Mercury Computer Systems (MRCY) has reported a 61.76 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $7.05 million, or $0.16 a share in the quarter, compared with $4.36 million, or $0.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.22 million, or $0.29 a share compared with $8.42 million or $0.25 a share, a year ago.

Revenue during the quarter surged 62.85 percent to $107.32 million from $65.90 million in the previous year period. Gross margin for the quarter contracted 33 basis points over the previous year period to 47.32 percent. Total expenses were 89.10 percent of quarterly revenues, down from 89.65 percent for the same period last year. This has led to an improvement of 55 basis points in operating margin to 10.90 percent.

Operating income for the quarter was $11.70 million, compared with $6.82 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $24.95 million compared with $14.57 million in the prior year period. At the same time, adjusted EBITDA margin improved 115 basis points in the quarter to 23.25 percent from 22.10 percent in the last year period.

"The third quarter was another significant milestone toward achieving our objectives for fiscal 2017," said Mark Aslett, Mercury's president and chief executive officer. "During the quarter we delivered a very strong financial performance with record revenues while our profitability exceeded estimates. Year-over-year revenues and GAAP net income both grew more than 60%. Additionally, on February 1, 2017 we raised net proceeds of $215.7 million through a very successful stock offering, replenishing our capacity to invest in future growth both organically and through continued acquisitions. Finally, on April 3, 2017 we closed the acquisition of Delta Microwave, adding new capabilities, scale and breadth to Mercury's existing RF, microwave and millimeter wave portfolio, while further expanding our addressable market," Aslett concluded.

For the fourth-quarter 2017, Mercury Systems, Inc. expects revenue to be in the range of $112 million to $116 million. The company forecasts net income to be in the range of $6.50 million to $7.70 million. The company projects adjusted net income to be in the range of $12.40 million to $13.50 million. The company projects diluted earnings per share to be in the range of $0.14 to $0.16. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.26 to $0.29. 

For fiscal year 2017, Mercury Systems, Inc. expects revenue to be in the range of $405 million to $409 million. The company forecasts net income to be in the range of $22.60 million to $23.80 million. The company projects adjusted net income to be in the range of $46.60 million to $47.70 million. The company projects diluted earnings per share to be in the range of $0.52 to $0.55. The company projects diluted earnings per share to be in the range of $1.08 to $1.11 on adjusted basis.

Mercury Systems, Inc. has generated cash of $49.41 million from operating activities during the nine month period, up 113.05 percent or $26.22 million, when compared with the last year period.

The company has spent $64.19 million cash to meet investing activities during the nine month period as against cash outgo of $15.23 million in the last year period.

Cash flow from financing activities was $203.45 million for the nine month period as against cash outgo of $1.41 million in the last year period.

Cash and cash equivalents stood at $270.24 million as on Mar. 31, 2017, up 220.78 percent or $185.99 million from $84.24 million on Mar. 31, 2016.