On August 13, 2024, Mercury Systems Inc (MRCY, Financial) released its 8-K filing reporting the financial results for the fourth quarter and fiscal year 2024. Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry, delivering secure open architecture solutions for mission-critical applications.
Performance Overview
For the fourth quarter of fiscal 2024, Mercury Systems Inc reported revenue of $248.6 million, surpassing the analyst estimate of $230.69 million. However, the company posted a GAAP net loss of $10.8 million, translating to a loss per share of $0.19. This compares to a GAAP net loss of $8.2 million, or $0.15 per share, in the same quarter last year. Adjusted earnings per share (EPS) for Q4 FY24 was $0.23, up from $0.11 in Q4 FY23.
Despite the net loss, the company achieved a book-to-bill ratio of 1.14 with total bookings of $284.4 million, indicating strong demand for its products and services. The record backlog of $1.3 billion, up 16% year-over-year, further underscores the company's robust order pipeline.
Fiscal Year 2024 Results
For the full fiscal year 2024, Mercury Systems Inc reported revenue of $835.3 million, exceeding the annual estimate of $818.73 million. The company recorded a GAAP net loss of $137.6 million, or $2.38 per share, compared to a net loss of $28.3 million, or $0.50 per share, in fiscal 2023. Adjusted EPS for the year was a loss of $0.69, down from a gain of $1.00 in the previous year.
Adjusted EBITDA for fiscal 2024 was $9.4 million, a significant decline from $132.3 million in fiscal 2023. However, the company generated $60.4 million in cash flows from operating activities, compared to a negative $21.3 million in the prior year. Free cash flow for fiscal 2024 was $26.1 million, a substantial improvement from a negative $60.1 million in fiscal 2023.
Financial Statements and Key Metrics
| Metric | Q4 FY24 | Q4 FY23 | FY24 | FY23 |
|---|---|---|---|---|
| Revenue | $248.6M | $253.2M | $835.3M | $973.9M |
| GAAP Net Loss | ($10.8M) | ($8.2M) | ($137.6M) | ($28.3M) |
| Adjusted EPS | $0.23 | $0.11 | ($0.69) | $1.00 |
| Adjusted EBITDA | $31.2M | $21.9M | $9.4M | $132.3M |
| Free Cash Flow | $61.4M | $3.8M | $26.1M | ($60.1M) |
Analysis and Commentary
Mercury Systems Inc's performance in Q4 FY24 highlights the company's ability to generate strong revenue despite ongoing challenges. The increase in adjusted EPS and adjusted EBITDA indicates improved operational efficiency and cost management. The significant improvement in free cash flow is a positive sign for the company's liquidity and financial health.
In fiscal 2024, we made considerable progress in addressing what we believe to be transient challenges in the business, and we enter fiscal 2025 confident in our strategic positioning as a leader in mission-critical processing at the edge," said Bill Ballhaus, Mercury’s Chairman and CEO.
Mercury Systems Inc's focus on expanding its backlog and streamlining operations is expected to drive organic growth and improve margins in the coming fiscal year. The company's strategic initiatives and robust order pipeline position it well for future success in the aerospace and defense industry.
For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Mercury Systems Inc for further details.
