"In light of the challenges facing the industry as a whole, we proactively implemented aggressive cost reduction actions in the first quarter," Aslett said. "We reduced the size of our workforce by a total of 142 positions, primarily related to the integration of Micronetics and, in addition, reductions in the engineering and administrative functions in our headquarters facility. We expect the restructuring and other cost reduction actions completed in our first quarter of fiscal 2013 to result in approximately $20 million of annualized savings beginning in the current second quarter of fiscal 2013. These savings are in addition to the $5 million of estimated annualized savings associated with the restructuring that took place in the fourth quarter of fiscal 2012. Despite the current industry challenges, we remain optimistic about our prospects for growth and now improved profitability when the industry returns to a more normal procurement environment," Aslett concluded.
First Quarter Fiscal 2013 Conference Call Information
Mercury cautions that the preliminary financial results presented in this press release for the first quarter of 2013 are estimates and remain subject to review by the Company's independent registered accounting firm, which could have a material impact on the Company's actual financial results for the first quarter of fiscal 2013. The Company plans to provide more detailed financial results for the first quarter of fiscal 2013, as well as additional information relating to the business, in its upcoming quarterly earnings call scheduled on October 23, 2012 at 5:00 p.m.
To listen to the conference call, dial 888-599-4879 in the USA and Canada, and 913-312-0419 for all other countries. The conference code number is 9340984. Please call five to ten minutes prior to the scheduled start time. This call will also be broadcast live over the web at www.mc.com/investor under "Financial Events".A replay of the call by telephone will be available from approximately 8:00 p.m. EDT on Tuesday, October 23 through 8:00 p.m. EDT on Sunday, November 4, 2012. To access the replay, dial 888-203-1112 in the USA and Canada, and 719-457-0820 for all other countries. Enter access code 9340984. A replay of the webcast of the call will be available for an extended period of time on the Financial Events page of the Company's website at www.mc.com/investor . Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA excludes certain non-cash and other specified charges. Free cash flow is defined as cash flow from operating activities less capital expenditures. The Company believes these non-GAAP financial measures provide an enhanced understanding of its past financial performance and prospects for the future. However, the presentation of adjusted EBITDA and free cash flow is not meant to be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes the adjusted EBITDA and free cash flow financial measures assist in providing an enhanced understanding of the Company's underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company's business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals.