{ "docId": "019dd923-622c-750b-8b98-8535f99706c6", "docSlug": "23f68cb049f9", "documentTitle": "Mercury Systems Inc. (MRCY)", "authorId": "54_Spruce_Point_Capital", "authorName": "Mercury Systems Inc.", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2018-10-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 10, "pageCount": 40, "prevPage": 9, "nextPage": 11, "slideType": "timeline", "function": "frame_situation", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide uses a timeline to build a case for imminent regulatory or industry-wide action.", "elementsJson": [ "headline_text", "paragraph", "timeline_visual", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-8535f99706c6/10", "deckHref": "/decks/019dd923-622c-750b-8b98-8535f99706c6", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-8535f99706c6.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-8535f99706c6#slide-10", "components": [ { "bbox": null, "kind": "callout", "text": "With public awareness of the Chinese hack story high, relations with China cooling, and military spending cycles accelerated under the Trump administration, it would be no surprise if the government encouraged domestic sourcing or other remedial actions for companies tied to Supermicro within a relatively short period of time, forcing companies like Mercury to bring forward their cybersecurity-related spending rapidly.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-64d2-7657-bbe0-7cd7fc016396", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.96, "x": 0.02, "y": 0.23 }, "kind": "diagram", "text": null, "attrs": null, "subkind": "timeline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7064ae91-ebf1-4f67-8596-e66a753996da", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.16, "x": 0.02, "y": 0.58 }, "kind": "image", "text": "Bloomberg Businessweek article screenshot", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "808f64c8-b554-4573-9480-fe0ced29a5e7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.16, "x": 0.18, "y": 0.75 }, "kind": "image", "text": "GAO Highlights report screenshot", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bdd88bc1-cb3f-48d3-bbeb-9e2bbd1c0602", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.96, "x": 0.02, "y": 0.12 }, "kind": "paragraph", "text": "Military cybersecurity is still a nascent field, and some assume that it will take time for firms to integrate relevant technologies into their products, or to shift their supply chains away from at-risk sources. However, the prospect of a Supermicro hardware hack could force affected hardware providers to act on these threats within a very short timeframe, as authorities and the public have taken notice of the threat.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20ce397f-f69e-4744-b8a1-1bf0e519145c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.96, "x": 0.02, "y": 0.86 }, "kind": "paragraph", "text": "With public awareness of the Chinese hack story high, relations with China cooling, and military spending cycles accelerated under the Trump administration, it would be no surprise if the government encouraged domestic sourcing or other remedial actions for companies tied to Supermicro within a relatively short period of time, forcing companies like Mercury to bring forward their cybersecurity-related spending rapidly.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c7155617-0bda-464c-8e77-5db4ad18f5f4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.23, "w": 0.44, "x": 0.54, "y": 0.6 }, "kind": "paragraph", "text": "We found that from 2012 to 2017, DOD testers routinely found mission-critical cyber vulnerabilities in nearly all weapon systems that were under development. Using relatively simple tools and techniques, testers were able to take control of these systems and largely operate undetected. In some cases, system operators were unable to effectively respond to the hacks. Furthermore, DOD does not know the full scale of its weapon system vulnerabilities because, for a number of reasons, tests were limited in scope and sophistication.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c742496e-18ba-42c3-ad55-f403be47cbc8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "We found that from 2012 to 2017, DOD testers routinely found mission-critical cyber vulnerabilities in nearly all weapon systems that were under development. Using relatively simple tools and techniques, testers were able to take control of these systems and largely operate undetected. In some cases, system operators were unable to effectively respond to the hacks. Furthermore, DOD does not know the full scale of its weapon system vulnerabilities because, for a number of reasons, tests were limited in scope and sophistication. — GAO Highlights", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-64d2-7657-bbe0-803432d45e6e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.68, "x": 0.28, "y": 0.02 }, "kind": "title", "text": "Prospect Of Supermicro Hardware Hack Has Potential To Spur Near-Term Industry Change", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8574dee1-42a9-479a-a31b-7b4f089a36bb", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "timeline", "slug": null, "matchId": "68d23023-9c96-4734-a10c-f1c358ec96bb", "evidence": "Chronological sequence of events presented on a horizontal axis.", "confidence": 1 } ], "arcBeats": [ { "to": 20, "from": 6, "beatId": "f6ffba1d-da5a-40d8-b116-7d3cd09757ab", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Struggle", "beatSlug": "overcoming-monster-the-struggle", "evidence": "Detailed analysis of Mercury's cybersecurity challenges and financial strain", "position": 1, "confidence": 0.7, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 15, "from": 10, "name": "The Reveal", "slug": "05-the-reveal", "bestFor": "Product launches, strategic pivots, unexpected findings", "matchId": "cefbcea8-fd3e-46db-8b78-9ff64e9db114", "evidence": "The report highlights Mercury's attempts to obfuscate its relationship with Supermicro", "position": 0, "objective": "To reveal the potential risks associated with Mercury's relationship with Supermicro", "structure": "Setup the Question -> Build Suspense -> The Big Reveal", "confidence": 0.6, "description": "Build mystery and anticipation, then deliver a surprising or powerful conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }