Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Investor Day (November 2018)
73 slides from Mercury Systems's investor day presentation, Nov 6, 2018
Slide 1: Mercury Systems FY19 Investor Day Presentation
Mercury Systems FY19 Investor Day Presentation November 6, 2018 Nasdaq MarketSite New York, NY © 2018 Mercury Systems, Inc. 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 to fiscal 2019 business performance and beyond and the Company’s plans for growth and improvement in p
Slide 3: Agenda
Agenda • Strategy & Business Update – Mark Aslett President & CEO • Value Creation Blueprint • Financial Update • Q&A ©© 2018 2018 Mercury Mercury Systems, Systems, Inc. Inc. 3
Slide 4: Pioneering a next generation defense electronics company
Pioneering a next generation defense electronics company… • Proven high-tech commercial business model for A&D • Secure sensor and safety critical processing subsystems • Serving defense Prime contractor outsourcing needs • Deployed on 300+ programs with 25+ Prime contractors • 24% FY14-18 revenue C
Slide 5: Strategy delivering above average growth and profitability
Strategy delivering above average growth and profitability Focused on Focused on economic core – aerospace and defense electronics 1 Core Markets Acquired New Expanded addressable market and moved up value chain 2 Capabilities Increased High tech R&D investment level for aerospace and defense electr
Slide 6: Acquisitions have transformed Mercury into a commercial provider
Acquisitions have transformed Mercury into a commercial… Aerospace and Defense • Acquired capabilities Electronic Subsystem significantly expanded MISSION PROCESSING addressable market MISSION PROCESSING SAFETY & SECURITY IP * • Moved up the value chain SECURE STORAGE SENSOR PROCESSING • Model facil
Slide 7: Deployed on 300+ programs with 25+ Primes
We are deployed on 300+ programs with 25+ Primes Aerospace & Defense Platform and Systems Electronics Content JLTV WIN-T KC-46 A330 MRTT Aegis C4I F-16 Reaper/Gorgon Stare Triton Patriot Aegis F-15 C-130 Global Hawk Badger/Buzzard SEWIP Stormbreaker PGK MALD-J Paveway SM2/3/6 Sensor & Effector Missi
Slide 8: Mercury continues to deliver strong financial results
Mercury continues to deliver strong financial results Notes: For the fiscal year ended June 30, 2018. Bookings as reported in the Company’s earnings announcement on July 31, 2018. Other figures as reported in the Company’s Form 10-K for the fiscal year ended June 30, 2018. CAGR figures for the perio
Slide 9: Six major trends shaping the defense industry
Six major trends shaping the defense industry Political Dysfunction: Budget Control Act and repeated Continuing Resolutions disrupting DoD budget process and spending Increased Defense Spending Cycle: Rising interest rates, healthcare and social spending remain issues; MilPer expense growth, aging m
Slide 10: Bipartisan Budget Deal of 2018 and defense spending
The Bipartisan Budget Deal of 2018 provides a significant near-term impulse to defense spending… Topline Base Authorization Budget vs. BCA Caps (Discretionary BA, Current $B) Actual funding (Base) Administration 2019 Base + OCO request Budget Control Act 2011 (Base) $800 Actual funding (Base + OCO)
Slide 11: Mercury's vision
Mercury’s vision is to be the… Leading commercial provider of secure sensor and safety-critical processing subsystems © 2018 Mercury Systems, Inc. 11
Slide 12: Business model built for speed, innovation and affordability
Business model built for speed, innovation and affordability… Traditional COTS Less Mercury Pre-integrated Product Integration Time Embedded Subsystem(s) I Classified Prime/Gov’t IP Classified Prime/Gov’t IP N T Less E Risk Proprietary Middleware Application-Ready G Software Toolkit R A T Operating
Slide 13: Only high-tech commercial company with the technology
