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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	Apr. 30, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	MRCY
Entity Registrant Name	MERCURY SYSTEMS INC
Entity Central Index Key	0001049521
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,325,536

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2013	Jun. 30, 2012
Current assets:
Cash and cash equivalents	$ 35,145	$ 115,964
Accounts receivable, net of allowance for doubtful accounts of $29 and $5 at March 31, 2013 and June 30, 2012, respectively	29,470	38,532
Unbilled receivables and costs in excess of billings	17,997	10,918
Inventory	38,744	25,845
Deferred income taxes	13,016	7,653
Prepaid income taxes	3,014	2,585
Prepaid expenses and other current assets	4,919	6,206
Total current assets	142,305	207,703
Restricted cash	546	3,281
Property and equipment, net	16,631	15,929
Goodwill	178,398	132,621
Intangible assets, net	37,209	25,083
Other non-current assets	1,305	989
Total assets	376,394	385,606
Current liabilities:
Accounts payable	5,997	9,002
Accrued expenses	7,779	9,895
Accrued compensation	9,943	13,190
Deferred revenues and customer advances	4,898	4,855
Total current liabilities	28,617	36,942
Deferred gain on sale-leaseback	3,531	4,399
Deferred income taxes	12,011	7,197
Income taxes payable	2,597	2,597
Other non-current liabilities	1,216	1,367
Total liabilities	47,972	52,502
Commitments and contingencies (Note I)
Shareholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding
Common stock, $.01 par value; 85,000,000 shares authorized; 30,259,687 and 29,729,065 shares issued and outstanding at March 31, 2013 and June 30, 2012, respectively	303	297
Additional paid-in capital	229,550	222,769
Retained earnings	97,536	108,732
Accumulated other comprehensive income	1,033	1,306
Total shareholders' equity	328,422	333,104
Total liabilities and shareholders' equity	$ 376,394	$ 385,606

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2013	Jun. 30, 2012
Accounts receivable, allowance for doubtful accounts	$ 29	$ 5
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	85,000,000	85,000,000
Common stock, shares issued	30,259,687	29,729,065
Common stock, shares outstanding	30,259,687	29,729,065

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Net revenues	$ 54,123	$ 66,989	$ 153,355	$ 184,070
Cost of revenues	31,549	31,926	92,819	78,178
Gross margin	22,574	35,063	60,536	105,892
Operating expenses:
Selling, general and administrative	13,918	15,217	43,025	43,281
Research and development	7,503	11,452	25,130	35,041
Amortization of intangible assets	2,356	1,143	6,374	2,651
Restructuring and other charges	228		5,429
Acquisition costs and other related expenses	32	145	304	763
Total operating expenses	24,037	27,957	80,262	81,736
(Loss) income from operations	(1,463)	7,106	(19,726)	24,156
Interest income	2	3	6	12
Interest expense	(7)	(8)	(30)	(26)
Other income, net	24	524	479	1,323
(Loss) income from operations before income taxes	(1,444)	7,625	(19,271)	25,465
Tax (benefit) provision	(2,232)	2,380	(8,075)	8,522
Net income (loss)	$ 788	$ 5,245	$ (11,196)	$ 16,943
Basic net earnings (loss) per share:	$ 0.03	$ 0.18	$ (0.37)	$ 0.58
Diluted net earnings (loss) per share:	$ 0.03	$ 0.17	$ (0.37)	$ 0.56
Weighted-average shares outstanding:
Basic	30,235	29,562	30,075	29,432
Diluted	30,410	30,168	30,075	30,057
Comprehensive income (loss):
Net income (loss)	$ 788	$ 5,245	$ (11,196)	$ 16,943
Foreign currency translation adjustments	(173)	(12)	(273)	26
Total comprehensive income (loss)	$ 615	$ 5,233	$ (11,469)	$ 16,969

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net (loss) income	$ (11,196)	$ 16,943
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization expense	12,844	8,381
Stock-based compensation expense	6,265	5,194
(Benefit) provision for deferred income taxes	(6,468)	1,354
Excess tax benefit from stock-based compensation	(18)	(487)
Other non-cash items	(471)	(614)
Changes in operating assets and liabilities, net of effects of businesses acquired:
Accounts receivable, unbilled receivable, and cost in excess of billings	5,316	6,404
Inventory	(856)	(3,215)
Prepaid income taxes	406	992
Prepaid expenses and other current assets	1,747	485
Other non-current assets	763	652
Accounts payable and accrued expenses	(14,596)	(726)
Deferred revenues and customer advances	(575)	(2,594)
Income taxes payable	(295)	460
Other non-current liabilities	441	(5,542)
Net cash (used in) provided by operating activities	(6,693)	27,687
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(67,721)	(70,370)
Purchases of property and equipment	(2,259)	(6,438)
Payments for acquired intangible assets		(50)
Increase in other investing activities	(265)	(281)
Net cash used in investing activities	(70,245)	(77,139)
Cash flows from financing activities:
Proceeds from employee stock plans	743	1,031
Excess tax benefits from stock-based compensation	18	487
Payments of deferred financing and offering costs	(771)	(30)
Payments of acquired debt	(6,575)
Decrease in restricted cash	3,000
Payments of capital lease obligations	(365)	(137)
Net cash (used in) provided by financing activities	(3,950)	1,351
Effect of exchange rate changes on cash and cash equivalents	69	71
Net decrease in cash and cash equivalents	(80,819)	(48,030)
Cash and cash equivalents at beginning of period	115,964	162,875
Cash and cash equivalents at end of period	35,145	114,845
Cash paid (received) during the period for:
Interest	30	26
Income taxes	(1,827)	6,621
Supplemental disclosures-non-cash activities:
Issuance of restricted stock awards to employees	12,496	$ 8,306
Micronetics
Changes in operating assets and liabilities, net of effects of businesses acquired:
Inventory	(12,899)
Supplemental disclosures-non-cash activities:
Unvested stock options assumed from Micronetics	$ 513

