Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Mercury Computer Systems — Kaufman Bros. 10th Annual Investor Conference (September 2007)
27 slides from Mercury Systems's conference presentation, Sep 6, 2007
Slide 1: Kaufman Bros. 10th Annual Investor Conference
Kaufman Bros. 10th Annual Investor Conference September 6, 2007 Exhibit 99.1 © 2005 Mercury Computer Systems, Inc. Jay Bertelli, President, Chief Executive Officer & Chairman Bob Hult , SVP, Chief Financial Officer
Slide 2: Forward-Looking Safe Harbor Statement
© 2005 Mercury Computer Systems, Inc. 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 2007 business performance and b
Slide 3: What We Do
© 2005 Mercury Computer Systems, Inc. 3 What We Do Specialized Computing Platforms Outsourced Solution Services Solve problems too complex for standard computing Architect optimal solutions for compute and data intensive applications Unique skill set for advanced, real-time, 3D visualization Provide
Slide 4: Mercury Overview
© 2005 Mercury Computer Systems, Inc. 4 Mercury Overview Founded in 1983 FY2007 revenues of $224 million End markets: Aerospace & Defense Life Sciences Semiconductor Equipment Geosciences Communications FY07 (Ended June) Revenue Mix Defense CIV ABSU MPS
Slide 5: Investment Highlights
© 2005 Mercury Computer Systems, Inc. 5 Investment Highlights Data explosion across multiple markets Mercury uniquely positioned to implement multi-core processing systems Strategic acquisitions starting to produce Large opportunity in 3D medical imaging New alignment of internal competencies should
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Slide 8: Unique Set of Technology Capabilities
© 2005 Mercury Computer Systems, Inc. 6 Unique Set of Technology Capabilities Solutions for Complex Computing Problems Aerospace & Defense Life Sciences Communications Video Semiconductor Geosciences Cell BE, FPGA, GPU, Multicore, Pentium DSP Processor Platforms Compute-intensive applications softwa
Slide 9: Organizing the Company Around our Core Business Model
© 2005 Mercury Computer Systems, Inc. 7 Organizing the Company Around our Core Business Model Emerging Markets AUSG Biotech Visage Imaging (Life Sciences, amira- medical) Advanced Computing Solutions Market Investments Leveraged Core Product Investments Stream Computing Application Acceleration Rada
Slide 10: New Business Unit: Advanced Computing Solutions
© 2005 Mercury Computer Systems, Inc. 8 New Business Unit: Advanced Computing Solutions Leveraging Mercury technology across: Defense Semiconductor Communications Intelligence Homeland Security Research
Slide 11: Mercury Well-Positioned in Defense
© 2005 Mercury Computer Systems, Inc. 9 Mercury Well-Positioned in Defense • Strong customer base 20 years of experience COTS model • Technology leadership Strong position in large, complex radar systems Programmable solutions moving closer to the war fighter • Broadening market portfolio Signals in
Slide 12: Mercury Federal
© 2005 Mercury Computer Systems, Inc. 10 Mercury Federal GOAL: Extend Mercury’s capabilities directly into: Intelligence Agencies Homeland Security To solve their unique problems Massive amounts of sensor data into intelligent information actionable by the recipient New business model for Mercury Go
Slide 13: Semiconductor Creation Market
© 2005 Mercury Computer Systems, Inc. 11 Semiconductor Creation Market Supplying application- enabling solutions to leading OEMs Growth driven by production design wins Mask generation Wafer inspection Reticle inspection Positioned for the next wave Mercury Cell BE-based solutions uniquely meet mark
Slide 14: EDA: New Market Leveraging Mercury Technology
