Yahoo Finance Mercury (MRCY) Secures Production Agreement From BlueHalo
Mercury Systems MRCY announced that it has been awarded a significant production deal by BlueHalo, a key player in defense innovation, to support the U.S. Space Force's (“USSF") Satellite Communication Augmentation Resource (SCAR) program, which aims to enhance satellite communication.
Under this agreement, Mercury will supply a solution based on field-programmable gate arrays for BlueHalo's BADGER system. This system is designed to simplify mission operations through adaptable beamforming tiles, which are essential for effective ground communication.
BlueHalo secured a contract worth $1.4 billion for the SCAR program in 2022 from the Space Rapid Capabilities Office, an arm of the USSF. BlueHalo has already demonstrated target tracking and signal processing using Multi-band Software Defined Antenna tiles deployed in its BADGER product.
Mercury is currently leveraging its Quartz RFSoC and Navigator Design Suite to deliver hardware for the BADGER system, building on an initial contract from 2023. Per the new agreement, MRCY will supply subsystems for additional BADGER systems throughout 2024.
Mercury Systems Inc Price and Consensus
Mercury Systems Inc price-consensus-chart | Mercury Systems Inc Quote
Mercury’s Recent Partnerships to Aid Top-Line Growth
Mercury recently partnered with some significant companies like L3Harris Technologies LHX and Lockheed Martin LMT. These collaborations are expected to boost the company’s top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for MRCY’s 2024 revenues is pegged at $812.04 million, indicating a year-over-year decrease of 16.62%. The consensus mark for loss is pegged at 66 cents per share, indicating a year-over-year decline of 166%.
Mercury has secured a $31 million contract from L3Harris Technologies to supply data recorders for the U.S. Space Development Agency's satellite constellation project. L3Harris Technologies was chosen earlier this year to create 18 satellites for the Tranche 2 Tracking Layer program, which aims to offer global missile warning and tracking capabilities. This initiative is part of the broader Proliferated Warfighter Space Architecture that involves deploying military satellites in Low Earth Orbit for various missions.
MRCY has collaborated with Lockheed Martin to boost defense technology production in Switzerland. This project is a direct result of the offset program between Lockheed Martin and the Swiss government as part of Switzerland’s acquisition of the F-35 Lightning II. It will be facilitated by transferring armasuisses' two crucial security-related technologies, such as software-defined radio technologies and cryptology, to the Swiss industry.
Shares of this Zacks Rank #3 (Hold) company have plunged 22.6% year to date against the Zacks Computer and Technology sector’s growth of 7.8% due to stiff competition in the market from Kratos Defense & Security Solutions KTOS and Lockheed Martin. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kratos Defense & Security Solutions is a technology company based in San Diego, CA. It focuses on various areas like directed-energy weapons, unmanned systems, satellite communications, cybersecurity, microwave electronics, missile defense and training systems. KTOS’ customers include the U.S. federal government, other governments worldwide, businesses and state/local agencies.
Lockheed Martin, an American conglomerate, operates globally in the aerospace, defense, information security and technology sectors. The company was established through the merger of Lockheed Corporation and Martin Marietta in March 1995. Even though it recently inked a deal with Mercury, it remains a direct competitor of MRCY.
Mercury has been constantly innovating and integrating technology in its offerings. These attributes help the company win deals and forge partnerships with other companies.
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