Mercury To Develop Data Processing Subsystem for U.S. Satellite Program

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) has secured a $24.5 million contract to develop data processing and storage subsystems for a U.S. Defense Department satellite program. Working with a space systems prime contractor, Mercury will deliver solutions incorporating their SCFE6933 processing board with AMD Versal™ AI Core series FPGAs and the new RH304T solid-state data recorder, featuring 4.5 terabytes of radiation-tolerant storage capacity.

The project will leverage Mercury's commercial products and expertise in data recording, processing, and subsystem integration for defense applications. The company's Advanced Concepts Group will drive this innovative technology solution, utilizing the Mercury Processing Platform's capabilities for mission-critical processing at the edge. The contract success is attributed to Mercury's integrated organizational structure implemented last year, which enables the company to leverage commercial products for specialized defense solutions.

Positive

• Secured new $24.5 million defense contract
• Leveraging existing commercial products for defense applications
• Products deployed in over 300 programs across 35 countries

Negative

• None.

Insights

Defense Technology Analyst

The $24.5 million contract for satellite data processing subsystems represents a strategic win in the high-growth space defense sector. This deal leverages Mercury's commercial-off-the-shelf (COTS) approach to deliver radiation-hardened solutions, combining the SCFE6933 processing board with AMD Versal FPGAs and the new RH304T solid-state recorder with 4.5 terabytes of radiation-tolerant storage.

The integration of commercial AMD Versal AI Core FPGAs showcases Mercury's ability to adapt commercial technology for defense applications, potentially reducing development costs while maintaining military-grade reliability. The radiation-tolerant specifications are important for space operations, where traditional commercial electronics would fail due to radiation exposure.

For investors, this contract validates Mercury's strategic pivot toward integrated solutions and demonstrates the company's competitive advantage in the space defense market. The organizational restructuring mentioned appears to be yielding positive results in securing high-value contracts.

Government Contracts Specialist

This contract highlights Mercury's expanding footprint in the defense satellite sector, particularly noteworthy given the current geopolitical climate and increased focus on space-based defense capabilities. The contract structure suggests potential follow-on orders and recurring revenue opportunities, as satellite programs typically require multiple units and ongoing support.

The selection of Mercury by a prime contractor reinforces their position in the defense supply chain and validates their commercial-to-defense technology adaptation model. Their presence in over 300 programs across 35 countries provides significant program diversification and hints at potential international market opportunities for similar solutions.

ANDOVER, Mass., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, today announced it was awarded a $24.5 million contract to develop a data processing and storage subsystem for a U.S. Defense Department satellite program.

Under a contract with an innovative space systems prime contractor, Mercury will deliver a number of these subsystems that leverage its commercial products and deep expertise in data recording, data processing, and subsystem integration for defense applications. The solution features Mercury’s SCFE6933 processing board that employs AMD Versal™ AI Core series FPGAs and the company’s new RH304T solid-state data recorder, a radiation-tolerant 3U device with 4.5 terabytes of capacity.

“We are proud to support this critical U.S. national security mission,” said Joe Plunkett, Vice President of Mercury’s Advanced Concepts Group, which was formed to drive innovative, next-generation technology solutions for customers. “The Mercury Processing Platform has an incredible breadth of capabilities that can be integrated in virtually limitless ways to enable mission-critical processing at the edge.”

“Mercury was chosen to develop this subsystem because of our unique model and approach to innovation, where commercial products can be leveraged to create new and valuable solutions,” said Roger Wells, Mercury’s Chief Operating Officer. “This success is owed in no small part to the more integrated organizational structure we put in place last year, which has unlocked Mercury’s potential and will fuel our growth in the years ahead.”

Mercury Systems – Innovation that matters^®
Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has 23 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY) 

Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

INVESTOR CONTACT
Tyler Hojo
Vice President, Investor Relations
Tyler.Hojo@mrcy.com

MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com

FAQ

What is the value of Mercury Systems' (MRCY) new satellite program contract?

Mercury Systems (MRCY) has been awarded a $24.5 million contract to develop data processing and storage subsystems for a U.S. Defense Department satellite program.

What technology components will MRCY use in the new defense satellite contract?

MRCY will use their SCFE6933 processing board with AMD Versal™ AI Core series FPGAs and the RH304T solid-state data recorder, which offers 4.5 terabytes of radiation-tolerant storage capacity.

How many programs currently use Mercury Systems (MRCY) products?

Mercury Systems' products and solutions are deployed in more than 300 programs across 35 countries.

What is the storage capacity of MRCY's new RH304T data recorder?

The RH304T solid-state data recorder is a 3U device with 4.5 terabytes of radiation-tolerant storage capacity.