Mercury Systems Inc. Files 10-Q for Period Ending December 29, 2023

TL;DR

<b>Mercury Systems Inc. filed its quarterly report (10-Q) for the period ending December 29, 2023, detailing its financial performance and position.</b>

AI Summary

MERCURY SYSTEMS INC (MRCY) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. Mercury Systems Inc. filed a 10-Q report for the period ending December 29, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30th. The filing was made on February 6, 2024. Mercury Systems Inc. is in the Electronic Components & Accessories industry.

Why It Matters

For investors and stakeholders tracking MERCURY SYSTEMS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Mercury Systems Inc., crucial for understanding the company's performance in the second quarter of fiscal year 2024. As a public document, this filing ensures transparency and allows stakeholders to assess the company's financial health, operational status, and any potential risks or opportunities.

Risk Assessment

Risk Level: medium — MERCURY SYSTEMS INC shows moderate risk based on this filing. The company's financial performance and future outlook are subject to market conditions and competitive pressures within the electronic components and accessories industry, as indicated by its SIC code.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to assess Mercury Systems Inc.'s current financial health and future prospects.

Key Numbers

• 20231229 — Period End Date (CONFORMED PERIOD OF REPORT)
• 20240206 — Filing Date (FILED AS OF DATE)
• 3670 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 0630 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• MERCURY SYSTEMS INC (company) — FILER
• 0001049521 (company) — CENTRAL INDEX KEY
• 3670 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• MA (company) — STATE OF INCORPORATION
• 042741391 (company) — IRS NUMBER
• 001-41194 (company) — SEC FILE NUMBER
• 20231229 (date) — CONFORMED PERIOD OF REPORT
• 20240206 (date) — FILED AS OF DATE

FAQ

Industry Context

Mercury Systems Inc. operates within the Electronic Components & Accessories sector, a segment of the broader technology industry.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including the filing of quarterly reports (10-Q).

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze any disclosed risk factors that may impact future performance.
3. Compare the reported period's financial results with previous periods and industry benchmarks.

Key Dates

• 2023-12-29: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-02-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing is a 10-Q for the period ending December 29, 2023. Specific comparative data from the previous filing (likely a 10-Q for the period ending September 29, 2023, or an annual 10-K) is not directly available in the provided header information.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share MRCY Nasdaq Global Select Mar

Filing Documents

• mrcy-20231229.htm (10-Q) — 1280KB
• mrcy-12292023xexx311.htm (EX-31.1) — 10KB
• mrcy-12292023xexx312.htm (EX-31.2) — 10KB
• mrcy-12292023xexx321.htm (EX-32.1) — 6KB
• 0001049521-24-000009.txt (&nbsp;) — 6621KB
• mrcy-20231229.xsd (EX-101.SCH) — 37KB
• mrcy-20231229_cal.xml (EX-101.CAL) — 54KB
• mrcy-20231229_def.xml (EX-101.DEF) — 233KB
• mrcy-20231229_lab.xml (EX-101.LAB) — 634KB
• mrcy-20231229_pre.xml (EX-101.PRE) — 415KB
• mrcy-20231229_htm.xml (XML) — 928KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 3 Consolidated Balance Sheets as of December 29, 2023 and June 30, 2023 3 Consolidated Statements of Operations and Comprehensive Loss for the second quarters and six months ended December 29, 2023 and Decem ber 30, 2022 4 Consolidated Statements of Shareholders' Equity for the second quarters and six months ended December 29, 2023 and December 30, 2022 5 Consolidated Statements of Cash Flows for the six mo nths ended December 29, 2023 and December 30, 2022 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 38

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MERCURY SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) December 29, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 168,646 $ 71,563 Accounts receivable, net of allowance for credit losses of $ 737 and $ 1,335 at December 29, 2023 and June 30, 2023, respectively 82,737 124,729 Unbilled receivables and costs in excess of billings, net of allowance for credit losses of $ 2,313 and $ 0 at December 29, 2023 and June 30, 2023, respectively 351,003 382,558 Inventory 354,212 337,216 Prepaid income taxes 5,753 — Prepaid expenses and other current assets 21,470 20,952 Total current assets 983,821 937,018 Property and equipment, net 114,361 119,554 Goodwill 938,093 938,093 Intangible assets, net 273,309 298,051 Operating lease right-of-use assets, net 65,657 63,015 Deferred tax asset 55,426 27,099 Other non-current assets 5,585 8,537 Total assets $ 2,436,252 $ 2,391,367 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 88,060 $ 103,986 Accrued expenses 31,484 28,423 Accrued compensation 25,133 30,419 Income taxes payable — 13,874 Deferred revenues and customer advances 81,044 56,562 Total current liabilities 225,721 233,264 Income taxes payable 5,166 5,166 Long-term debt 616,500 511,500 Operating lease liabilities 68,252 66,797 Other non-current liabilities 16,121 7,955 Total liabilities 931,760 824,682 Commitments and contingencies (Note L) Shareholders' equity: Preferred stock, $ 0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding — — Common stock, $ 0.01 par value; 85,000,000 shares authorized; 57,563,733 and 56,961,665 shares issued and outstanding at December 29, 2023 and June 30, 2023, respectively 576 570 Additional paid-in capital 1,220,343 1,196,847 Retained earnings 275,150 357,439 Accumulated other comprehensive income 8,423 11,829 Total shareholders' equ

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Amounts in thousands except per share data) (Unaudited) A. Description of Business Mercury Systems, Inc. is a technology company that delivers processing power for the most demanding aerospace and defense missions. Headquartered in Andover, Massachusetts, the Company's end-to-end processing platform enables a broad range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. Processing technologies that comprise the Company's platform include signal solutions, display, software applications, networking, storage and secure processing. The Company's innovative solutions are mission-ready, trusted and secure, software-defined and open and modular (the Company's differentiators), to meet customers' most-pressing high-tech needs, including those specific to the defense community. B. Summary of Significant Accounting Policies B ASIS OF P RESENTATION The accompanying consolidated financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended June 30, 2023 which are contained in the Company's Annual Report on Form 10-K filed with the SEC on August 15, 2023. The results for the second quarter and six months ended December 29, 2023 are not ne

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View this 10-Q filing on SEC EDGAR