Mercury Systems, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Reports Impairment of Long-Lived Assets for the Second Quarter Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter and Full Year of 2016
January 26, 2016 at 04:01 pm
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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.
Mercury Systems, Inc. is a technology company that delivers processing power for aerospace and defense missions. The Company's end-to-end processing platform enables a range of aerospace and defense programs, optimized for mission success in challenging and demanding environments. Processing technologies that comprise its platform include signal solutions, display, software applications, networking, storage and secure processing. It manufactures components, products, modules and subsystems for defense prime contractors, the United States government, and original equipment manufacturers (OEM) commercial aerospace companies. Its mission critical solutions are deployed by its customers for a variety of applications, including command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR), electronic intelligence, mission computing avionics, electro-optical/infrared (EO/IR), electronic warfare, weapons and missile defense, hypersonics and radar.
Mercury Systems, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2015; Reports Impairment of Long-Lived Assets for the Second Quarter Ended December 31, 2015; Provides Earnings Guidance for the Third Quarter and Full Year of 2016