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...


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.