CHELMSFORD, Mass., Oct. 24 /PRNewswire-FirstCall/ -- Mercury Computer Systems, Inc. (NASDAQ: MRCY) reported results for its first quarter of fiscal 2008, ended September 30, 2007 .
First quarter revenues were
First quarter GAAP operating losses were
"The results for the first quarter are very encouraging," said Jay Bertelli, President and Chief Executive Officer of Mercury Computer Systems, Inc. "They demonstrate that the operational effectiveness initiatives we began implementing several quarters ago in conjunction with the restructuring of the organization, cost reduction initiatives and personnel changes are beginning to show the desired results."
Mr. Bertelli continued: "The positive book-to-bill is also very encouraging, with indications that the acquisition strategy we executed on a few years ago is beginning to produce results, moving us into new markets with new products."
The Company's total backlog at the end of the first quarter was
Revenues by Operating Unit
Effective July 1, 2007 , the Company restructured operations to achieve greater efficiencies and productivity. For fiscal 2008, the Company is organized into four operating units as follows:
Advanced Computing Solutions (ACS) -- The former Defense business,
Advanced Solutions business, Modular Products and Services, and elements of
Commercial Imaging and Visualization were consolidated into ACS to focus on
specialized, high-performance computing solutions. Key market segments will
remain aerospace and defense, semiconductor, telecommunications, and life
sciences imaging. Revenues for the quarter from ACS were
Visage Imaging (Visage) -- Visage Imaging is focused on the development
and distribution of visualization and PACS (picture archive and communications
system) solutions, as well as other three-dimensional (3D) software solutions
for the life sciences market. Revenues for the quarter from Visage were
Visualization Sciences Group (VSG) -- VSG is focused on the development
and distribution of software developer toolkits and application software for
geosciences, engineering and manufacturing, material sciences, and other
industrial and scientific domains. Revenues for the quarter from VSG were
Emerging Businesses -- Mercury's emerging businesses are focused on
cultivating new opportunities that benefit from Mercury's capabilities across
markets. Current areas of focus include high-performance computing and
visualization in biotech and aircraft navigation. Revenues for the quarter
from these businesses were
This section presents our current expectations and estimates, given current visibility, on our business outlook. It is possible that actual performance will differ materially from the estimates given . either on the upside or on the downside. Investors should consider all of the risks, including those listed in the Safe Harbor Statement below, with respect to these estimates, and make themselves aware of the risk factors that may impact the Company's actual performance.
For the full year, the Company continues to expect revenues to approximate
The Company currently expects fiscal year 2008 GAAP losses per share to
For the second quarter of fiscal year 2008, revenues are currently
expected to approximate
August -- Mercury announced the release of its MultiCore Plus(TM) Software Development Kit for the Sony PLAYSTATION(R)3 (PS3) game console. The Base Package enables application developers to unleash the power of the PS3 for low-cost, high-speed computing in real-world applications. Using Mercury's proven development environment, developers in research labs, universities, gaming, financial services, oil & gas, electronic data automation, video compression, biotech, and other areas can explore the highest performing potential of Cell BE processor-based computing using PS3 devices.
August -- Mercury announced that it was selected by the Remote Sensing Applications Center of the U.S.D.A. Forest Service to support two wildfire monitoring and forest mapping projects in 2007 with the VistaNav(TM)-SSR Unmanned Aircraft System (UAS). The VistaNav-SSR (Smart Surveillance and Reconnaissance) system is a complete, high-performance UAS that includes a ground control station integrated with 3D Synthetic Vision and a small unmanned aerial vehicle (UAV). Unmanned aircraft systems can fly long missions, survey wildfire sites at low altitude, and transmit critical data to enable more informed decisions more quickly. Together with Mercury, the Forest Service will employ the VistaNav-SSR UAS to help in providing precise imagery and actionable intelligence to Incident Command Teams leading to significantly safer tactics in fighting wildfires.
August -- Mercury announced the formation of Visage Imaging(TM), its wholly owned subsidiary for the life sciences and medical businesses. As an independent operating entity, Visage Imaging will be more effectively positioned to deliver Mercury's distinct expertise in advanced visualization, and its expanding portfolio of imaging and visualization products and services, to a growing roster of international OEM and clinical partners.