Description of Business

9 Months Ended

Mar. 31, 2013

Description of Business

A. Description of Business

Mercury Systems, Inc., formerly Mercury Computer Systems, Inc., (the “Company” or “Mercury”) is a best-of-breed provider of commercially developed, open sensor and Big Data processing systems, software and services for critical commercial, defense and intelligence applications. The Company delivers innovative solutions, rapid time-to-value and world-class service and support to our prime contractor customers. The Company has worked on over 300 programs, including Aegis, Patriot, SEWIP, Gorgon Stare and Predator/Reaper.

The Company’s goal is to grow and build on its position as a critical component of the defense and intelligence industrial base and become the leading provider of open and affordable sensor processing subsystems. The Mercury Commercial Electronics (“MCE”) operating segment designs, develops and builds open sensor processing products and subsystems that include embedded processing modules and subsystems, radio frequency (“RF”) and microwave multi-function assemblies as well as subsystems, and RF and microwave components. The Mercury Defense Systems (“MDS”) operating segment leverages building blocks provided by MCE to build solutions for electronic warfare (“EW”) and electronic countermeasures, electro optical/infrared, signal intelligence (“SIGINT”) and radar environment test and simulation. The Mercury Intelligence Systems (“MIS”) operating segment delivers Big Data analytic processing, predictive analytics and multi-intelligence analysis in support of the intelligence community.

Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2013

Summary of Significant Accounting Policies

B. Summary of Significant Accounting Policies

BASIS OF PRESENTATION

The accompanying consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) 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, 2012 which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 22, 2012. The results for the three and nine months ended March 31, 2013 are not necessarily indicative of the results to be expected for the full fiscal year.

Prior to the third quarter of fiscal 2013, the Company consisted of two reportable segments: Advanced Computing Solutions (“ACS”) and Mercury Federal Systems (“MFS”). Following a series of acquisitions that expanded the Company’s capabilities, the Company initiated a reorganization to group its product and service offerings in order to align itself with the way management currently manages its business. As of March 31, 2013, the Company is comprised of the following three operating segments: MCE, MDS and MIS. The Company reports MCE as a standalone reportable segment and has aggregated MDS and MIS to form the reportable segment Mercury Defense and Intelligence Systems (“MDIS”). The Company has presented prior period amounts to conform with the new reportable segments. None of these changes impact the Company’s previously reported consolidated financial results. See Note K of the Notes to Consolidated Financial Statements for further discussion.

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

BUSINESS COMBINATIONS

The Company utilizes the acquisition method of accounting under Financial Accounting Standard Boards (“FASB”) Accounting Standard Codification (“ASC”) 805, Business Combinations, (“FASB 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 measurement date for all assets and liabilities assumed. The Company also utilizes FASB ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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.

REVENUE RECOGNITION

The Company relies upon FASB ASC 605, Revenue Recognition to account for its revenue transactions. Revenue from sales are recognized upon shipment provided that title and risk of loss have passed to the customer, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured, and customer acceptance criteria, if any, have been successfully demonstrated.

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 enters into multiple-deliverable arrangements that may include a combination of hardware components, related integration or other services. These arrangements generally do not include any performance-, cancellation-, termination- or refund-type provisions.

The Company uses FASB Accounting Standards Update (“ASU”) No. 2009-13 (“FASB ASU 2009-13”), Multiple-Deliverable Revenue Arrangements. FASB ASU 2009-13 establishes a selling price hierarchy for determining the selling price of a deliverable, which includes: (1) vendor-specific objective evidence (“VSOE”) if available; (2) third-party evidence (“TPE”) if VSOE is not available; and (3) best estimated selling price (“BESP”), if neither VSOE nor TPE is available.

Per the provisions of FASB ASU 2009-13, the Company allocates arrangement consideration to each deliverable in an arrangement based on its relative selling price. The Company generally expects that it will not be able to establish VSOE or TPE due to limited single element transactions and the nature of the markets in which the Company competes, and, as such, the Company typically determines its relative selling price using BESP.

The Company uses BESP in its allocation of arrangement consideration. The objective of BESP 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 BESP involves the consideration of several factors based on the specific facts and circumstances of each arrangement. 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 (as evident from 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 selling prices used in its allocation of arrangement consideration at a minimum on an annual basis. Selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more timely analysis or if the Company experiences significant variances in its selling prices.

