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Mercury Computer Systems Reports Operating Results (10-Q)

November 05, 2012 | About:
10qk

10qk

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Mercury Computer Systems (MRCY) filed Quarterly Report for the period ended 2012-09-30.

Mercury Computer Systems, Inc. has a market cap of $278.4 million; its shares were traded at around $8.09 with a P/E ratio of 11.7 and P/S ratio of 1.1.

Highlight of Business Operations:

Total revenues increased $0.3 million, or 1%, to $49.4 million during the three months ended September 30, 2012 as compared to the comparable period in fiscal 2012. International revenues represented approximately 4% and 5% of total revenues during the three months ended September 30, 2012 and 2011, respectively.

Net ACS revenues decreased $7.6 million, or 17%, during the three months ended September 30, 2012 as compared to the same period in fiscal 2012. This decrease was primarily driven by lower defense sales of $8.4 million which were slightly offset by a $0.8 million increase in commercial sales. Excluding the addition of KOR and Micronetics, defense revenues for the three months ended September 30, 2012 declined $17.7 million as a result of lower revenues in two particular programs year over year and a general slowdown in funding due to current constraints on U.S. defense spending and uncertainties surrounding the future defense budget.

Selling, general and administrative expenses increased $0.9 million, or 7%, to $14.5 million during the three months ended September 30, 2012, compared to $13.6 million during the comparable period in fiscal 2012. The increase was primarily due to a $0.8 million increase in employee compensation expense, including stock based compensation, primarily as a result of the KOR, PDI and Micronetics acquisitions. Selling, general and administrative expenses increased as a percentage of revenues to 29.4% during the three months ended September 30, 2012 from 27.8% during the same period in fiscal 2012.

Adjusted EBITDA, the profitability measure for our segment reporting, for ACS decreased $8.6 million during the three months ended September 30, 2012 to $(0.4) million as compared to $8.2 million for the same period in fiscal 2012. The decrease in adjusted EBITDA is primarily driven by lower revenues of $7.6 million coupled with lower margins driven by a shift in program mix.

During the three months ended September 30, 2012, we used $9.9 million in cash for operating activities compared to $4.2 million in cash generated from operating activities during the same period in fiscal 2012. The $14.2 million increase in cash used in operating activities was primarily a result of lower comparable net income of $9.9 million and a $4.8 million smaller reduction in the change in receivables. Our ability to generate cash from operations in future periods will depend in large part on profitability, the rate of collection of accounts receivable, our inventory turns and our ability to manage other areas of working capital.

Read the The complete Report

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