ANDOVER, Mass. - Mercury Systems Inc. (NASDAQ:MRCY), a provider of mission-critical processing solutions, has entered into a three-year subcontract with Raytheon (NYSE:RTN), a business of RTX, to supply signal processing subsystems for the U.S. Army’s Lower Tier Air and Missile Defense Sensor (LTAMDS) program. The deal, which could be worth up to $96 million, involves the delivery of hardware for nine LTAMDS radars over the contract period.
This new agreement follows Mercury's completion in May 2023 of hardware deliveries for the first six LTAMDS radars, including more than 160 units comprising signal data processors, beamforming platforms, and ethernet switching hardware. These deliveries were part of a proof of manufacturing contract.
The LTAMDS is a cutting-edge 360-degree Active Electronically Scanned Array radar designed to enhance the U.S. Army's Integrated Air and Missile Defense network. It boasts increased capacity and capabilities to counter advanced threats such as hypersonic missiles. The LTAMDS radars, constructed by Raytheon, are currently undergoing simultaneous integration and testing at various government and Raytheon facilities. Recent milestones, including contractor verification testing and live fire tests against tactical ballistic and cruise missiles, have confirmed the radar’s performance and developmental progression.
Mercury Systems has crafted an advanced processing solution for the LTAMDS, aiming to provide U.S. and international forces with strategic and tactical superiority. The first international customer for the LTAMDS is Poland.
Bill Ballhaus, Chairman and CEO of Mercury Systems, remarked on the significance of the LTAMDS production for the company's organic growth in the coming years. The company's technology is utilized in over 300 programs across 35 countries, ranging from mission computing to communications.
Mercury Systems, headquartered in Andover, Massachusetts, emphasizes innovation from silicon to system scale, converting data into actionable intelligence.
This announcement is based on a press release statement from Mercury Systems Inc.
InvestingPro Insights
In light of Mercury Systems Inc.'s (NASDAQ:MRCY) recent subcontract with Raytheon, there are several financial metrics and market signals that potential investors may find informative. According to real-time data from InvestingPro, Mercury Systems has a market capitalization of approximately $1.82 billion and a price-to-book ratio of 1.18 as of Q1 2024, suggesting a reasonable valuation in terms of its assets. Despite a challenging revenue growth trend, with a decrease of 6.41% over the last twelve months as of Q1 2024, analysts have predicted that the company will be profitable this year.
InvestingPro Tips indicate that the stock is currently trading near its 52-week low and is considered to be in oversold territory according to the Relative Strength Index (RSI), potentially presenting an entry point for investors who believe in the company's long-term prospects. Additionally, Mercury Systems' liquid assets exceed its short-term obligations, providing a cushion for operational flexibility.
For those interested in a deeper dive into Mercury Systems' financial health and stock performance, InvestingPro offers additional tips. Currently, there are 9 more InvestingPro Tips available for Mercury Systems on InvestingPro, providing comprehensive analysis for informed investment decisions.
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