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  "documentTitle": "Mercury Systems Inc. (MRCY)",
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  "authorName": "Mercury Systems Inc.",
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  "presentationDate": "2018-10-17 00:00:00",
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      "kind": "callout",
      "text": "CEO Aslett on Q4'18 Earnings Call:",
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      "text": "Mercury is now spinning excuses for gross margin contraction as related to acquisitions...while not quantifying any added costs related to the loss of its small business designation, DFARS compliance requirements, or potential recalls and/or new product costs related to replacing Supermicro as a technology partner.",
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      "text": "Mercury Gross Margin Falling Below Lower Target Band",
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      "text": "Gross margin was affected by product mix, including an increase in customer-funded R&D and early-stage programs. The inclusion of Themis, which has lower gross margins as well as an inventory step-up associated with the Themis purchase accounting.\nGermane will be dilutive to our gross margin and adjusted EBITDA margin in FY 2019, but accretive to fiscal 2019 adjusted EPS",
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      "text": "gross margin: 44.0%",
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      "text": "Mercury is now spinning excuses for gross margin contraction as related to acquisitions...while not quantifying any added costs related to the loss of its small business designation, DFARS compliance requirements, or potential recalls and/or new product costs related to replacing Supermicro as a technology partner.",
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      "text": "Gross margin was affected by product mix, including an increase in customer-funded R&D and early-stage programs. The inclusion of Themis, which has lower gross margins as well as an inventory step-up associated with the Themis purchase accounting. Germane will be dilutive to our gross margin and adjusted EBITDA margin in FY 2019, but accretive to fiscal 2019 adjusted EPS — CEO Aslett on Q4'18 Earnings Call",
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      "kind": "source-note",
      "text": "Source: Mercury financials and target gross margins per its Investor Presentation, Aug 9, 2018 (slide 25)",
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      "text": "Gross Margins Continue To Decline While Mercury Disappoints Long-Term Goals....",
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