Mercury Systems, Inc. (NASDAQ:MRCY) Q1 2023 Earnings Conference Call November 1, 2022 5:00 PM ET

Company Participants

Mark Aslett - President & Chief Executive Officer

Michael Ruppert - Executive Vice President, Chief Financial Officer & Treasurer

Conference Call Participants

Jonathan Ho - William Blair

Michael Ciarmoli - Truist Securities

Austin Moeller - Canaccord

Operator

Good day, everyone and welcome to the Mercury Systems First Quarter Fiscal 2023 Conference Call. Today's call is being recorded.

At this time, for opening remarks and introductions, I’d like to turn the call over to the company’s Executive Vice President and Chief Financial Officer, Mike Ruppert. Please go ahead, sir.

Michael Ruppert

Good afternoon and thank you for joining us. With me today is our President and Chief Executive Officer, Mark Aslett. If you've not received a copy of the earnings press release we issued earlier this afternoon, you can find it on our website at mrcy.com. The slide presentation that Mark and I will be referring to is posted on the Investor Relations section of the website under Events and Presentations. Please turn to Slide 2 in the presentation.

Before we get started, I would like to remind you that today's presentation includes forward-looking statements, including information regarding Mercury's financial outlook, future plans, objectives, business prospects and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2, in the earnings press release and the risk factors included in Mercury's SEC filings. I'd also like to mention that in addition to reporting financial results in accordance with generally accepted accounting principles or GAAP, during our call, we will also discuss several non-GAAP financial measures, specifically adjusted income, adjusted earnings per share, adjusted EBITDA, free cash flow, organic revenue and acquired revenue. A reconciliation of these non-GAAP metrics is included as an appendix to today's slide presentation and in the earnings press release.

I’ll now turn the call over to Mercury’s President and Chief Executive Officer, Mark Aslett. Please turn to Slide 3.

Mark Aslett

Thanks, Mike. Good afternoon, everyone and thanks for joining us. I'll begin with the business update. Mike will review the financials and guidance and then we'll open it up for your questions. Mercury's bookings increased 34% year-over-year in the first quarter, following 27% growth in Q4 of fiscal '22. Actual results in the quarter exceeded the high end of our guidance across all metrics and we're raising the low end of our full year outlook as a result. The largest bookings in the first quarter were LTAMDS, the SDA tranche tracking layer and AMCS. We also received the F-18 and [indiscernible] Block 2 orders that moved from Q4.