Mercury Computer Systems CEO Discusses F1Q2011 Results - Earnings Call Transcript
Defense bookings for the first quarter were up 9% year-over-year. Our book-to-bill in defense was 1.09, up substantially from Q1 of fiscal 2010. With 45% growth year-over-year in our 12-month backlog, Mercury's on track to deliver solid organic growth on the top and bottom lines in fiscal 2011.
Our major defense bookings this quarter include an order for the Taiwan Patriot System through Raytheon, continued business on the Aegis platform through Lockheed Martin and additional orders for the ASIP airborne signals intelligence package with Northrop Grumman.
Q1 bookings in our commercial business were roughly flat with Q1 last year. Although backlog-driven revenue from KLA-Tencor will be winding down during the year, Q1 was our fourth consecutive quarter of increased revenue from ASML. Overall, we still expect roughly flat revenue in commercial for fiscal 2011 as compared with FY10.
In our defense business we focused mercury on key markets that continue to look promising in terms of DOD funding as well as foreign military sales. These include ISR, ballistic missile defense and electronic warfare. At the same time, we have and continue to position Mercury to succeed in the defense markets driven by budget constraints and procurement reform.We've evolved our business model to align with the needs of the primes in an increasingly challenging environment. At a macro level, the major change is that Mercury is transitioning to being a best-of-breed commercial item ISR subsystem company. This means getting involved in programs earlier with an eye toward winning services [and] engagements that will generate long-term, production-based revenue annuity streams through the sale of ISR subsystems to the primes.Read the rest of this transcript for free on seekingalpha.com
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