View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Oct. 31, 2018
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	MRCY
Entity Registrant Name	MERCURY SYSTEMS INC
Entity Central Index Key	0001049521
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,401,205

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 72,869	$ 66,521
Accounts receivable, net of allowance for doubtful accounts of $202 and $359 at September 30, 2018 and June 30, 2018, respectively	113,920	104,040
Unbilled receivables and costs in excess of billings	39,977	39,774
Inventory	121,156	108,585
Prepaid income taxes	6,736	3,761
Prepaid expenses and other current assets	9,521	9,062
Total current assets	364,179	331,743
Property and equipment, net	50,829	50,980
Estimated fair value of goodwill	520,589	497,442
Intangible assets, net	183,606	177,904
Other non-current assets	7,771	6,411
Total assets	1,126,974	1,064,480
Current liabilities:
Accounts payable	25,726	21,323
Accrued expenses	15,144	16,386
Accrued compensation	20,281	21,375
Deferred revenues and customer advances	21,605	12,596
Total current liabilities	82,756	71,680
Deferred income taxes	13,266	13,635
Income taxes payable	2,879	998
Long-term debt	240,000	195,000
Other non-current liabilities	11,452	11,276
Total liabilities	350,353	292,589
Commitments and contingencies (Note M)
Shareholders' equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 85,000,000 shares authorized; 47,168,936 and 46,924,238 shares issued and outstanding at September 30, 2018 and June 30, 2018, respectively	472	469
Additional paid-in capital	587,788	590,163
Retained earnings	187,447	179,968
Accumulated other comprehensive income	914	1,291
Total shareholders' equity	776,621	771,891
Total liabilities and shareholders' equity	$ 1,126,974	$ 1,064,480

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 202	$ 359
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	1,000,000	1,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	85,000,000	85,000,000
Common Stock, Shares, Issued (shares)	47,168,936	46,924,238
Common stock, shares outstanding (shares)	47,168,936	46,924,238

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net revenues	$ 144,056	$ 106,069
Cost of revenues	82,473	55,395
Gross margin	61,583	50,674
Operating expenses:
Selling, general and administrative	24,741	20,568
Research and development	14,948	13,742
Amortization of intangible assets	7,181	5,637
Restructuring and other charges	504	95
Acquisition costs and other related expenses	399	261
Total operating expenses	47,773	40,303
Income from operations	13,810	10,371
Interest income	66	19
Interest expense	(2,259)	(3)
Other income, net	(1,009)	(815)
Income before income taxes	10,608	9,572
Tax provision (benefit)	3,129	(8,381)
Net income	$ 7,479	$ 17,953
Basic net earnings per share (in dollars per share)	$ 0.16	$ 0.39
Diluted net earnings per share (in dollars per share)	$ 0.16	$ 0.38
Weighted-average shares outstanding:
Basic (in shares)	47,048	46,504
Diluted (in shares)	47,697	47,489
Comprehensive income:
Net income	$ 7,479	$ 17,953
Foreign currency translation adjustments	(362)	(78)
Pension benefit plan, net of tax	(15)	30
Total other comprehensive income, net of tax	(377)	(48)
Total comprehensive income	$ 7,102	$ 17,905

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 7,479	$ 17,953
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	11,546	9,337
Stock-based compensation expense	4,679	4,621
Benefit for deferred income taxes	(381)	(4,186)
Other non-cash items	1,222	378
Changes in operating assets and liabilities, net of effects of businesses acquired:
Accounts receivable, unbilled receivable, and cost in excess of billings	(5,891)	(7,810)
Inventory	(4,553)	(11,149)
Prepaid income taxes	(2,977)	(657)
Prepaid expenses and other current assets	68	(718)
Other non-current assets	88	(595)
Accounts payable and accrued expenses	(2,025)	12,841
Deferred revenues and customer advances	8,828	(627)
Income taxes payable	1,873	(11,279)
Other non-current liabilities	73	(81)
Net cash provided by operating activities	20,029	8,028
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(46,273)	(6,000)
Purchases of property and equipment	(3,727)	(3,628)
Other investing activities	0	(374)
Net cash used in investing activities	(50,000)	(10,002)
Cash flows from financing activities:
Borrowings under credit facilities	45,000	0
Payments for retirement of common stock	(6,812)	(13,548)
Payments of deferred financing and offering costs	(1,851)	0
Net cash provided by (used in) financing activities	36,337	(13,548)
Effect of exchange rate changes on cash and cash equivalents	(18)	(41)
Net increase (decrease) in cash and cash equivalents	6,348	(15,563)
Cash and cash equivalents at beginning of period	66,521	41,637
Cash and cash equivalents at end of period	72,869	26,074
Cash paid during the period for:
Interest	3,442	3
Income taxes	$ 4,291	$ 7,851

Description of Business	3 Months Ended
Description of Business	Sep. 30, 2018
Accounting Policies [Abstract]
Description of Business	Description of Business Mercury Systems, Inc. (the “Company” or “Mercury”) is a leading commercial provider of secure sensor and safety critical processing subsystems. Optimized for customer and mission success, its solutions power a wide variety of critical defense and intelligence programs. Headquartered in Andover, Massachusetts, it is pioneering a next-generation defense electronics business model specifically designed to meet the industry's current and emerging technology and business needs. The Company delivers affordable innovative solutions, rapid time-to-value and service and support primarily to defense prime contractor customers. The Company's products and solutions have been deployed in more than 300 programs with over 25 different defense prime contractors. Key programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program (“SEWIP”), Gorgon Stare, Predator, F-35, Reaper, F-16 SABR, E2D Hawkeye, Paveway, Filthy Buzzard, PGK, ProVision, P1, AIDEWS, CDS, and Win-T. The Company's organizational structure allows it to deliver capabilities that combine technology building blocks and deep domain expertise in the aerospace and defense sector.

Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

BASIS OF PRESENTATION

The accompanying consolidated financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended June 30, 2018 which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 16, 2018. The results for the three months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

BUSINESS COMBINATIONS

The Company utilizes the acquisition method of accounting under ASC 805, Business Combinations, (“ASC 805”), for all transactions and events which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as the measurement date for all assets and liabilities assumed. The Company also utilizes ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations.

FOREIGN CURRENCY

Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, the United Kingdom, France, Japan, Spain and Canada. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in accumulated other comprehensive income in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income and were immaterial for all periods presented.

REVENUE RECOGNITION

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, (“ASC 606”), which was adopted on July 1, 2018, using the retrospective method. Revenue is recognized in accordance with the five step model set forth by ASC 606, which involves identification of the contract(s), identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations, and revenue recognition as the performance obligations are satisfied. The adoption of ASC 606 did not have a material impact to the amount or timing of revenue recognition related to the Company's legacy accounting methods for contracts including ship and bill, multiple-deliverable, and contract accounting. Such adoption did not have a material impact, individually or in the aggregate, to any amounts in the Company's Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income, Consolidated Statements of Shareholders’ Equity or Consolidated Statements of Cash Flows. Refer to Note L for disaggregation of revenue for the period.

