Mercury To Provide Upgraded Processing Power for Refueling System on U.S. Air Force’s KC-46A Tanker Fleet

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) has signed a contract with Boeing to provide FPGA processor boards for the upgraded refueling system on the U.S. Air Force's KC-46A tanker aircraft fleet. The SCFE3920 boards will be a key component of the next-generation KC-46A Remote Vision System (RVS) 2.0, processing high-resolution, color video feeds for clear and precise refueling operations.

Mercury has already delivered hundreds of boards for development testing and will now supply approximately 1,500 production boards to support RVS 2.0 implementation on KC-46 aircraft for the United States and allied nations. This advanced technology from the Mercury Processing Platform is expected to significantly enhance the capability of KC-46A aerial refueling operations.

Positive

• Signed contract with Boeing for FPGA processor boards
• Supplying approximately 1,500 production boards for KC-46A tanker fleet
• Technology expected to significantly enhance aerial refueling operations
• Expanding presence in U.S. Air Force aircraft fleet

Negative

• None.

Insights

Aerospace and Defense Analyst

Mercury Systems' contract with Boeing for FPGA processor boards marks a significant advancement in aerial refueling technology. The upgraded Remote Vision System (RVS) 2.0 for the KC-46A tanker fleet will enhance operational efficiency and safety. With approximately 1,500 production boards to be delivered, this represents a substantial order for Mercury. The contract's scope, covering both U.S. and allied nations' aircraft, indicates strong market positioning and potential for future growth. This development aligns with the increasing demand for advanced processing capabilities in defense applications. The long-term implications are positive, as it strengthens Mercury's relationship with major defense contractors and potentially opens doors for similar upgrades across other military platforms. Investors should note that while this contract is significant, its full financial impact may be realized over an extended period as the upgrades are implemented across the fleet.

Military Technology Expert

The integration of Mercury's SCFE3920 boards into the KC-46A's RVS 2.0 represents a important technological leap in aerial refueling operations. High-speed data processing of high-resolution, color video feeds will dramatically improve operators' situational awareness during refueling missions. This enhancement addresses previous limitations in the original RVS, which had faced criticism. The upgrade's importance is underscored by its implementation across both U.S. and allied fleets, indicating a standardization of advanced refueling capabilities among NATO forces. From a strategic perspective, this improvement in refueling efficiency could extend the operational range and effectiveness of various aircraft types, potentially influencing future military doctrine and mission planning. The contract also highlights the critical role of specialized technology companies like Mercury in maintaining the U.S. military's technological edge.

ANDOVER, Mass., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, announced today that it signed a contract with Boeing to deliver FPGA processor boards that will support an upgraded refueling system on the U.S. Air Force’s KC-46A tanker aircraft fleet.

Mercury’s SCFE3920 boards are an integral part of the next-generation KC-46A Remote Vision System (RVS) 2.0. Designed for high-speed data processing and seamless system integration, Mercury’s boards will connect directly to cameras on the plane to process the high-resolution, color video feeds that provide KC-46A operators with a clear and precise view of the refueling process.

Mercury has already delivered hundreds of boards for the upgraded KC-46A refueling system to support development testing. Under the new contract, Mercury will deliver to Boeing approximately 1,500 production boards that will support equipping RVS 2.0 on KC-46 aircraft for the United States and allied nations.

“We are extremely proud of our legacy of support for the U.S. Air Force aircraft fleet,” said Ken Hermanny, Mercury’s Vice President of Signal Technologies. “Advanced technology from the Mercury Processing Platform will significantly advance the capability of KC-46A aerial refueling operations.”

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
David E. Farnsworth
Chief Financial Officer
David.Farnsworth@mrcy.com

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/37b7d6d4-efcc-4d21-ae36-e1114e0aaba4

FAQ

What is the purpose of Mercury Systems' FPGA processor boards for the KC-46A tanker?

Mercury Systems' FPGA processor boards are designed to support the upgraded refueling system on the U.S. Air Force's KC-46A tanker aircraft fleet. They process high-resolution, color video feeds to provide operators with a clear and precise view of the refueling process.

How many FPGA processor boards will Mercury Systems (MRCY) deliver to Boeing for the KC-46A project?

Mercury Systems will deliver approximately 1,500 production boards to Boeing for the KC-46A Remote Vision System (RVS) 2.0 project.

What is the significance of the KC-46A Remote Vision System (RVS) 2.0 for aerial refueling operations?

The KC-46A Remote Vision System (RVS) 2.0, which includes Mercury Systems' FPGA processor boards, is expected to significantly advance the capability of KC-46A aerial refueling operations by providing clearer and more precise visual information to operators during the refueling process.

Will Mercury Systems' (MRCY) technology be used in other countries besides the United States?

Yes, the contract specifies that Mercury Systems' technology will support equipping RVS 2.0 on KC-46 aircraft for both the United States and allied nations.