Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Mercury Computer Systems — Investor Day (October 2008)
107 slides from Mercury Systems's investor day presentation, Oct 29, 2008
Slide 1: Ninth Annual Investors' Conference
Ninth Annual Investors’ Conference October 29, 2008 Converged Sensor Networks: The Path to Market Leadership Exhibit 99.1
Slide 2: Forward-Looking Safe Harbor Statement
Forward-Looking Safe Harbor Statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to anticipated fiscal 2009 business performance and beyond. You can identify these statements
Slide 3: Agenda
Agenda • Corporate Overview – Mark Aslett, CEO, Mercury Computer Systems – Mercury Situational Business Analysis – Plans for ACS Defense – the Need for a Converged Sensor Network – Mercury Federal – Evolving our COTS business Model • Keynote: Piercing the Fog of War • The Converged Sensor Network™:
Slide 4: Introduction
Introduction • New strategy and management team well established • Improved FY08 financial performance • Strong core defense business – stabilizing commercial • Defense provides long-term profitable growth potential • Need to evolve COTS board business – Converged Sensor Network™ architecture • Merc
Slide 5: Revenue and profitability strength in ACS business
• Revenue and profitability strength in ACS business • Non-core businesses eroding operating profits Significant company dynamics (# ’ s GAAP FY08) Notes: FY08 Operating Profit Total excludes stock-based compensation expense Includes $7.3M amortization expense, $5.2M restructuring, $18M goodwill imp
Slide 6: Defense
Defense Major ACS business dynamics • Focus on strengthening and growing the defense business FY07 FY08 Commercial
Slide 7: ACS commercial segment dynamics
ACS commercial segment dynamics • Commercial bookings slower rate of decline in FY08 • Current market conditions challenging • Significant volatility has added unpredictability to ACS • Focused on commercial and defense leverage
Slide 8: Refocusing ACS commercial opportunities
Refocusing ACS commercial opportunities • Focus on existing customer accounts and industry segments • Selective tactical new pursuits leveraging existing products or planned roadmap • Maximize R&D synergies across product lines and defense • Converged Sensor Network™ architecture applicable to comme
Slide 9: Strength in ACS defense markets
Strength in ACS defense markets • 17% revenue growth and 33% bookings growth in FY08 • Strong revenue growth in Radar, C4I and EW • Focused on the C4ISR market going forward
Slide 10: Growing and evolving our defense core
Growing and evolving our defense core • Highly penetrated across many programs and platforms presents good upgrade opportunities and lower risk • Design win-led – refresh product portfolio • Tactically penetrate more programs on new and existing platforms on land, air, and sea • Expand presence in a
Slide 11: Defense Electronics
Defense Electronics Market** COTS Market* $3B $30B Boards ($0.9B) Subsystems ($2.3B) $3B COTS defense market trends • COTS comprises $3B (10%) of defense electronics TAM • Defense primes driving increased outsourcing • Platform upgrades, obsolescence, and new functionality driving end- user growth F
Slide 12: COTS board industry dynamics
COTS board industry dynamics • Industry consolidation causing hardware commoditization – Top 3 companies have 56% market share • Declining opportunity to add value at the board level – Board-to-board interconnect technology available to all – Processor technology suppliers common to all competitors
Slide 13: Sustain and differentiate COTS business
Sustain and differentiate COTS business • Innovate interconnect expertise to unique, low-latency IP networking connectivity • Evolve software to provide higher value-add: security, high availability, virtualization, scalability and portabilty • Leverage commercial telecom products and experience int
Slide 14: Converged Sensor Network vision
Converged Sensor Network™ vision • Target real need – money flows • Next-generation platform- independent ISR architecture • Beyond COTS – expand addressable market 10x • Leverages technology strengths, installed base, and recent acquisitions • Provides catalyst for growth Become the government’s tr
Slide 15: High-level defense market data look promising
High-level defense market data look promising Source : The Military Electronics Briefing, 2008 Ed. , The TEAL Group
Slide 16: Military electronics is a market sweet spot
Military electronics is a market sweet spot • Retrofit and upgrades remain strong for legacy programs • Increased need for EW – Intelligence, Surveillance, Reconnaissance assets • Networked nodal platforms, virtualized sensors • Next-gen onboard processing, exploitation and dissemination architectur
Slide 17: Commentary on the election and DoD budget
Commentary on the election and DoD budget • History shows defense budget more related to what is happening, not who is in charge – Democrats presided over Vietnam and WWII – DoD budget decline started with Bush-41 and rose under Clinton • Budget and funding deemed to be at a bare minimum according t
