Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Mercury Computer Systems — Investor Day (November 2007)
88 slides from Mercury Systems's investor day presentation, Nov 13, 2007
Slide 1: Eighth Annual Investor Conference November 13, 2007
Eighth Annual Investor Conference November 13, 2007 © 2007 Mercury Computer Systems, Inc. Exhibit 99.1
Slide 2: Forward-Looking Safe Harbor Statement
© 2007 Mercury Computer Systems, Inc. www.mc.com 2 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 2008 business perfor
Slide 3: Agenda
© 2007 Mercury Computer Systems, Inc. www.mc.com 3 Agenda Jay Bertelli’s Closing Remarks, Q&A 11:55-12:05 Bob Hult, SVP, Chief Financial Officer 11:40-11:55 Dr. Eliot Siegel, Professor & Vice Chairman, Information Systems, Department of Diagnostic Radiology, University of Maryland Medical School; Ch
Slide 4: Corporate Overview
Corporate Overview © 2007 Mercury Computer Systems, Inc. Jay Bertelli, President, CEO & Chairman
Slide 5: Mercury offers years of experience in high-performance computing
© 2007 Mercury Computer Systems, Inc. www.mc.com 5 Mercury offers more than years’ experience in designing and delivering high-performance computing systems and software, for a broad range of signal, image- and data-intensive applications. Energy Telecommunications Embedded Computing Defense Semi In
Slide 6: Investment Highlights
© 2007 Mercury Computer Systems, Inc. www.mc.com 6 Investment Highlights Data explosion across multiple markets Mercury uniquely positioned to implement multicore processing systems Strategic acquisitions starting to produce Developing applications for PACS / Radiology market using advanced visualiz
Slide 7: Deep technical expertise and knowledge of customers' applications
© 2007 Mercury Computer Systems, Inc. www.mc.com 7 We combine our deep technical expertise and extensive knowledge of the science behind our customers’ applications, to deliver reliable performance and sustained value. Medical Imaging and Biotechnology Radar and Signals Intelligence System Architect
Slide 8: Sensor data example: acquire, process, transmit
© 2007 Mercury Computer Systems, Inc. www.mc.com 8 Sensor Example: acquiring sensor data from a defense application Acquire Process Transmit Mathematical Transformations Visualize Image Display Complex Signal Returns Sensor streaming Scalable within the application Real-time signal processing Embedd
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Slide 11: Business unit realignment FY07 to FY08
© 2007 Mercury Computer Systems, Inc. www.mc.com 9 Computing Computing Computing Computing Software ADVANCED COMPUTING SOLUTIONS VISAGE IMAGING VISUALIZATION SCIENCES GROUP FY07 MODULAR PRODS & SERVICES ADVANCED SOLUTIONS DEFENSE COMMERCIAL IMAGING & VIZ FY08
Slide 12: Mercury Overview: Q1 FY08 Revenue Mix
© 2007 Mercury Computer Systems, Inc. www.mc.com 10 Mercury Overview Q1 FY08 Revenue Mix: $49.2 million ACS, 42.2M Visage, 3.9M VSG, 2.6M Emerging, 0.5M
Slide 13: Advanced Computing Solutions
© 2007 Mercury Computer Systems, Inc. www.mc.com 11 ACS focuses on specialized, high-performance computing solutions that leverage Mercury’s capabilities in sensor computing, computational acceleration, and delivery of complex system-level solutions. EXAMPLE SEGMENTS Aerospace and Defense Semiconduc
Slide 14: Visibility into potential business
© 2007 Mercury Computer Systems, Inc. www.mc.com 12 Visibility into potential business: Advanced Computing Solutions $233M Sept ’07 $175M June ‘07 $113M Dec ’06 106% Increase Dec ’06 to Sept ‘07! Qualified pipeline (various stages) through Q4 FY08: $148M
Slide 15: Major programs being pursued
© 2007 Mercury Computer Systems, Inc. www.mc.com 13 Major Programs being pursued: Advanced Computing Solutions $5M - $10M revenue potential >$10M revenue potential > $1M revenue potential 20% of Programs ($) represent Commercial Program application areas include: 16 Radar 4 ELINT 3 COMINT 1 SONAR 2
Slide 16: Visage Imaging, Inc.
