| --- | --- | |-------------------------------------------------------------------------------------------------|-------| | | | | Today's Call | | | Opening remarks on Business and Results | | | Priorities and Focus Areas | | | FY24 Outlook and Longer-Term Expectations | | | Q1 FY24 Financial Results and Guidance | | | Q&A | | | | | | © Mercury Systems, Inc. Does not contain Technical Data. //Mercury Proprietary/No Tech Data// | | | --- | |-------------------------------------------------------------------- ...

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 ________________________________________________________________ ...

Mercury Systems, Inc. (NASDAQ:MRCY) Q4 2023 Results Conference Call August 15, 2023 5:00 PM ET Company Participants Dave Farnsworth - CFO Bill Ballhaus - President and CEO Conference Call Participants Seth Seifman - JPMorgan Ken Herbert - RBC Capital Markets Jonathan Ho - William Blair Michael Ciarmoli - Truist Sheila Kahyaoglu - Jefferies Operator Good day, everyone, and welcome to the Mercury Systems Fourth Quarter Fiscal 2023 Conference Call. Today's call is being recorded. At this time, for opening rema ...

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 ...