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Mercury (MRCY) Introduces New High-Performance RF Tuners

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Mercury Systems (MRCY - Free Report) recently released a new family of high-performance, ultra-compact tuner modules to support spectrum processing applications of customers that include signals intelligence ("SIGINT"), direction finding ("DF"), test and measurement.

Developed by leveraging Mercury’s monolithic microwave integrated circuit design, the extremely low-power AM9018 and AM9030 tuner modules intend to offer faster broadband radio frequency performance while checking adversarial threats in harsh space-constrained environments. The launch of the new RF tuners, available as stand-alone products, comes post-acquisition of Atlanta Micro by Mercury in November 2021.

The AM9018 is a fully integrated receiver mini-module, while AM9030 is a fully integrated transmitter mini-module. Both the tuners provide high dynamic range coverage from 0.9 GHz to 18 GHz. While AM9018 provides a bypass path from 10 MHz to 6 GHz for direct spectrum capture, AM9030 offers a bypass path from 10 MHz to 3 GHz for direct spectrum transmission. Both the tuner modules are mechanically mountable to a host circuit board for use in multi-channel receiver applications.

Mercury has been benefiting from modernization in radar, electronic warfare and C4I, which is providing it with new opportunities in weapon systems, space, avionics processing, mission computing and embedded rugged services. In May, the company introduced the first-ever Avionics Modular Mission Platform computer aligned with the sensor open systems architecture specification to enhance decision accuracy and response times for pilots, bringing safety and higher capability to the pilots and aircraft.

 

In the same month, Mercury entered a multi-year agreement to collaborate with Lockheed Martin (LMT - Free Report) to develop and manufacture new sensor processing technologies at its Geneva-based facility to address the mission-critical needs of the aerospace and defense industry.

Through the $40-million worth contract, Mercury and Lockheed Martin intend to deliver the world’s most advanced airborne defense systems to Switzerland and other countries. This, in turn, is aimed at the enhancement of Swiss national security, expansion of job opportunities and market access to the local Swiss industries in the long run.

In April, the company secured a $14-million contract from a leading defense prime contractor for providing system-in-package assemblies for an airborne secure processing application.

Mercury’s continued efforts and investments have resulted in the successful completion of deals and created about $800 million worth of potential C4I opportunities based on the estimated lifetime value of its top 30 programs.

Zacks Rank & Key Picks

Currently, Mercury and Lockheed Martin carry a Zacks Rank of 3 (Hold). Shares of MRCY have plunged 16.4%, while that of LMT have jumped 5.7% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Axcelis Technologies (ACLS - Free Report) and Baidu (BIDU - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Axcelis’ second-quarter fiscal 2022 earnings has been revised 3 cents northward to 99 cents per share over the past 60 days. For 2022, earnings estimates have moved 10.3% north to $4.40 per share in the past 60 days.

Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have surged 25.5% in the past year.

The Zacks Consensus Estimate for Baidu’s second-quarter 2022 earnings has been revised 31 cents southward to $1.38 per share over the past 30 days. For 2022, earnings estimates have moved 3 cents north to $8.27 per share in the past 30 days.

Baidu's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 52.9%. Shares of BIDU have slumped 25.9% in the past year.

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