During step one of the five step model, the Company considers whether contracts should be combined or segmented, and based on this assessment, the Company combines closely related contracts when all the applicable criteria are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single contract, which should be combined to reflect an overall profit rate. Similarly, the Company may separate an arrangement, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement and the related performance criteria were negotiated. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company's contracts with customers generally do not include a right of return relative to delivered products. In certain cases, contracts are modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are accounted for as part of the existing contract.

The Company is a leading provider of secure sensor and safety critical processing subsystems. Revenues are derived from the sales of products that are grouped into one of the following three categories: (i) components, (ii) modules and sub-assemblies, and (iii) integrated subsystems. The Company also generates revenues from the performance of services, including analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. Each promised good or service within a contract is accounted for separately under the guidance of ASC 606 if they are distinct, i.e., if a good or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Promised goods or services not meeting the criteria for being a distinct performance obligation are bundled into a single performance obligation with other goods or services that together meet the criteria for being distinct. The appropriate allocation of the transaction price and recognition of revenue is then determined for the bundled performance obligation.

Once the Company determines the performance obligations, the Company then determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. Variable consideration typically arises due to volume discounts, or other provisions that can either decrease or increase the transaction price. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the method the Company expects to better predict the amount of consideration to which it will be entitled. The determination of the estimates for variable consideration require judgment, and are based on past history with similar contracts and anticipated performance. Further, variable consideration is only included in the determination of the transaction price if it is probable that a significant reversal in the amount of revenue recognized will not occur. There are no constraints on the variable consideration recorded.

For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation using the standalone selling price of each distinct good or service in the contract. Standalone selling prices of the Company’s goods and services are generally not directly observable. Accordingly, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The objective of the expected cost plus a margin approach is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company's determination of the expected cost plus a margin approach involves the consideration of several factors based on the specific facts and circumstances of each contract. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies, often based on the price list established and updated by management on a regular basis, the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold.

The Company analyzes the standalone selling prices used in its allocation of transaction price on contracts at least annually. Standalone selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more frequent analysis or if the Company experiences significant variances in its selling prices.

Revenue recognized at a point in time generally relate to contracts that include a combination of components, modules and sub-assemblies, integrated subsystems and related system integration or other services. Contracts with distinct performance obligations recognized at a point in time, with or without an allocation of the transaction price, totaled 79% and 82% of revenues for the three months ended September 30, 2018 and 2017, respectively. Revenue is recognized at a point in time for these products and services (versus over time recognition) due to the following: (i) customers are only able to consume the benefits provided by the Company upon completion of the product or service, (ii) customers do not control the product or service prior to completion, and (iii) the Company does not have an enforceable right to payment at all times for performance completed to date. Accordingly, there is little judgment in determining when control of the good or service transfers to the customer, and revenue is generally recognized upon shipment (for goods) or completion (for services).

The Company engages in long-term contracts for development, production and services activities and recognizes revenue for performance obligations over time. These long-term contracts involve the design, development, manufacture, or modification of complex modules and sub-assemblies or integrated subsystems and related services. Revenue is recognized over time, due to the fact that: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, and (ii) the Company’s performance creates an asset with no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. These contracts include both fixed-price and cost reimbursable contracts. The Company’s cost reimbursable contracts typically include cost-plus fixed fee and time and material ("T&M") contracts.

For long-term contracts, the Company typically leverages the input method, using a cost-to-cost measure of progress. The Company believes that this method represents the most faithful depiction of the Company’s performance because it directly measures value transferred to the customer. Contract estimates and estimates of any variable consideration are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. The Company bears the risk of changes in estimates to complete on a fixed-price contract which may cause profit levels to vary from period to period. For cost reimburseable contracts, the Company is reimbursed periodically for allowable costs and is paid a portion of the fee based on contract progress. In the limited instances where the Company enters into T&M contracts, revenue recognized reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other direct billable costs. For T&M contracts, the Company elected to use a practical expedient permitted by ASC 606 whereby revenue is recognized in the amount for which the Company has a right to invoice the customer based on the control transferred to the customer. For all types of contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable.

Accounting for long-term contracts requires significant judgment relative to estimating total contract revenues and costs, including assumptions relative to the length of time to complete the contract, the nature and complexity of the work to be performed, anticipated increases in wages and prices as well as availability for subcontractor services and materials. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods.

Total revenue recognized under long-term contracts over time was 21% and 18% of total revenues for the three months ended September 30, 2018 and 2017, respectively.

The Company does not provide its customers with rights of product return other than those related to assurance warranty provisions that permit repair or replacement of defective goods over a period of 12 months. The Company accrues for anticipated warranty costs upon product shipment. The Company does not consider activities related to such assurance warranties, if any, to be a separate performance obligation. The Company does offer separately priced extended warranties which generally range from 12 to 36 months that are treated as separate performance obligations. The transaction price allocated to extended warranties is recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract.

On long-term contracts, the portion of the payments retained by the customer is not considered a significant financing component because most contracts have a duration of less than one year and payment is received as progress is made. On some contracts, the Company may be entitled to receive an advance payment, which is not considered a significant financing component because it is used to facilitate inventory demands at the onset of a contract and to safeguard the Company from the failure of the other party to abide by some or all of their obligations under the contract.

All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes).

ACCOUNTS RECEIVABLE

Accounts receivable, net, represents amounts that have been billed and are currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended as necessary. The allowance is based upon an assessment of the customers' credit worthiness, history with the customer, and the age of the receivable balance. The Company typically invoices a customer upon shipment of the product (or completion of a service) for contracts where revenue is recognized at a point in time. For contracts where revenue is recognized over time, the invoicing events are typically based on specified performance obligation deliverables or milestone events, or quantifiable measures of performance.

COSTS TO OBTAIN AND FULFILL A CONTRACT

The Company has elected to use a practical expedient available under ASC 606 whereby sales commissions are expensed as incurred for contracts where the amortization period would have been one year or less. The Company has not deferred sales commissions for contracts where the amortization period is greater than one year because such amounts that would qualify for deferral are not significant.

The Company has elected to treat shipping and handling activities performed after the customer has obtained control of the related goods as a fulfillment cost. Such costs are accrued for in conjunction with the recording of revenue for the goods and are classified as cost of revenues.

