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Mercury Systems Inc (MRCY-3.87%). has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
The filing reports total revenues of $223.1 million for the quarter, an increase from $197.5 million in the same period the previous year. The increase is attributed to a shift in resources towards executing on the company's program base.
Gross margin for the quarter was 27.3%, up from 16.0% in the previous year. This improvement was driven by favorable changes in estimates on programs recognized over time and lower inventory reserves.
Operating expenses decreased to $73.2 million from $85.4 million in the previous year. This reduction was due to lower bad debt expenses and savings from workforce reductions.
Net loss for the quarter was $17.6 million, compared to a net loss of $45.6 million in the previous year. The improvement in net loss was driven by higher revenues and improved gross margins.
Cash provided by operating activities was $85.5 million, while cash used in investing activities was $3.6 million. The company did not make any additional borrowings or repayments on its revolving credit facility during the quarter.
Mercury Systems announced a workforce reduction on January 29, 2025, expected to result in restructuring charges of approximately $5.0 million, which will be paid within the next twelve months.
The company maintains a revolving credit facility with a borrowing capacity of $750 million, with $591.5 million outstanding as of December 27, 2024.
The filing also details ongoing legal proceedings, including a dispute with a former CEO and a securities class action complaint. Mercury Systems intends to defend itself vigorously in these matters.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Mercury Systems Inc quarterly 10-Q report dated February 4, 2025. To report an error, please email earnings@qz.com.