Mercury Systems (MRCY) FY2022 results: revenue $988 million, up 6.9% on the year

Mercury Systems Inc. (MRCY) reported revenue of $988 million for fiscal 2022, the year ended 1 July 2022, up 6.9% on the year before. Net income was $11 million, down 81.8%, and diluted earnings per share $0.20. The figures are the company's own, from the 10-K it filed with the SEC on 16 August 2022.

Revenue

$988 million

+6.9% on the year

FY2015FY2022

Operating margin

3.2%

8.8% a year earlier

FY2015FY2022

Net income

$11 million

-81.8% on the year

FY2015FY2022

Diluted EPS

$0.20

-82.1% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	988	924	797	+6.9%
Cost of revenue	593	539	440	+10.1%
Gross profit	395	385	357	+2.5%
Gross margin	40.0%	41.7%	44.8%
Research and development	107	113	98.5	-5.6%
Selling, general and administrative	157	134	132	+16.9%
Operating income	31.6	81.0	91.1	-61.0%
Operating margin	3.2%	8.8%	11.4%
Interest expense	5.8	1.2	1.0	+375.1%
Pre-tax income	18.4	77.2	93.9	-76.2%
Income tax	7.1	15.1	8.2	-52.9%
Effective tax rate	38.7%	19.6%	8.8%
Net income	11.3	62.0	85.7	-81.8%
Net margin	1.1%	6.7%	10.8%
Diluted EPS	$0.20	$1.12	$1.56	-82.1%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	-18.9	97.2	115
Capital expenditure	27.7	45.6	43.3	-39.3%
Free cash flow	-46.5	51.6	71.9
Free cash flow margin	-4.7%	5.6%	9.0%
Cash from investing	-274	-417	-135
Cash from financing	246	206	-10.9	+19.2%
Depreciation and amortisation	93.4	67.1	49.3	+39.3%
Share-based compensation	38.3	28.3	26.5	+35.4%
Buybacks	8.2	0.1	16.2	+12,333.3%
Diluted shares, weighted	56m	55m	55m	+0.8%
Shares outstanding at period end	56m	55m	55m	+1.8%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	1,537	1,484	1,385	+3.6%
Debt	452	200	0.0	+125.8%
Operating lease liabilities	69.9	71.5	67.0	-2.3%
Other liabilities	246	199	159	+23.2%
Total liabilities and equity	2,304	1,955	1,611	+17.9%
Fixed assets	127	129	87.7	-1.0%
Goodwill	938	805	614	+16.5%
Intangible assets	352	308	209	+14.3%
Cash and equivalents	65.7	114	227	-42.3%
Receivables	144	129	120	+12.2%
Inventory	270	222	178	+22.0%
Other assets	407	250	175	+63.0%
Total assets	2,304	1,955	1,611	+17.9%

10-K for the year ended 1 July 2022, filed 16 August 2022: the filing.