Mercury Systems, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2016. For the second quarter, the company reported revenues were $98.0 million, compared to $60.4 million in the second quarter of last fiscal year. Excluding the impact of CES Creative Electronic Systems, S.A. (CES), which was acquired by company on November 4, 2016, revenues would have been $94.1 million, an increase of $33.7 million, or 55.8%, compared to the second quarter of fiscal 2016. GAAP net income for the second quarter of fiscal 2017 was $5.2 million, or $0.13 per share. Excluding the impact of CES, net income for the second quarter fiscal 2017 would have been $5.0 million, or $0.13 per share. Adjusted earnings per share (“adjusted EPS”) were $0.30 per share for the second quarter of fiscal 2017, compared to $0.23 per share in the second quarter fiscal 2016.  Excluding the impact of CES, adjusted EPS would have been $0.28 per share for the second quarter of fiscal 2017. Second quarter fiscal 2017 adjusted EBITDA for the total company was $23.0 million and excluding the impact of CES would have been $22.1 million.  These compare to $12.6 million for the second quarter of fiscal 2016. Cash flows from operating activities in the second quarter of fiscal 2017 were a net inflow of $14.2 million, compared to a net inflow of $12.3 million in the second quarter of fiscal 2016. Income from operations was $8,958,000 compared to $6,369,000 a year ago. Income before income taxes was $6,983,000 compared to $6,473,000 a year ago. Purchases of property and equipment was $7,703,000 compared to $1,289,000 a year ago. Adjusted income was $11,897,000 compared to $7,825,000 a year ago.

For the six months, the company reported net revenue of $185,663,000 compared to $118,826,000 a year ago. Income from operations was $12,700,000 compared to $9,500,000 a year ago. Income before income taxes was $9,543,000 compared to $9,697,000 a year ago. Net income was $9,023,000 or $0.23 per basic and diluted share compared to $7,896,000 or $0.23 per diluted share a year ago. Net cash provided by operating activities was $24,521,000 compared to $18,837,000 a year ago. Purchases of property and equipment was $13,753,000 compared to $3,156,000 a year ago. Adjusted EBITDA was $41,192,000 compared to $24,420,000 a year ago. Adjusted income was $20,792,000 compared to $14,266,000 a year ago. Adjusted earnings per share was $0.52 compared to $0.42 a year ago.

For the third quarter of fiscal 2017, revenues are forecasted to be in the range of approximately $103 million to $107 million. GAAP net income for the third quarter is expected to be approximately $5.6 million to $6.8 million, or $0.14 to $0.17 per share, assuming no restructuring, acquisition, or financing related expenses in the period. Adjusted EPS is expected to be in the range of $0.29 to $0.32 per share, assuming an effective tax rate of 35%.  Adjusted EBITDA for the third quarter of fiscal 2017 is expected to be in the range of $22.8 million to $24.7 million. The company expected adjusted income to be in the range of $11,500,000 to $12,600,000.

For the full 2017 fiscal year, before adding the impact of CES, the company now expect revenue to be between $377 million to $384 million, up from prior expectation of $370 million to $380 million. Including CES, total revenue for fiscal 2017 is expected to be approximately $393 million to $400 million, with total GAAP net income of $19.4 million to $21.4 million, or $0.49 to $0.54 per share. Total company adjusted EBITDA for the full fiscal year is now expected to be approximately $87.5 million to $90.5 million, representing approximately 22.3% to 22.6% of revenue. Adjusted EPS for fiscal 2017 is now expected to be approximately $1.09 to $1.14 per share, assuming an effective tax rate of 35%. The company expected adjusted income to be in the range of $43,600,000 to $45,500,000.