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Mercury Wins Follow-On Orders, Boosts Presence in DRFM Space
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Mercury Systems (MRCY - Free Report) recently announced that it has secured follow-on orders worth $16 million over its existing $152 million five-year agreement with the U.S. Navy.
Per the agreement, Mercury will deliver advanced Digital RF Memory (DRFM) jammers to the Navy. With this technological assistance, Mercury will meet the growing requirement for mission critical components for the U.S. military’s electronic warfare (EW) test and training program.
The follow-on orders were received in the current quarter, and is expected to be delivered over the forthcoming quarters.
Mercury has been focused on the EW segment with new innovations and products. It recently launched the EnsembleSeries DCM6111 6U VPX digital transceiver, which incorporates BuiltSECURE technology, and is based on the OpenVPX standard. It is suitable for advanced EW applications operating in high threat areas.
Notably, Mercury is involved in two major programs related to SEWIP (Surface Electronic Warfare Improvement Program) — SEWIP Block 2 and SEWIP Block 3. Management stated that Block 2 is well-funded program, and is expected to be one of the largest revenue drivers.
Moreover, management expects the recent completion of Syntonic Microwave and The Athena Group buyouts to expand Symantec’s capabilities in EW and embedded security.
DRFM Market’s Prospects Bright
Technological developments in the electronic combat equipment, increasing use of DRFM jammers in the navy and military aircraft, and need to improve existing platforms are driving the DRFM market.
Per a MarketsandMarkets research report, the DRFM market is projected to reach $1.22 billion by 2022, witnessing a CAGR of 12.16% from 2016 to 2022.
However, major players operating in the space such as Airbus Group (EADSY - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , and Raytheon Company , pose significant threat to Mercury.
Nonetheless, with its continued efforts and innovations, Mercury is positioned well to benefit from the promising prospects of this area of the defense systems market.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Mercury Wins Follow-On Orders, Boosts Presence in DRFM Space
Mercury Systems (MRCY - Free Report) recently announced that it has secured follow-on orders worth $16 million over its existing $152 million five-year agreement with the U.S. Navy.
Per the agreement, Mercury will deliver advanced Digital RF Memory (DRFM) jammers to the Navy. With this technological assistance, Mercury will meet the growing requirement for mission critical components for the U.S. military’s electronic warfare (EW) test and training program.
The follow-on orders were received in the current quarter, and is expected to be delivered over the forthcoming quarters.
Mercury Systems Inc Price and Consensus
Mercury Systems Inc price-consensus-chart | Mercury Systems Inc Quote
Expanding EW Portfolio — A Tailwind
Mercury has been focused on the EW segment with new innovations and products. It recently launched the EnsembleSeries DCM6111 6U VPX digital transceiver, which incorporates BuiltSECURE technology, and is based on the OpenVPX standard. It is suitable for advanced EW applications operating in high threat areas.
Notably, Mercury is involved in two major programs related to SEWIP (Surface Electronic Warfare Improvement Program) — SEWIP Block 2 and SEWIP Block 3. Management stated that Block 2 is well-funded program, and is expected to be one of the largest revenue drivers.
Moreover, management expects the recent completion of Syntonic Microwave and The Athena Group buyouts to expand Symantec’s capabilities in EW and embedded security.
DRFM Market’s Prospects Bright
Technological developments in the electronic combat equipment, increasing use of DRFM jammers in the navy and military aircraft, and need to improve existing platforms are driving the DRFM market.
Per a MarketsandMarkets research report, the DRFM market is projected to reach $1.22 billion by 2022, witnessing a CAGR of 12.16% from 2016 to 2022.
However, major players operating in the space such as Airbus Group (EADSY - Free Report) , Northrop Grumman Corporation (NOC - Free Report) , and Raytheon Company , pose significant threat to Mercury.
Nonetheless, with its continued efforts and innovations, Mercury is positioned well to benefit from the promising prospects of this area of the defense systems market.
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>