Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology
company that delivers mission-critical processing power to the
edge, today announced it signed a three-year subcontract worth as
much as $96 million with Raytheon, an RTX business, to deliver
high-performance signal processing sub-systems for the U.S. Army’s
Lower Tier Air and Missile Defense Sensor (LTAMDS).
Under the new production agreement, Mercury will deliver
hardware to Raytheon for the next nine LTAMDS radars to support the
U.S. Army and Poland, the first international LTAMDS customer.
In May 2023, Mercury completed the delivery of more than 160
hardware units for the first six LTAMDS radars, including signal
data processor sub-systems, beamforming platforms, and ethernet
switching hardware to fulfill its proof of manufacturing
contract.
LTAMDS is the newest air and missile defense sensor that will
operate on the Army’s Integrated Air and Missile Defense network.
It is a 360-degree, Active Electronically Scanned Array radar that
provides significantly more capacity and capability against the
wide range of advanced threats, including hypersonic missiles.
Mercury developed an advanced, edge-ready processing solution for
LTAMDS that will give U.S. and international forces an unparalleled
strategic and tactical advantage on the battlefield.
Six Raytheon-built LTAMDS radars are advancing through
integration and test activities simultaneously at multiple
government and Raytheon test sites. A series of recent milestones
validate the radar’s performance and progression through
developmental testing, including the recently completed contractor
verification testing and tactical ballistic missile and cruise
missile live fire tests. Formal testing continues in 2024.
“By leveraging many innovative, edge-ready technologies from the
Mercury Processing Platform, Raytheon has developed a truly
unrivaled air defense capability that will contribute to the safety
and security of the United States and its allies around the world,”
said Mercury Chairman and CEO Bill Ballhaus. “As LTAMDS production
ramps up in the coming years, it will become a strong driver of
organic growth for the company.”
Mercury Systems – Innovation that
matters®Mercury Systems is a technology company that
delivers mission-critical processing power to the edge, making
advanced technologies profoundly more accessible for today’s most
challenging aerospace and defense missions. The Mercury Processing
Platform allows customers to tap into innovative capabilities from
silicon to system scale, turning data into decisions on timelines
that matter. Mercury’s products and solutions are deployed in more
than 300 programs and across 35 countries, enabling a broad range
of applications in mission computing, sensor processing, command
and control, and communications. Mercury is headquartered in
Andover, Massachusetts, and has 24 locations worldwide. To learn
more, visit mrcy.com. (Nasdaq: MRCY)
Forward-Looking Safe Harbor StatementThis press
release contains certain forward-looking statements, as that term
is defined in the Private Securities Litigation Reform Act of 1995,
including those relating to the Company's focus on enhanced
execution of the Company's strategic plan under a refreshed Board
and leadership team. You can identify these statements by the words
“may,” “will,” “could,” “should,” “would,” “plans,” “expects,”
“anticipates,” “continue,” “estimate,” “project,” “intend,”
“likely,” “forecast,” “probable,” “potential,” and similar
expressions. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated. Such risks and uncertainties
include, but are not limited to, continued funding of defense
programs, the timing and amounts of such funding, general economic
and business conditions, including unforeseen weakness in the
Company’s markets, effects of any U.S. federal government shutdown
or extended continuing resolution, effects of geopolitical unrest
and regional conflicts, competition, changes in technology and
methods of marketing, delays in or cost increases related to
completing development, engineering and manufacturing programs,
changes in customer order patterns, changes in product mix,
continued success in technological advances and delivering
technological innovations, changes in, or in the U.S. government’s
interpretation of, federal export control or procurement rules and
regulations, changes in, or in the interpretation or enforcement
of, environmental rules and regulations, market acceptance of the
Company's products, shortages in or delays in receiving components,
supply chain delays or volatility for critical components such as
semiconductors, production delays or unanticipated expenses
including due to quality issues or manufacturing execution issues,
failure to achieve or maintain manufacturing quality
certifications, such as AS9100, the impact of the COVID pandemic
and supply chain disruption, inflation and labor shortages, among
other things, on program execution and the resulting effect on
customer satisfaction, inability to fully realize the expected
benefits from acquisitions, restructurings, and execution
excellence initiatives or delays in realizing such benefits,
challenges in integrating acquired businesses and achieving
anticipated synergies, effects of shareholder activism, increases
in interest rates, changes to industrial security and
cyber-security regulations and requirements and impacts from any
cyber or insider threat events, changes in tax rates or tax
regulations, such as the deductibility of internal research and
development, changes to interest rate swaps or other cash flow
hedging arrangements, changes to generally accepted accounting
principles, difficulties in retaining key employees and customers,
which difficulties may be impacted by the termination of the
Company’s announced strategic review initiative, unanticipated
challenges with the transition of the Company’s Chief Executive
Officer and Chief Financial Officer roles, including any dispute
arising with the former CEO over his resignation, unanticipated
costs under fixed-price service and system integration engagements,
and various other factors beyond our control. These risks and
uncertainties also include such additional risk factors as are
discussed in the Company's filings with the U.S. Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended June 30, 2023 and subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. The Company
cautions readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date made.
The Company undertakes no obligation to update any forward looking
statement to reflect events or circumstances after the date on
which such statement is made.
INVESTOR CONTACTNelson EricksonSenior Vice
President, Strategy and Corporate
DevelopmentNelson.Erickson@mrcy.com
MEDIA CONTACTTurner BrintonSenior Director,
Corporate Communications Turner.Brinton@mrcy.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b390dc72-e896-4026-9802-20c4ecc67ceb
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