Mercury Systems, Inc. (NASDAQ:MRCY) Q4 2023 Earnings Call Transcript

Seth Seifman: And on the production portion of those programs, are those contracts established and signed? Or will you now go ahead and when the development is done then negotiate and sign production contracts with your customers on these programs?

Bill Ballhaus: Yes. They’re not signed and they’re typically dependent on the development programs being executed. But I think we view the conversion of those development programs to production programs as a very high rate. And in some cases or in many cases, we’re the sole source provider. So it really comes down to just finalizing the development, delivering those first few units so that the production contracts can be awarded.

Seth Seifman: Okay. Okay. And then maybe if I could just sneak in a final one. Last week, you guys put out a press release about LTAMDS. Can you talk about the role of LTAMDS in all of this? I mean, 20 programs is — it’s not a huge number relative to the total number of programs in the company. But relative to a single program, it’s a large number. Did LTAMDS figure very prominently in the challenges that you guys have had and how helpful will this be in releasing some working capital? Or is this just one of several and we shouldn’t think about it having a very meaningful impact?

Bill Ballhaus: I would think about it more going forward as a program that we’re very excited about as opposed to one that’s been a major contributor to our challenged programs.

Operator: This concludes our question-and-answer session for today. I turn the call back over to Bill Ballhaus.

Bill Ballhaus: Well, thank you very much. I’d like to thank everybody for joining us this afternoon, and I look forward to talking during our Q1 earnings call. Thank you.

Operator: This concludes today’s conference call. You may now disconnect.