CONTRACT BALANCES

Contract balances result from the timing of revenue recognized, billings and cash collections, and the generation of contract assets and liabilities. Contract assets represent revenue recognized in excess of amounts invoiced to the customer and the right to payment is not subject to the passage of time. Contract assets are presented as unbilled receivables and costs in excess of billings on the Company’s Consolidated Balance Sheets. Contract liabilities consist of deferred product revenue, billings in excess of revenues, deferred service revenue, and customer advances. Deferred product revenue represents amounts that have been invoiced to customers, but are not yet recognizable as revenue because the Company has not satisfied its performance obligations under the contract. Billings in excess of revenues represents milestone billing contracts where the billings of the contract exceed recognized revenues. Deferred service revenue primarily represents amounts invoiced to customers for annual maintenance contracts or extended warranty contracts, which are recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Customer advances represent deposits received from customers on an order. Contract liabilities are included in deferred revenue and the long-term portion of deferred revenue is included within other non-current liabilities on the Company’s Consolidated Balance Sheets. Contract balances are reported in a net position on a contract-by-contract basis.

The contract asset balances were $39,977 and $39,774 as of September 30, 2018 and June 30, 2018. These balances remained consistent period over period. The contract liability balances were $22,468 and $13,425 as of September 30, 2018 and June 30, 2018. The increase was driven primarily by a significant milestone billing on a classified missile program.

Revenue recognized for the three month period ended September 30, 2018 that was included in the contract liability balance at the beginning of the year was $7,366.

REMAINING PERFORMANCE OBLIGATIONS

The Company has elected to use a practical expedient available under ASC 606 whereby contracts with original expected durations of one year or less are excluded from the remaining performance obligations, while these contracts are included within backlog. The Company includes in its computation of remaining performance obligations customer orders for which it has accepted signed sales orders. The definition of remaining performance obligations excludes those contracts that provide the customer with the right to cancel or terminate the order with no substantial penalty, even if the Company’s historical experience indicates the likelihood of cancellation or termination is remote. As of September 30, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $166,880. The Company expects to recognize approximately 64% of its remaining performance obligations as revenue in the next 12 months and the balance thereafter.

WEIGHTED-AVERAGE SHARES

Weighted-average shares were calculated as follows:



	Three Months Ended September 30,
	2018	2017
Basic weighted-average shares outstanding	47,048	46,504
Effect of dilutive equity instruments	649	985
Diluted weighted-average shares outstanding	47,697	47,489

Equity instruments to purchase 145 and 104 shares of common stock were not included in the calculation of diluted net earnings per share for the three months ended September 30, 2018, and 2017, respectively, because the equity instruments were anti-dilutive.

Acquisitions

3 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

GERMANE SYSTEMS AQUISITION

On July 31, 2018, the Company announced that it had entered into a membership interest purchase agreement (the "Purchase Agreement") and acquired Germane Systems, LC (“Germane”) pursuant to the terms of the Purchase Agreement.

Based in Chantilly, Virginia, Germane is an industry leader in the design, development and manufacturing of rugged servers, computers and storage systems for command, control and information (“C2I”) applications. The Company acquired Germane for an all cash purchase price of $45,000, subject to net working capital and net debt adjustments. The Company funded the acquisition with borrowings obtained under its existing revolving credit facility.

The following table presents the net purchase price and the fair values of the assets and liabilities of Germane on a preliminary basis:



	Amounts
Consideration transferred
Cash paid at closing	$	46,973
Less cash acquired	(193		)
Net purchase price	$	46,780

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	193
Accounts receivable	4,277
Inventory	8,575
Fixed assets	867
Other current and non-current assets	596
Accounts payable	(3,146		)
Accrued expenses	(914		)
Other current and non-current liabilities	(232		)
Estimated fair value of net tangible assets acquired	10,216
Estimated fair value of identifiable intangible assets	12,910
Estimated goodwill	23,847
Estimated fair value of net assets acquired	46,973
Less cash acquired	(193		)
Net purchase price	$	46,780

The amounts above represent the preliminary fair value estimates as of September 30, 2018 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimates include customer relationships of $8,500 with a useful life of 11 years, developed technology of $4,200 with a useful life of 8 years and backlog of $210 with a useful life of 1 year. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill.

The goodwill of $23,847 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is reported under the Mercury Defense Systems (“MDS”) reporting unit. Since Germane was a limited liability company, the acquisition is treated as an asset purchase for tax purposes. The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of September 30, 2018 the Company had $23,554 of goodwill deductible for tax purposes. The Company has not furnished pro forma information relating to Germane because such information is not material to the Company's financial results.

The revenues and loss before income taxes from Germane included in the Company's consolidated results for the three months ended September 30, 2018 were $8,994 and $(400), respectively. The Germane results include expenses resulting from purchase accounting which include amortization of intangibles and inventory step-up.

THEMIS COMPUTER AQUISITION

On December 21, 2017, the Company and Thunderbird Merger Sub, Inc., a newly formed, wholly-owned subsidiary of the Company (the “Merger Sub”), entered into a Merger Agreement (the “Merger Agreement”) with Ceres Systems (“Ceres”), the holding company that owned Themis Computer (“Themis”, and together with Ceres, collectively the “Acquired Company”). On February 1, 2018, the Company closed the transaction and the Merger Sub merged with and into Ceres with Ceres continuing as the surviving company and a wholly-owned subsidiary of Mercury (the “Merger”). By operation of the Merger, the Company acquired both Ceres and its wholly-owned subsidiary, Themis.

Based in Fremont, California, Themis is a leading designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for U.S. and international markets. Under the terms of the Merger Agreement, the merger consideration (including payments with respect to outstanding stock options) consisted of an all cash purchase price of approximately $180,000. The merger consideration is subject to post-closing adjustments based on a determination of closing net working capital, transaction expenses and net debt (all as defined in the Merger Agreement). The Company funded the acquisition with borrowings obtained under its existing revolving credit facility. On July 13, 2018, the Company and former owners of Ceres agreed to post-closing adjustments totaling $700, which decreased the Company's net purchase price.

The following table presents the net purchase price and the fair values of the assets and liabilities of the Acquired Company on a preliminary basis:



	Amounts
Consideration transferred
Cash paid at closing	$	187,089
Working capital and net debt adjustment	(1,274		)
Less cash acquired	(6,810		)
Net purchase price	$	179,005

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	6,810
Accounts receivable	7,713
Inventory	7,333
Fixed assets	479
Other current and non-current assets	2,896
Accounts payable	(3,287		)
Accrued expenses	(4,672		)
Other current and non-current liabilities	(1,210		)
Deferred tax liability	(14,115		)
Estimated fair value of net tangible assets acquired	1,947
Estimated fair value of identifiable intangible assets	71,720
Estimated goodwill	112,148
Estimated fair value of net assets acquired	185,815
Less cash acquired	(6,810		)
Net purchase price	$	179,005

The amounts above represent the preliminary fair value estimates as of September 30, 2018 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimates include customer relationships of $52,600 with a useful life of 12.5 years, developed technology of $17,150 with a useful life of 9.5 years and backlog of $1,970 with a useful life of 1 year. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill.

The goodwill of $112,148 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is reported under the MDS reporting unit and is not tax deductible.