September -- Mercury announced availability and pending shipment of its newest Serial RapidIO-based AMC (Advanced Mezzanine Card) to a customer in the telecom equipment market. The Ensemble(R) MPC-102 is a high-performance AMC module that combines dual-core processing power, flexible I/O, and a choice of RapidIO or PCI Express(R) connectivity for AdvancedTCA and MicroTCA(R) platforms. These platforms are ideally suited for numerous applications that include telecom, radar, sonar, and image inspection. The architecture flexibility and strong development support have resulted in major telecom equipment manufacturers around the world employing Ensemble platforms to trial and demonstrate LTE, HSPA, PHS and other wireless standards. The addition of the MPC-102 increases the processing density of Ensemble platforms and supports the development of high-end MicroTCA systems.
September -- Mercury announced it was selected by BAE Systems to provide a Synthetic Vision display for a rotorcraft brownout landing system. This contract award follows one from BAE Systems Australia , announced in March 2007 , also for a brownout landing system. Rotorcraft brownouts are intense, blinding dust clouds that result from helicopter take-off and landings on dry, dusty terrain. Mercury's Synthetic Vision will generate a computerized 3D terrain map drawn from databases and sensor readings, allowing pilots to "see" the surrounding terrain and obstacles whether or not they have visibility outside their window.
Conference Call Information
Mercury will host a conference call Wednesday, October 24, 2007 at 5:00 p.m. EDT to discuss the first quarter 2008 results and review the financial and business outlook for the remainder of the year.
To listen to the conference call, dial (888) 713-3590 in the USA and Canada , and for international, dial (913) 981-5543. The conference code number is 2924334. Please call five to ten minutes prior to the scheduled start time. This call will also be broadcast live over the web at www.mc.com/investor under Financial Events.
A replay of the call by telephone will be available from approximately 8:00 p.m. EDT on Wednesday, October 24 through midnight EDT on Friday, November 2 . To access the replay, dial (888) 203-1112 in the USA and Canada , and for international, dial (719) 457-0820. Enter access code 2924334. A replay of the webcast of the call will be available for an extended period of time on the Financial Events page of the Company's website at www.mc.com/investor.
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides non-GAAP financial measures adjusted to exclude certain non-cash and other specified charges, which the Company believes are useful to help investors better understand its past financial performance and prospects for the future. However, the presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP financial measures assist in providing a more complete understanding of the Company's underlying operational results and trends, and management uses these measures along with their corresponding GAAP financial measures to manage the Company's business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this press release is contained in the attached exhibits.
Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to fiscal 2008 business performance and beyond. You can identify these statements by our use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, continued funding of defense programs, the timing of such funding, changes in the U.S. Government's interpretation of federal procurement rules and regulations, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, and difficulties in retaining key customers. These risks and uncertainties also include such additional risk factors as are discussed in the Company's recent filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2007 . The Company cautions readers not to place undue reliance upon any such forward- looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
Mercury Computer Systems, Inc. -- Where Challenges Drive Innovation
Mercury Computer Systems is the leading provider of computing systems and software for data-intensive applications that include image processing, signal processing, and visualization. With a strong commitment to innovation, our expertise in algorithm optimization, systems development, and silicon design is blended with software application knowledge and industry-standard technologies to solve unique computing challenges. We work closely with our customers to architect solutions that have a meaningful impact on everyday life: detecting aneurysms; designing safer, more fuel-efficient aircraft; identifying security threats; discovering oil; developing new drugs; and visualizing virtually every aspect of scientific investigation.
Mercury's comprehensive, purpose-built solutions capture, process, and present data for the world's largest medical imaging companies, 8 of the 10 top defense prime contractors, and other leading Fortune 500 and mid-market companies in semiconductor, energy, telecommunications, and other industries. Our dedication to performance excellence and collaborative innovation continues a 24-year history in enabling customers to stay at the forefront of the markets they serve.
Mercury is based in Chelmsford, Massachusetts and serves customers worldwide through a broad network of direct sales offices, subsidiaries, and distributors. We are listed on the Nasdaq National Market (NASDAQ: MRCY). Visit Mercury at www.mc.com.
Cell Broadband Engine is a trademark, and PLAYSTATION is a registered trademark of Sony Computer Entertainment Inc. MultiCore Plus, Visage Imaging, and VistaNav are trademarks, and Ensemble is a registered trademark of Mercury Computer Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.
UNAUDITED SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP MEASURES
SOURCE Mercury Computer Systems, Inc.