Slide 18: Transitioning Mercury's business model
Transitioning Mercury's business model Today’s Model • Government frustrated with current prime model • Platform-centric approach • Proprietary stovepipe processing architectures • Pay multiple times for similar capabilities • Slow time to deployment • Maybe not best in class
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Slide 20: ACS Defense and MFS – a hybrid business model
ACS Defense and MFS – a hybrid business model ACS COTS Defense • Total addressable market COTS defense electronics ($3B annually) • Be told what board to develop by a prime • Board-level design wins • Develop everything on our own nickel • Long payback period – high risk
Slide 21: ACS Defense and MFS – a hybrid business model
ACS Defense and MFS – a hybrid business model ACS COTS Defense • Total addressable market COTS defense electronics ($3B annually) • Be told what board to develop by a prime • Board-level design wins • Develop everything on our own nickel • Long payback period – high risk with Mercury Federal • Total
Slide 22: Benefits of a hybrid business model to Mercury
Benefits of a hybrid business model to Mercury • Closer to the end customer – track the money flows, insight years ahead of the competition • Leverages our past business model into the future • Funded product development helps lower R&D expenses, accelerate growth and reduces risk • Larger deal size
Slide 23: Summary
Summary • Rationalize portfolio of non-core businesses by end FY09 • Strengthen ACS defense business – stabilize commercial • Grow ACS defense business by targeting upgrades, new platforms and applications • Evolve beyond COTS board business due to industry size constraints and dynamics – Converged
Slide 24: Agenda
Agenda • Corporate Overview • Keynote: Piercing the Fog of War – J. Michael Johnson, RADM USN (Retired) and former President and CEO of Recon Optical, Inc. • The Converged Sensor Network™: Market Leadership • Mercury Federal Systems (MFS) • Advanced Computing Solutions • Financial Review • Closing R
Slide 25: Mercury's challenge
Mercury’s** challenge Turn the “Quicksilver” of today’s digital data into useable information leading to Knowledge ** Mercury: also known as Quicksilver
Slide 26: IR imagery example
econ Bericat fac. SENSOR PLATFORM LENS ALTITUDE SPEED DATE LOCAL TIME IR Imagery CA-270 Dual Band P-3 12-Inch fl E-O/R 1,288 ft 200 kn 11 February, 2003 19:34
Slide 27: Challenges in C4ISR
Challenges in C4ISR • Confronting an “Asymmetric” & “Amorphous” Threat • Satisfying Growing Demand – Volume, Accuracy, Currency/Latency, Availability, Relevance • Conducting Multi-Intelligence Collaboration • Modernizing Current Infrastructure – Information Assurance & Appropriate Protection • Trans
Slide 28: Changing nature of ISR
Changing nature of ISR
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Slide 30: Desert Storm
DESERT STORM
Slide 31: Balkans, Bosnia, Kosovo
BALKANS BOSNIA KOSOVO
Slide 32: Afghanistan
AFGHANISTAN
Slide 33: Iraqi Freedom
IRAQI FREEDOM
Slide 34: Film-based to digital-based ISR
Film-based to digital-based ISR 80+ years of film • Thousands of Aircraft with 1 to 4 cameras • Limited by film capacity, ~1000 miles of film per camera • Often took days to get actionable intelligence to users • Very manpower-intensive to process & analyze film 15+ years of digital • Primarily limi
Slide 35: Today's architecture is fundamentally flawed
Today's architecture is fundamentally flawed Net-centricity with Legos • Connectivity stacked on top of a variety of existing architectures • Re-plumbing decade-old architecture will just overwhelm decision- makers and analysts that are still the backbone of today’s ISR architecture Must develop new
Slide 36: ISR is in rapid transition
ISR is in rapid transition • Automatic, sensor-node to sensor-node cooperative tasking, collection and data exploitation • Connection policies (security included) that are based on the end-user’s information requirement From Strategic Precision Targeting by a select few To Tactical Precision Targeti
Slide 37: Tomorrow's architecture – nodal by design
Tomorrow’s architecture – nodal by design Nodes capable of “Knowledge Extraction” • Coherent Change Detection, nodal ID and Moving Target Indication • Multi-sensor fusion • Cooperative engagement and cross-cueing Nodes capable of being Servers and Clients • Enhanced Imagery Intelligence, Feature Ext
Slide 38: Mercury's Opportunity – Nodalectic by design
Mercury's Opportunity – “Nodalectic” by design • Government frustrated with current “Platform- Centric” model – Redundant capabilities without the benefits of redundancy, scalability – Slow time to field – Maybe not best-of-breed • Commercial – Military cross-over: commercial technologies now drivin
Slide 39: A Nodal Battlefield Will Help Lift the Fog of War
A Nodal Battlefield Will Help Lift the Fog of War 38 Can you extract knowledge from this photo? Can Mercury Computer Systems?