Fair Value of Financial Instruments

3 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at September 30, 2018:



	Fair Value Measurements
	September 30, 2018		Level 1		Level 2		Level 3
Assets:
Certificates of deposit	$	11,087	$	—	$	11,087	$	—
Total	$	11,087	$	—	$	11,087	$	—

The carrying values of cash and cash equivalents, including money market funds, restricted cash, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The fair value of the Company’s certificates of deposit are determined through quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

3 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or net realizable value, and consists of materials, labor and overhead. On a quarterly basis, the Company uses consistent methodologies to evaluate inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, historical usage, product mix and possible alternative uses. Inventory was comprised of the following:



	September 30, 2018		June 30, 2018
Raw materials	$	73,104	$	61,748
Work in process	30,540		30,841
Finished goods	17,512		15,996
Total	$	121,156	$	108,585

There are no amounts in inventory relating to contracts having production cycles longer than one year.

Goodwill

3 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table sets forth the changes in the carrying amount of goodwill by reporting unit for the three months ended September 30, 2018:



	SMP		AMS		MDS			Total
Balance at June 30, 2018	$	119,560	$	218,147	$	159,735		$	497,442
Goodwill adjustment for the Themis acquisition	—		—		(700		)	(700		)
Goodwill arising from the Germane acquisition					23,847			23,847
Balance at September 30, 2018	$	119,560	$	218,147	$	182,882		$	520,589

In the three months ended September 30, 2018, there were no triggering events, as defined by ASC 350, Intangibles - Goodwill and Other, which required an interim goodwill impairment test. The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year.

Restructuring

3 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring

The following table presents the detail of activity for the Company’s restructuring plans:



	Severance & Related			Facilities & Other			Total
Restructuring liability at June 30, 2018	$	1,801		$	—		$	1,801
Restructuring and other charges	502			18			520
Cash paid	(1,311		)	(2		)	(1,313		)
Reversals(*)	—			(16		)	(16		)
Restructuring liability at September 30, 2018	$	992		$	—		$	992

(*) Reversals result from the unused outplacement services and operating costs.

During the three months ended September 30, 2018, the Company incurred net restructuring and other charges of $504. The increase was primarily driven by higher severance costs from the recently acquired Germane business. Restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities.

All of the restructuring and other charges are classified as operating expenses in the Consolidated Statements of Operations and any remaining severance obligations are expected to be paid within the next twelve months. The restructuring liability is classified as accrued expenses in the Consolidated Balance Sheets.

Income Taxes	3 Months Ended
Income Taxes	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was enacted by the U.S. government. The Tax Act has impacted the U.S. statutory Federal tax rate that the Company will use going forward, which has been reduced to 21% from 35%. The Tax Act also introduced a modified territorial tax system and a minimum tax on certain foreign earnings for tax years beginning after December 31, 2017. The Tax Act also provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits through December 31, 2017. During the three months ended September 30, 2018, the Company paid the additional U.S. Federal cash taxes of approximately $386 on the deemed mandatory repatriation. As of September 30, 2018, the Company has recorded all known and estimable impacts of the Tax Act that are effective for fiscal year 2019. In accordance with SEC Staff Accounting Bulletin 118, future adjustments to the provisional amounts will be recorded as discrete adjustments to income tax expense in the period in which those adjustments become estimable and or finalized. The Company recorded an income tax provision of $3,129 and an income tax benefit of $8,381 on income from operations before income taxes of $10,608 and $9,572 for the three months ended September 30, 2018 and 2017, respectively. The effective tax rate for the three months ended September 30, 2018 differed from the Federal statutory rate of 21% primarily due to Federal research and development credits, excess tax benefits related to stock-based compensation, a modified territorial tax system and a minimum tax on certain foreign earnings and state taxes. These provisions have been included in the income tax expense for the three months ended September 30, 2018. During the three months ended September 30, 2018, the Company recognized a discrete benefit of $1,649 related to excess tax benefits on stock-based compensation. The effective tax rate for the three months ended September 30, 2017 differed from the Federal statutory rate of 35% primarily due to Federal research and development credits, domestic manufacturing deduction, excess tax benefits related to stock-based compensation, and state taxes. During the second quarter of fiscal 2018, the Federal statutory rate transitioned to a blended 28% as a result of the Tax Act. During the three months ended September 30, 2017, the Company recognized a discrete benefit of $7,873, related to excess tax benefits on stock-based compensation. The three months ended September 30, 2017 also included a discrete tax benefit of $4,075 derived from new information obtained about net operating loss carry-forwards of the entities acquired from Microsemi Corporation in May 2016. On August 21, 2018, the Internal Revenue Service ("IRS") provided initial guidance on amendments made to the limitation on executive compensation by the Tax Act. During the three months ended September 30, 2018, the Company recorded an adjustment to its unrecognized tax positions of $1,711 as a result of this guidance. No other material changes to the Company’s unrecognized tax positions occurred during the three months ended September 30, 2018.

Debt	3 Months Ended
Debt	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt REVOLVING CREDIT FACILITY On September 28, 2018, the Company amended its revolving credit facility to increase and extend the borrowing capacity to $750,000, 5-year revolving credit line, with the maturity extended to September 28, 2023 (“the Revolver”). As of September 30, 2018, the Company's outstanding balance of unamortized deferred financing costs was $6,722, which is being amortized to other income (expense), net on a straight line basis over the new term of the Revolver. The Company drew $45,000 from the Revolver to facilitate the acquisition of Germane. As of September 30, 2018, the Company was in compliance with all covenants and conditions under the Revolver and there were outstanding borrowings of $240,000 against the Revolver, resulting in interest expense of $2,259 for the three months ended September 30, 2018. There were outstanding letters of credit of $2,510 as of September 30, 2018.

Employee Benefit Plan Employee Benefit Plan	3 Months Ended
Employee Benefit Plan Employee Benefit Plan	Sep. 30, 2018
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan PENSION PLAN The Company maintains a defined benefit pension plan (the "Plan") for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), because participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan. The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. The Plan's funded status at September 30, 2018 was a net liability of $6,316, which is recorded in other non-current liabilities on the Consolidated Balance Sheet. The Company recorded a net (loss) gain of $(15) and $30 in accumulated other comprehensive income during the three months ended September 30, 2018, and 2017, respectively. The Company recognized net periodic benefit costs of $202 and $206 associated with the Plan for the three months ended September 30, 2018 and 2017, respectively. The Company's total expected employer contributions to the Plan during fiscal 2019 are $642.

Stock-Based Compensation

3 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK OPTION PLANS

The aggregate number of shares authorized for issuance under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”), is 15,252 shares at September 30, 2018. The 2005 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. All stock options are granted with an exercise price of not less than 100% of the fair value of the Company’s common stock at the date of grant and the options generally have a term of seven years. There were 780 shares available for future grant under the 2005 Plan at September 30, 2018.

As part of the Company's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives and employees pursuant to the 2005 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly based on its determination of the likelihood for reaching targets. The performance targets include: (i) the achievement of internal performance targets only, and (ii) the achievement of internal performance targets in relation to a peer group of companies.

