Mercury Systems, Inc. (MRCY - Free Report) was recently awarded a $49-million order by a defense prime contractor to provide its signal processing and RF solutions for a missile defense program. Notably, this is one of the largest orders the company has received, highlighting its commitment to address complex embedded processing challenges. The order is expected to be shipped over the next several quarters.
Modernization in radar, EW and C4I is high, providing the company with new opportunities in weapon systems, space, avionics processing, and mission computing and embedded rugged services.
Moreover, Mercury’s domain expertise in analog and digital integration has helped it build a solid business relationship with defense prime contractors for a long time.
Efforts in Embedded Computing
Its embedded computing servers, including the suite of EnsembleSeries blades, have delivered processing solutions with long lifecycles, higher performance, environmental resiliency, interoperability and SWaP optimization for 35 years.
Notably, the company’s range of space-qualified RF and microwave solutions has been adopted in every successful mission to Mars.
Per Mordor Intelligence, the global embedded computing systems market is expected to witness a CAGR of 6.6% over the period of 2019 to 2025. This is promising for companies like Mercury with a long-standing foothold in the industry.
A Competitive Edge
However, the defense subsystems space is subject to intense competition from the likes of Lockheed Martin (LMT - Free Report) , Elbit Systems (ESLT - Free Report) and Northrop Grumman Corporation (NOC - Free Report) .
Nonetheless, Mercury’s parts are generally cheaper, providing it with a competitive edge in the market.
Mercury currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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