© 2005 Mercury Computer Systems, Inc. 12 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-based solutions to provide over 10 Teraflops to spe
Slide 15: Communications
© 2005 Mercury Computer Systems, Inc. 13 Communications Communications market potential System development platforms for wireless infrastructure applications Growth Opportunity AdvancedTCA DSP and FPGA compute solutions Example: Satellite ground stations for Ancillary Terrestrial Component (ATC) Wid
Slide 16: Visage Imaging
© 2005 Mercury Computer Systems, Inc. 14 Visage Imaging Wholly owned subsidiary Focused on software-based medical imaging solutions Web based PACS Client / server model for 3D visualization Distribution Strategy OEMs Direct Distributors Market Segments Clinical DMI Microscopy Biomedical Research Pha
Slide 17: Broad Set of Capabilities
© 2005 Mercury Computer Systems, Inc. 15 Broad Set of Capabilities Acquire Visualize Manage Distribute Visage VR volume rendering Visage WS workstation Visage CS thin client server Reconstruct Visage RT image reconstruction GPU acceleration CELL technology acceleration Multi-channel MRI receiver CT
Slide 18: Visage Has Most Complete Solution
© 2005 Mercury Computer Systems, Inc. 16 Visage Has Most Complete Solution X X X X X Visage Imaging (Mercury) X X Analogic X X X Merge/Cedara X X Vital Images + Innovation X X X TeraRecon X Barco/Voxar X X X X X X X Analogic X X X Merge/Cedara X X Vital Images + X X X TeraRecon X Barco/Voxar Control
Slide 19: Emerging Businesses
© 2005 Mercury Computer Systems, Inc. 17 Emerging Businesses Emerging markets where Mercury can leverage its technology Visualization Sciences Group (incubator) Oil and Gas Exploration Industrial Design Corp and Univ Research Labs Non-destructive Testing Synthetic Vision for UAVs Border Patrol Fores
Slide 20: Financial Overview
Financial Overview © 2005 Mercury Computer Systems, Inc.
Slide 21: Revenue Follows Technology Cycles
© 2005 Mercury Computer Systems, Inc. 19 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, July 26, 2007 earnings conference call
Slide 22: Focus on Working Capital
© 2005 Mercury Computer Systems, Inc. 20 Focus on Working Capital Supply chain transformation Competitive advantage for Mercury and customers Customer satisfaction DSO target 50 days Inventory Turns 4.9 6.9 5.4 4.6 4.1 4.6 7.5 2003 2004 2005 2006 2007 2008E Model Days Sales Outstanding 2003 2004 200
Slide 23: Strong Balance Sheet
© 2005 Mercury Computer Systems, Inc. 21 Strong Balance Sheet Historically strong balance sheet Net cash positive Projected FY08 capex of $7 million Positive free cash flow in FY08 2% convertible senior notes offering due 2024 Quarter ended June 30, 2007 Cash and Equivalents $157 Total Current Asset
Slide 24: Commitment to Timeless Business Model
© 2005 Mercury Computer Systems, Inc. 22 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% 57% 60+% SG&A 29% 34% 36% R&D 20% 25% 26% Income from Operations 17% 3% (6%) 0% 16-18% *Per Company
Slide 25: Q1 Fiscal Year 2008 Guidance
© 2005 Mercury Computer Systems, Inc. 23 Q1 Fiscal Year 2008 Guidance Impact of equity-based compensation costs related to FAS 123(R) of approximately $2.6M excluded from non-GAAP Acquisition-related amortization of approximately $1.8M excluded from non-GAAP Notes: 1) Figures in millions, except per
Slide 26: Fiscal Year 2008 Guidance
© 2005 Mercury Computer Systems, Inc. 24 Fiscal Year 2008 Guidance Fiscal Year Ending June 30, 2008 Revenues ($M) $225 GAAP Non-GAAP Gross Margin 57% 57% EPS $(0.63) $0.17 Notes: 1) Figures in millions, except percent and per share data which includes adjustment for contingent convertibles, in accor
Slide 27: www.mc.com
© 2005 Mercury Computer Systems, Inc. 25 www.mc.com NASDAQ: MRCY
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