EMPLOYEE STOCK PURCHASE PLAN

The aggregate number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 1,800 shares. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. There were no shares issued under the ESPP during the three months ended September 30, 2018 and 2017, respectively. Shares available for future purchase under the ESPP totaled 220 at September 30, 2018.

STOCK OPTION AND AWARD ACTIVITY

The following table summarizes activity of the Company’s stock option plans since June 30, 2018:



	Options Outstanding
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at June 30, 2018	4	$	5.52	3.13
Granted	—	—
Exercised	—	—
Canceled	—	—
Outstanding at September 30, 2018	4	$	5.52	2.88

The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2018:



	Non-vested Restricted Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at June 30, 2018	1,135		$	27.26
Granted	343		49.33
Vested	(382	)	49.31
Forfeited	(47	)	33.03
Outstanding at September 30, 2018	1,049		$	38.61

STOCK-BASED COMPENSATION EXPENSE

The Company recognizes expense for its share-based payment plans in the Consolidated Statements of Operations for the three months ended September 30, 2018 and 2017 in accordance with ASC 718, Compensation - Stock Compensation ("ASC 718"). The Company had $224 and $148 of capitalized stock-based compensation expense on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period, net of estimated forfeitures. The following table presents share-based compensation expenses included in the Company’s Consolidated Statements of Operations:



	Three Months Ended September 30,
	2018			2017
Cost of revenues	$	252		$	148
Selling, general and administrative	3,884			3,976
Research and development	543			497
Stock-based compensation expense before tax	4,679			4,621
Income taxes	(1,281		)	(1,763		)
Stock-based compensation expense, net of income taxes	$	3,398		$	2,858

Operating Segment, Geographic Information and Significant Customers

3 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company is comprised of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280, Segment Reporting.

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED SEPTEMBER 30, 2018
Net revenues to unaffiliated customers	$	131,349	$	11,438	$	1,269	$	—		$	144,056
Inter-geographic revenues	1,647		358		—		(2,005		)	—
Net revenues	$	132,996	$	11,796	$	1,269	$	(2,005	)	$	144,056
THREE MONTHS ENDED SEPTEMBER 30, 2017
Net revenues to unaffiliated customers	$	97,715	$	7,478	$	876	$	—		$	106,069
Inter-geographic revenues	1,747		22		—		(1,769		)	—
Net revenues	$	99,462	$	7,500	$	876	$	(1,769	)	$	106,069

Effective July 1, 2018, the Company adopted the requirements of ASC 606, Revenue from Contracts with Customers, using the retrospective method. As previously mentioned, such adoption did not have a material impact to the Company's consolidated financial statements. The following tables present disaggregated revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application and/or product grouping is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application and/or product grouping for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each revenue category.

The following table below presents the Company's net revenue by end user for the periods presented:



	Three Months Ended September 30,
	2018		2017
Domestic (1)	$	130,579	$	89,678
International/Foreign Military Sales (2)	13,477		16,391
Total Net Revenue	$	144,056	$	106,069

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined.

(2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S.

The following table below presents the Company's net revenue by end application for the periods presented:



	Three Months Ended September 30,
	2018		2017
Radar (1)	$	40,979	$	36,540
Electronic Warfare (2)	24,054		28,008
Other Sensor & Effector (3)	13,658		9,749
Total Sensor & Effector	78,691		74,297
C4I (4)	44,224		12,825
Other (5)	21,141		18,947
Total Net Revenue	$	144,056	$	106,069

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table below presents the Company's net revenue by product grouping for the periods presented:



	Three Months Ended September 30,
	2018		2017
Components (1)	$	40,400	$	32,812
Modules and Sub-assemblies (2)	51,592		47,732
Integrated Subsystems (3)	52,064		25,525
Total Net Revenue	$	144,056	$	106,069

(1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices.

(2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers.

(3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company.

The geographic distribution of the Company’s long-lived assets is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations		Total
September 30, 2018	$	46,919	$	3,891	$	19	$	—	$	50,829
June 30, 2018	$	47,997	$	2,974	$	9	$	—	$	50,980

Identifiable long-lived assets exclude goodwill and intangible assets.

Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
Raytheon Company	19	%	21	%
Lockheed Martin Corporation	*		18	%
Northrop Grumman Corporation	*		10	%
	19	%	49	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
F-35	12	%	*
SEWIP (1)	*		11	%
	12	%	11	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

(1) SEWIP includes 10% and 1% of revenues during the three months ended September 30, 2017 related to the SEWIP Block II and SEWIP Block III, respectively.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies LEGAL CLAIMS The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of its business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company’s cash flows, results of operations, or financial position. INDEMNIFICATION OBLIGATIONS The Company’s standard product sales and license agreements entered into in the ordinary course of business typically contain an indemnification provision pursuant to which the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. Such provisions generally survive termination or expiration of the agreements. The potential amount of future payments the Company could be required to make under these indemnification provisions is, in some instances, unlimited. PURCHASE COMMITMENTS As of September 30, 2018, the Company has entered into non-cancelable purchase commitments for certain inventory components and services used in its normal operations. The purchase commitments covered by these agreements are for less than one year and aggregate to $64,166. OTHER As part of the Company's strategy for growth, the Company continues to explore acquisitions or strategic alliances. The associated acquisition costs incurred in the form of professional fees and services may be material to the future periods in which they occur, regardless of whether the acquisition is ultimately completed. The Company may elect from time to time to purchase and subsequently retire shares of common stock in order to settle employees’ tax liabilities associated with vesting of a restricted stock award or exercise of stock options. These transactions would be treated as a use of cash in financing activities in the Company's statement of cash flows.

Subsequent Events	3 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events from the date of the Consolidated Balance Sheet through the date the consolidated financial statements were issued.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation

Use of Estimates

USE OF ESTIMATES

Business Combinations

BUSINESS COMBINATIONS

Foreign Currency

FOREIGN CURRENCY

Revenue Recognition

REVENUE RECOGNITION

Total revenue recognized under long-term contracts over time was 21% and 18% of total revenues for the three months ended September 30, 2018 and 2017, respectively.

All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes).

ACCOUNTS RECEIVABLE

COSTS TO OBTAIN AND FULFILL A CONTRACT

CONTRACT BALANCES

Revenue recognized for the three month period ended September 30, 2018 that was included in the contract liability balance at the beginning of the year was $7,366.

