Mercury Systems, Inc.
Mercury Systems, Inc. (MRCY) Accused of Misleading Investors
According to a recently filed class action complaint, Mercury Systems touted that the company’s business model was working very well and noted that fiscal 2018 would yield stronger cash flows compared to fiscal 2017. Despite such optimistic predictions, on April 24, 2018, Mercury revealed the company’s free cash flow was a net outflow of $2.6 million, compared to a net inflow of $11.9 million in the previous year’s comparable quarter, due to the company’s integration of its acquisitions and its decision to in-source its manufacturing. In a conference call to discuss the company’s financial results, Mercury admitted that it had been experiencing problems with cash for the last three quarters, and further stated that the company should begin to see improvements in EBITDA to free cash flow run in fiscal 2019. On this news, Mercury’s stock fell over 18% to close at $34.91 on April 25, 2018.
Mercury Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can send us a message via the Shareholder Information form below.