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    Mercury Systems Inc (MRCY)

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    Mercury Systems, Inc. (MRCY) is a technology company specializing in mission-critical processing solutions for aerospace and defense applications. The company designs, develops, and manufactures advanced processing components, modules, and subsystems for defense contractors, governments, and commercial aerospace OEMs. Its products are used in over 300 aerospace and defense programs across 35 countries, supporting applications such as radar, electronic warfare, and missile defense.

    1. Integrated Solutions - Combines components, modules, and sub-assemblies with software to create complete systems for specific applications, including radar, electronic warfare, and mission computing.
    2. Components - Provides essential building blocks for electronic systems, such as power amplifiers, switches, and memory devices.
    3. Modules and Sub-assemblies - Offers complex functional units that integrate multiple components, often delivered as computer boards or other packaging.
    NamePositionExternal RolesShort Bio

    William L. Ballhaus

    ExecutiveBoard

    Chairman of the Board, President, and CEO

    None

    William L. Ballhaus joined Mercury's Board in June 2022 and became President and CEO in August 2023. He was appointed Chairman in October 2023. He has extensive experience in aerospace, defense, and technology industries.

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    Charles R. Wells, IV

    Executive

    Executive Vice President and COO

    None

    Charles R. Wells, IV joined Mercury Systems in November 2021 and became COO in January 2024. He has a background in engineering and management roles at Teledyne FLIR and the Department of Defense.

    David E. Farnsworth

    Executive

    Executive Vice President and CFO

    Board of Directors, Merrimack Valley Credit Union; Board of Directors, USA Diving

    David E. Farnsworth joined Mercury Systems in July 2023 as CFO. He has a background in financial leadership roles at HawkEye 360 and Raytheon.

    Stuart H. Kupinsky

    Executive

    Executive Vice President, Chief Legal Officer, and Corporate Secretary

    None

    Stuart H. Kupinsky joined Mercury Systems in January 2024. He has served as Chief Legal Officer for several technology companies and has experience in government legal roles.

    Barry R. Nearhos

    Board

    Lead Independent Director

    None

    Barry R. Nearhos joined the Board in 2018 and became Lead Independent Director in October 2023. He has a background in accounting and governance from his career at PwC.

    Debora A. Plunkett

    Board

    Director

    Director, CACI International Inc.; Director, Nationwide Mutual Insurance; Senior Fellow, Harvard University’s Belfer Center; Professor, University of Maryland

    Debora A. Plunkett joined the Board in 2021. She has a background in cybersecurity and national security, including leadership roles at the NSA.

    Gerard J. DeMuro

    Board

    Director

    Director, Eve Holding Inc.

    Gerard J. DeMuro joined the Board in June 2023. He has extensive experience in the defense industry, including roles at BAE Systems and General Dynamics.

    Howard L. Lance

    Board

    Director

    Managing Partner, Lance Advisors LLC; Non-Executive Chairman, Summit Materials, Inc.; Non-Executive Chairman, Covanta Energy LLC; Non-Executive Chairman, Heritage Environmental Solutions

    Howard L. Lance joined the Board in 2022. He has held executive roles at Maxar Technologies and Harris Corporation.

    Jean Bua

    Board

    Director

    CFO, NetScout Systems, Inc.

    Jean Bua joined the Board in January 2025. She has over 40 years of experience in finance and accounting, with a focus on technological transformation.

    Lisa S. Disbrow

    Board

    Director

    Director, Blackberry Limited; Director, CACI International Inc.; Vice Chairman, NDIA; Chair, Secretary of Defense's Reserve Forces Policy Board; Senior Fellow, Johns Hopkins University Applied Physics Lab

    Lisa S. Disbrow joined the Board in 2017. She has a background in military and defense budget management, including roles as Under Secretary of the Air Force.

    Orlando P. Carvalho

    Board

    Director

    Board of Advisors, University of Maryland Robert H. Smith School of Business; Associate Fellow, American Institute of Aeronautics and Astronautics

    Orlando P. Carvalho joined the Board in 2020. He has a 38-year career in aerospace and defense, including leadership roles at Lockheed Martin.