Slide 40: Agenda
Agenda • Corporate Overview • Keynote: Piercing the Fog of War • The Converged Sensor Network™: Market Leadership – Ian Dunn, CTO, Mercury Computer Systems – Mercury Innovation Addresses Access to Critical Information – Converged Sensor Network™ Defined – Industry-Leading Technology • Mercury Federa
Slide 41: Key transitions in Mercury's history
Key transitions in Mercury's history 1. RACEway: 1990-2008 & Beyond From array processing inside a computer workstation… … to multi - computing inside everything from medical scanners to surveillance radars 2. COTS Mandate Begins in From proprietary microprocessors being developed by every prime con
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Slide 43: Why now? Information is paramount
Why now? Information is paramount Timely Access Accurate Access Single sensor platforms don’t collect adequate target information Targets in heavy clutter require cooperation – find, classify, and track Sensor data rates continue to outstrip available data link bandwidths Ground-based exploitation t
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Slide 45: To the warfighter, CSN is on-demand sensing
To the warfighter, CSN™ is on-demand sensing • Engage an entire network of sensors with a single “virtualized” interface • Capable of translating information needs into cooperative tasking and exploitation services • Retain targets throughout the field of regard of the sensor network Virtual Sensor
Slide 46: e rs
e rs
Slide 47: Lowers risk to improve product velocity and ROI
lowers risk to improve product velocity and ROI
Slide 48: A real combat system built with CSN
A real combat system built with CSN™ • Converged offering of signal processing, data exploitation, mission processing and storage • Service-oriented, highly available solution built on top of dual redundant IP backbones Command & Control Use of electronic fiber-optic imagery system for information g
Slide 49: Capabilities of CSN Architecture
Capabilities of CSN Architecture
Slide 50: Capabilities of CSN Architecture
Capabilities of CSN Architecture Integrated performance with modular products • RF tuners • IF signal processors
Slide 51: Capabilities of CSN Architecture
Capabilities of CSN Architecture Integrated performance with modular products • RF tuners • IF signal processors Market leader in Digital Signal Processing • Low latency streaming IO • Highest density signal and image processing
Slide 52: Capabilities of CSN Architecture
Capabilities of CSN Architecture Building new capabilities • IP networking • Information management technologies Integrated performance with modular products • RF tuners • IF signal processors Market leader in Digital Signal Processing • Low latency streaming IO • Highest density signal and image pr
Slide 53: Capabilities of CSN Architecture
Capabilities of CSN Architecture Disseminating information • High-bandwidth COTS CDL’s • Satellite comms • Gateways • Datalinks • Networking Building new capabilities • IP networking • Information management technologies Integrated performance with modular products • RF tuners • IF signal processors
Slide 54: Converged Sensor Network vision
Converged Sensor Network™ Vision • Leverage past acquisitions and organic product development to focus on providing an open, off-the-shelf architecture • Become the technology leader in embedded convergence – Convergence of real-time and non-real-time applications – Convergence of multiple sensors,
Slide 55: Mercury's Team to execute CSN
Government Customers Prime Contractors Converged Sensor Network™ Mercury's Team to execute CSN™
Slide 56: Agenda
Agenda • Corporate Overview • Keynote: Piercing the Fog of War • The Converged Sensor Network™: Market Leadership • Mercury Federal Systems (MFS) – Terry Ryan, SVP & GM, Mercury Federal Systems – Why the Necessity for Mercury Federal? – Mission and Objectives – Success Stories • Advanced Computing S
Slide 57: Defining the next-generation architecture
Defining the next-generation architecture • In 1993, "we" defined the current ISR system architecture being deployed today… – Ground station centric at the Division-level – One platform, one ground station – Collect and dump all data (watch and hear >25%) • In 2008, that architecture is…… – Outdated
Slide 58: The Federal market: continuously evolving
DoD 1993 2008 2013e The Federal market: continuously evolving Budget ($B) Supplemental ($B) None +190 GWOT None planned R&D ($B) Procurement ($B) C4ISR Budget ($B) UAS Platforms (#) 2,100 3,300 Ships/Subs (#) Fed Svcs ($B) Embedded S/W ($B) 0.4 4.2 Growth trend will be in C4ISR systems integration a
Slide 59: 1993 Airborne ISR R&D costs
1993 Airborne ISR R&D costs Signal Processing / Systems Integration Platform Sensor Datalink Ground Station 10% 40% 30% 5% 15% Datalink Platform Sensor Ground Station Application Acceleration/ Systems Integration R&D was focused on deploying long-endurance airborne assets to augment satellites Sourc
