Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 31

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 1A
Chunk 31
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 and programs within our existing markets, and entering new markets both domestically and internationally, developing our manufacturing capabilities, as well as identifying and integrating acquisitions and achieving revenue and cost synergies and economies of scale. Our ability to compete in new markets will depend upon several factors including, among others:

•our ability to create demand for products in new markets;

•our ability to respond to changes in our customers’ businesses by updating existing products and introducing, in a timely fashion, new products which meet the needs of our customers;

•our ability to increase our market visibility and penetration with prime defense contractors, government agencies and government funded laboratories;

•the quality of our new products;

•our ability to respond rapidly to technological changes; 

•our ability to increase utilization of our manufacturing capacity as well as our ability to deliver on schedule and on budget; and

•our ability to successfully integrate acquisitions and achieve revenue and cost synergies and economies of scale.

The failure to do any of the foregoing could have a material adverse effect on our business, financial condition, and results of operations. In addition, we may face competition in these new markets from various companies that may have substantially greater research and development resources, marketing and financial resources, manufacturing capability and/or customer support organizations.

Acquisitions may adversely affect our financial condition.

As part of our strategy for growth, we may explore acquisitions or strategic alliances, which ultimately may not be completed or be beneficial to us. While we expect any acquisitions to result in synergies and other financial and operational benefits, we may be unable to realize these synergies or other benefits in the timeframe that we expect or at all. The integration process may be complex, costly and time consuming. Acquisitions may pose risks to our business, including:

•problems and increased costs in connection with the integration of the personnel, business systems, operations, technologies, or products of the acquired businesses;

•layering of integration activity due to multiple overlapping acquisitions;

•unanticipated issues, expenses, charges, or liabilities related to the acquisitions;

•failure to implement our business plan for the combined business or to achieve anticipated increases in revenues and profitability;

•diversion of management’s attention from our organic business;

•adverse effects on business relationships with suppliers and customers, including the failure to retain key customers and programs;

•acquired assets becoming impaired as a result of technical advancements or worse-than-expected performance by the acquired company;

•failure to rationalize supply chain, manufacturing capacity, locations, logistics and operating models to achieve anticipated economies of scale, or disruptions to supply