Mercury Systems, Inc. reported a notable increase in net revenues for the first quarter of fiscal 2025, ending September 27, 2024, with total revenues reaching $204.4 million, a 13.0% increase from $181.0 million in the same period last year. This growth was primarily driven by significant increases in modules and sub-assemblies, integrated solutions, and components, contributing $8.3 million, $7.8 million, and $7.4 million, respectively. Revenue from radar applications rose by $7.0 million, while electronic warfare and other sensor applications also saw increases. However, revenues from C4I applications decreased by $5.0 million.
The company reported a net loss of $17.5 million for the quarter, a substantial improvement compared to a net loss of $36.7 million in the prior year. The diluted loss per share also improved from $(0.64) to $(0.30). Adjusted EBITDA for the quarter was $21.5 million, a significant increase from $2.0 million in the previous year.
Operating expenses decreased to $65.2 million from $90.7 million, largely due to reductions in research and development expenses, which fell by 42.3% to $18.4 million, attributed to workforce reductions. Selling, general, and administrative expenses also decreased by 7.4% to $33.2 million, reflecting lower compensation costs and reduced software licensing fees.
The company’s total current assets increased slightly to $954.3 million, while total assets decreased to $2.37 billion. Cash and cash equivalents decreased to $158.1 million, down from $180.5 million, and accounts receivable rose to $124.5 million. The company’s retained earnings also declined to $202.3 million from $219.8 million.
Strategically, Mercury Systems has been active in restructuring efforts, incurring $2.3 million in related charges during the quarter, down from $9.5 million in the previous year. The company has also made changes to its receivables purchase agreement, terminating the previous agreement and entering into a new $60 million committed receivables purchase and servicing agreement.
As of September 27, 2024, Mercury Systems had 2,369 employees, reflecting a reduction in workforce as part of its restructuring initiatives. The company continues to explore acquisitions and strategic alliances, indicating a focus on growth and adaptation in a competitive market.
About MERCURY SYSTEMS INC
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