Company: MRCY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001049521-25-000017
Chunk: 137

Company: MERCURY SYSTEMS INC
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 137
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. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. We use these measures along with the corresponding GAAP financial measures to manage our business and to evaluate our performance compared to prior periods and the marketplace. We define adjusted income as net income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision. Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding. 

Adjusted income and adjusted EPS are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. We expect to continue to incur expenses similar to the adjusted income and adjusted EPS financial adjustments described above, and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.

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The following tables reconcile net loss and diluted loss per share, the most directly comparable GAAP measures, to adjusted income (loss) and adjusted EPS: 

Third Quarters Ended(In thousands, except per share data)March 28, 2025March 29, 2024Net loss and loss per share$(19,170)$(0.33)$(44,574)$(0.77)Other non-operating adjustments, net(3,911)(64)Amortization of intangible assets10,185 11,533 Restructuring and other charges4,931 9,841 Impairment of long-lived assets— — Acquisition, financing and other third party costs1,072 778 Fair value adjustments from purchase accounting131 177 Litigation and settlement expense, net5,467 2,096 Stock-based and other non-cash compensation expense12,124 11,461 Impact to income taxes(1)(7,240)(6,384)Adjusted income (loss) and adjusted earnings (loss) per share(2)$3,589 $0.06 $(15,136)$(0.26)Diluted weighted-average shares outstanding59,367 57,698 (1) Impact to income taxes is calculated by rec