Seeing new surges, Mercury Systems says it is implementing weekly COVID-19 testing at some locations

By Marjorie Censer / August 5, 2020 at 2:44 PM

Mercury Systems said this week the company is "leaning in" on COVID-19 testing, as it expects the pandemic to continue to create new risks throughout its fiscal year 2021, which started in early July.

Mark Aslett, Mercury's chief executive, said during a call with analysts Tuesday evening "the COVID risks related to Mercury's manufacturing operations are increasing as a result of the economies reopening and the resurgence of the virus in large parts of the country."

He said Mercury has already implemented symptom tracking and temperature screening as well as the mandatory use of masks and, in some cases, face shields. Additionally, the company has contracted for a chief medical adviser.

Now, Aslett said, "we've decided to implement weekly on-site testing in our largest manufacturing locations."

"Weekly COVID testing has begun in Phoenix and will be progressively rolled out across other manufacturing locations in the weeks and months ahead," he added.

"Anticipating that we'll be living with the pandemic through the entirety of fiscal 2021, we believe that leaning in and being highly proactive around testing will be crucial in managing COVID risks to the business both operationally and financially," Aslett told analysts.

Meanwhile, Mercury reported sales in its most recent quarter totaled $217 million, up about 23% from the same three-month period the prior year. Quarterly profit reached $27 million, more than double the almost $13 million in profit Mercury reported a year earlier.

For the year, the company reported sales of $797 million, up nearly 22%. Mercury said profit for the year hit almost $86 million, up about 83% from a year earlier.