Each deliverable within the Company’s multiple-deliverable revenue arrangements is accounted for as a separate unit of accounting under the guidance of FASB ASU 2009-13 if both of the following criteria are met: the delivered item or items have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The Company considers a deliverable to have standalone value if the item is sold separately by the Company or another vendor or if the item could be resold by the customer. Further, the Company’s revenue arrangements generally do not include a general right of return relative to delivered products.

Deliverables not meeting the criteria for being a separate unit of accounting are combined with a deliverable that does meet that criterion. The appropriate allocation of arrangement consideration and recognition of revenue is then determined for the combined unit of accounting.

WEIGHTED-AVERAGE SHARES

Weighted-average shares were calculated as follows:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2013		2012		2013		2012
Basic weighted-average shares outstanding		30,235		29,562		30,075		29,432
Effect of dilutive equity instruments		175		606		—		625

Diluted weighted-average shares outstanding		30,410		30,168		30,075		30,057

Equity instruments to purchase 3,351 and 1,543 shares of common stock were not included in the calculation of diluted net earnings per share for the three and nine months ended March 31, 2013, respectively, because the equity instruments were anti-dilutive. Equity instruments to purchase 1,267 and 925 shares of common stock were not included in the calculation of diluted net earnings per share for the three and nine months ended March 31, 2012, respectively, because the equity instruments were anti-dilutive.

Acquisitions

9 Months Ended

Mar. 31, 2013

Acquisitions

C. Acquisitions

MICRONETICS ACQUISITION

On June 8, 2012, the Company and Wildcat Merger Sub Inc., a newly formed, wholly-owned subsidiary of the Company (the “Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Micronetics, Inc. (“Micronetics”). On August 8, 2012, the transaction was closed. The Merger Sub merged with and into Micronetics with Micronetics continuing as the surviving company and wholly-owned subsidiary of the Company.

Headquartered in Hudson, NH, Micronetics is a leading designer and manufacturer of microwave and radio frequency (RF) subsystems and components for defense and commercial customers.

Pursuant to the terms of the Merger Agreement, at the closing of the merger on August 8, 2012, each share of common stock of Micronetics issued and outstanding immediately prior to the closing was converted into the right to receive $14.80 in cash, without interest (the “Merger Consideration”). All outstanding options to acquire shares of Micronetics common stock that were vested as of the closing were cancelled and the holders of such options were entitled to receive an amount of cash equal to the product of the total number of shares previously subject to such vested options and the excess of the Merger Consideration over the exercise price per share. All outstanding Micronetics stock options that were unvested at the closing were replaced by Mercury. The replacement stock options granted were determined based on a conversion ratio provided in the Merger Agreement. Micronetics existing bank debt was paid in full by Mercury on the closing date. Mercury funded the acquisition with cash on hand.

The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of Micronetics:


	Amounts
Consideration transferred
Cash paid to shareholders and to settle vested options	$	69,830
Value allocated to unvested options		513
Less cash acquired		(2,109	)

Net purchase price	$	68,234

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	2,109
Accounts receivable		3,592
Inventory		12,080
Fixed assets		5,301
Other current and non-current assets		2,893
Accounts payable and accrued expenses		(5,983	)
Long-term debt		(6,575	)
Deferred taxes		(8,053	)

Estimated fair value of net tangible assets acquired		5,364
Estimated fair value of identifiable intangible assets		18,500
Estimated fair value of goodwill		46,479

Estimated fair value of assets acquired	$	70,343
Less cash acquired		(2,109	)

Net purchase price	$	68,234

The amounts above represent the preliminary fair value estimates as of March 31, 2013 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period ending August 7, 2013 and finalizes its fair value estimates. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill or income, as applicable.

The goodwill of $46,479 arising from the Micronetics acquisition largely reflects the potential synergies and expansion of the Company’s service offerings across product segments and markets complementary to the Company’s existing products and markets. The Micronetics acquisition provides the Company with additional capability and expertise related to microwave and radio frequency technology. The acquisition is directly aligned with the Company’s strategy of expanding its capabilities, services and offerings along the sensor processing chain.

For the three and nine months ended March 31, 2013, Micronetics’ revenue of $10,341 and $24,747, respectively, and net income of $830 and net loss of $3,683, respectively, were included in the Company’s consolidated statements of operations. The Company has not furnished pro forma financial information relating to the Micronetics acquisition because such information is not material to the Company’s financial results.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill

9 Months Ended

Mar. 31, 2013

Goodwill

D. Goodwill

The following table sets forth the changes in the carrying amount of goodwill prior to the internal reorganization for the six months ended December 31, 2012:


	ACS			MFS		Total
Balance at June 30, 2012	$	113,471		$	19,150	$	132,621
Goodwill arising from the Micronetics acquisition		46,509			—		46,509
Goodwill adjustment for the KOR acquisition		(701	)		—		(701	)

Balance at December 31, 2012	$	159,279		$	19,150	$	178,429

The goodwill adjustment for the KOR acquisition is the result of changes in fair value estimates derived from additional information obtained during the measurement period which ended December 30, 2012.