© 2007 Mercury Computer Systems, Inc. www.mc.com 14 Mercury’s wholly owned subsidiary focuses on the development and distribution of advanced visualization and PACS (picture archival and communications system) solutions, and other 3D software solutions in the Life Sciences segment. 1QFY08 Revenue: $
Slide 17: Visualization Sciences Group
© 2007 Mercury Computer Systems, Inc. www.mc.com 15 VSG focuses on the development and distribution of software developer toolkits and 3D application software for volume rendering of very large data sets. EXAMPLE SEGMENTS Geosciences Engineering and Manufacturing Material Sciences Other industrial a
Slide 18: Emerging Businesses
© 2007 Mercury Computer Systems, Inc. www.mc.com 16 Mercury’s emerging businesses are focused on cultivating new opportunities that can benefit from Mercury’s deep optimization expertise and services. EXAMPLE SEGMENTS High-performance computing and visualization in Biotech Aircraft Navigation Intell
Slide 19: Revenue Follows Technology Cycles
© 2007 Mercury Computer Systems, Inc. www.mc.com 17 Revenue Follows Technology Cycles Revenue ($M) $86 $107 $141 $181 $150 $180 $186 $250 $236 $225* $224 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E Echotek – A/D-D/A June Fiscal Year End Per Company guidance, October 24, 2007 earnings con
Slide 20: Advanced Computing Solutions
Advanced Computing Solutions © 2007 Mercury Computer Systems, Inc. Didier Thibaud, SVP, GM, Advanced Computing Solutions Mark Skalabrin, SVP, GM, Advanced Computing Solutions
Slide 21: Why ACS?
© 2007 Mercury Computer Systems, Inc. www.mc.com 19 Why ACS? Radar SIGINT Other Defense Semi Creation Communications Medical Other Commercial Defense Strengthens our competitive position in all segments Maximizes technology investment leverage Better exploits synergies between Defense and Commercial
Slide 22: ACS Primary Market Segments
© 2007 Mercury Computer Systems, Inc. www.mc.com 20 ACS Primary Market Segments FY07 ACS Revenue by Market Segment Other Defense Imagery SIGINT Sonar Radar Commercial Communications Medical Imaging Semi Creation Other Commercial Advanced Computing Solutions Leveraged Products Services Technology Exp
Slide 23: Favorable Trends Driving Opportunities
© 2007 Mercury Computer Systems, Inc. www.mc.com 21 Favorable Trends Driving Opportunities Data explosion in all markets Driving need for new application-specific computing solutions Industry rapidly shifting to multicore processing Broader set of applications needing multicomputer solutions Critica
Slide 24: Positioned for Top-Line and Bottom-Line Growth
© 2007 Mercury Computer Systems, Inc. www.mc.com 22 Positioned for Top-Line and Bottom-Line Growth Winning more of the system by solving more of the customer problem Acquisitions and IP licensing have expanded the scope of our solutions Solutions now span from sensors to applications Leveraging our
Slide 25: Expanding Value from Sensor to Application
© 2007 Mercury Computer Systems, Inc. www.mc.com 23 Expanding Value from Sensor to Application Echotek RF, Mixed signal (A/D) and Pre-processing Embedded computing solutions VXS, VPX, VME, Interconnect, PowerPC, PA Semi, Pentium, FPGA, Cell Modular solutions AdvancedTCA, MicroTCA, AMC, customized so
Slide 26: Technology Leadership
© 2007 Mercury Computer Systems, Inc. www.mc.com 24 Technology Leadership Positioning to ride the multicore wave Leading the deployment of the Cell BE processor outside of gaming Deploying MultiCore Plus ™ application deployment environment Leading the deployment of advanced interconnects Serial Rap
Slide 27: Mercury Well-Positioned in Defense
© 2007 Mercury Computer Systems, Inc. www.mc.com 25 Mercury Well-Positioned in Defense Strong position in large airborne radar and SIGINT systems Built into key platforms Relationships with prime contractors COTS model Technology leadership Acknowledged expertise in sensor computing Offering more of
