Mercury (MRCY) Receives $14M Contract From PIT-RADWAR S.A.
Mercury Systems MRCY recently grabbed a contract worth $14 million from Republic of Poland’s Armed Forces supplier, PIT-RADWAR S.A., to provide subsystem processing boards for a new mobile radar system.
Per the contract, Mercury will upgrade the architecture of radar system with a new design to improve its performance, range and accuracy. It will provide its HDS6605 board, which is a 6U OpenVPX server blade powered by Intel Xeon Scalable processor, 40 Gb/s or 100 Gb/s Ethernet switch fabrics.
The Polish Armed Forces Mobile Radar offers long-range surveillance and tracking capabilities, enabling the detection of aerial threats, such as aircraft and missiles. The system enhances situational awareness and contributes to the overall defense capabilities of the Polish Armed Forces.
Mercury Systems Inc Price and Consensus
Mercury Systems Inc price-consensus-chart | Mercury Systems Inc Quote
Paul Tanner, vice president for Mercury’s International Growth Operations, stated, “This contract demonstrates our ability to leverage the latest in Mercury’s processing technology from the United States and then design, integrate, build and test internationally, to deliver a bespoke solution for the Polish Armed Services.”
Mercury’s HDS6605 securely turns massive amounts of sensor data into actionable intelligence when and where it is needed. It is available with MOTS+ technology for extreme environmental protection for deployment anywhere and SOSA-aligned for maximum interoperability and technology reuse.
MRCY’s domain expertise in analog and digital integration helped it build a solid business relationship with defense prime contractors. Mercury recently won a contract worth $83 million from the U.S. Naval Air Systems Command to deliver high-definition, digital Head-Up Display systems for the T-45 Goshawk training aircraft. In June, MRCY unveiled the first safety certifiable, small-form factor and ruggedized mission computer, ROCK 4, with Intel Corporation’s INTC 11th generation Core i7 processors.
The computer features Mercury’s BuiltSAFE commercial-off-the-shelf (COTS) elements and artifacts, which are tested, certified and fielded more than 30 years on airborne platforms to deliver optimal performance and accelerate safety-critical systems integration. The BuiltSAFE technology reduces recertification needs while maximizing interoperability and speed technology refresh.
In January, the company revealed its next-generation rugged edge servers (RES) with an aim to enhance compute-intensive edge workloads and drive quick insights for the aerospace and defense applications. The latest-gen RES X08 leverages COTS technologies like Intel’s fourth-generation Xeon Scalable processors, NVIDIA’s double-wide H100 graphic processing units, high-speed DDR5 memory, 400 giga-bytes per second network cards and compute express link and latest data storage technologies.
In the same month, MRCY unveiled DRF3182 direct radio frequency processing module, which is the industry’s first signal processing board purpose-built for the aerospace and defense applications. Featuring Intel’s Stratix 10 AX system-on-chip field programmable gate array, the processing board intends to make sure that the modern electronic warfare and radar systems are able to significantly increase processing densities.
MRCY’s sustained focus on introducing new and advanced products is helping it win new contracts. Mercury's total bookings at the third quarter end of fiscal 2023 were $245 million, reflecting a book-to-bill ratio of 0.93. The company ended the quarter with a backlog of $1.10 billion, up $103.2 million from a year ago. From this backlog, products worth $695 million are expected to be shipped within the next 12 months.
Zacks Rank & Key Picks
Mercury currently has a Zacks Rank #5 (Strong Sell), while Intel carries a Zacks Rank #2 (Buy). Shares of MRCY and INTC have lost 40.9% and 15.1%, respectively, over the past year.
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