Following a series of acquisitions that expanded the Company’s capabilities, the Company initiated a reorganization to group its product and service offerings in order to align itself with the way management currently manages its business. The following reporting units were determined based upon the nature of the products offered to customers and the market characteristics of each reporting unit: MCE, MDS and MIS. As defined by FASB ASC 350—“Intangibles—Goodwill and Other” “ASC 350”, goodwill is tested on an interim basis at the occurrence of certain triggering events. Events affecting reporting units such as a change in the composition or carrying amount of its net assets constitute a triggering event and require interim testing of goodwill. The Company performed interim testing on the ACS and MFS reporting units prior to the reorganization.

The Company engaged a valuation expert in order to assist management in determining the fair values of the ACS and MFS reporting units as of January 1, 2013. Consistent with prior years, the valuation was based upon a discounted cash flow analysis and corroborated by two market-based analyses: one comparing the trading multiples of public companies in similar lines of business and another based on exchange prices in actual business combinations. The results of the Company’s step one interim goodwill impairment test indicated that the fair values of both the ACS and MFS reporting units were in excess of its book values. As such, step two of the goodwill impairment testing was not required and no impairment charge was recorded. The Company acknowledges that the assumptions used during its fair value analysis are subject to management judgment and have a direct impact to the valuation results. The discount rate utilized in the discounted cash flow analysis was increased from historical measures due to the current economic uncertainty in the defense industry, including current government fiscal year federal budget sequestration and the potential for a continuing budget resolution for the next government fiscal year. The Company’s updated financial projections were used in the discounted cash flow analysis in consideration of current economic factors. The Company believes that the assumptions and projections used in its analyses for ACS and MFS were reasonable, however, using different assumptions could lead to different results. For example, a 1% increase in the discount rate used in the discounted cash flow analysis of the ACS reporting unit would result in the failure of the step one interim goodwill impairment test.

The Company reviewed its analysis of its internally reorganized business in order to determine its reporting units in accordance with ASC 350. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. The Company’s operating segments subsequent to the internal reorganization are MCE, MDS and MIS.

MCE has three components with discrete financial information available which are reviewed by their segment manager; however, those three components are economically similar in nature and thus have been aggregated into a single reporting unit at the operating segment level. MDS and MIS each have sole components and the reporting units are at the operating segment level.

The Company allocated the total carrying value of goodwill to each of the new reporting units based on the relative fair value of the reporting units calculated using a discounted cash flow analysis and in accordance with ASC 350. There was no impairment of goodwill indicated subsequent to the allocation.

The following table summarizes the goodwill for the three months ended March 31, 2013, after reallocation:


	MCE			MDS		MIS		Total
Balance at January 1, 2013	$	135,691		$	33,768	$	8,970	$	178,429
Goodwill adjustment for the Micronetics acquisition		(31	)		—		—		(31	)

Balance at March 31, 2013	$	135,660		$	33,768	$	8,970	$	178,398

The Company also evaluated its market capitalization as of January 1, 2013 which approximated the fair value of the Company at that time when considering an appropriate control premium. The Company believes the decline of its market capitalization to be a temporary reaction to the uncertainty that federal budget sequestration is having on the defense industry. The Company is not aware of any recent cancellations of any key defense programs in which it participates. While the Company has seen delays in certain programs, it believes these delays are temporary. Furthermore, the Company believes a short term decline in its market capitalization is not indicative of a permanent trend.

The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year. Additionally, the Company will continue to monitor its market capitalization and evaluate whether the decline is no longer temporary.

Acquired Intangible Assets

9 Months Ended

Mar. 31, 2013

Acquired Intangible Assets

E. Acquired Intangible Assets

Acquired intangible assets consisted of the following:


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
MARCH 31, 2013
Customer relationships	$	43,770	$	(12,915	)	$	30,855		6.5 years
Licensing agreements and patents		4,095		(2,836	)		1,259		5.4 years
Completed technologies		5,570		(1,815	)		3,755		5.3 years
Trademarks		990		(237	)		753		6.0 years
Backlog		1,500		(972	)		528		1.0 years
Non-compete agreements		500		(441	)		59		5.0 years

	$	56,425	$	(19,216	)	$	37,209

JUNE 30, 2012
Customer relationships	$	26,770	$	(9,217	)	$	17,553		6.9 years
Licensing agreements and patents		4,095		(2,365	)		1,730		5.4 years
Completed technologies		5,570		(1,007	)		4,563		5.3 years
Trademarks		990		(95	)		895		6.0 years
Backlog		800		(588	)		212		2.0 years
Non-compete agreements		500		(370	)		130		5.0 years

	$	38,725	$	(13,642	)	$	25,083

Estimated future amortization expense for acquired intangible assets remaining at March 31, 2013 is as follows:


	Year Ending June 30,
2013	$	2,343
2014		7,797
2015		7,503
2016		7,018
2017		5,537
Thereafter		7,011

Total future amortization expense	$	37,209

The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the Micronetics acquisition. These assets are included in the Company’s gross and net carrying amounts as of March 31, 2013.


