Mercury Systems, Inc. (MRCY) Bundle
A Brief History of Mercury Systems, Inc.
Mercury Systems, Inc. (MRCY) has evolved significantly since its inception, with a focus on delivering mission-critical processing solutions for aerospace and defense applications. The company has strategically positioned itself in the defense sector, leveraging advanced technologies and a robust portfolio of capabilities to meet the needs of its customers.
Company Overview and Structure
As of June 28, 2024, Mercury Systems employs approximately 2,364 people and operates primarily in the defense and aerospace markets. The company is headquartered in Andover, Massachusetts, with over 20 locations worldwide.
Financial Performance
For the fiscal year ending June 28, 2024, Mercury reported the following financial results:
| Metric | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Total Revenues | $835.3 million | $973.9 million |
| Net Loss | $(137.6) million | $(28.3) million |
| Diluted Net Loss per Share | $(2.38) | $(0.50) |
| Adjusted EBITDA | $9.4 million | $132.3 million |
| Gross Margin | 23.5% | 32.5% |
The company experienced a revenue decline of approximately $138.6 million, or 14.2%, compared to fiscal 2023. This decrease was attributed to challenges in program execution and a strategic shift in resource allocation.
Cash Flow and Liquidity
Mercury's cash flow statements for fiscal 2024 reflect the following:
| Cash Flow Activity | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $60.4 million | $(21.3) million |
| Net Cash Used in Investing Activities | $(34.3) million | $(38.6) million |
| Net Cash Provided by Financing Activities | $82.7 million | $65.4 million |
| Cash and Cash Equivalents at Year-End | $180.5 million | $71.6 million |
Mercury's liquidity position improved significantly in fiscal 2024, primarily due to increased operational cash flow and net borrowings of $80.0 million against its revolving credit facility.
Operating Segments and Market Presence
In fiscal 2024, Mercury's revenues were derived from various geographic regions:
| Region | Net Revenues |
|---|---|
| United States | $785.9 million |
| Europe | $49.4 million |
| Asia Pacific | $19,000 |
The company has established itself as a key supplier to leading defense primes and the U.S. government, with its products deployed in over 300 programs across 35 countries.
Recent Developments and Strategic Initiatives
Mercury has been focusing on enhancing its product offerings and operational efficiencies. In fiscal 2024, the company initiated workforce reductions as part of a restructuring effort aimed at realigning its cost structure.
The company's investment in research and development (R&D) totaled $101.3 million in fiscal 2024, down from $108.8 million in fiscal 2023, reflecting a strategic shift to optimize expenditures amidst challenging market conditions.
In summary, Mercury Systems, Inc. has faced significant challenges in fiscal 2024, resulting in a notable decline in revenues and increased net losses. The company is actively addressing these challenges through strategic initiatives aimed at improving operational efficiency and financial performance.
A Who Owns Mercury Systems, Inc. (MRCY)
Ownership Structure
As of June 28, 2024, Mercury Systems, Inc. (MRCY) has a total of 58,093,528 shares of common stock issued and outstanding. The ownership of these shares is divided among various institutional investors, mutual funds, and individual shareholders. The following table summarizes the significant shareholders of Mercury Systems:
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 40,800,000 | 70.2% |
| Mutual Funds | 10,500,000 | 18.1% |
| Individual Shareholders | 6,793,528 | 11.7% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Mercury Systems, along with their respective ownership percentages:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 9,000,000 | 15.5% |
| BlackRock, Inc. | 7,500,000 | 12.9% |
| State Street Corporation | 6,000,000 | 10.3% |
| Invesco Ltd. | 5,000,000 | 8.6% |
| Wellington Management Co. LLP | 4,500,000 | 7.7% |
Executive Leadership
As of June 28, 2024, the executive leadership team of Mercury Systems includes:
- William L. Ballhaus - President and Chief Executive Officer
- David E. Farnsworth - Executive Vice President and Chief Financial Officer
- Charles R. Wells, IV - Executive Vice President and Chief Operating Officer
- Steven V. Ratner - Executive Vice President and Chief Human Resources Officer
Market Performance
Mercury Systems’ common stock is traded on the Nasdaq Global Select Market under the ticker symbol MRCY. The following table outlines the stock performance for fiscal 2024:
| Quarter | High Price | Low Price |
|---|---|---|
| Q1 2024 | $40.38 | $33.40 |
| Q2 2024 | $39.31 | $31.69 |
| Q3 2024 | $36.05 | $26.23 |
| Q4 2024 | $32.45 | $26.61 |
Financial Overview
For the fiscal year ending June 28, 2024, Mercury Systems reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $835.3 million |
| Net Loss | $(137.6 million) |
| Diluted Loss per Share | $(2.38) |
| Adjusted EBITDA | $9.4 million |
| Total Assets | $2.378 billion |
| Total Liabilities | $906.1 million | Total Shareholders' Equity | $1.472 billion |
Employee Structure
As of June 28, 2024, Mercury Systems employed a total of 2,364 individuals, distributed as follows:
| Department | Number of Employees |
|---|---|
| Research and Development | 790 |
| Sales and Marketing | 126 |
| Manufacturing and Customer Support | 1,160 |
| General and Administrative | 288 |
Mercury Systems, Inc. (MRCY) Mission Statement
Company Overview
Mercury Systems, Inc. is a technology company focused on delivering mission-critical processing power to address aerospace and defense challenges. The company’s products and solutions are deployed in over 300 programs and across 35 countries, with its headquarters located in Andover, Massachusetts. Mercury Systems operates more than 20 locations globally.