Only high-tech commercial company with the technology… Secure Sensor and Safety-Critical Processing Solutions ACQUIRE DIGITIZE PROCESS STORAGE EXPLOIT DISSEMINATE SPEED SAFETY Highest Performance Highest Safety Design Processing & RFM Assurance Levels (DAL) SWaP SECURITY SOFTWARE Best Size, Weight &
Slide 14: Trusted devices and systems for platform processing needs
Our trusted devices and systems can fulfill all platform… Safety-certified Secure Mission and Platform Secure Blade Servers Management Sensor Processing Trusted Subsystems Subsystems Multi-chip Devices Rugged Enterprise Secure Rugged Servers Rackmount Servers …processing needs for demanding aerospac
Slide 15: Trusted domestic design, manufacturing, integration
Trusted domestic design, manufacturing, integration Manufacturing and integration locations shown in green Hudson, NH RFM subsystems & Toronto, ON components Fremont, CA Mission Systems Rugged server design & Andover, MA integration Trusted DMEA facility for secure processing development San Jose, C
Slide 16: Glassdoor current employee ratings
Glassdoor current employee ratings Validates Mercury’s destination employer and acquirer of choice status Tier 2 Defense Mercury Glass Door Proxy Company Systems Average Peer Group(1) Index(2) Overall Rating 4.2 3.2 3.5 3.4 Culture & Values 4.2 3.2 3.5 3.4 Work-Life Balance 3.6 3.3 3.6 3.4 Senior Ma
Slide 17: A&D electronics systems market segments
The A&D electronics systems market has two major segments: C4I; Sensor and Effector Mission Systems Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & C2I Comms EW Radar EO/IR Acoustics Weapons Mission Mgmt Command & Avionics / Dedicated Ele
Slide 18: A&D electronics systems market: global and US size
The A&D electronics systems market has two major segments: C4I; Sensor and Effector Mission Systems Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & C2I Comms EW Radar EO/IR Acoustics Weapons Mission Mgmt Command & Avionics / Dedicated Ele
Slide 19: Mercury participates at Tier 2 for RF and computing
Mercury participates at the Tier 2 and 3 levels for RF and Computing Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & C2I Comms EW Radar EO/IR Acoustics Weapons Mission Mgmt Command & Avionics / Dedicated Electronic Electro-Optical/ Missil
Slide 20: Market expansion translated into above-average growth
Translated market expansion into growth well above industry average Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & C2I Comms EW Radar EO/IR Acoustics Weapons Mission Mgmt Command & Avionics / Dedicated Electronic Electro-Optical/ Missile
Slide 21: Penetrating new markets larger than traditional ones
Penetrating new markets larger than our traditional ones Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & C2I Comms EW Radar EO/IR Acoustics Weapons Mission Mgmt Command & Avionics / Dedicated Electronic Electro-Optical/ Missiles/ Control
Slide 22: Capabilities and growth dimensions are well-aligned
Our capabilities and growth dimensions are well-aligned… GROWTH DIMENSIONS • Sensor and C4I modernization and new platforms Market • Weapon systems readiness and modernization Geography Customer • Defense Prime contractors outsourcing more A&D • Defense Primes’ flight to Industry quality suppliers •
Slide 23: Revenue growth rates by market
Revenue growth rates by market Sensor & C4I Effector Mission Systems FY13 - FY18 CAGR FY13 - FY18 CAGR 44% 17% FY18 FY18 177% 14% 18% total 66% total We are growing above market and taking share Notes: Fiscal years ended June 30; FY13-18 figures are as reported in the Company’s Form 10-Ks. Percent o
Slide 24: Revenue growth rates by sensor and effector submarket
Revenue growth rates by sensor and effector submarket EW Radar EO/IR Acoustics Weapons FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR 18% 17% NM NM 181% FY18 FY18 FY18 FY18 FY18 10% 6% 20% NM 157% 24% total 32% total 2% total 0% total 8% total Continue to gain s
Slide 25: Revenue growth rates by top customer
