Mercury Receives Two New Common Processing Architecture Production Awards

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) has secured two new production awards in June 2025 totaling $36.9 million for ground-based radar programs. These awards leverage Mercury's Common Processing Architecture and cybersecurity software from their recently acquired Star Lab division.

The contracts, awarded by two U.S. defense prime contractors, demonstrate the growing demand for Mercury's secure, high-performance processing solutions at the edge. The company's Mercury Processing Platform enables customers to access innovative capabilities from silicon to system scale, supporting over 300 programs across 35 countries in mission computing, sensor processing, command and control, and communications applications.

Positive

• Secured new production awards worth $36.9 million for ground-based radar programs
• Strong demand validation from U.S. defense prime contractors
• Broad market presence with 300+ programs across 35 countries
• Successfully integrating Star Lab's cybersecurity software into product offerings

Negative

• Facing potential risks from supply chain disruption and component shortages
• Exposed to challenges from inflation and labor shortages
• Subject to uncertainties in defense program funding and government regulations
• Integration challenges with acquired businesses

Insights

Defense Technology Analyst

Mercury Systems secured $36.9M in new production awards, strengthening its position in mission-critical defense processing technology.

Mercury Systems has secured $36.9 million in new production awards for ground-based radar programs with two U.S. defense prime contractors. These awards specifically leverage Mercury's Common Processing Architecture along with cybersecurity software from their recently acquired Star Lab subsidiary.

These follow-on contracts represent significant validation of Mercury's technological capabilities in secure, high-performance computing for edge applications. The company's processing technology is particularly valuable in mission-critical defense environments where security, reliability, and performance cannot be compromised.

The contracts highlight Mercury's established position within the defense industrial base as a trusted supplier. Their technology platform enables customers to process data and make decisions on critical timelines, a capability that's increasingly important as military systems become more data-intensive and require more sophisticated processing capabilities at the tactical edge.

Mercury's extensive program participation (more than 300 programs across 35 countries) demonstrates the broad applicability of their technology across diverse defense applications including mission computing, sensor processing, command and control, and communications. The company's continued success in securing production contracts reflects both the technical merit of their solutions and their manufacturing capacity to deliver at scale for major defense programs.

ANDOVER, Mass., July 08, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced it received two new production awards in June totaling $36.9 million for ground-based radar programs that leverage its Common Processing Architecture and cybersecurity software from recently acquired Star Lab.

“We continue to see strong demand for secure, high-performance processing solutions at the edge,” said Tom Smelker, Mercury’s Senior Vice President of Processing Technologies. “These follow-on programs with two U.S. defense primes reflect the unique value of our technology in this area, as well as our capacity to deliver these capabilities at the necessary speed and scale.”

Mercury Systems – Innovation that matters^®
Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has more than 20 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

INVESTOR CONTACT
Tyler Hojo
Vice President, Investor Relations
Tyler.Hojo@mrcy.com

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com

FAQ

What is the value of Mercury Systems' (MRCY) new production awards announced in June 2025?

Mercury Systems received two production awards totaling $36.9 million for ground-based radar programs in June 2025.

How many programs and countries does Mercury Systems (MRCY) currently serve?

Mercury Systems' products and solutions are deployed in more than 300 programs across 35 countries, supporting various aerospace and defense applications.

What technologies are included in Mercury Systems' (MRCY) new production awards?

The production awards leverage Mercury's Common Processing Architecture and cybersecurity software from their recently acquired Star Lab division.

What are the main applications of Mercury Systems' (MRCY) Processing Platform?

The Mercury Processing Platform supports applications in mission computing, sensor processing, command and control, and communications for aerospace and defense missions.

What are the key risks facing Mercury Systems (MRCY) in 2025?

Key risks include supply chain disruptions, component shortages, inflation, labor shortages, and uncertainties in defense program funding.