Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Mercury Computer Systems — Sidoti & Company 11th Annual Emerging Growth Institutional Investor Forum (March 2007)
32 slides from Mercury Systems's conference presentation, Mar 28, 2007
Slide 1: Sidoti & Company 11th Annual Emerging Growth Institutional Investor Forum
Sidoti & Company, LLC 11 th Annual Emerging Growth Institutional Investor Forum March 28, 2007 Exhibit 99.1 © 2005 Mercury Computer Systems, Inc. Jay Bertelli, President, Chief Executive Officer & Chairman
Slide 2: Forward-Looking Safe Harbor Statement
© 2005 Mercury Computer Systems, Inc. 2 Forward-Looking Safe Harbor Statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to anticipated fiscal 2007 business performance and b
Slide 3: Mercury at a Glance
© 2005 Mercury Computer Systems, Inc. 3 Mercury at a Glance HQ in Chelmsford, MA Sales, support, and R&D centers in U.S., Europe, and Japan 823 employees worldwide Founded in 1983 Seven acquisitions since 2004 FY06 revenues: $236M 56/44% defense/commercial Industry focus areas: Aerospace & Defense L
Slide 4: What We Do
© 2005 Mercury Computer Systems, Inc. 4 What We Do Architect specialized computing solutions Mercury software, systems engineering, and domain expertise
Slide 5: Diverse Base of Customers and Targets
© 2005 Mercury Computer Systems, Inc. 5 Diverse Base of Customers and Targets Commercial Defense
Slide 6: Investment Highlights
© 2005 Mercury Computer Systems, Inc. 6 Investment Highlights Data explosion across multiple markets demands skills in Mercury’s technology sweet spot Well-positioned for rebound in defense market Large opportunity in 3D medical imaging Leveraging investments into adjacent and new markets Cost reduc
Slide 7: New Data-Hungry Applications in Multiple Markets
© 2005 Mercury Computer Systems, Inc. 7 New Data-Hungry Applications in Multiple Markets Improving sensors Large data sets Growing need for intensive computing Enhanced image accuracy Real-time 3D Multi-slice CT (32/64) 4 Gbytes typical OIV/VolumeViz large data set module 100 Gbytes typical
Slide 8: Our Unique Competitive Advantages
© 2005 Mercury Computer Systems, Inc. 8 Our Unique Competitive Advantages Unique skill set and software for processing and visualizing data Mercury’s heterogeneous architectures enable systems to perform optimally in demanding applications Libraries and tools for multi-core, multi- processor computi
Slide 9: Defense: Well-Positioned for Rebound
© 2005 Mercury Computer Systems, Inc. 9 Defense: Well-Positioned for Rebound Strong customer base 20 years of experience COTS model Technology leadership Strong position in large, complex radar systems and Signals Intelligence Broadened product portfolio Radio Frequency, Data Acquisition, Battlefiel
Slide 10: Defense Embedded Computing Market Potential
© 2005 Mercury Computer Systems, Inc. 10 Defense Embedded Computing Market Potential A $14.2 Billion Available Market 90-95% Primes 5-10% COTS Opportunity for Collaborative COTS ® Source: The Embedded Computing Market 2006, Electronic Trend Publications Inc & Internal Estimates. Defense Weapons & C3
Slide 11: Defense 2006 Design Wins
© 2005 Mercury Computer Systems, Inc. 11 Defense 2006 Design Wins $77 - $94 Million Total $30 - $35 Million Other $7 - $9 Million Signals Intelligence $40 - $50 Million Radar Revenue potential 3 – 5 Years:
Slide 12: Slide 12
Slide 13: Radar Leadership Positions Us for New Programs
© 2005 Mercury Computer Systems, Inc. 13 Radar Leadership Positions Us for New Programs Airborne surveillance: MP-RTIP Global Hawk (15 platforms) JSTARS and AWACS upgrade potential Tactical fighters: F-35, F-22, F-16 Shipboard missile defense: Aegis UAV: Predator LYNX SAR Land-based/mobile radar Aeg
Slide 14: Medical Imaging: Large Opportunity
© 2005 Mercury Computer Systems, Inc. 14 Medical Imaging: Large Opportunity Estimated $10.4 Billion U.S. Market by 2009* Mercury Segments DMI – Diagnostic Medical Imaging modalities Market growth of 3% to 10% PACS – Picture Archiving and Communications System Market growth of 12+% and higher growth
Slide 15: Trends Driving Strong Medical Imaging Growth
© 2005 Mercury Computer Systems, Inc. 15 Trends Driving Strong Medical Imaging Growth Aging population More diagnostic imaging Better acquisition sensors More data More compute intensive tasks Interventional radiology a reality with more cost-effective compute power enabling real time visualization
Slide 16: Revolutionary 3D Transformation
© 2005 Mercury Computer Systems, Inc. 16 Revolutionary 3D Transformation The market requires a more productive means of visualization throughout the medical imaging workflow Acquisition Reconstruction Visualization Distribution Advanced Research Professional Services & Support
Slide 17: Unique Strengths in Life Sciences