Revenue growth rates by top customer Top 5 Top 10 Top 25 FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR 23% 23% 20% FY18 FY18 FY18 25% 26% 25% 56% total 73% total 79% total Valued partner to top defense prime contractors Notes: Fiscal years ended June 30. Top customers ranked based on cumulative
Slide 26: Revenue growth rates by platform
Revenue growth rates by platform Airborne Naval Ground Space FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR 20% 21% 42% NM FY18 FY18 FY18 FY18 40% 43% -23% >10X 49% total 22% total 8% total 1% total Acquisitions have increased access to new platforms Notes: Fiscal years ended Ju
Slide 27: Revenue growth rates by top programs
Revenue growth rates by top programs Top 10 Top 25 Top 50 FY13 - FY18 CAGR FY13 - FY18 CAGR FY13 - FY18 CAGR 18% 22% NM FY18 FY18 FY18 8% 11% 19% 33% total 51% total 65% total Increasingly diverse portfolio of franchise programs Notes: Fiscal years ended June 30. Top programs ranked based on cumulat
Slide 28: Revenue growth rates by content and tier
Revenue growth rates by content and tier Modules & Integrated Components Subassemblies Subsystems FY18 FY18 FY18 35% 20% 10% 29% total 39% total 32% total Transforming components and modules into integrated subsystems Notes: Fiscal years ended June 30, FY18 figures are as reported in the Company’s F
Slide 29: Revenue growth rates by geography
Revenue growth rates by geography International Domestic & FMS FY13 - FY18 CAGR FY13 - FY18 CAGR 24% 9% FY18 FY18 20% 24% 83% total 17% total Int’l and FMS revenue growth accelerating given our program mix Notes: Fiscal years ended June 30; FY13-18 figures are as reported in the Company’s Form 10-Ks
Slide 30: Acquisitions and investments driving opportunity growth
Acquisitions and investments driving significant opportunity growth… • Total potential value grew Top 30 Programs & Pursuits Estimated Lifetime Value ($M) >4.7x to $7.4B in 6 years Radar EW C4I EO/IR Weapons Other 9,000 • Significant Radar, EW, C4I, EO/IR and weapons 8,000 5,835 7,428 opportunity pi
Slide 31: Acquisitions and investments driving significant potential
Acquisitions and investments driving significant potential… FY18 Revenue (in $ millions, % of total) Submarket Platform Content Top 30 Programs & Pursuits, Estimated Lifetime Value (in $ millions, % of total) Submarket Platform Content …for continued organic growth across multiple dimensions Notes:
Slide 32: M&A is an integral part of our model
M&A is an integral part of our model M&A Our strategy contemplated M&A at the outset for this ‘environment’ Vision Origination Dedicated M&A team to identify and originate proprietary deals Superior in-house market, technical and business diligence capabilities Diligence supplemented with external o
Slide 33: Mercury M&A philosophy
Mercury M&A philosophy 1. One culture and set of values 2. One brand – Mercury 3. We’re not a holding company – We believe in full integration 4. Combine like product businesses to gain scale and efficiencies 5. Few, common, automated and scalable trusted manufacturing facilities 6. Scalable enterpr
Slide 34: Disciplined and focused M&A strategy
We have executed on a disciplined and focused M&A strategy Multiple M&A themes ongoing simultaneously 2019 Tier 2* Market ($B) & CY’18-23 CAGR (%) Aerospace & Defense Platform and Systems Electronics Content C4I Sensor & Effector Mission Systems Platform & Mission Mgmt C2I Comms EW Radar EO/IR Acous
Slide 35: Successful track record of acquisitions
Successful track record of acquisitions… Flexible • Acquired 7 companies over Capital past ~36 months Structure • Deployed ~$620M of capital Employer and Robust Buyer of Pipeline of Choice Opportunities • Synergized purchase multiples well below current Continued Growth and historic mean Through M&A
Slide 36: Strategy and investments have positioned Mercury well
Strategy and investments have positioned Mercury well • Proven high-tech commercial business model for A&D • Unique technology and capabilities on key production programs • Substantial total addressable market expansion enabling future growth • Low-risk content expansion growth strategy with demonst
