Mercury Computer Systems, Inc. (NASDAQ: MRCY, www.mc.com), a trusted provider of commercially developed ISR and EW subsystems, reported operating results for its second quarter of fiscal 2012 ended December 31, 2011. All results are presented and compared on a continuing operations basis. Second Quarter Fiscal 2012 Results Second quarter fiscal 2012 revenues were $68.0 million, an increase of $12.4 million from the second quarter of the prior fiscal year. Revenues from defense customers increased by $20.0 million, while revenues from commercial customers decreased by $7.6 million, from the prior year’s second quarter. No revenues were recognized for KOR Electronics in the second quarter fiscal 2012 results. The acquisition of KOR Electronics closed on December 30, 2011. GAAP net income from continuing operations for the second quarter of fiscal 2012 was $9.0 million, or $0.30 per diluted share, compared to $5.2 million, or $0.22 per diluted share, for the prior year’s second quarter. GAAP net income from continuing operations per diluted share includes $0.02 associated with the amortization of acquired intangible assets for the second quarter of fiscal 2012 and $0.01 for the prior year’s second quarter. Second quarter fiscal 2012 GAAP net income from continuing operations includes approximately $4.8 million in tax expense, $1.9 million in depreciation expense, $1.8 million in stock-based compensation costs, $0.7 million in amortization of acquired intangible assets, and $0.6 million of acquisition costs and other related expenses. Second quarter fiscal 2012 adjusted EBITDA (net 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 $18.8 million, compared to $10.7 million for the prior year’s second quarter. Cash flows from operating activities were a net inflow of $11.0 million in the second quarter of fiscal 2012, compared to a net inflow of $8.1 million in the second quarter of fiscal 2011. Free cash flow, defined as cash flow from operating activities less capital expenditures, in the second quarter of fiscal 2012 was a net inflow of $9.1 million, compared to a net inflow of $6.1 million in the second quarter of fiscal 2011. Cash and cash equivalents as of December 31, 2011 were $105.0 million, a decrease of $60.9 million from September 30, 2011, largely due to the use of cash for the acquisition of KOR Electronics during the quarter, partially offset by cash generated by operating activities.