Mercury Systems (MRCY) FY2023 results: revenue $974 million, down 1.4% on the year

Mercury Systems Inc. (MRCY) reported revenue of $974 million for fiscal 2023, the year ended 30 June 2023, down 1.4% on the year before. Net income was -$28 million, and diluted earnings per share $-0.50. The figures are the company's own, from the 10-K it filed with the SEC on 15 August 2023.

Revenue

$974 million

-1.4% on the year

FY2016FY2023

Operating margin

-2.2%

3.2% a year earlier

FY2016FY2023

Net income

-$28 million

FY2016FY2023

Diluted EPS

-$0.50

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	974	988	924	-1.4%
Cost of revenue	657	593	539	+10.8%
Gross profit	317	395	385	-19.8%
Gross margin	32.5%	40.0%	41.7%
Research and development	109	107	113	+1.5%
Selling, general and administrative	161	157	134	+2.3%
Operating income	-21.7	31.6	81.0
Operating margin	-2.2%	3.2%	8.8%
Interest expense	25.2	5.8	1.2	+333.3%
Pre-tax income	-48.5	18.4	77.2
Income tax	-20.2	7.1	15.1
Effective tax rate	n/a	38.7%	19.6%
Net income	-28.3	11.3	62.0
Net margin	-2.9%	1.1%	6.7%
Diluted EPS	-$0.50	$0.20	$1.12

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	-21.3	-18.9	97.2
Capital expenditure	38.8	27.7	45.6	+40.3%
Free cash flow	-60.0	-46.5	51.6
Free cash flow margin	-6.2%	-4.7%	5.6%
Cash from investing	-38.6	-274	-417
Cash from financing	65.4	246	206	-73.4%
Depreciation and amortisation	97.3	93.4	67.1	+4.2%
Share-based compensation	27.8	38.3	28.3	-27.5%
Buybacks	0.1	8.2	0.1	-99.2%
Diluted shares, weighted	57m	56m	55m	+1.2%
Shares outstanding at period end	57m	56m	55m	+2.3%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,567	1,537	1,484	+1.9%
Debt	512	452	200	+13.3%
Operating lease liabilities	66.8	69.9	71.5	-4.4%
Other liabilities	246	246	199	+0.2%
Total liabilities and equity	2,391	2,304	1,955	+3.8%
Fixed assets	120	127	129	-6.0%
Goodwill	938	938	805	+0.0%
Intangible assets	298	352	308	-15.2%
Cash and equivalents	71.6	65.7	114	+9.0%
Receivables	125	144	129	-13.7%
Inventory	337	270	222	+24.7%
Other assets	502	407	250	+23.3%
Total assets	2,391	2,304	1,955	+3.8%

10-K for the year ended 30 June 2023, filed 15 August 2023: the filing.