Slide 37: Agenda
Agenda • Strategy & Business Update • Value Creation Blueprint – Didier Thibaud Executive Vice President & COO • Financial Update • Q&A ©© 2018 2018 Mercury Mercury Systems, Systems, Inc. Inc. 37
Slide 38: Our value creation blueprint
Our value creation blueprint 1 Culture and values 2 Cyber umbrella and secure development environment 3 Video-based collaboration infrastructure company-wide 4 Integrated business systems, centralized G&A, matrix management 5 Increased R&D and capital investment where necessary 6 Insourced manufactu
Slide 39: One Team, One Company, One Brand
One Team, One Company, One Brand • One Culture • One set of values • One team: One Mercury • One company: Present one view to customers • One brand: Mercury Systems • Values integrated into performance management • Values used as guidepost for hiring and promotion Highest Glassdoor ratings in Defens
Slide 40: Cyber umbrella, secure development, video collaboration
Cyber umbrella, secure development, video collaboration • Scalable, secure, compliant • Cyber-resilient enterprise security model • Fully compliant with DFARS 800-171 and complete • Unified video-based communication platform improves collaboration • Internal secure cloud supports agile development •
Slide 41: Integrated business systems, centralized G&A, matrix model
Integrated business systems, centralized G&A, matrix model • One team: One Mercury • Common enterprise processes and systems • Global Sales • Global Program Management • Global Operations • Global Engineering • Centralized G&A Fully integrated organization to drive scalability and growth © 2018 Merc
Slide 42: R&D and capital investment where necessary
R&D and capital investment where necessary • High-tech business model driving 11-13% R&D Processing Chain • Increase IRAD for acquired businesses when needed • Invest in innovation to drive differentiation, affordability • Invest in technologies to speed subsystem integration • Combine technology an
Slide 43: Common engineering tools and agile methodology
Common engineering tools and agile methodology • Scalability through common processes (playbook) • Develop anywhere, Build everywhere • Propel open architectures • Product & technology rationalization • Measure performance and quality for continuous improvement Industry’s most advanced, differentiat
Slide 44: Insourced manufacturing to trusted domestic facilities
Insourced manufacturing to our trusted domestic facilities • Facility rationalization • Manufacturing optimization • State-of-the-art fully automated SMT • Trusted DMEA-accredited manufacturing in Phoenix • Unified purchasing group drives buying power Drive differentiation through trusted manufactur
Slide 45: Leverage channel to accelerate core revenue growth
Leverage channel to accelerate core revenue growth • Common Go-to-Market strategy • Expand franchise program content • Penetrate strategic accounts with new capabilities • Drive awareness with business development organization • Provide subsystem solutions to move up value chain DoD Budget ~$700B •
Slide 46: M&A driving growth
M&A driving growth Leverage Point Market Expansion Customer Expansion Program Expansion Product & Technology Expansion © 2018 Mercury Systems, Inc. 46
Slide 47: Leverage points driving faster growth
Leverage points driving faster growth Leverage Point Increase Channel Increase R&D Leverage Mercury’s Eng. Capabilities Manufacturing Consolidation Buying Power Culture & values One Mercury © 2018 Mercury Systems, Inc. 47
Slide 48: Summary
Summary • One Mercury organization to maximize leverage and scale • One Culture and Values • Global processes to drive value creation • Drive innovation at all levels to differentiate from competition • Global Go-to-Market strategy to drive growth through content and market expansion • Apply all of
Slide 49: Agenda