Slide 60: 2008 Airborne ISR R&D costs
2008 Airborne ISR R&D costs Signal Processing / Systems Integration Platform Sensor Datalink Ground Station 10% 40% 30% 5% 15% 45% 10% 15% 10% 10% 5% 5% Datalink Platform Sensor Ground Station Application Acceleration/ Systems Integration Warfighter Terminals Warfighter Terminals Broadcast Provision
Slide 61: Positioning for growth in times of transformation
Positioning for growth in times of transformation Mercury Federal has the technical and engineering services platform to address new acquisition cycles “Our conventional modernization programs seek a 99 percent solution in years… today’s wars require 75 percent solutions in months.” Defense Secretar
Slide 62: Mercury Federal Systems market opportunity
Mercury Federal Systems market opportunity • Government Program Managers challenged to deal with complexities of developing open system solutions in data- intense, multicore computing environments – Especially in Intelligence, C4ISR, and Homeland Security spaces – "Digital immigrants versus digital
Slide 63: Tailored offerings enhance MFS value proposition
Tailored offerings enhance MFS value proposition Secure Government RDT&E Funding “As is” versus “to be” Porting infrastructure MFS development: license strategy MFS working with ACS
Slide 64: Current Persistent Surveillance Environment
Current Persistent Surveillance Environment 10 km
Slide 65: Our value proposition: Demonstrating CSN Concepts
Our value proposition: Demonstrating CSN Concepts 10 km
Slide 66: Sustaining growth in FY09
Sustaining growth in FY09 • Positioning component parts of the CSN™ approach on the critical path of key government programs • Executing directed government-funded initiatives to support the development of new elements of the CSN™ architecture • Expanding our core team of cleared engineers that can
Slide 67: Agenda
Agenda • Corporate Overview • Keynote: Piercing the Fog of War • The Converged Sensor Network™: Market Leadership • Mercury Federal Systems (MFS) • Advanced Computing Solutions – Didier Thibaud, SVP & GM, Advanced Computing Solutions – ACS Overview and Current Success – ACS Growth Strategy – Converg
Slide 68: Introduction
Introduction • Commercial business to lead CSN™ technology • Focus on C4ISR Defense • Market Leadership in C4ISR Embedded Computing • Design wins in major programs to fuel growth
Slide 69: Advanced Computing Solutions
Advanced Computing Solutions Leading provider of high-performance embedded computer systems and software to computationally challenging markets Defense Segments (By Sensor) • Radar • EW (Electronic Warfare) • Sonar • EO (Electro-Optical) • C4I (Command, Control, Communications, Computers & Intellige
Slide 70: Industry technology drivers
Industry technology drivers • Reduction in system size, weight and power to meet smaller platform requirements (e.g., Tactical UAV) • New battlefield requires networked distributed access and information sharing • Onboard exploitation required for information dissemination • More emphasis on open st
Slide 71: ACS capabilities
ACS capabilities • Capabilities cover full C4ISR processing needs • Technical expertise and domain knowledge of our customers’ applications combine to deliver reliable performance and sustained value • ACS complements Mercury Federal by supplying foundational products ACS’s core capabilities provide
Slide 72: Delivering value to C4ISR customers
Delivering value to C4ISR customers • Traditionally market leader in digital signal processing • Focus on providing more functions through acquired capabilities – RF and mixed-signal assets – SBC and Intel • Building capabilities for more subsystem market penetration – Networking competence – Inform
Slide 73: Commercial technology at the root of CSN
Commercial technology at the root of CSN™ Commercial technologies and trends form the foundation from which ACS can leverage advancements
Slide 74: Success in SATCOM – Disseminate
Success in SATCOM – Disseminate • Mercury pushed the envelope of the ATCA standard to solve state-of-the-art beamforming challenges • Mercury delivered: – Providing 300 Gbps of connectivity – High-availability middleware – Highest performance FPGA system – First commercial CSN™-ready platform High-p
Slide 75: Success in semiconductor inspection – Exploitation
Success in semiconductor inspection – Exploitation • Mercury's solution provides TFLOPS of Cell processing to weed out semiconductor flaws and increase yield for KLA Tencor • Mercury's expertise delivered: – 4x the performance levels of previous-generation systems – Largest image exploitation comput
Slide 76: Leveraging commercial knowledge into defense
