Mercury Computer Systems Reports First Quarter Revenues of $49.2 Million

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 $49.2 million , roughly...


Business Outlook

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 $225 million, with acceleration in the second half of the year.

The Company currently expects fiscal year 2008 GAAP losses per share to approximate $0.54, an improvement from the previously guided loss of $0.63. The improvement is attributable to a stronger gross margin, resulting from a more favorable product mix and lower excess and obsolete inventory reserve expense. The lower inventory expense is the result of improvements in supply chain processes. Excluding the impact of stock-based compensation costs and amortization of acquired intangible assets, fiscal year 2008 non-GAAP earnings per share are currently expected to approximate $0.33, an increase from the previously guided earnings of $0.17.

For the second quarter of fiscal year 2008, revenues are currently expected to approximate $51 million. The Company currently expects second quarter fiscal 2008 GAAP losses per share to approximate $0.37. Excluding the impact of stock-based compensation costs and amortization of acquired intangible assets, second quarter fiscal year 2008 non-GAAP losses per share are currently expected to approximate $0.05.

Recent Highlights

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.