Slide 28: Opportunities for Defense Embedded Boards
© 2007 Mercury Computer Systems, Inc. www.mc.com 26 Opportunities for Defense Embedded Boards Military Communications 22% C4ISR 16% Mission Computers 10% Security Surveillance 9% Avionics 7% Intell. Multifunction Subsystems 7% Positioning/ Navigation 6% Radar 6% Sonar 6% EICS* Shipments and Projecti
Slide 29: Radar Update
© 2007 Mercury Computer Systems, Inc. www.mc.com 27 Radar Update Airborne surveillance: MP-RTIP Global Hawk (15 platforms) JSTARS and AWACS upgrade potential Tactical fighters: F-35, F-22, F-16 Shipboard missile defense: Aegis UAV: Predator LYNX SAR Aegis (BMD) JSF (F-35)
Slide 30: Growth by Moving Into New Defense Segments
© 2007 Mercury Computer Systems, Inc. www.mc.com 28 Growth by Moving Into New Defense Segments Defense Communications ELINT Counter IED Sonar Engineering Services
Slide 31: Defense Communications
© 2007 Mercury Computer Systems, Inc. www.mc.com 29 Defense Communications Ground, shipboard, and airborne wideband data link communications Deployment of broadband closer to the warfighter Mercury is positioned with COTS (commercial off- the-shelf) software-defined radio (SDR) platform with scalabl
Slide 32: ACS Commercial Business Summary
© 2007 Mercury Computer Systems, Inc. www.mc.com 30 ACS Commercial Business Summary Renewed strength as acquired and licensed technology expands scope of solutions Advanced Digital MRI Receiver showing promise in clinical trials Cell BE processor-based codecs are enabling video applications New desi
Slide 33: Expanding Footprint in Chip Creation Chain
© 2007 Mercury Computer Systems, Inc. www.mc.com 31 Expanding Footprint in Chip Creation Chain EDA: Mask Synthesis Mask Writing Reticle Inspection Wafer Inspection Stepper/Scanner New Application New Application Competitive Differentiation Solutions that solve the most challenging computing problems
Slide 34: EDA: New Market Leveraging Mercury Technology
© 2007 Mercury Computer Systems, Inc. www.mc.com 32 EDA: New Market Leveraging Mercury Technology Compute-intensive processing required to prepare designs for mask creation Resolution Enhancement Technology (RET) Design For Manufacturing (DFM) Mercury Cell BE processor-based solutions capable provid
Slide 35: Commercial Communications
© 2007 Mercury Computer Systems, Inc. www.mc.com 33 Commercial Communications Strong Growth Segment Less than $1M in FY 2003 to more than $25M in FY 2007 Driven by Ensemble2 Platform and Momentum Series product deployment New design wins driven by AdvancedTCA and MicroTCA adoption System platforms f
Slide 36: Problem/Solution: Satellite Communications
© 2007 Mercury Computer Systems, Inc. www.mc.com 34 Problem/Solution: Satellite Communications Network Mercury Beamformer & Base station Ground-based communications system to support Ancillary Terrestrial Component (ATC) ATC allows satellites to work together with terrestrial communications systems
Slide 37: Summary
© 2007 Mercury Computer Systems, Inc. www.mc.com 35 Summary Significant operating model improvements will drive bottom-line growth Reduced cost structure Opportunities to exploit leverage between commercial and defense Strong opportunities to drive top-line growth Significant design wins resulting f
Slide 38: Mercury Federal Systems
Mercury Federal Systems © 2007 Mercury Computer Systems, Inc. Terry M. Ryan, Sr VP, GM, Mercury Federal Systems
Slide 39: Mercury Federal Systems Overview
© 2007 Mercury Computer Systems, Inc. www.mc.com 37 Mercury Federal Systems Overview Formed in July, 2007 Focus on leveraging Mercury technology to provide solutions for DoD, DHS, and intelligence agencies and to the primes as a cost reimbursable sub Provide R&D and other services Drive hardware sal
Slide 40: Why Mercury Federal Systems?