Leveraging commercial knowledge into defense • Bring the best of commerical technology and expertise to provide superior defense products – Economies of scale and scope – Early adoption and verification of technology – Shorter development cycles – Capitalize on development synergies • Cross-market p
Slide 77: Airborne and naval electronics
Airborne and naval electronics Source : The Military Electronics Briefing, 2008 Ed. , The TEAL Group
Slide 78: Defense market leadership in airborne radar
Defense market leadership in airborne radar • Highly penetrated in major Airborne programs – COTS provider in 54% of major airborne radar programs – Significant subsystem processing content – Example programs include: APY-3 (JSTARS), APY-2(MESA), MP-RTIP (Global Hawk), Lynx & Lynx II (Predator), APG
Slide 79: Continued success in naval radar – Aegis
Continued success in naval radar – Aegis • Navy's multibillion-dollar Aegis Ballistic Missile Defense (BMD) program built by Lockheed Martin • Mercury provides the highest performance deployed radar signal processing solution (1+ TFLOPS) with new CSN™ architecture • Deployment starts in 2010 Lockhee
Slide 80: Defense market leadership in airborne EW
Defense market leadership in airborne EW • Highly penetrated in major Airborne SIGINT programs – COTS provider on 57% of Airborne SIGINT – ASIP (Global Hawk, Predator) – Guardrail, Rivet Joint • Leveraging experience to pursue upcoming next- generation SIGINT programs – Aerial Common Sensor (ACS), E
Slide 81: Partial list of well-known programs relying on Mercury technology
Partial list of well-known programs relying on Mercury technology Global Hawk Predator Rivet Joint JSTARS F-35 JSF BAMS MESA F-16 MP-RTIP Guardrail JCREW PAR-2000 Commander LRR HML SIGINT Ground System Aegis SQQ-89 Sampson Empar International Combat System Naval SIGINT Platform Design wins driving g
Slide 82: Success in counter-IED – full CSN implementation
Success in counter-IED – full CSN ™ implementation • US Army awarded Mercury a contract to develop a testbed for counter-IED systems development • Mercury is providing a state-of- the-art processing platform including an innovative middleware solution to enable next-generation multi-mission scenario
Slide 83: Success in defense comms – Dissemination
Success in defense comms – Dissemination • Raytheon's HDR-RF Ground Modem contract from the US Air Force to provide a wideband modem subsystem • Mercury provided COTS software radio processing subsystem • First waveform-portable COTS wideband datalink solution Acquisition of Advanced Radio Corp. (AR
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Slide 85: ACS defense committed to growth
ACS defense committed to growth Penetration by segment (number of programs) • Unparalleled COTS provider success in airborne radar markets • EW penetration attributed to airborne SIGINT wins • Grow within penetrated segments with existing capabilities by winning upgrades and technology refreshes Tre
Slide 86: ACS 3-phased growth plan
ACS 3-phased growth plan • Defensive Positioning – Traditional market segments where Mercury’s innovation has resulted in a significant installed base – Continue leadership and program capture within these segments • Tactical Growth – Market segments where Mercury’s existing capabilities are leverag
Slide 87: Why customers choose Mercury
Why customers choose Mercury • Superior performance and reliability • Close collaborative relationships with our customers • Technology and domain expertise contributions • Range of open-standard and flexible products • Ability to deliver complex subsystems • Mitigate customer risk and reduce time t
Slide 88: Why we will get to the next level
Why we will get to the next level • Be the competitive advantage for our customers with CSN™ • Leverage commercial expertise for quicker time to deployment • Clear understanding of the future of the market based on the combined knowledge of Mercury Federal and ACS • Provide Converged Sensor Network
Slide 89: Summary
Summary • Expand beyond signal processing • Stabilize and focus our commerical business • Leverage commercial technology expertise into defense CSN™ offerings • Well-positioned to take advantage of C4ISR for growth • Growth fueled by new application and platform design wins
Slide 90: Agenda
Agenda • Corporate Overview • Keynote: Piercing the Fog of War • The Converged Sensor Network™: Market Leadership • Mercury Federal Systems (MFS) • Advanced Computing Solutions • Financial Review – Bob Hult, CFO, Mercury Computer Systems – FY08 Financial Results – FY09 Guidance • Closing Remarks / Q
Slide 91: FY07 vs FY08: improved performance
FY07 vs FY08: improved performance Notes: 1) All historical income statement figures adjusted for the discontinued operation of Embedded Systems & Professional Services and SolMap. 2) All numbers are non-GAAP.
