Mercury Computer Systems, Inc. (NASDAQ: MRCY, www.mc.com), a trusted provider of commercially developed ISR subsystems, reported operating results for its first quarter of fiscal 2012 ended September 30, 2011. All results are presented and compared on a continuing operations basis. First Quarter Fiscal 2012 Results First quarter fiscal 2012 revenues were $49.1 million, a decrease of $3.0 million from the first quarter of the prior fiscal year. Revenues from commercial customers decreased by $10.3 million, while revenues from defense customers increased by $7.3 million as compared with the prior year’s first quarter. GAAP income from continuing operations for the first quarter of fiscal 2012 was $2.7 million, or $0.09 per diluted share, compared to $3.7 million, or $0.16 per diluted share, for the prior year’s first quarter. First quarter fiscal 2012 GAAP income from continuing operations includes approximately $1.3 million in tax expense, $1.9 million in depreciation expense, $2.0 million in stock-based compensation costs, and $0.8 million in amortization of acquired intangible assets. First quarter fiscal 2012 adjusted EBITDA (earnings from continuing operations before interest income and expense, income taxes, depreciation, amortization of acquired intangible assets, restructuring, impairment of long-lived assets, acquisition costs and other related expenses, fair value adjustments from purchase accounting, and stock-based compensation costs) was $8.7 million, compared to $8.8 million for the prior year’s first quarter. Cash flows from operating activities were a net inflow of $4.2 million in the first quarter of fiscal 2012, compared to a net inflow of $9.4 million in the first quarter of fiscal 2011. Free cash flow, defined as cash flow from operating activities less capital expenditures for property and equipment, in the first quarter of fiscal 2012 was a net inflow of $2.6 million, compared to a net inflow of $7.8 million in the first quarter of fiscal 2011. Cash and cash equivalents as of September 30, 2011 were $165.9 million, an increase of $3.0 million from June 30, 2011.