© 2007 Mercury Computer Systems, Inc. www.mc.com 38 Why Mercury Federal Systems? Growing demand for custom high-end computing solutions for multi-source, data-intensive environments Maintaining global situational awareness is the ultimate computing challenge Department of Defense (DoD) and Departmen
Slide 41: Leveraging Mercury Competitive Advantages in the New Federal Market
© 2007 Mercury Computer Systems, Inc. www.mc.com 39 Leveraging Mercury Competitive Advantages in the New Federal Market Expertise in relevant technology Commercial market insights Flexibility to provide custom solutions Proven delivery of quality products Visualization Open architectures Sensor proc
Slide 42: DoD Budgets by Appropriation
© 2007 Mercury Computer Systems, Inc. www.mc.com 40 DoD Budgets by Appropriation Budget Authority Procurement Military Personnel Source: National Defense Budget Estimates for FY 2007 Fiscal Year $ Billions Actual FY07-11 budget Other O&M RDT&E Slide from : Robert J Shue, Consulting & Training Servic
Slide 43: Mercury Federal Addresses Professional Services
© 2007 Mercury Computer Systems, Inc. www.mc.com 41 Mercury Federal Addresses Professional Services Source: Pierre A. Chao, Senior Director, Center for Strategic International Studies, Defense Industrial Initiatives Group, 1 March 2007 Need for companies that can solve problems and provide service s
Slide 44: Better Positioned to Capture R&D Opportunities
© 2007 Mercury Computer Systems, Inc. www.mc.com 42 Mercury Federal Services Better Positioned to Capture R&D Opportunities A strong Intelligence and security budget for FY08, FY09+ budgets will show major focus shift Expect greater blending of resources among DARPA, SOCOM, and Intel Agencies Discre
Slide 45: Merc Federal Strategy
© 2007 Mercury Computer Systems, Inc. www.mc.com 43 Merc Federal Strategy Embrace and expand existing federal COTS business by repositioning ourselves in the critical path of our prime vendors and achieve new levels of COTS leverage Initiate new business opportunities throughout the national securit
Slide 46: Hybrid Solutions Approach
© 2007 Mercury Computer Systems, Inc. www.mc.com 44 Hybrid Solutions Approach SE&I Architecture Design Advanced Products Consultant Services; influence new designs Systems engineering at all phases of development Federal R&D funding; reach-back to Mercury
Slide 47: Platform
Platform YYYYYY
Slide 48: Problem/Solution
© 2007 Mercury Computer Systems, Inc. www.mc.com 46 Problem/Solution Partner is and has been a major customer Program emphasizes COTS insertion Partner needed Mercury expertise to evaluate COTS applicability across processing chain Partner needed Mercury expertise to accelerate algorithm performance
Slide 49: Potential Partners and Customers
© 2007 Mercury Computer Systems, Inc. www.mc.com 47 Potential Partners and Customers Direct partnership with the government Intelligence agencies DARPA Service labs New partnerships with service-oriented companies SETAs and systems integrators Small businesses Universities and labs Create “solution
Slide 50: Challenges
© 2007 Mercury Computer Systems, Inc. www.mc.com 48 Challenges Building the new infrastructure at rate of incurring new business opportunities Conveying compelling position to government customers… period of education required Translating customer needs as priorities to Mercury Evangelizing Mercury
Slide 51: Concluding Remarks
© 2007 Mercury Computer Systems, Inc. www.mc.com 49 Concluding Remarks Prime contractor partners on board with Mercury Federal Systems idea Government customers have emerging challenges that require tailored solutions…with life-cycle support A business opportunity exists for smaller, agile companies
Slide 52: Marcelo Lima, President
Marcelo Lima, President November 13th, 2007
Slide 53: Visage Imaging at a Glance
Visage Imaging at a Glance US Corporate US Corporate Chelmsford, MA Chelmsford, MA Germany Germany Berlin, Fuerth Berlin, Fuerth US VI HQ US VI HQ San Diego, CA San Diego, CA Provider of Advanced Visualization Software and Systems to Medical Imaging Markets FY05 FY06 FY07 FY Revenues ($MM) Excludes
Slide 54: Why Visage Imaging?
Why Visage Imaging? Vertical market focus Operational efficiency Shareholder value creation Acceptance of advanced visualization makes 3D a catalyst of change in the imaging technology market 2D/3D Anywhere, Anytime
Slide 55: Visage Imaging Products
Visage Imaging Products Software Products (off-the-shelf HDW)
Slide 56: A Selection of Our OEM Customers per Market Segment
A Selection of Our OEM Customers per Market Segment Medical Imaging Surgical & Dental Microscopy & Pharma
Slide 57: U.S. Medical Imaging Market
U.S. Medical Imaging Market 5,000 Hospitals 5,000 Diagnostic Imaging Centers 50,000 Radiologists 750,000 Physicians 50,000,000 Imaging Examinations per Year Reimbursements continue downtrend.