Slide 92: Revenue growth follows investment cycles
Revenue growth follows investment cycles: Driven by Defense Notes: 1)Represents total Company revenues; VI, VSG and Emerging businesses’ revenue treated as Commercial 2)All historical figures adjusted for the discontinued operation of Embedded Systems & Professional Services and SolMap June Fiscal Y
Slide 93: Segment operating profit (GAAP)
Segment operating profit (# ’ s GAAP) • Profitability strength in ACS; non-core businesses eliminating operating profits Notes: 1) FY08 Segment Operating Profit Total excludes stock - based compensation expense. 2) Includes $7.3M amortization expense, $5.2M restructuring, $18M g oodwill impairment,
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Slide 98: Strategic Direction – sell, fix or grow
Strategic Direction – sell, fix or grow VSG AUSG - Sold VI ES/PS - Sold Biotech - Sold Government Defense Commercial Mercury Federal Sell or Shutdown Fix Grow VI
Slide 99: Strong balance sheet
Strong balance sheet • $125M convertible debenture (May 2009 Put) • Net cash positive: $42M • $50M ARS’s – UBS payback @ par in June – Access to $35M zero cost margin loan at UBS Quarter ended September 30, 2008 Cash and Equivalents $167 Total Current Assets $175 Total Assets $323 Total Debt $125 To
Slide 100: Focus on working capital
Focus on working capital • Supply chain transformation – Operational efficiencies – Manufacturing lead times – Cost of quality – Competitive advantage for Mercury and customers – Inventory reduced $7.1M • Customer satisfaction – DSO’s at model – End-of-quarter shipment skew
Slide 101: Gap to target business model (non-GAAP)
Gap to target business model (# ’ s non - GAAP) Target Business Model Notes: 1) All historical income statement figures adjusted for the discontinued operation of Embedded Systems & Professional Services and SolMap.
Slide 102: Guidance summary (non-GAAP)
Q1 Q2 Q3 Q4 Q109 Guidance summary (non-GAAP) Reported Guidance Reported Guidance Reported Guidance Reported Guidance Reported Guidance Revenue ($M) 49.2 48.0 52.6 51.0 56.5 53.0- 55.0 55.2 53.0- 56.0 49.1 47.0- 49.0 EPS ($) 0.09 (0.08) 0.04 (0.05) 0.04 (0.04)- 0.00 0.01 (0.05)- 0.01 0.07 (0.07)- (0.
Slide 103: Q2 Fiscal Year 2009 guidance
Quarter Ending December 31, 2008 Q2 Fiscal Year 2009 guidance Revenues ($M) $47 - $49 GAAP Non-GAAP Gross Margin Approximately 59% Approximately 59% EPS $(0.22) - $(0.14) $(0.05) - $0.00 • Impact of equity-based compensation costs related to FAS 123R of approximately $2.4M excluded from non-GAAP • A
Slide 104: Corporate Overview
• Corporate Overview • Keynote: Piercing the Fog of War • The Converged Sensor Network™: Market Leadership • Mercury Federal Systems (MFS) • Advanced Computing Solutions • Financial Review • Closing Remarks / Q&A Agenda
Slide 105: Thank you!
NASDAQ: MRCY Thank you!
Slide 106: Mercury Computer Systems
oN = MERCURY COMPUTER SYSTEMS 2 Ss
Slide 107: GAAP to non-GAAP reconciliation
GAAP to non-GAAP reconciliation • Q209 Guidance Reconciliation* * Per Company guidance range, October 22, 2008 earnings conference call RANGE Income (Loss) Per Share - Diluted Income (Loss) Per Share - Diluted GAAP expectation (0.22) $ (0.14) $ Adjustment to exclude stock-based compensation 0.11 0.1
Mercury Computer Systems — Investor Day (October 2008) on 6ix