Agenda • Strategy & Business Update • Value Creation Blueprint • Financial Update – Michael Ruppert Executive Vice President & CFO • Q&A ©© 2018 2018 Mercury Mercury Systems, Systems, Inc. Inc. 49
Slide 50: The evolution of Mercury Systems
The evolution of Mercury Systems In $ millions, except percentage and per share data. % Increase / Q1 FY16(1) Q1 FY19(1) (Decrease) Market Capitalization $553 $2,613 373% Valuation Enterprise Value $473 $2,780 487% % Increase / LTM Q1 FY16(2) LTM Q1 FY19(2) (Decrease) Revenue $239 $531 122% Adj. EBI
Slide 51: 20% compound revenue growth and operating leverage
20% compound revenue growth and operating leverage… Revenue to Adjusted EBITDA trends Mercury Revenue ($M) Mercury Adj EBITDA (%, $M) 531 550 493 40% 500 427 450 409 30% 400 350 270 300 23% 235 24% 20% 23% 250 194 209 21% 23% $114.6M $100.4M $120.9M 19% $56.1M $92.6M 200 $43.6M 150 10% 100 11% $22.0
Slide 52: Market expansion strategy is working well
Market expansion strategy is working well Revenue and Growth by Market ($M) Radar EW C4I Weapons Other 500 299 493 • Continued growth in core 36 450 markets 38 400 73 350 • Expansion into adjacent 64 markets 300 250 88 194 • Additional capabilities 200 drive content expansion 150 100 • Broader progr
Slide 53: FY13-FY18 ending backlog CAGR of 27%
FY13-FY18 ending backlog CAGR of 27%... Mercury Ending Backlog ($M) 12-Month Ending Backlog > 12-Month Backlog Fwd Revenue Coverage Ratio⁽¹⁾ 58% (Est.) 447 450 63% 400 357 119 350 64% 66 300 288 68% 49 250 63% 208 328 200 50% 174 41 291 150 136 30 27 239 100 166 144 50 109 0 FY13 FY14 FY15 FY16 FY17
Slide 54: Strong LTM performance
Strong LTM performance 24% revenue and 20% adjusted EBITDA growth YoY LTM LTM In $ millions, except percentage and per share data Change Q1 FY18⁽¹⁾ Q1 FY19⁽¹⁾ Bookings $454.6 $635.0 40% Book-to-Bill 1.06 1.20 Backlog $360.7 $507.9 41% 12-Month Backlog $281.7 $377.8 Revenue $427.0 $531.2 24% Gross Ma
Slide 55: FY19 annual guidance
FY19 annual guidance In $ millions, except percentage and per share data FY18(1) FY19(2) Change Revenue $493.2 $607.0 - $625.0 23% - 27% Gross Margin 45.8% 43.7% - 44.4% (2.1) - (1.4) pts Operating Expenses $178.9 $199.2 - $202.6 11% - 13% GAAP Income $40.9 $39.1 - $45.6 (4%) - 11% Effective tax rat
Slide 56: Target business model
Target business model Target FY16(1) FY17(1) FY18⁽¹⁾ Business Model Revenue 100% 100% 100% 100% Gross Margin 47% 47% 46% 45 - 50% SG&A 20% 19% 18% 16 - 18% R&D 13% 13% 12% 11 - 13% Amortization 3% 5% 5% 4 - 5% GAAP Income 7% 6% 8% N/A Adj. EBITDA(2) 21% 23% 23% 22 - 26% Notes: (1) Figures are as rep
Slide 57: Balance Sheet
Balance Sheet As of (In $ millions)(1) 9/30/17 12/31/17 3/31/18 6/30/18 9/30/18 ASSETS Cash & cash equivalents $26.1 $32.0 $44.2 $66.5 $72.9 Accounts receivable, net 121.4 123.0 141.6 143.8 153.9 Inventory, net 93.3 105.9 117.1 108.6 121.2 PP&E, net 51.6 51.6 51.3 51.0 50.8 Goodwill and intangibles,
Slide 58: Mercury's financial profile demonstrates our unique strategy
Mercury’s financial profile demonstrates our unique strategy # of Companies ALL NYSE AND NASDAQ COMPANIES WITH MARKET TIER 2 DEFENSE INDEX LTM based on most CAPITALIZATION BETWEEN $750mm - $3bn recently reported 1028 LTM based on most recently reported quarters quarters EBITDA Margin 19% 23% >20% EB
Slide 59: EBITDA margin expansion
EBITDA margin expansion EBITDA Margin Expansion • Target 22%-26% margin High End of Target R&D Business • Insourced manufacturing Leverage Model SG&A and operating efficiencies Leverage Program • Programs transition from Mix Insourced development to Mfg production Current • Revenue growing faster th
Slide 60: Continued revenue growth
Continued revenue growth • Increased defense spending Outsourcing • Positioned in fast-growing segments of defense electronics market • Acquired capabilities to provide subsystems Industry- • Unique business model leading facilitates outsourcing trend Organic Growth • Investments leading to increase
Slide 61: Continue supplementing organic growth with M&A