    Scott Ostfeld

    Board

    Director

    Managing Partner, JANA Partners; Board Member, TreeHouse Foods, Inc.; Board Member, Columbia University’s Richman Center for Business, Law, and Public Policy

    Scott Ostfeld joined the Board in July 2023. He has experience in investment and shareholder engagement through his role at JANA Partners.

    1. Given that you reported a record free cash flow of $82 million in Q2 , why are you guiding for breakeven free cash flow in the second half, and what factors are contributing to this significant shift?

    2. With your gross margin at 27% in Q2, impacted by lower-margin backlog and certain development programs , how do you plan to improve backlog margins and when do you expect adjusted EBITDA margins to reach your target of low to mid-20%?

    3. Can you elaborate on the challenges associated with ramping up production in your common processing architecture product area, and how this will affect your ability to deliver for customers and improve cash flow?

    4. Despite a record backlog of $1.4 billion and a trailing 12-month book-to-bill of 1.12 , what specific steps are you taking to convert this backlog into higher-margin revenue and ensure sustainable growth?

    5. Considering the increase of $40 million in deferred revenue due to milestone billings , what risks do you foresee in fulfilling these milestones, and how might they impact your future cash flows and revenue recognition?

    Program DetailsProgram 1Program 2Program 3
    Approval DateN/AN/AN/A
    End Date/DurationN/AN/AN/A
    Total additional amountN/AN/AN/A
    Remaining amountN/AN/AN/A
    DetailsMercury Systems, Inc. did not have any active share repurchase programs during fiscal year 2024 or fiscal year 2023. N/AN/A
    CustomerRelationshipSegmentDetails

    L3Harris

    Supplier for multiple defense programs and platforms

    All

    12% of total net revenues in fiscal 2024, less than 10% in fiscal 2023 and 2022.

    Lockheed Martin

    Supplier for multiple defense programs and platforms

    All

    11% of total net revenues in fiscal 2024, 13% in fiscal 2023, 10% in fiscal 2022.

    RTX Corporation

    Supplier for multiple defense programs and platforms

    All

    10% of total net revenues in fiscal 2024, 14% in fiscal 2023, 14% in fiscal 2022.

    Northrop Grumman

    Supplier for multiple defense programs and platforms

    All

    Less than 10% of net revenues in fiscal 2024, 11% in fiscal 2023, less than 10% in fiscal 2022.

    U.S. Navy

    Supplier for multiple defense programs and platforms

    All

    Less than 10% of net revenues in fiscal 2024 and 2023, 14% in fiscal 2022.

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Atlanta Micro, Inc.

    2022

    Atlanta Micro, Inc. was acquired for a net purchase price of approximately $89.24 million (after adjustments) and funded via Mercury Systems’ revolving credit facility; the acquisition brought in advanced high-performance RF modules critical for defense and aerospace markets, with detailed fair value allocations for goodwill and intangible assets.

    Avalex Technologies, LLC

    2022

    Avalex Technologies, LLC was acquired for a net purchase price of $154.145 million (with a post-closing adjustment of $151,000) and funded using Mercury’s Revolver; the deal strategically expanded mission-critical avionics capabilities—including rugged displays and integrated communications systems—while also reflecting specific tax treatment as an asset sale.

    Recent press releases and 8-K filings for MRCY.

    Mercury Systems Q3 2025 8-K Update
    MRCY
    Management Change
    Executive Compensation
    • Mercury Systems reiterated its fiscal year guidance ending June 27, 2025, confirming its updated operational expectations.
    • Charles R. Wells, IV, the Chief Operating Officer, resigned to pursue a CEO role at a privately held company, triggering a management change.
    • CFO David E. Farnsworth is taking on expanded operational leadership and will receive a $1,000,000 restricted stock unit award as part of his new compensation package.
    Apr 1, 2025, 12:00 AM