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
Customer relationships	$	17,000	$	(1,836	)	$	15,164		6.0 years
Backlog		1,500		(971	)		529		1.0 years

Total	$	18,500	$	(2,807	)	$	15,693

Fair Value of Financial Instruments

9 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments

F. Fair Value of Financial Instruments

The Company measures at fair value certain financial assets and liabilities, including cash equivalents and restricted cash. FASB ASC 820, Fair Value Measurement and Disclosures, specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy:

Level 1—Quoted prices for identical instruments in active markets;

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at March 31, 2013:


	Fair Value Measurements
	March 31, 2013		Level 1		Level 2		Level 3
Assets:
U.S. Treasury bills and money market funds	$	19,022	$	19,022	$	—	$	—
Restricted cash		546		546		—		—

Total	$	19,568	$	19,568	$	—	$	—

The carrying values of cash and cash equivalents, including all U.S. Treasury bills and money market funds, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Inventory

9 Months Ended

Mar. 31, 2013

Inventory

G. Inventory

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


	March 31, 2013		June 30, 2012
Raw materials	$	15,638	$	11,246
Work in process		13,684		8,979
Finished goods		9,422		5,620

Total	$	38,744	$	25,845

The $12,899 increase of inventory was primarily due to inventory from the Micronetics acquisition. There are no amounts in inventory relating to contracts having production cycles longer than one year.

Debt

9 Months Ended

Mar. 31, 2013

Debt

H. Debt

Senior Unsecured Credit Facility

On October 12, 2012, the Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of commercial banks, with KeyBank National Association acting as the administrative agent. The Credit Agreement provides for a $200,000 senior unsecured revolving line of credit (the “Revolver”). The Company can borrow up to $200,000 based on consolidated EBITDA for the four quarters ended March 31, 2013 and subject to compliance with the financial covenants discussed below. The Revolver is available for working capital, acquisitions, and general corporate purposes of the Company and its subsidiaries. The Revolver is available for borrowing during a five year period, with interest payable periodically during such period as provided in the Credit Agreement and principal due at the maturity of the Revolver.

The Credit Agreement has an accordion feature permitting the Company to request from the lenders an increase in the aggregate amount of the credit facility in the form of an incremental revolver or term loan in an amount not to exceed $50,000. Any such increase would require only the consent of the lenders increasing their respective commitments under the credit facility.

The interest rates applicable to borrowings under the Credit Agreement involve various rate options that are available to the Company. The rates are calculated using a combination of conventional base rate measures plus a margin over those rates. The base rates consist of LIBOR rates or prime rates. The actual rates will depend on the level of these underlying rates plus a margin based on the Company’s leverage at the time of borrowing.

Borrowings under the Credit Agreement are senior unsecured loans. Each of the Company’s domestic subsidiaries is a guarantor under the Credit Agreement.

The Credit Agreement provides for conventional affirmative and negative covenants, including a maximum leverage ratio of 3.50x and a minimum interest coverage ratio of 3.0x. Each of the two ratios referred to above is calculated based on consolidated EBITDA, as defined in the Credit Agreement, for each consecutive four fiscal quarter period, after giving pro forma effect for any acquisitions or dispositions. Acquisitions are permitted under the Credit Agreement without any dollar limitation so long as, among other requirements, no default or event of default exists or would result therefore; as of March 31, 2013, the Company is in compliance with a maximum leverage ratio of 3.25x and a minimum interest coverage ratio of 3.0x, in each case, after giving pro forma effect to the applicable acquisition. In addition, the Credit Agreement contains certain customary representations and warranties, and events of default.

As of March 31, 2013, there was $54,613 of borrowing capacity available. There were no borrowings outstanding on the Credit Agreement; however, there were outstanding letters of credit of $3,000. The Company was in compliance with all covenants and conditions under the Credit Agreement.

Senior Secured Credit Facility

In connection with entering into the Credit Agreement, on October 12, 2012, the Company terminated its Loan and Security Agreement with Silicon Valley Bank dated February 12, 2010, as amended on March 30, 2011 (the “Loan Agreement”). The Loan Agreement provided for a $35,000 revolving line of credit. The Company terminated the Loan Agreement early without penalty. Silicon Valley Bank released its security interests in the Company’s assets in connection with the termination of the Loan Agreement.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments and Contingencies

9 Months Ended

Mar. 31, 2013

Commitments and Contingencies

I. Commitments and Contingencies

LEGAL CLAIMS

The U.S. Department of Justice (“DOJ”) conducted an investigation into the conduct of certain former employees of Paragon Dynamics, Inc. (“PDI”) (which was acquired by the Company in connection with the acquisition of KOR Electronics on December 30, 2011) in the 2008-2009 time frame, asserting, among other things, that such conduct may have constituted a violation of the Procurement Integrity Act. On August 31, 2012, the DOJ and PDI entered into a settlement agreement related to the investigation pursuant to which the DOJ released PDI and its affiliates from any civil monetary claims relating to the alleged conduct. PDI did not admit liability for the alleged conduct in the settlement. We were indemnified with respect to this matter by the former shareholders of KOR Electronics pursuant to the Company’s merger agreement with KOR dated December 30, 2011.

In addition to the foregoing, the Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of our 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 March 31, 2013, 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 $19,016.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock-Based Compensation

9 Months Ended

Mar. 31, 2013

Stock-Based Compensation

J. Stock-Based Compensation

STOCK OPTION PLANS

The number of shares authorized for issuance under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”), is 7,764 shares at March 31, 2013. On October 17, 2012, the Company’s shareholders approved an increase in the number of shares authorized for issuance under the 2005 plan to 7,592 shares, an increase of 1,500 shares. The 2005 Plan will be increased by any future cancellations, forfeitures or terminations (other than by exercise) under the Company’s 1997 Stock Option Plan (the “1997 Plan”). 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 2,232 shares available for future grant under the 2005 Plan at March 31, 2013.