Slide 58: Data Explosion Driving Change
Data Explosion Driving Change Data sets of up to 1GB+/study Enormous retrieval and loading times 1000+ slice studies cannot be read off film or by scrolling through 2D slice viewers Techniques such as MPR, slabs, or volume rendering increase imaging efficiency and accuracy Typical CT Exam 1995 – 20
Slide 59: Advanced Visualization Leverages the 3D Nature of Data
Advanced Visualization Leverages the 3D Nature of Data Improved diagnostics Better, faster reading 3D additional revenue source
Slide 60: How CT and MR studies are read today: PACS
How CT and MR studies are read today... What is PACS ? Picture Archival & Communications Systems Radiology Modalities Reading Room Physician‘s Office LAN On-Site Archive Remote Offices Image Distribution WEB PACS WAN VPN 2D System Architectures
Slide 61: Isolated Workstations Aggravate the Problem
Isolated Workstations Aggravate the Problem PACS Server Data inconsistencies Sending data over the network multiple times Missing interfaces with RIS/HIS Workstation hardware quickly outdated Workplace becomes the bottleneck
Slide 62: Advanced Visualization Market Drivers
Advanced Visualization Market Drivers Advances in imaging technologies are making advanced visualization a necessity – CT – MR Client/server technology enabling 3D adoption – More powerful servers for immense processing requirements of 3D – Thin-clients enable enterprise-wide deployment and easy acc
Slide 63: 3D/4D Growth
3D/4D Growth North American 3D/4D Visualization for Medical Imaging Market expected to grow at a CAGR of over 15% and to over $1 billion by 2011 Source: Frost & Sullivan study, 2007 - “North American 3D/4D Visualization for Medical Imaging Markets”
Slide 64: US PACS Installed Base is Enabler
US PACS Installed Base is Enabler U.S. PACS market approaching maturity Revenues – $1.10 billion in 2005 , $1.77 in 2012 – CAGR 7% Replacements expected to represent 36.7% of PACS contracts and 56.7% of total market revenues in 2012 Synergy between markets for PACS, RIS, advanced visualization , rep
Slide 65: Visage Has Most Complete Solution of Major Independent Vendors
Visage Has Most Complete Solution of Major Independent Vendors X X Barco-Voxar 19% X X X TeraRecon 28% X X Vital Images 32% X X X X Visage Imaging 5% Archive Distribute Visualize Reconstruct Market Share* *Source: Frost & Sullivan study, 2007 - “North American 3D/4D Visualization for Medical Imaging
Slide 66: Visage CS: Thin, Fast, and Fully Integrated PACS Server
Visage CS: Thin, Fast, and Fully Integrated PACS Server Visage CS Hospital LAN/VPN PCs and Workstations Plug-and-Play Add-On to existing PACS Process data sets on scalable server built with standard components Integrate with PACS and RIS on front end and back end for one consistent central data stor
Slide 67: Usage Example: Hospital PACS
Usage Example: Hospital PACS Modalities Emergency Room Intensive Care Unit Reading Room Radiologist‘s Office Radiologist‘s Home PACS LAN Visage CS Thin Client / Server VPN
Slide 68: Cardiac CT Analysis on Thin Clients
Cardiac CT Analysis on Thin Clients CT Scan of heart in 36 seconds! From CT Scan to diagnosis of coronary artery disease in less then 10 minutes More than 3,000 slices to read! Let the Thin 3D Client help! Why look at 3,000 slices when you could look at the entire heart in 3D! With the CS Server, th
Slide 69: Importance of 3D in Many Areas of Medicine Increasing
Importance of 3D in Many Areas of Medicine Increasing Preclinical Imaging Drug Design Treatment Planning Cell biology Surgical Simulation Molecular Imaging
Slide 70: 2007 Frost & Sullivan Product Line Strategy Leadership Award
2007 Frost & Sullivan Product Line Strategy Leadership Award Recipient: Visage Imaging Frost & Sullivan commends Visage Imaging’s product line strategy and the proactiveness it conveys in the changing advanced visualization competitive landscape, and recognizes the company’s strategic positioning in
Slide 71: Thank you...
