Mercury Forges Ahead In Embedded Computing With New Servers

Mercury Systems, Inc. (NASDAQ:MRCY) recently launched the EnsembleSeries HDS6605, a powerful, general-purpose processing 6U OpenVPX blade server, in a bid to boost its capabilities in embedded computing. This is also a step ahead in its efforts in electronic warfare and rugged defense.

The blade servers, powered by Second Generation Intel (NASDAQ:INTC) Xeon Scalable processors, feature hardware-enabled support for artificial intelligence applications. These also have the same cooling, packaging and 100 Gigabits per second (Gbps) in-system switch fabric interconnect technologies as the previous generations of Mercury blades based on Intel Xeon processors.

With a technology readiness level 9, the HDS6605 blade servers are compatible with rugged defense applications and advanced upgrades.

HDS6605 blades also boast built-in BuiltSECURE System Security Engineering IP, which allows personalized security solutions that help protect against present and potential threats.

Embedded Computing – A Key Growth Driver

The company’s significant investments in embedded computing technology reflect in its recent release of board-to-board data transmission rates of 100 Gbps. Through this, it aims to enable faster next-generation PCIe Gen-4 Ethernet and InfiniBand high-speed switch fabrics. These fabric switches run within OpenVPX embedded computing subsystems.

Moreover, Mercury’s domain expertise in analog and digital integration has helped it build a solid business relationship with defense prime contractors for a long time.

Its embedded computing servers including the suite of EnsembleSeries blades have delivered processing solutions with long lifecycles, high performance, environmental resiliency, interoperability and SWaP optimization for 35 years.

Notably, in May last year, Mercury launched the EnsembleSeries DCM6111 6U VPX digital transceiver, which incorporates BuiltSECURE technology, and is based on the OpenVPX standard. The solution is suitable for advanced electronic warfare applications operating in high threat areas.

Per Mordor Intelligence, the global embedded computing systems market is expected to witness a CAGR of 6.6% over the period of 2018 to 2023. This is promising for companies with long-standing stronghold in the industry.

Zacks Rank & Key Picks

Mercury currently carries a Zacks Rank #3 (Hold).

A couple of other top-ranked stocks in the same sector are Verint Systems Inc. (NASDAQ:VRNT) and Cadence Design Systems, Inc. (NASDAQ:CDNS) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Verint and Cadence is projected to be 11% and 12%, respectively.

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