Mercury Sys Inc Stock Price, News & Analysis

Mercury Systems Inc. (NASDAQ: MRCY) will announce its second quarter fiscal year 2022 financial results on February 1, 2022, after market close. A conference call and webcast will follow at 5:00 p.m. ET to discuss the financial results, business highlights, and outlook. Participants can register for the call online. The company focuses on providing secure, mission-critical technologies primarily for the aerospace and defense sectors, emphasizing innovation and secure solutions.

Mercury Systems Inc. (NASDAQ: MRCY) has implemented a limited-duration shareholder rights plan to safeguard investor interests during a period of perceived undervaluation. This decision, made unanimously by the Board, aims to protect long-term shareholder value amidst challenging market conditions. The Rights Plan, lasting one year, distributes rights to shareholders, becoming exercisable if any party acquires over 7.5% of common shares without Board approval. The company intends to ensure fair value realization for all shareholders while evaluating potential offers.

Mercury Systems has launched the Model 5503 Sensor Open Systems Architecture™ (SOSA) aligned high-speed 3U VPX synchronizer module. This optimized commercial-off-the-shelf (COTS) solution addresses the complexities of synchronization in beamforming and phased-array applications across radar, electronic warfare, and communications sectors. The module can synchronize up to 32 channels, showcasing advanced integration and reduced development costs for users. Its SOSA alignment supports interoperability and rapid technology insertion, aligning with the Consortium's goals.

Mercury Systems has announced the acquisition of Atlanta Micro, a leader in RF modules and components, for an undisclosed cash amount. This strategic acquisition aims to enhance Mercury's portfolio in electronic warfare, radar, and weapons markets. Atlanta Micro is projected to contribute approximately $16 million in revenue for the year ending December 31, 2022, with adjusted EBITDA margins exceeding 30%. The deal, funded through Mercury’s revolving credit facility, is expected to be immediately accretive to adjusted EPS and supports Mercury's growth strategy in trusted microelectronics.

Mercury Systems announced the launch of a new NAND flash non-volatile memory device designed for extreme environments, particularly suitable for applications in space. This device meets NASA's EEE-INST-002 guidelines and offers 32 GB of high-capacity storage, making it ideal for data-intensive tasks like artificial intelligence and machine learning. The memory's reliability minimizes field failures, and its size, weight, and power profile optimize usage in constrained spaces. This innovation fosters growth in satellite technology and the broader space economy.

Mercury Systems (NASDAQ: MRCY) has completed its acquisition of Avalex Technologies, enhancing its position in the aerospace and defense sector. The deal, an all-cash transaction subject to net working capital and net debt adjustments, was financed through existing cash and a revolving credit facility. This acquisition aims to meet the rising demand for digitally converged solutions in the C4I and platform/mission management markets. Mercury's CEO, Mark Aslett, expressed confidence in the integration process and the strategic alignment of this acquisition with the company's growth objectives.

In its first quarter of fiscal 2022, Mercury Systems (MRCY) reported revenues of $225 million, a 9% increase compared to the previous year. The company experienced a GAAP net loss of $7.1 million or $(0.13) per share. Adjusted EPS was $0.41, down from $0.51 year-over-year. Notably, total bookings were $199.3 million, resulting in a book-to-bill ratio of 0.89. Despite challenges such as potential defense budget delays and supply chain issues, Mercury expects revenues for the second quarter to range between $215 million and $225 million.

Mercury Systems has appointed Roger Wells as Executive Vice President and President of the Microelectronics division, effective November 1, 2021. With over 25 years in aerospace and defense, Wells aims to expand the company's microelectronics business. His previous experience includes leadership roles at Teledyne FLIR and Northrop Grumman, along with a background in C4ISR systems for the DoD. President and CEO Mark Aslett expressed confidence in Wells' expertise to drive innovation and growth within Mercury's technology solutions.