ANDOVER, Mass. – Mercury Systems Inc. (NASDAQ:MRCY) has secured a $31 million contract to supply solid-state data recorders (SSDRs) to L3Harris Technologies (NYSE:NYSE:LHX) for a U.S. Space Development Agency satellite constellation project.
The Tranche 2 Tracking Layer program, part of the SDA's Proliferated Warfighter Space Architecture, aims to enhance missile warning and tracking capabilities globally.
The contract comes after L3Harris was chosen in January to design and construct 18 satellites that will contribute to the Tracking Layer's mission of providing preliminary missile defense. This follows their work on the 16-satellite Tranche 1 constellation and the four satellites for Tranche 0.
Mercury's SSDRs, which are designed to withstand the harsh conditions of space, are integral for on-orbit sensor data processing and storage. These devices are housed in a 3U VPX form factor and are characterized by a microprocessor and software-free design, ensuring reliable long-term operation.
The SSDRs have previously been used in space missions, including NASA's Earth Surface Mineral Dust Source Investigation currently aboard the International Space Station.
Tom Smelker, GM of Mercury’s Microsystems business unit, expressed pride in the company's role in the national security mission, highlighting the Mercury Processing Platform's edge-ready products that transform data into actionable insights.
Mercury Systems, headquartered in Andover, Massachusetts, is known for providing mission-critical processing power to the edge. Their products and solutions are utilized in over 300 programs across 35 countries, supporting a variety of applications from mission computing to sensor processing and communications.
This press release includes forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those projected. The information presented in this article is based on a press release statement from Mercury Systems Inc.
InvestingPro Insights
Mercury Systems Inc. (NASDAQ:MRCY) has recently made headlines with a significant contract, reinforcing its position in the defense and aerospace sector. However, a deeper look into the company's financials through InvestingPro provides a nuanced perspective on its performance and potential.
InvestingPro Data metrics indicate a challenging fiscal environment for Mercury Systems, with a market capitalization of $1.74 billion and a negative P/E ratio of -19.58, reflecting investor concerns over profitability. The last twelve months as of Q2 2024 show a revenue decline of 10.48%, with a quarterly revenue decline of 13.99% in Q2 2024.
These figures suggest headwinds in sales growth, corroborating the concerns around the company's near-term financial outlook. Furthermore, the company's stock has experienced a significant downturn, with a six-month price total return of -25.04%.
InvestingPro Tips for Mercury Systems paint a picture of caution for investors. Analysts expect a sales decline and a drop in net income in the current year, with no profitability anticipated. These insights are particularly relevant for stakeholders considering the company's latest contract win, as they provide context to the broader financial challenges Mercury Systems may face.
Despite these concerns, it's worth noting that the company's liquid assets do exceed its short-term obligations, offering some financial stability.
For those looking to delve deeper into Mercury Systems' financials and future prospects, InvestingPro offers additional tips. There are currently 7 more InvestingPro Tips available, which can provide further guidance on investment decisions. To access these insights and more, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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