REMAINING PERFORMANCE OBLIGATIONS

Weighted-Average Shares

WEIGHTED-AVERAGE SHARES

Weighted-average shares were calculated as follows:



	Three Months Ended September 30,
	2018	2017
Basic weighted-average shares outstanding	47,048	46,504
Effect of dilutive equity instruments	649	985
Diluted weighted-average shares outstanding	47,697	47,489

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basic and Diluted Weighted Average Shares Outstanding

Weighted-average shares were calculated as follows:



	Three Months Ended September 30,
	2018	2017
Basic weighted-average shares outstanding	47,048	46,504
Effect of dilutive equity instruments	649	985
Diluted weighted-average shares outstanding	47,697	47,489

Acquisitions (Tables)

3 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of the Net Purchase Price and Fair Values of Assets and Liabilities Acquired

The following table presents the net purchase price and the fair values of the assets and liabilities of the Acquired Company on a preliminary basis:



	Amounts
Consideration transferred
Cash paid at closing	$	187,089
Working capital and net debt adjustment	(1,274		)
Less cash acquired	(6,810		)
Net purchase price	$	179,005

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	6,810
Accounts receivable	7,713
Inventory	7,333
Fixed assets	479
Other current and non-current assets	2,896
Accounts payable	(3,287		)
Accrued expenses	(4,672		)
Other current and non-current liabilities	(1,210		)
Deferred tax liability	(14,115		)
Estimated fair value of net tangible assets acquired	1,947
Estimated fair value of identifiable intangible assets	71,720
Estimated goodwill	112,148
Estimated fair value of net assets acquired	185,815
Less cash acquired	(6,810		)
Net purchase price	$	179,005

The following table presents the net purchase price and the fair values of the assets and liabilities of Germane on a preliminary basis:



	Amounts
Consideration transferred
Cash paid at closing	$	46,973
Less cash acquired	(193		)
Net purchase price	$	46,780

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	193
Accounts receivable	4,277
Inventory	8,575
Fixed assets	867
Other current and non-current assets	596
Accounts payable	(3,146		)
Accrued expenses	(914		)
Other current and non-current liabilities	(232		)
Estimated fair value of net tangible assets acquired	10,216
Estimated fair value of identifiable intangible assets	12,910
Estimated goodwill	23,847
Estimated fair value of net assets acquired	46,973
Less cash acquired	(193		)
Net purchase price	$	46,780

Fair Value of Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at September 30, 2018:



	Fair Value Measurements
	September 30, 2018		Level 1		Level 2		Level 3
Assets:
Certificates of deposit	$	11,087	$	—	$	11,087	$	—
Total	$	11,087	$	—	$	11,087	$	—

Inventory (Tables)

3 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventory

Inventory was comprised of the following:



	September 30, 2018		June 30, 2018
Raw materials	$	73,104	$	61,748
Work in process	30,540		30,841
Finished goods	17,512		15,996
Total	$	121,156	$	108,585

Goodwill (Tables)

3 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The following table sets forth the changes in the carrying amount of goodwill by reporting unit for the three months ended September 30, 2018:



	SMP		AMS		MDS			Total
Balance at June 30, 2018	$	119,560	$	218,147	$	159,735		$	497,442
Goodwill adjustment for the Themis acquisition	—		—		(700		)	(700		)
Goodwill arising from the Germane acquisition					23,847			23,847
Balance at September 30, 2018	$	119,560	$	218,147	$	182,882		$	520,589

Restructuring (Tables)

3 Months Ended

Sep. 30, 2018

Restructuring and Related Activities [Abstract]

Expenses by Reportable Segment for Restructuring Plans

The following table presents the detail of activity for the Company’s restructuring plans:



	Severance & Related			Facilities & Other			Total
Restructuring liability at June 30, 2018	$	1,801		$	—		$	1,801
Restructuring and other charges	502			18			520
Cash paid	(1,311		)	(2		)	(1,313		)
Reversals(*)	—			(16		)	(16		)
Restructuring liability at September 30, 2018	$	992		$	—		$	992

Stock-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Plans

The following table summarizes activity of the Company’s stock option plans since June 30, 2018:



	Options Outstanding
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at June 30, 2018	4	$	5.52	3.13
Granted	—	—
Exercised	—	—
Canceled	—	—
Outstanding at September 30, 2018	4	$	5.52	2.88

Summary of Nonvested Restricted Stock

The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2018:



	Non-vested Restricted Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at June 30, 2018	1,135		$	27.26
Granted	343		49.33
Vested	(382	)	49.31
Forfeited	(47	)	33.03
Outstanding at September 30, 2018	1,049		$	38.61

Stock Based Compensation Expenses

The following table presents share-based compensation expenses included in the Company’s Consolidated Statements of Operations:



	Three Months Ended September 30,
	2018			2017
Cost of revenues	$	252		$	148
Selling, general and administrative	3,884			3,976
Research and development	543			497
Stock-based compensation expense before tax	4,679			4,621
Income taxes	(1,281		)	(1,763		)
Stock-based compensation expense, net of income taxes	$	3,398		$	2,858

Operating Segment, Geographic Information and Significant Customers (Tables)

3 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations

The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED SEPTEMBER 30, 2018
Net revenues to unaffiliated customers	$	131,349	$	11,438	$	1,269	$	—		$	144,056
Inter-geographic revenues	1,647		358		—		(2,005		)	—
Net revenues	$	132,996	$	11,796	$	1,269	$	(2,005	)	$	144,056
THREE MONTHS ENDED SEPTEMBER 30, 2017
Net revenues to unaffiliated customers	$	97,715	$	7,478	$	876	$	—		$	106,069
Inter-geographic revenues	1,747		22		—		(1,769		)	—
Net revenues	$	99,462	$	7,500	$	876	$	(1,769	)	$	106,069

The following table below presents the Company's net revenue by end user for the periods presented:



	Three Months Ended September 30,
	2018		2017
Domestic (1)	$	130,579	$	89,678
International/Foreign Military Sales (2)	13,477		16,391
Total Net Revenue	$	144,056	$	106,069

(1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined.

The following table below presents the Company's net revenue by end application for the periods presented:



	Three Months Ended September 30,
	2018		2017
Radar (1)	$	40,979	$	36,540
Electronic Warfare (2)	24,054		28,008
Other Sensor & Effector (3)	13,658		9,749
Total Sensor & Effector	78,691		74,297
C4I (4)	44,224		12,825
Other (5)	21,141		18,947
Total Net Revenue	$	144,056	$	106,069

(1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects.

(2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum.

(3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare.

(4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications.

(5) Other products include all component and other sales where the end use is not specified.

The following table below presents the Company's net revenue by product grouping for the periods presented:



	Three Months Ended September 30,
	2018		2017
Components (1)	$	40,400	$	32,812
Modules and Sub-assemblies (2)	51,592		47,732
Integrated Subsystems (3)	52,064		25,525
Total Net Revenue	$	144,056	$	106,069

The geographic distribution of the Company’s long-lived assets is summarized as follows:



	U.S.		Europe		Asia Pacific		Eliminations		Total
September 30, 2018	$	46,919	$	3,891	$	19	$	—	$	50,829
June 30, 2018	$	47,997	$	2,974	$	9	$	—	$	50,980

Customers Comprising Ten Percent or More Revenues

Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
Raytheon Company	19	%	21	%
Lockheed Martin Corporation	*		18	%
Northrop Grumman Corporation	*		10	%
	19	%	49	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

Schedules of Concentration of Risk, by Risk Factor

Programs comprising 10% or more of the Company’s revenues for the periods shown below are as follows:



	Three Months Ended September 30,
	2018		2017
F-35	12	%	*
SEWIP (1)	*		11	%
	12	%	11	%


*	Indicates that the amount is less than 10% of the Company’s revenues for the respective period.

