Systems focuses on advanced technologies for aerospace and defense missions, providing innovative processing capabilities [4] - The company is headquartered in Andover, Massachusetts, and operates 24 locations globally [4]

Core Viewpoint - Mercury Systems (MRCY) has secured significant contracts with the U.S. Navy and other defense partners, which are expected to enhance its growth prospects despite facing competitive pressures in the defense sector [1][3][6]. Group 1: Recent Agreements and Partnerships - Mercury signed a $13.2 million agreement with the U.S. Navy to advance sensor processing technologies, aiming to reduce the time required for radar and electronic warfare capabilities [1]. - The company will develop a next-generation RF System-in-Package (SiP) that integrates advanced commercial chips, enhancing its existing RFS1140 SiP solution [2]. - A production agreement with BlueHalo will support the U.S. Space Force's Satellite Communication Augmentation Resource program, providing an FPGA-based solution for BlueHalo's BADGER system [3]. - Mercury secured a $31 million contract from L3Harris Technologies to supply solid slate data recorders for the U.S. Space Development Agency's Tranche 2 Tracking Layer satellite constellation [4]. - Earlier collaborations with Lockheed Martin focus on advancing defense and manufacturing technologies in Switzerland, particularly related to the F-35 Lightning II acquisition [11]. Group 2: Financial Performance and Market Position - In Q3 of fiscal 2024, operating expenses as a percentage of revenues increased by 790 basis points to 41.4% from 33.5% year-over-year [7]. - The consensus estimate for MRCY's fourth-quarter fiscal 2024 loss per share is projected at 5 cents, widening by 1 cent over the past 60 days, with a fiscal 2024 loss estimate of 97 cents per share, widening by 6 cents [7]. - Year-to-date, MRCY shares have declined by 18.4%, underperforming the Zacks Computer and Technology sector's growth of 29.4% and competitors like Kratos Defense & Security Solutions and Lockheed Martin [12]. Group 3: Industry Challenges - The defense sector is characterized by increasing competition from companies such as Kratos Defense & Security Solutions, Lockheed Martin, and Elbit Systems, which poses challenges for Mercury [5][6]. - The complexity of software and systems has been extending timelines for military platform development, prompting initiatives like the Office of Naval Research's Open Rapid Chipletized Approach program to enhance modularity and reduce design time [8].

ANDOVER, Mass., July 10, 2024 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, today announced an agreement with the U.S. Navy to advance sensor processing technologies that will allow radar and electronic warfare (EW) capabilities to be designed on much shorter timelines. Mercury Systems – Innovation that matters® "ORCA represents a significant evolution of the Mercury Processing Platform that will driv ...

"ORCA represents a significant evolution of the Mercury Processing Platform that will drive down radar and EW system development timelines, allowing next-generation capabilities to be fielded much faster," said Tony Trinh, Mercury's Senior Director of Advanced Packaging. "The ORCA approach opens up incredible opportunities to integrate mission-specific pre-processing chiplets to rapidly upgrade systems on a wide variety of existing platforms and stay ahead of evolving threats." Forward-Looking Safe Harbor S ...