The number of shares authorized for issuance under the 1997 Plan was 8,650 shares, of which 100 shares could be issued pursuant to restricted stock grants. The 1997 Plan provided for the grant of non-qualified and incentive stock options and restricted stock to employees and non-employees. All stock options were 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. The options typically vested over periods up to four years and have a maximum term of 10 years. Following shareholder approval of the 2005 Plan on November 14, 2005, the Company’s Board of Directors determined that no further grants of stock options or other awards would be made under the 1997 Plan, and the 1997 Plan subsequently expired in June 2007. The foregoing does not affect any outstanding awards under the 1997 Plan, which remains in full force and effect in accordance with their terms.

EMPLOYEE STOCK PURCHASE PLAN

The number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 1,400 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 52 and 58 shares issued under the ESPP during the nine months ended March 31, 2013 and 2012. Shares available for future purchase under the ESPP totaled 307 at March 31, 2013.

STOCK OPTION AND AWARD ACTIVITY

The following table summarizes activity of the Company’s stock option plans since June 30, 2011:


	Options Outstanding
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at June 30, 2011		2,293		$	14.35		3.88
Granted		—			—
Exercised		(72	)		6.48
Cancelled		(36	)		23.70

Outstanding at June 30, 2012		2,185		$	14.46		2.89
Granted		271			4.75
Exercised		(56	)		6.17
Cancelled		(284	)		14.48

Outstanding at March 31, 2013		2,116		$	13.43		2.82

On August 8, 2012, the Company completed its acquisition of Micronetics. Pursuant to the terms of the Merger Agreement, all outstanding options to acquire shares of Micronetics common stock that were vested at the closing were cancelled and the holders of such options received an amount of cash equal to the product of the total number of shares previously subject to such vested options and the excess of the merger consideration over the exercise price per share. All outstanding Micronetics stock options that were unvested at the closing were replaced by the Company. The replacement stock options granted were determined based on a conversion ratio provided in the Merger Agreement. The 271 of stock options granted in the table above reflect the replacement of the unvested Micronetics stock options as of August 8, 2012.

STOCK OPTION ASSUMPTIONS

The following table sets forth the weighted-average key fair value results and assumptions for stock options granted during the three and nine months ended March 31, 2013 and 2012:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Weighted-average fair value of options granted		— (	*)		— (	*)		3.80			— (*	)
Option life(1)		— (	*)		— (	*)		4.5 years			— (*	)
Risk-free interest rate(2)		— (	*)		— (	*)		0.7	%		— (*	)
Stock volatility(3)		— (	*)		— (	*)		58	%		— (*	)
Dividend rate		— (	*)		— (	*)		0	%		— (*	)

(1)	The option life was determined based upon historical option activity.

(2)	The risk-free interest rate for each grant is equal to the U.S. Treasury yield curve in effect at the time of grant for instruments with a similar expected life.

(3)

The stock volatility for each grant is measured using the weighted average of historical daily price changes of the Company’s common stock over the most recent period equal to the expected option life of the grant, the historical short-term trend of the option and other factors, such as expected changes in volatility arising from planned changes in the Company’s business operations.

(*)	No stock options were granted by the Company during these periods.

The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2011:


	Non-vested Restricted Stock Awards
	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at June 30, 2011		1,187		$	11.23
Granted		585			14.30
Vested		(409	)		10.62
Forfeited		(88	)		13.14

Outstanding at June 30, 2012		1,275		$	12.71
Granted		1,320			9.47
Vested		(425	)		12.17
Forfeited		(115	)		11.14

Outstanding at March 31, 2013		2,055		$	10.82

STOCK-BASED COMPENSATION EXPENSE

The Company recognized the full expense of its share-based payment plans in the consolidated statements of operations for the three and nine months ended March 31, 2013 and 2012 in accordance with FASB ASC 718 and did not capitalize any such costs on the consolidated balance sheets, as such costs that qualified for capitalization were not material. Under the fair value recognition provisions of FASB 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. The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Cost of revenues	$	105		$	83		$	335		$	241
Selling, general and administrative		1,486			1,013			5,095			4,261
Research and development		310			246			835			692

Share-based compensation expense before tax		1,901			1,342			6,265			5,194
Income taxes		(690	)		(463	)		(2,295	)		(1,846	)

Net compensation expense	$	1,211		$	879		$	3,970		$	3,348

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Operating Segment, Geographic Information and Significant Customers

9 Months Ended

Mar. 31, 2013

Operating Segment, Geographic Information and Significant Customers

K. 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. Prior to the third quarter of fiscal 2013, the Company’s operating segments were the same as its reporting segments: Advanced Computing Solutions and Mercury Federal Systems. Following a series of acquisitions that expanded the Company’s capabilities, the Company initiated a reorganization to group its product and service offerings in the manner which the Company’s CODM manages and evaluates the business. Therefore, the Company utilized the management approach for determining reportable segments in accordance with the authoritative guidance. Beginning with the third quarter ended March 31, 2013, the Company redefined its operating and reportable segments. The following operating segments were determined based upon the nature of the products offered to customers, the market characteristics of each operating segment and the Company’s management structure:

•

Mercury Commercial Electronics (“MCE”): this operating segment delivers innovative, commercially developed, open sensor and Big Data processing systems for critical commercial, defense and intelligence applications. MCE delivers solutions that are secure and based upon open architectures and widely adopted industry standards. MCE delivers rapid time-to-value and world-class service and support to our commercial and prime contractor customers.