(1) SEWIP includes 10% and 1% of revenues during the three months ended September 30, 2017 related to the SEWIP Block II and SEWIP Block III, respectively.

Description of Business (Details)	3 Months Ended
Description of Business (Details)	Sep. 30, 2018 program contractor
Accounting Policies [Abstract]
Number of programs using products and services \| program	300
Number of defense prime contractors using products and services \| contractor	25

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018	Jun. 30, 2018
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	64.00%
Contract asset balance	$ 39,977,000			$ 39,774,000
Contract liability balance	22,468,000			$ 13,425,000
Revenue recognized in the contract liability balance	$ 7,366,000,000
Factored accounts receivable			$ 166,880,000
Transferred over Time
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	21.00%	18.00%
Ship and bill
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	79.00%	82.00%

Summary of Significant Accounting Policies -Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Basic weighted-average shares outstanding (in shares)	47,048	46,504
Effect of dilutive equity instruments (in shares)	649	985
Diluted weighted-average shares outstanding (in shares)	47,697	47,489
Antidilutive securities excluded from computation of earnings per share (in shares)	145	104

Acquisitions - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Feb. 01, 2018	Sep. 30, 2018	Jul. 18, 2018	Jun. 30, 2018
Business Acquisition [Line Items]
Estimated fair value of goodwill			$ 520,589		$ 497,442
Germane Systems
Business Acquisition [Line Items]
Total purchase price	$ 45,000,000
Estimated fair value of goodwill	$ 23,847
Acquired goodwill, amortization period	15 years
Tax deductible goodwill			23,554
Revenue of acquiree since acquisition date			8,994
Net income (loss) of acquiree since acquisition date			$ (400)
Estimated fair value of assets acquired	$ 46,973
Germane Systems \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 8,500,000
Useful life of acquired assets	11 years
Germane Systems \| Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 4,200,000
Useful life of acquired assets	8 years
Germane Systems \| Backlog
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 210,000
Useful life of acquired assets	1 year
Themis Computer Acquisition
Business Acquisition [Line Items]
Estimated fair value of goodwill		$ 112,148
Estimated fair value of assets acquired		185,815
Themis Computer Acquisition \| Acquisition-related Costs
Business Acquisition [Line Items]
Estimated fair value of assets acquired				$ 700
Themis Computer Acquisition \| Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		$ 52,600
Useful life of acquired assets		12 years 6 months
Themis Computer Acquisition \| Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		$ 17,150
Useful life of acquired assets		9 years 6 months
Themis Computer Acquisition \| Backlog
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		$ 1,970
Useful life of acquired assets		1 year

Acquisitions - Net Purchase Price and Fair Values of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands			3 Months Ended
	Jul. 31, 2018	Feb. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Consideration transferred
Net purchase price			$ 46,273	$ 6,000
Estimated fair value of tangible assets acquired and liabilities assumed
Estimated fair value of goodwill			$ 520,589		$ 497,442
Germane Systems
Consideration transferred
Cash paid at closing	$ 46,973
Cash Acquired from Acquisition	(193)
Net purchase price	46,780
Estimated fair value of tangible assets acquired and liabilities assumed
Cash	193
Accounts receivable and cost in excess of billings	4,277
Inventory	8,575
Fixed assets	867
Other current and non-current assets	596
Accounts payable	(3,146)
Accrued expenses	(914)
Other current and non-current liabilities	(232)
Fair value of net tangible assets acquired	10,216
Fair value of identifiable intangible assets	12,910
Estimated fair value of goodwill	23,847
Estimated fair value of assets acquired	$ 46,973
Themis Computer Acquisition
Consideration transferred
Cash paid at closing		$ 187,089
Working capital adjustment		(1,274)
Cash Acquired from Acquisition		(6,810)
Net purchase price		179,005
Estimated fair value of tangible assets acquired and liabilities assumed
Cash		6,810
Accounts receivable and cost in excess of billings		7,713
Inventory		7,333
Fixed assets		479
Other current and non-current assets		2,896
Accounts payable		(3,287)
Accrued expenses		(4,672)
Other current and non-current liabilities		(1,210)
Deferred tax liabilities		(14,115)
Fair value of net tangible assets acquired		1,947
Fair value of identifiable intangible assets		71,720
Estimated fair value of goodwill		112,148
Estimated fair value of assets acquired		$ 185,815

Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value - Fair Value, Measurements, Recurring $ in Thousands	Sep. 30, 2018 USD ($)
Assets:
Fair value measurement disclosure	$ 11,087
Certificates of deposit
Assets:
Fair value measurement disclosure	11,087
Level 1
Assets:
Fair value measurement disclosure	0
Level 1 \| Certificates of deposit
Assets:
Fair value measurement disclosure	0
Level 2
Assets:
Fair value measurement disclosure	11,087
Level 2 \| Certificates of deposit
Assets:
Fair value measurement disclosure	11,087
Level 3
Assets:
Fair value measurement disclosure	0
Level 3 \| Certificates of deposit
Assets:
Fair value measurement disclosure	$ 0

Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 73,104	$ 61,748
Work in process	30,540	30,841
Finished goods	17,512	15,996
Total	$ 121,156	$ 108,585

Inventory - Additional Information (Detail) - Product	3 Months Ended
Inventory - Additional Information (Detail) - Product	Sep. 30, 2018 USD ($)
Schedule of Inventory [Line Items]
Inventory relating to contracts having production cycles longer than one year	$ 0
Production cycle term (in years)	P1Y

Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 497,442
Ending Balance	520,589
SMP
Goodwill [Roll Forward]
Beginning Balance	119,560
Ending Balance	119,560
AMS
Goodwill [Roll Forward]
Beginning Balance	218,147
Ending Balance	218,147
MDS
Goodwill [Roll Forward]
Beginning Balance	159,735
Ending Balance	182,882
Themis
Goodwill [Roll Forward]
Goodwill arising from acquisitions	(700)
Themis \| SMP
Goodwill [Roll Forward]
Goodwill arising from acquisitions	0
Themis \| AMS
Goodwill [Roll Forward]
Goodwill arising from acquisitions	0
Themis \| MDS
Goodwill [Roll Forward]
Goodwill arising from acquisitions	(700)
Germane Systems
Goodwill [Roll Forward]
Goodwill arising from acquisitions	23,847
Germane Systems \| MDS
Goodwill [Roll Forward]
Goodwill arising from acquisitions	$ 23,847