© 2005 Mercury Computer Systems, Inc. 17 Unique Strengths in Life Sciences Medical Imaging 19 years of experience Unique skill set for emerging 3D market Successful introduction of software applications and full systems for end users Expanding product portfolio PACS 3D visualization server MRI data
Slide 18: World's First Thin Client/Server
© 2005 Mercury Computer Systems, Inc. 18 World’s First Thin Client/Server Visage ™ CS Thin Client/Server The world’s first fully scalable thin client/server Instant interactive viewing for 2D, 3D and 4D studies Optimal use of existing PCs throughout the enterprise Tight integration with PACS and mod
Slide 19: Life Sciences 2006 Design Wins
© 2005 Mercury Computer Systems, Inc. 19 Life Sciences 2006 Design Wins Total Pre-Clinical Drug Microscopy Surgical Navigation Diagnostic Medical Imaging PACS Revenue potential: $10 - $15 Million / Year
Slide 20: CIV Transition in Revenues FY05 – FY07
© 2005 Mercury Computer Systems, Inc. 20 CIV Transition in Revenues FY05 – FY07 Legacy New FY05 FY06 FY07 Fcst New Legacy 34% 66% 83% 17% 59% 41%
Slide 21: Leveraging Technology into New Markets
© 2005 Mercury Computer Systems, Inc. 21 Leveraging Technology into New Markets Increasing multi-market leverage of R&D investments Includes both organically developed and acquired technology Significant trend reversal Market Investments Leveraged Investments Cell Solutions 3D Imaging Software A/D &
Slide 22: Leverage Example: Cell BE-based Solutions
© 2005 Mercury Computer Systems, Inc. 22 Leverage Example: Cell BE-based Solutions Cell Solutions Medical/ Biotech Radar Video Gaming Semi Creation Oil & Gas Intelligence National Labs 5-100x faster than conventional microprocessors A strong match to Mercury’s unique capabilities Architected to solv
Slide 23: Semiconductor Creation Market
© 2005 Mercury Computer Systems, Inc. 23 Semiconductor Creation Market Supplying application- enabling solutions to leading OEMs Growth driven by production design wins Mask generation Wafer inspection Reticle inspection Positioned for the next wave Mercury Cell BE-based solutions uniquely meet mark
Slide 24: Growth Opportunity: EDA Mask Synthesis
© 2005 Mercury Computer Systems, Inc. 24 Growth Opportunity: EDA Mask Synthesis Compute-intensive processing required to prepare designs for mask creation Resolution Enhancement Technology (RET) Design For Manufacturing (DFM) Mercury Cell BE-based solutions to provide over 10 Teraflops to speed appl
Slide 25: New Growth Opportunity: Oil & Gas
© 2005 Mercury Computer Systems, Inc. 25 New Growth Opportunity: Oil & Gas Competitive advantages in computing and visualization Performance/watt/cubic inch Extremely large data sets Computing platforms Seismic acquisition and processing Visualization Seismic QC and interpretation Horizons, faults,
Slide 26: New Growth Opportunity: Asset Protection
© 2005 Mercury Computer Systems, Inc. 26 New Growth Opportunity: Asset Protection Forest fire detection and monitoring Precision agriculture Border surveillance Oil and gas pipeline monitoring Power line monitoring Surveillance and reconnaissance Commercial and military avionics Synthetic Vision and
Slide 27: New Growth Opportunity: Communications
© 2005 Mercury Computer Systems, Inc. 27 New Growth Opportunity: Communications Communications market potential System development platforms for wireless infrastructure applications Growth Opportunity AdvancedTCA DSP and FPGA compute solutions Example: Satellite ground stations for Ancillary Terrest
Slide 28: Semiconductor and Communications 2006 Design Wins
© 2005 Mercury Computer Systems, Inc. 28 Semiconductor and Communications 2006 Design Wins $31 - $63 Million Total $6 - $18 Million Communications: ATC NextGen Base Stations $25 - $45 Million Semiconductor: Reticle Inspection EDA Alignment Revenue potential / Year:
Slide 29: Revenue Follows Technology Cycles
© 2005 Mercury Computer Systems, Inc. 29 Revenue Follows Technology Cycles Revenue ($M) $86 $107 $141 $181 $150 $180 $186 $236 $230* 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E Echotek – A/D-D/A June Fiscal Year End *Per Company guidance, January 25, 2007 earnings conference call PowerPC RACE
Slide 30: Commitment to Timeless Business Model
© 2005 Mercury Computer Systems, Inc. 30 Commitment to Timeless Business Model Non-GAAP FY04 FY05 FY06 Guidance FY07* Timeless Business Model Revenue 100% 100% 100% 100% 100% Gross Margin 67% 66% 62% 56% 60+% SG&A 30% 29% 34% R&D 21% 20% 25% Income from Operations 17% 17% 3% (4%) 16-18% *Per Company
Slide 31: Investment Highlights
© 2005 Mercury Computer Systems, Inc. 31 Investment Highlights Data explosion across multiple markets demands skills in Mercury’s technology sweet spot Well-positioned for rebound in defense market Large opportunity in 3D medical imaging Leveraging investments into adjacent and new markets Cost redu
Slide 32: www.mc.com
© 2005 Mercury Computer Systems, Inc. 32 www.mc.com NASDAQ: MRCY