•

Mercury Defense Systems (“MDS”): this operating segment delivers innovative, open sensor processing solutions to key prime contractors leveraging commercially available technologies and solutions from our MCE business. MDS leverages this technology to develop integrated sensor processing subsystems, often including classified application-specific software and intellectual property (“IP”) for the C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), U.S. Department of Defense agencies and EW markets.

•

Mercury Intelligence Systems (“MIS”): this operating segment delivers cutting edge and technologically advanced hardware and software data processing solutions and predictive analytics capabilities to address the Intelligence Community and Department of Defense mission needs. MIS provides a unique approach and solutions to facilitate the transformation of raw data into information and then to actionable intelligence.

The Company’s operating segments were evaluated in accordance with FASB ASC 280— “Segment Reporting” in order to determine which operating segments qualified as reportable segments. The Company considered qualitative factors, including the economic characteristics of each operating segment to determine if any of its three operating segments qualified for aggregation into fewer reportable segments.

The Company’s evaluation of the economic characteristics of its operating segments included comparisons of revenues and applicable growth rates, gross margins, operating margins, future projections, and additional non-GAAP financial measurements which indicate that MDS and MIS have similar economic characteristics. The Company also evaluated the following qualitative factors in accordance with FASB ASC 280 paragraph 10-50-11: the nature of products and services, the corresponding production processes, the types of customers, distribution methods for products and services and the nature of the corresponding regulatory environment associated with its operating segments. The Company determined each of these factors are similar for both the MDS and MIS operating segments and supports the aggregation of MDS and MIS into one reportable segment, Mercury Defense and Intelligence Systems (“MDIS”).

The Company analyzed quantitative thresholds of each reportable segment including but not limited to reported revenues, including sales to external customers and intersegment sales or transfers, reported profits or losses, and total assets of each operating segment. The Company determined that both MCE and MDIS met the quantitative thresholds for reporting.

The Company reclassified the segment data for the prior periods presented below to conform to the current year’s presentation.

The accounting policies of the reportable segments are the same as those described in “Note B: Summary of Significant Accounting Policies.” The profitability measure employed by the Company and its CODM as the basis for allocating resources to segments and assessing segment performance is adjusted EBITDA. The Company believes the adjusted EBITDA financial measure assists in providing an enhanced understanding of its underlying operational measures to manage its business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals.

Adjusted EBITDA is defined as net income (loss) before interest income and expense, income taxes, depreciation, amortization of acquired intangible assets, restructuring, impairment of long-lived assets, acquisition costs and other related expenses, fair value adjustments from purchase accounting and stock-based compensation costs. Prior year’s amounts have been presented to reflect the current profitability measures for comparative purposes. Additionally, asset information by reportable segment is not reported because the Company and its CODM utilize consolidated asset information when making business decisions. The following is a summary of the performance of the Company’s operations by reportable segment:


	MCE		MDIS		Eliminations			Total
THREE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	41,222	$	13,006	$	(105	)	$	54,123
Intersegment revenues		2,733		—		(2,733	)		—

Net revenues	$	43,955	$	13,006	$	(2,838	)	$	54,123

Adjusted EBITDA	$	3,320	$	1,885	$	37		$	5,242
THREE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	49,980	$	15,265	$	1,744		$	66,989
Intersegment revenues		4,205		—		(4,205	)		—

Net revenues	$	54,185	$	15,265	$	(2,461	)	$	66,989

Adjusted EBITDA	$	8,499	$	3,118	$	390		$	12,007
NINE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	110,369	$	42,899	$	87		$	153,355
Intersegment revenues		10,880		12		(10,892	)		—

Net revenues	$	121,249	$	42,911	$	(10,805	)	$	153,355

Adjusted EBITDA	$	797	$	7,080	$	11		$	7,888
NINE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	159,438	$	24,628	$	4		$	184,070
Intersegment revenues		8,134		—		(8,134	)		—

Net revenues	$	167,572	$	24,628	$	(8,130	)	$	184,070

Adjusted EBITDA	$	34,650	$	4,791	$	131		$	39,572

The following table reconciles the Company’s net income (loss), the most directly comparable GAAP financial measure, to its adjusted EBITDA:


	Three Months Ended March 31,						Nine Months Ended March 31,
(In thousands)	2013			2012			2013			2012
Net income (loss)	$	788		$	5,245		$	(11,196	)	$	16,943
Interest expense, net		5			5			24			14
Tax (benefit) provision		(2,232	)		2,380			(8,075	)		8,522
Depreciation		2,068			1,970			6,470			5,730
Amortization of intangible assets		2,356			1,143			6,374			2,651
Restructuring and other charges		228			—			5,429			—
Acquisition costs and other related expenses		32			145			304			763
Fair value adjustments from purchase accounting		96			(223	)		2,293			(245	)
Stock-based compensation expense		1,901			1,342			6,265			5,194