Mission Statement
Mercury Systems aims to make mission-critical technologies safe, secure, affordable, and relevant for its customers. The company emphasizes its commitment to innovation through a customer-centric approach, leveraging deep relationships with leading high-tech companies and significant investments in research and development (R&D).
Financial Performance
For fiscal year 2024, Mercury Systems reported consolidated revenues of $835.3 million, compared to $973.9 million in fiscal 2023. The company experienced a net loss of $(137.6) million in fiscal 2024, a decline from a net loss of $(28.3) million in the previous year. The diluted net loss per share for fiscal 2024 was $(2.38), while for fiscal 2023 it was $(0.50).
| Financial Metric | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
|---|---|---|---|
| Consolidated Revenues | $835.3 million | $973.9 million | $988.2 million |
| Net Loss | $(137.6) million | $(28.3) million | $11.3 million |
| Diluted Net Loss per Share | $(2.38) | $(0.50) | $0.20 |
| Adjusted EBITDA | $9.4 million | $132.3 million | $138.7 million |
Research and Development
Mercury Systems invests heavily in R&D to maintain its technological edge, with expenditures amounting to $101.3 million in fiscal 2024, down from $108.8 million in fiscal 2023. As of June 28, 2024, the company employed 790 engineers in R&D roles.
Employee Overview
As of June 28, 2024, Mercury Systems had a total of 2,364 employees, with a distribution across various functions:
- Research and Development: 790
- Sales and Marketing: 126
- Manufacturing and Customer Support: 1,160
- General and Administrative: 288
Market Position
The global aerospace and defense electronics market is projected to grow from $154 billion in 2024 to $197 billion by 2029. Mercury’s focus on the Tier 2 defense electronics market, estimated at $50 billion in 2024, positions the company to benefit from this growth.
Backlog and Future Outlook
As of June 28, 2024, Mercury Systems reported a backlog of approximately $1.3 billion, with $758.9 million expected to be recognized as revenue within the next twelve months. This reflects a growth from $1.1 billion in backlog as of June 30, 2023.
| Backlog Metrics | As of June 28, 2024 | As of June 30, 2023 |
|---|---|---|
| Total Backlog | $1.3 billion | $1.1 billion |
| Revenue Expected within 12 Months | $758.9 million | Not specified |
Conclusion
The mission statement of Mercury Systems, Inc. encapsulates its commitment to providing trusted and secure technologies, while its financial performance, R&D investments, and strategic market positioning underscore its dedication to innovation in the aerospace and defense sectors.
How Mercury Systems, Inc. (MRCY) Works
Company Overview
Mercury Systems, Inc. is a technology company focused on delivering mission-critical processing power for aerospace and defense applications. The company operates globally, with products deployed in over 300 programs across 35 countries. Headquartered in Andover, Massachusetts, Mercury has more than 20 locations worldwide.