Continue supplementing organic growth with M&A Hypothetical Organic and Inorganic Revenue Growth ($M) 1,500 • Continue 20+% Organic Acquired Growth Acquired in Year annual growth 1,300 1,277 • High single-digit / low double-digit organic 1,100 growth 900 • Supplement with strategic M&A 700 • Strong
Slide 62: Continuing to execute on our unique strategy
Continuing to execute on our unique strategy 100% Increase EBITDA margins and EBITDA Margin reach high end of target >20% business model 28% Continue to grow at high Revenue CAGR single-digit, low double-digit >10% 5-Year organic growth 9% LTM Revenue Growth Supplement organic growth >20% with strat
Slide 63: Actively developing potential acquisition targets across channels
We actively develop potential acquisition targets across all channels ~$620M of capital deployed in last 36 months * Acquisition Jan 2011 Dec 2011 Aug 2012 Dec 2015 May 2016 Nov 2016 Apr 2017 Jul 2017 Feb 2018 Jul 2018 Close Date Size $31M $70M $75M $10M $300M $39M $40.5M $6M $180M $45M Strong Strat
Slide 64: We have created significant value through M&A
We have created significant value through M&A FY16 FY17 Total FY18 and FY19 YTD Acquisitions 5 Acquisitions Purchase Price $310mm $85mm $395mm $225mm Avg. Mkt.(1) 10.8x 12.4x 11.6x 13.4x @ Close(2) 10.5x 9.1x 10.1x 12.0x EV / EBITDA PF 7.8x 6.3x 7.4x 8.6x w/Synergies(3) FY18(4) 6.8x 6.1x 6.7x (stron
Slide 65: Summary
Summary • Built larger company with broader base of programs • Sustained growth & profitability above industry averages • Record backlog enhances visibility, facilitates operational execution • Financial performance places us in unique category • Poised for continued organic growth and margin expans
Slide 66: Appendix
Appendix © 2018 Mercury Systems, Inc. 66
Slide 67: FY19 guidance (as of October 30)
FY19 guidance (as of October 30) YoY In millions, except percentage and per share data FY18 FY19⁽¹⁾ Change Actual Est. Range Revenue $493 $607 - $625 23% - 27% GAAP Income $40.9 $39.1 - $45.6 (4%) - 11% Adj EBITDA⁽²⁾ $114.6 $133.5 - $142.5 16% - 24% Adj EBITDA Adjustments: 40.9 Income (loss) from co
Slide 68: Adjusted EPS reconciliation
Adjusted EPS reconciliation Q2 FY19 FY19 (In thousands, except per share data) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY18 Q1 FY19 Low High Low High Earnings per share(1) $ 0.10 $ 0.13 $ 0.16 $ 0.19 $ 0.58 $ 0.38 $ 0.19 $ 0.08 $ 0.21 $ 0.86 $ 0.16 $ 0.17 $ 0.22 $ 0.82 $
Slide 69: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Q2 FY19 (In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY18 Q1 FY19 Low High Net income $ 3 ,819 $ 5 ,204 $ 7 ,048 $ 8 ,804 $ 2 4,875 $ 1 7,953 $ 9 ,133 $ 3 ,696 $ 1 0,101 $ 4 0,883 $ 7 ,479 $ 8 ,300 $ 1 0,300 Other non-operating ad
Slide 70: Free cash flow reconciliation
Free cash flow reconciliation (In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY18 Q1 FY19 Cash flows from operations $10,283 $14,238 $ 24,889 $ 9,736 $ 59,146 $ 8,028 $ 8,779 $ 873 $ 25,641 $ 43,321 $ 20,029 Capital expenditures (6,050) (7,703) (13,036) (6,055) (
Slide 71: Organic revenue reconciliation
Organic revenue reconciliation (In thousands) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY18 Q1 FY19 Organic Revenue $ 63,339 $ 68,072 $ 75,080 $ 71,208 $ 277,699 $ 93,498 $ 104,957 $ 100,625 $ 134,358 $ 433,438 $ 112,801 Acquired Revenue(1) 24,310 29,942 32,237 44,400 130
Slide 72: Sales-related definitions
Sales-related definitions Design Win A design win means that the customer has selected us to provide services, products, or intellectual property for a program of record or equivalent. In addition, the customer has won the program and we have an initial purchase order from the customer. Pursuit We h
Slide 73: Glossary
Glossary AEGIS Aegis Ballistic Missile Defense System EM Electromagnetic MRTT Multi Role Tanker Transport AESA Active Electronically Scanned Array EO/IR Electro-optical / Infrared O&M Operations & Maintenance System-level specification for VPX, AMC Advanced Microelectronics Center EW Electronic Warf