Restructuring - Expenses by Reportable Segment for Restructuring Plans (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring liability at June 30, 2018	$ 1,801
Restructuring and other charges	520
Cash paid	(1,313)
Reversals	(16)
Restructuring liability at September 30, 2018	992
Severance & Related
Restructuring Reserve [Roll Forward]
Restructuring liability at June 30, 2018	1,801
Restructuring and other charges	502
Cash paid	(1,311)
Reversals	0
Restructuring liability at September 30, 2018	992
Facilities & Other
Restructuring Reserve [Roll Forward]
Restructuring liability at June 30, 2018	0
Restructuring and other charges	18
Cash paid	(2)
Reversals	(16)
Restructuring liability at September 30, 2018	$ 0

Restructuring - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 504	$ 95

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Federal tax rate	21.00%		35.00%
Taxes paid on the deemed mandatory repatriation	$ 386
Income tax (benefit) expense	3,129	$ (8,381)
(Loss) income from operations before income taxes	10,608	9,572
Excess tax benefits on stock-based compensation	$ 1,649	7,873
Federal statutory rate, blended rate for next fiscal year	28.00%
Discrete tax benefit from net operating loss carryforwards		$ 4,075
Deferred tax assets, effect of Tax Cuts and Jobs Act, tax expense (benefit)	$ 1,711

Debt - Additional Information (Detail) - USD ($)		3 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jun. 27, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 28, 2018	Jun. 30, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Long-term debt		$ 240,000,000			$ 195,000,000
Interest expense		2,259,000	$ 3,000
Amount of outstanding letter of credit						$ 2,510,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 750,000,000
Debt instrument term	5 years
Proceeds from lines of credit		45,000,000
Long-term debt		240,000,000
Interest expense		2,259,000
Term Loan
Debt Instrument [Line Items]
Debt issuance costs		$ 6,722,000

Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Pension benefit plan, net of tax	$ (15)	$ 30
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	202	$ 206
Fiscal 2019 cash contributions to plan	$ 642
Pension Plan \| Other Noncurrent Liabilities
Defined Benefit Plan Disclosure [Line Items]
Net funded status of plan			$ (6,316)

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocation of recognized period costs, capitalized amount	$ 224		$ 148
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan (in shares)	1,800,000
Shares available for future grant (in shares)		220,000
Purchase price as a percentage of the lesser of the market value of such shares at either the beginning or the end of each nine-month offering period	85.00%
Percentage of employee compensation that may be uses to purchase common stock through payroll deductions, maximum	10.00%
Granted (in shares)	0
2005 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan (in shares)	15,252,000
Exercise price of stock option, percentage	100.00%
Shares available for future grant (in shares)	780,000
2005 Stock Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of stock option	7 years

Stock-Based Compensation - Summary of Stock Option Plans (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			220,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,800,000
Number of Shares
Granted (in shares)	0
Stock Options
Number of Shares
Outstanding at beginning of period (in shares)	4,000
Granted (in shares)			0
Exercised (in shares)			0
Cancelled (in shares)			0
Outstanding at end of period (in shares)	4,000
Weighted Average Exercise Price
Granted (usd per share)			$ 0.00
Exercised (usd per share)			0.00
Cancelled (usd per share)			$ 0.00
Outstanding at end of period (usd per share)	$ 5.52
Weighted Average Remaining Contractual Term (Years)
Outstanding at end of period	2 years 10 months 18 days	3 years 1 month 18 days
2005 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	780,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	15,252,000

Stock-Based Compensation - Summary of Nonvested Restricted Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 224	$ 148
Restricted Stock
Number of Shares
Beginning Balance (in shares)	1,135
Granted (in shares)	343
Vested (in shares)	(382)
Forfeited (in shares)	(47)
Ending Balance (in shares)	1,049
Weighted Average Grant Date Fair Value
Beginning Balance (usd per share)	$ 27.26
Granted (usd per share)	49.33
Vested (usd per share)	49.31
Forfeited (usd per share)	33.03
Ending Balance (usd per share)	$ 38.61

Stock-Based Compensation - Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess Tax Benefit from Share-based Compensation, Operating Activities	$ 1,649	$ 7,873
Share-based compensation expense before tax	4,679	4,621
Income taxes	(1,281)	(1,763)
Net compensation expense	3,398	2,858
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	252	148
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	3,884	3,976
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 543	$ 497

Operating Segment, Geographic Information and Significant Customers - Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations (Detail) $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($) segment	Sep. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment	1
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 144,056	$ 106,069
Identifiable long-lived assets	50,829		$ 50,980
Components
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	40,400	32,812
Modules and Sub-assemblies
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	51,592	47,732
Integrated Subsystems
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	52,064	25,525
Total Sensor & Effector
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	78,691	74,297
Radar
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	40,979	36,540
Electronic Warfare
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	24,054	28,008
Other Sensor & Effector
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	13,658	9,749
C4I
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	44,224	12,825
Other End Applications
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	21,141	18,947
Domestic
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	130,579	89,678
International/Foreign Military Sales
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	13,477	16,391
US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	131,349	97,715
Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	11,438	7,478
Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	1,269	876
Reportable Geographical Components \| US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	132,996	99,462
Identifiable long-lived assets	46,919		47,997
Reportable Geographical Components \| Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	11,796	7,500
Identifiable long-lived assets	3,891		2,974
Reportable Geographical Components \| Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	1,269	876
Identifiable long-lived assets	19		9
Geography Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	(2,005)	(1,769)
Identifiable long-lived assets	0		$ 0
Geography Eliminations \| US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	1,647	1,747
Geography Eliminations \| Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	358	22
Geography Eliminations \| Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 0	$ 0

Operating Segment, Geographic Information and Significant Customers - Customers Comprising Ten Percent or more Revenues (Detail) - Sales Revenue, Net	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Revenue, Major Customer [Line Items]
Concentration risk, percentage	12.00%
Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	19.00%	49.00%
Customer Concentration Risk \| Raytheon Company
Revenue, Major Customer [Line Items]
Concentration risk, percentage	19.00%	21.00%
Customer Concentration Risk \| Lockheed Martin Corporation
Revenue, Major Customer [Line Items]
Concentration risk, percentage		18.00%
Customer Concentration Risk \| Northrop Grumman Corporation
Revenue, Major Customer [Line Items]
Concentration risk, percentage		10.00%

Operating Segment, Geographic Information and Significant Customers - Programs Comprising Ten Percent or more of Company's Revenue (Detail) - Sales Revenue, Net	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Concentration risk, percentage	12.00%
Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	19.00%	49.00%
Program Concentration Risk \| SEWIP
Segment Reporting Information [Line Items]
Concentration risk, percentage		11.00%
Raytheon Company \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	19.00%	21.00%

Commitments And Contingencies - Additional Information (Detail) $ in Thousands	Sep. 30, 2018 USD ($)
Non-cancelable purchase commitments
Long-term Purchase Commitment [Line Items]
Purchase commitments for less than one year	$ 64,166