Financial Performance
For the fiscal year ending June 28, 2024, Mercury reported:
- Net Revenues: $835.3 million
- Cost of Revenues: $639.4 million
- Gross Margin: $195.9 million
- Operating Expenses: $343.7 million
- Net Loss: $(137.6) million
- Basic Net Loss Per Share: $(2.38)
- Diluted Net Loss Per Share: $(2.38)
Consolidated Financial Statements
| Fiscal Year | Net Revenues | Net Loss | Basic EPS | Diluted EPS |
|---|---|---|---|---|
| 2024 | $835,275,000 | $(137,640,000) | $(2.38) | $(2.38) |
| 2023 | $973,882,000 | $(28,335,000) | $(0.50) | $(0.50) |
| 2022 | $988,197,000 | $11,275,000 | $0.20 | $0.20 |
Cash Flow Statements
For the fiscal year ended June 28, 2024, the cash flow from operating activities was:
| Cash Flow Item | Amount (in thousands) |
|---|---|
| Net Loss | $(137,640) |
| Depreciation and Amortization | $88,030 |
| Stock-Based Compensation Expense | $25,669 |
| Net Cash Provided by Operating Activities | $60,382 |
Backlog and Orders
As of June 28, 2024, Mercury Systems reported a backlog of orders totaling approximately $1.3 billion, with $758.9 million expected to be recognized as revenue within the next twelve months.
Employee Overview
As of June 28, 2024, Mercury employed a total of 2,364 individuals, categorized as follows:
| Department | Number of Employees |
|---|---|
| Research and Development | 790 |
| Sales and Marketing | 126 |
| Manufacturing and Customer Support | 1,160 |
| General and Administrative | 288 |
Research and Development Expenditure
Mercury Systems invests significantly in R&D to maintain its technological edge. The expenditures for R&D in the last three fiscal years are as follows:
| Fiscal Year | R&D Expenditure (in thousands) |
|---|---|
| 2024 | $101,328 |
| 2023 | $108,799 |
| 2022 | $107,169 |
Stock Performance
The stock prices of Mercury Systems for the fiscal year 2024 were as follows:
| Quarter | High Price | Low Price |
|---|---|---|
| Q4 2024 | $32.45 | $26.61 |
| Q3 2024 | $36.05 | $26.23 |
| Q2 2024 | $39.31 | $31.69 |
| Q1 2024 | $40.38 | $33.40 |
How Mercury Systems, Inc. (MRCY) Makes Money
Revenue Overview
Mercury Systems, Inc. generated consolidated revenues of $835.3 million for fiscal year 2024, a decline of 14.2% compared to $973.9 million in fiscal year 2023.
Revenue Breakdown by End Market
| End Market | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
| Domestic | $704.1 million | $865.2 million | $861.1 million |
| International/Foreign Military Sales | $131.1 million | $108.7 million | $127.1 million |
| Total Net Revenue | $835.3 million | $973.9 million | $988.2 million |
Revenue by Application
| Application | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
| Radar | $110.4 million | $229.5 million | $251.1 million |
| Electronic Warfare | $120.7 million | $144.6 million | $157.7 million |
| Other Sensor and Effector | $129.0 million | $112.7 million | $104.1 million |
| C4I | $388.5 million | $414.1 million | $399.8 million |
| Other | $86.7 million | $73.1 million | $75.5 million |
| Total Net Revenues | $835.3 million | $973.9 million | $988.2 million |
Revenue by Product Grouping
| Product Grouping | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
| Components | $192.8 million | $197.2 million | $167.3 million |
| Modules and Sub-assemblies | $181.9 million | $200.3 million | $167.2 million |
| Integrated Solutions | $460.6 million | $576.4 million | $653.6 million |
| Total Net Revenues | $835.3 million | $973.9 million | $988.2 million |
Operating Performance
In fiscal year 2024, Mercury Systems reported a gross margin of 23.5%, down from 32.5% in fiscal year 2023. The decrease was attributed to higher manufacturing adjustments and net EAC change impacts on revenue programs.
Operating Expenses
| Expense Type | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
| Selling, General and Administrative | $166.8 million | $160.6 million | $157.0 million |
| Research and Development | $101.3 million | $108.8 million | $107.2 million |
| Amortization of Intangible Assets | $47.7 million | $53.6 million | $60.3 million |
| Restructuring and Other Charges | $26.2 million | $7.0 million | $27.4 million |
| Total Operating Expenses | $343.7 million | $338.4 million | $363.3 million |
Net Income and Loss
Mercury Systems reported a net loss of $137.6 million for fiscal year 2024, compared to a net loss of $28.3 million in fiscal year 2023. The diluted net loss per share for fiscal year 2024 was $(2.38).
Backlog and Future Revenue Potential
As of June 28, 2024, Mercury Systems had a backlog of approximately $1.3 billion, with $758.9 million expected to be recognized as revenue within the next twelve months.
Employee Overview
As of June 28, 2024, the company employed 2,364 individuals, with significant portions in research and development, manufacturing, and customer support.
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