Company: MRCY
Filing Date: 2025-02-04
Form Type: 10-Q
Source: 0001049521-25-000009
Chunk: 65

Company: MERCURY SYSTEMS INC
Filing Date: 2025-02-04
Form: 10-Q
Item: Item 1
Chunk 65
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 for the second quarters ended December 27, 2024 and December 29, 2023, respectively. 

During the second quarters ended December 27, 2024 and December 29, 2023, we recognized a tax provision of $0.1 million and $0.4 million related to stock compensation shortfalls, respectively. 

The effective tax rate for the second quarter ended December 27, 2024 differed from the federal statutory rate primarily due to federal and state research and development credits, non-deductible compensation, and state taxes. The effective tax rate for the second quarter ended December 29, 2023 differed from the federal statutory rate primarily due to federal and state research and development credits, non-deductible compensation, stock compensation shortfalls, and state taxes.

We continue to maintain a valuation allowance on the majority of our foreign net operating loss carryforwards and state research and developmental tax credit carryforwards. Based on forecasted taxable income and the scheduled reversal of the remaining deferred tax assets, we believe it is more likely than not that all other deferred tax assets will be recognized.

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Six months ended December 27, 2024 compared to the six months ended December 29, 2023 

The following table sets forth, for the six month periods indicated, financial data from the Consolidated Statements of Operations and Comprehensive Loss:(In thousands)December 27, 2024As a % ofTotal NetRevenueDecember 29, 2023As a % ofTotal NetRevenueNet revenues$427,556 100.0 %$378,454 100.0 %Cost of revenues314,940 73.7 296,407 78.3 Gross margin112,616 26.3 82,047 21.7 Operating expenses:Selling, general and administrative73,654 17.2 80,264 21.2 Research and development39,751 9.3 60,348 15.9 Amortization of intangible assets22,389 5.2 24,817 6.6 Restructuring and other charges2,300 0.5 9,548 2.5 Acquisition costs and other related expenses355 0.1 1,200 0.4 Total operating expenses138,449 32.3 176,177 46.6 Loss from operations(25