Mercury Systems, Inc. (NASDAQ:MRCY) Q1 2024 Earnings Call Transcript

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Sheila Kahyaoglu: Yeah. It does. Maybe just switching a little bit of gears, can you then talk about how you’re thinking about some of the bookings element of it just down 30%, you mentioned a big component of that is system orders you’re waiting for, complete the development program. But how should we sort of think about that timing disconnect that you’re only going to go complete 11 of the programs this year. So kind of when bookings front I guess?

Bill Ballhaus: Yeah. Well, I’ll tell you, we expect to see the bookings improve as we go through the year, starting in Q2. And we’ve got pretty good line of sight to a small number of good-sized bookings that we expect to see coming in starting in Q2. And I’d also point to the large award that we mentioned where we only recognized a fraction of it in Q1. So those are a couple of the dynamics that are happening on the bookings front.

Dave Farnsworth: And I think …

Sheila Kahyaoglu: Thank you.

Dave Farnsworth: And I think, Sheila one of the things — this is Dave again. One of the things you’ll see as a significant ramp up our backlog to set ourselves up for the second half of the year. Bill talked about a couple of the programs. Just generically we don’t go through programs, individually and talk about bookings before they’re coming in, but we definitely have line of sight on a couple of those significant bookings. We’re not intending. And don’t need all of the challenged programs to finish. The ones that are driving the most significant bookings are largely in the realm of the programs we will be finished with.

Sheila Kahyaoglu: Okay. Thank you.

Dave Farnsworth: Yeah. Thank you.

Operator: Thank you for your question. At this point, I’d like to turn the call back over to Mr. Ballhaus, for closing comments.

Bill Ballhaus: Okay. Thanks Aaron, and thanks everybody for joining our Q1 call. And we look forward to connecting with you soon, to talk through our Q2 results. Thanks for your time, this evening.

Operator: Thank you gentlemen, and ladies and gentlemen, this does conclude the Mercury Systems First Quarter Fiscal 2024 Conference Call. Have a great evening.

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