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Mercury to Develop New Technology to Improve Radar Systems

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Mercury Systems (MRCY - Free Report) was recently awarded a $3.9-million contract by a defense prime contractor to develop a high-density system-in-package solution for radar systems, leveraging its 2.5D chip-scale integration technology. The award, which has an 18-month planned performance and shipment period, is part of Mercury’s strategy to invest in advanced microelectronics innovation.

The new technology is expected to modernize applications, such as AI, and bring open standards architecture at chip-scale to defense systems. Mercury’s extensive expertise in system-scale processing and integrating security with silicon fingerprinting and cryptographic protection capabilities prompted it to secure the contract.

Notably, 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. 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, fast-growing usage of parallel processing and HPC is prompting companies like Mercury to leverage AI to solve real-world problems across industries.

Notably, earlier this month, Mercury was 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 company also recently launched its GPU co-processing engine — GSC6204 — based on NVDIA’s (NVDA - Free Report) OpenVPX 6U Turing architecture, to enhance the high-performance computing (HPC) capabilities of commercial aerospace and defense applications, and boost the processing and scale of their embedded computing domain.

However, the defense subsystems space is subject to intense competition from the likes of Lockheed Martin (LMT - Free Report) , Elbit Systems and Northrop Grumman Corporation (NOC - Free Report) .

Nonetheless, Mercury’s parts are generally cheaper, which provides it with a competitive edge in the market.

The company 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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