Mercury Systems Files 10-Q for Q2 FY25

TL;DR

Mercury Systems filed its Q2 FY25 10-Q. Financials are in.

AI Summary

Mercury Systems Inc. reported its second quarter fiscal year 2025 results for the period ending December 27, 2024. The company's filing indicates financial data and operational details for this period. Specific revenue and profit figures are not detailed in this header information, but the filing pertains to their ongoing business operations.

Why It Matters

This filing provides investors with an update on Mercury Systems' financial performance and operational status for the second quarter of fiscal year 2025, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the absence of specific financial performance metrics in the provided text necessitates a medium risk assessment.

Key Numbers

• 2024-12-27 — Period End Date (End of the reporting period for Q2 FY25)
• 20250204 — Filing Date (Date the 10-Q was submitted to the SEC)

Key Players & Entities

• MERCURY SYSTEMS INC (company) — Filer
• 0001049521-25-000009 (filing_id) — Accession Number
• 20241227 (date) — Period of Report
• 20250204 (date) — Filing Date
• MA (location) — State of Incorporation
• 01810 (zip_code) — Business Address Zip
• 9782561300 (phone_number) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• mrcy-20241227.htm (10-Q) — 1271KB
• mrcy-12272024xexx311.htm (EX-31.1) — 10KB
• mrcy-12272024xexx312.htm (EX-31.2) — 10KB
• mrcy-12272024xexx321.htm (EX-32.1) — 6KB
• 0001049521-25-000009.txt ( ) — 6807KB
• mrcy-20241227.xsd (EX-101.SCH) — 39KB
• mrcy-20241227_cal.xml (EX-101.CAL) — 54KB
• mrcy-20241227_def.xml (EX-101.DEF) — 238KB
• mrcy-20241227_lab.xml (EX-101.LAB) — 604KB
• mrcy-20241227_pre.xml (EX-101.PRE) — 423KB
• mrcy-20241227_htm.xml (XML) — 984KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements (unaudited)

Item 1. Consolidated Financial Statements (unaudited) 3 Consolidated Balance Sheets as of December 27, 2024 and June 28, 2024 3 Consolidated Statements of Operations and Comprehensive Loss for the second quarters and six months ended December 27, 2024 and December 29, 2023 4 Consolidated Statements of Shareholders' Equity for the second quarters and six months ended December 27, 2024 and December 29, 2023 5 Consolidated Statements of Cash Flows for the six months ended De cember 27, 2024 and December 29, 2023 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 24

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 39

Risk Factors

Item 1A. Risk Factors 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 39

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 27, 2024 June 28, 2024 Assets Current assets: Cash and cash equivalents $ 242,565 $ 180,521 Accounts receivable, net of allowance for credit losses of $ 1,951 and $ 2,020 at December 27, 2024 and June 28, 2024, respectively 104,491 111,441 Unbilled receivables and costs in excess of billings, net of allowance for credit losses of $ 5,311 and $ 6,340 at December 27, 2024 and June 28, 2024, respectively 278,657 304,029 Inventory 344,415 335,300 Prepaid expenses and other current assets 20,556 22,493 Total current assets 990,684 953,784 Property and equipment, net 111,459 110,353 Goodwill 938,093 938,093 Intangible assets, net 226,142 250,512 Operating lease right-of-use assets, net 56,525 60,860 Deferred tax assets 71,712 58,612 Other non-current assets 6,840 6,691 Total assets $ 2,401,455 $ 2,378,905 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 64,778 $ 81,068 Accrued expenses 40,471 42,926 Accrued compensation 32,015 36,398 Income taxes payable 306 109 Deferred revenues and customer advances 135,963 73,915 Total current liabilities 273,533 234,416 Income taxes payable 7,713 7,713 Long-term debt 591,500 591,500 Operating lease liabilities 57,805 62,584 Other non-current liabilities 10,628 9,917 Total liabilities 941,179 906,130 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; 58,660,201 and 58,093,528 shares issued and outstanding at December 27, 2024 and June 28, 2024, respectively 587 581 Additional paid-in capital 1,266,926 1,242,402 Retained earnings 184,695 219,799 Accumulated other comprehensive income 8,068 9,993 Total shareholders' equity 1,460,276 1,472,775

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. (the Company) is a technology company that delivers mission-critical processing power to the edge - where signals and data are collected - to solve the most pressing aerospace and defense challenges. Mercury's products and solutions are deployed in more than 300 programs and across 35 countries. The Company is headquartered in Andover, Massachusetts, and has over 20 locations worldwide. The Mercury Processing Platform is the unique advantage the Company provides to its customers. It comprises the innovative technologies the Company has developed and acquired for more than 40 years that brings integrated, mission-critical processing capabilities to the edge. The Company's processing platform spans the full breadth of signal processing—from RF front end to the human-machine interface—to rapidly convert meaningful data, gathered in the most remote and hostile environments, into critical decisions. It allows the Company to offer standard products and custom solutions from silicon to system scale, including components, modules, subsystems, and systems, and it embodies the customer-centric approach the Company takes to delivering capabilities that are mission-ready, trusted and secure, software-defined, and open and modular. 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 info

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View this 10-Q filing on SEC EDGAR