Thank you... ... for your time and attention! Learn more:
Slide 72: Financial Overview
Financial Overview © 2007 Mercury Computer Systems, Inc. Bob Hult, SVP, Chief Financial Officer
Slide 73: Investment Highlights
© 2007 Mercury Computer Systems, Inc. www.mc.com 76 Investment Highlights Data explosion across multiple markets Mercury uniquely positioned to implement multicore processing systems Strategic acquisitions starting to produce Developing applications for PACS / Radiology market using advanced visuali
Slide 74: As Revenue Follows Technology Cycles
© 2007 Mercury Computer Systems, Inc. www.mc.com 77 As Revenue Follows Technology Cycles Revenue ($M) $86 $107 $141 $181 $150 $180 $186 $250 $236 $225* $224 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E Echotek – A/D-D/A June Fiscal Year End * Per Company guidance, October 24, 2007 earning
Slide 75: EBITDAS Follows Revenue
© 2007 Mercury Computer Systems, Inc. www.mc.com 78 EBITDAS Follows Revenue (60) (40) (20) - 20 40 60 80 * Per Company guidance, October 24, 2007 earnings conference call $23 $23 $30 $(16) $(2) $22 $(38) $(12) $15 $57 $41 $42 2003 2004 2005 2006 2007 2008E* EBITDAS Net Income EBITDAS excludes the fo
Slide 76: ACS Market Growth Drivers
© 2007 Mercury Computer Systems, Inc. www.mc.com 79 ACS Market Growth Drivers Expanding value from the sensor to the application Multicore processing Qualified pipeline building Mercury Federal solutions Reduced cost structure
Slide 77: Visage Market Growth Drivers
© 2007 Mercury Computer Systems, Inc. www.mc.com 80 Visage Market Growth Drivers Data explosion is changing the game Vertical market focus Thin-client server model
Slide 78: Strong Balance Sheet
© 2007 Mercury Computer Systems, Inc. www.mc.com 81 Strong Balance Sheet Historically strong balance sheet Net cash positive: $34M Projected FY08 capex of $7 million Positive free cash flow in FY08 * 2% convertible senior notes offering due 2024 Quarter ended September 30, 2007 Cash and Equivalents
Slide 79: Focus on Working Capital
© 2007 Mercury Computer Systems, Inc. www.mc.com 82 Focus on Working Capital Supply chain transformation Operational efficiencies Competitive advantage for Mercury and customers Customer satisfaction End-of-quarter shipment skew DSO target 50 days Days Sales Outstanding 2003 2004 2005 2006 2007 2008
Slide 80: Commitment to Timeless Business Model
© 2007 Mercury Computer Systems, Inc. www.mc.com 83 Commitment to Timeless Business Model Non-GAAP FY05 FY06 FY07 Guidance FY08* Timeless Business Model Revenue 100% 100% 100% 100% 100% Gross Margin 66% 62% 56% 59% 60+% SG&A 29% 34% 36% 33% Mid 20% R&D 20% 25% 26% 24% High Teens Income from Operatio
Slide 81: Q1 Fiscal Year 2008 Summary
© 2007 Mercury Computer Systems, Inc. www.mc.com 84 Q1 Fiscal Year 2008 Summary First quarter revenue and EPS exceeded guidance Strong book-to-bill of 1.11 Operating cash flow generation of $4.0 million DSO: 63 days; Inventory Turns: 3.0 Capital expenditures of $0.8 million
Slide 82: Q2 Fiscal Year 2008 Guidance
© 2007 Mercury Computer Systems, Inc. www.mc.com 85 Q2 Fiscal Year 2008 Guidance Impact of equity-based compensation costs related to FAS 123(R) of approximately $3.0M excluded from non-GAAP Acquisition-related amortization of approximately $1.8M excluded from non-GAAP Notes: 1) Figures in millions,
Slide 83: Fiscal Year 2008 Guidance
© 2007 Mercury Computer Systems, Inc. www.mc.com 86 Fiscal Year 2008 Guidance Fiscal Year Ending June 30, 2008 Revenues ($M) $225 GAAP Non-GAAP Gross Margin 59% 59% EPS $(0.54) $0.33 Notes: 1) Figures in millions, except percent and per share data which includes adjustment for contingent convertible
Slide 84: Investment Highlights
© 2007 Mercury Computer Systems, Inc. www.mc.com 87 Investment Highlights Data explosion across multiple markets Mercury uniquely positioned to implement multicore processing systems Strategic acquisitions starting to produce Developing applications for PACS / Radiology market using advanced visuali
Slide 85: www.mc.com
© 2007 Mercury Computer Systems, Inc. www.mc.com 88 www.mc.com NASDAQ: MRCY
Slide 86: Appendix
APPENDIX © 2007 Mercury Computer Systems, Inc.
Slide 87: GAAP to Non-GAAP Reconciliation
© 2007 Mercury Computer Systems, Inc. www.mc.com 90 GAAP to Non-GAAP Reconciliation Q108 Net Income Reconciliation ($M) Q208 and FY08 Guidance Reconciliation* Year ending June 30, 2008 (Loss) Income Per Share - Diluted GAAP expectation (0.54) $ Adjustment to exclude stock-based compensation 0.52 Adj
Slide 88: EBITDAS Reconciliation
© 2007 Mercury Computer Systems, Inc. www.mc.com 91 EBITDAS Reconciliation Note: figures are rounded * Per Company guidance, October 24, 2007 earnings conference call Fiscal Year 2003 2004 2005 2006 2007 2008E* EBITDAS 42.0 $ 40.9 $ 57.0 $ 14.7 $ (2.5) $ 21.7 $ Stock Compensation - - - 10.1 10.6 11.
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