Core Insights - Mercury Systems has appointed Tod Brindlinger as Senior Vice President of Operations, effective June 10, 2024, to enhance operational performance and drive growth [5][6] - The company has completed the second phase of its organizational restructuring aimed at improving performance and accelerating growth by consolidating operations [5][7] - The restructuring has identified cost reductions and efficiencies of approximately $15 million, with plans to reinvest a portion back into the business [7] Company Strategy - The strategic reorganization aims to streamline operations by consolidating two divisions into a single integrated structure, enhancing alignment across business functions [1][2] - The U.S.-based businesses have been realigned into two product-oriented units: Signal Technologies and Processing Technologies, along with a unit for Integrated Processing Solutions [1] - The company is focused on driving integration to unlock functional efficiencies and growth potential from acquired businesses [2] Leadership and Management - Roger Wells, the Chief Operating Officer, emphasizes the importance of eliminating silos and improving the quality and timeliness of products delivered to customers [1] - Bill Ballhaus, Chairman and CEO, highlights the progress made in optimizing the company’s structure to innovate and advance its processing platform [2] Operational Focus - Brindlinger will oversee global manufacturing, facilities, and supply chain, bringing over 30 years of leadership experience in various operational roles [6] - The restructuring is expected to support improved profitability and operating leverage for the company's fiscal year 2025 [7] Market Position - Mercury Systems delivers mission-critical processing power to the edge, serving aerospace and defense missions with advanced technologies [8] - The company’s products and solutions are deployed in over 300 programs across 35 countries, indicating a broad market presence [8]

"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 ...