Mercury Systems Files 8-K on Exit Costs

TL;DR

Mercury Systems is filing an 8-K about exit costs - likely restructuring or selling off parts of the business.

AI Summary

On June 17, 2024, Mercury Systems, Inc. filed an 8-K report detailing cost associated with exit or disposal activities. The filing also included Regulation FD disclosures and financial statements. The company, incorporated in Massachusetts with its principal executive offices in Andover, MA, reported its fiscal year end as June 30.

Why It Matters

This filing indicates Mercury Systems is undergoing restructuring or divesting certain operations, which could impact future financial performance and strategic direction.

Risk Assessment

Risk Level: medium — Filings related to exit or disposal activities often signal significant business changes that can introduce uncertainty and affect financial results.

Key Numbers

• 000-23599 — SEC File Number (Identifies the company's filing with the SEC.)
• 04-2741391 — IRS Employer Identification No. (Company's tax identification number.)

Key Players & Entities

• Mercury Systems, Inc. (company) — Registrant
• June 17, 2024 (date) — Date of earliest event reported
• Massachusetts (jurisdiction) — State of Incorporation
• Andover, Massachusetts (location) — Principal Executive Offices
• 01810 (zip_code) — Zip Code of Principal Executive Offices
• 978-256-1300 (phone_number) — Registrant's telephone number
• June 30 (date) — Fiscal Year End

FAQ

Key Financial Figures

• $0.01 M — ch registered Common Stock, par value $0.01 MRCY Nasdaq Global Select Market 1 I
• $5 million — restructuring charges of approximately $5 million for employee separation costs, which co
• $15 m — eld annualized savings of approximately $15 million, a portion of which is expected t

Filing Documents

• mrcy-20240617.htm (8-K) — 37KB
• exhibit9918-k061824.htm (EX-99.1) — 10KB
• exhibit9918-k061824001.jpg (GRAPHIC) — 253KB
• exhibit9918-k061824002.jpg (GRAPHIC) — 285KB
• exhibit9918-k061824003.jpg (GRAPHIC) — 90KB
• 0001049521-24-000023.txt ( ) — 1063KB
• mrcy-20240617.xsd (EX-101.SCH) — 2KB
• mrcy-20240617_def.xml (EX-101.DEF) — 13KB
• mrcy-20240617_lab.xml (EX-101.LAB) — 24KB
• mrcy-20240617_pre.xml (EX-101.PRE) — 14KB
• mrcy-20240617_htm.xml (XML) — 3KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On January 17, 2024, Mercury Systems, Inc. (the "Company" or "we") publicly announced the implementation of a plan to consolidate our Mission Systems and Microelectronics divisions into one unified structure incorporating multiple business units and functions under the leadership of a Chief Operating Officer, as well as the elimination of a number of positions. This consolidation is designed to simplify our organizational structure, facilitate clearer accountability, align to our priorities to drive growth and value for all stakeholders, and reinvest in key growth areas of our business. We have continued the organizational structure effort that we implemented in the initial phase in January and have progressed deeper into the organization at the business unit and global function levels. On June 17, 2024, we approved the next phase of this effort, and implemented a workforce reduction that will eliminate approximately 100 positions, resulting in expected restructuring charges of approximately $5 million for employee separation costs, which costs will be classified as restructuring and other charges within our statement of operations and other comprehensive income for the fiscal quarter ending June 28, 2024. The headcount savings, combined with other non-headcount savings, including discretionary and third-party spend primarily within R&D and cost of revenues, are expected to yield annualized savings of approximately $15 million, a portion of which is expected to be reinvested in the business with the remainder supporting improved profitability and operating leverage for our 2025 fiscal year.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. In a press release dated June 18, 2024, furnished as exbibit 99.1 hereto, we discussed the cost reductions and other efficiencies created by the second phase of our strategic reorganization. The press release is furnished as exhibit 99.1 hereto. The information provided in Item 7.01 of this Current Report on Form 8-K and the attached exhibit 99.1 shall not be deemed filed' for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Cautionary Statement Regarding Forward-Looking Statements This Current Report on Form 8-K may contain "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "may," "hope," "will," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "continue," "could," "future," or the negative of those terms or other words of similar meaning. You should carefully read forward-looking statements, including statements that contain these words, because they discuss our future expectations or state other "forward-looking" information. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties which change over time. We caution readers that any forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Forward-looking statements include, but are not limited to, statements about the amount of anticipated cost savings and/or expenses from a workforce reduction. Important facto

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 Press Release dated June 18 , 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: June 18, 2024 MERCURY SYSTEMS, INC. By: /s/ David E. Farnsworth David E. Farnsworth Executive Vice President, Chief Financial Officer 4

View Full Filing

View this 8-K filing on SEC EDGAR