Mercury Systems, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company's net revenues were $60,417,000 against $57,089,000 a year ago. Income from operations was $6,369,000 against $3,539,000 a year ago. Income from continuing operations before income taxes was $6,473,000 against $3,933,000 a year ago. Income from continuing operations was $4,793,000 against $2,886,000 a year ago. Net income was $4,793,000 against $265,000 a year ago. Basic and diluted net earnings per share continuing operations were $0.14 against $0.09 a year ago. Basic and diluted net earnings per share were $0.14 against $0.01 a year ago. Net cash provided by operating activities was $11,865,000 against $8,229,000 a year ago. Purchases of property and equipment was $1,289,000 against $1,218,000 a year ago. Adjusted EBITDA was $12,579,000 against $10,707,000 a year ago. Adjusted income from continuing operations and adjusted earnings per share were $7,825,000 or $0.23 against $6,408,000 or $0.20 a year ago.

For the six months, the company's net revenues were $118,826,000 against $111,150,000 a year ago. Income from operations were $9,500,000 against $4,267,000 a year ago. Income from continuing operations before income taxes was $9,697,000 against $4,650,000 a year ago. Income from continuing operations was $6,753,000 against $3,603,000 a year ago. Net income was $6,753,000 against $764,000 a year ago. Basic and diluted net earnings per share continuing operations were $0.20 against $0.11 a year ago. Basic and diluted net earnings per share was $0.20 against $0.02 a year ago. Net cash provided by operating activities was $17,478,000 against $10,406,000 a year ago. Purchases of property and equipment was $3,156,000 against $2,123,000 a year ago. Adjusted EBITDA was $24,420,000 against $18,710,000 a year ago. Adjusted income from continuing operations and adjusted earnings per share were $14,266,000 or $0.42 against $10,749,000 or $0.33 a year ago.

For the quarter, the company's impairment of long-lived assets was $231,000.

For the third quarter of fiscal 2016, revenues are currently forecasted to be in the range of $63 million to $67 million. Adjusted EPS is expected to be in the range of $0.19 to $0.22 per share, and includes approximately $1.7 million of amortization of intangible assets, $2.3 million of stock-based compensation expense and an effective tax rate of approximately 36%. Adjusted EBITDA for the third quarter of fiscal 2016 is expected to be in the range of $11.3 million to $12.6 million, representing approximately 18% to 19% of revenue at the forecasted revenue range. It also assumes an effective tax rate of approximately 36% for the quarter. The company expects gross margin for third quarter to be approximately 45% based on the expected revenue mix for the quarter.

For the fiscal year 2016, the company anticipates revenues to be up in the range of 6% to 8% year-over-year and based on current revenue mix and associated gross margin expectations for the second half, the company expected adjusted EBITDA growth of approximately 9% to 13% year-over-year.