Adjusted EBITDA	$	5,242		$	12,007		$	7,888		$	39,572

The geographic distribution of the Company’s revenues is summarized as follows:


	US		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	50,708	$	1,144	$	2,271	$	—		$	54,123
Inter-geographic revenues		2,313		103		3		(2,419	)		—

Net revenues	$	53,021	$	1,247	$	2,274	$	(2,419	)	$	54,123

THREE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	62,751	$	2,906	$	1,332	$	—		$	66,989
Inter-geographic revenues		1,627		165		56		(1,848	)		—

Net revenues	$	64,378	$	3,071	$	1,388	$	(1,848	)	$	66,989

NINE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	144,296	$	2,572	$	6,487	$	—		$	153,355
Inter-geographic revenues		6,240		290		47		(6,577	)		—

Net revenues	$	150,536	$	2,862	$	6,534	$	(6,577	)	$	153,355

NINE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	176,086	$	4,046	$	3,938	$	—		$	184,070
Inter-geographic revenues		4,571		600		87		(5,258	)		—

Net revenues	$	180,657	$	4,646	$	4,025	$	(5,258	)	$	184,070

Foreign revenue is based on the country in which the Company’s legal subsidiary is domiciled.

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


	U.S.		Europe		Asia Pacific		Eliminations		Total
March 31, 2013	$	16,597	$	34	$	—	$	—	$	16,631
June 30, 2012	$	15,895	$	32	$	2	$	—	$	15,929

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 March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Lockheed Martin Corporation		26	%		11	%		13	%		13	%
Raytheon Company			*		19			11			24
Northrop Grumman Corporation			*		13			11			20

		26	%		43	%		35	%		57	%

*	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 revenue for the periods shown below are as follows:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Aegis		15	%		10	%			*		11	%
Patriot			*		11	%			*			*
Joint Strike Fighter			*			*			*		12	%

		15	%		21	%		0	%		23	%

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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

9 Months Ended

Mar. 31, 2013

Income Taxes

L. Income Taxes

The Company recorded a tax benefit of $2,232 and tax expense of $2,380 on a loss from operations before taxes of $1,444 and income from operations of $7,625 for the three months ended March 31, 2013 and 2012, respectively. The Company recorded a tax benefit of $8,075 and tax expense of $8,522 on a loss from operations before taxes of $19,271 and income from operations of $25,465 for the nine months ended March 31, 2013 and 2012, respectively. Income tax benefit for the three and nine months ended March 31, 2013 differed from the federal statutory rate primarily due to the impact of federal research and development tax credits. Income tax expense for the three and nine months ended March 31, 2012 differed from the federal statutory rate primarily due to the impact of a Section 199 manufacturing deduction and research and development tax credits.

No material changes in the Company’s unrecognized tax positions occurred during the three and nine months ended March 31, 2013. The Company estimates that the unrecognized tax benefits could decrease by up to $630 within the next 12 months as a result of resolutions of tax positions and the expiration of applicable statutes of limitations.

On January 2, 2013, the “American Taxpayer Relief Act of 2012” was enacted into law by Congress. The American Taxpayer Relief Act of 2012 extended the research and development tax credit provisions of the tax code retroactively to January 1, 2012. Based on the extension, the Company recorded an additional $1,456 credit earned in calendar 2012 which is included in the tax benefits for the three and nine month periods ended March 31, 2013.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring Plan

9 Months Ended

Mar. 31, 2013

Restructuring Plan

M. Restructuring Plan

In the first quarter of fiscal 2013, the Company announced a restructuring plan (“2013 Plan”) affecting the MCE reportable segment. The 2013 Plan was implemented to cope with reduced defense revenues and the near term uncertainties in the defense industry driven by the potential for defense budget sequestration. The 2013 Plan primarily consisted of involuntary separation costs related to the reduction in force which eliminated 142 positions largely in engineering, manufacturing and administrative functions, as well as reductions associated with the first phase of integration of Micronetics. Restructuring expenses of $228 and $5,429 were recognized for the three and nine months ended March 31, 2013, respectively. Future restructuring expenses associated with the 2013 Plan are expected to be immaterial. These restructuring expenses affect the MCE reportable segment.

In the fourth quarter of fiscal 2012, the Company announced a restructuring plan (“2012 Plan”) affecting both the MCE and MDIS reportable segments. The 2012 Plan primarily consisted of involuntary separation costs related to the reduction in force which eliminated 41 positions largely in engineering and manufacturing functions; and facility costs related to outsourcing of certain manufacturing activities at the Company’s Huntsville, Alabama site. Future restructuring expenses of approximately $64 associated with the 2012 Plan are expected in the last quarter of fiscal 2013 as the Company continues transitioning the manufacturing activities formerly conducted at the Huntsville, Alabama facility. This restructuring expense will affect the MCE reportable segment.

All of the restructuring charges are classified as operating expenses in the consolidated statements of operations and comprehensive income (loss) and any remaining obligations are expected to be paid within the next twelve months. The remaining restructuring liability is classified as accrued expenses in the consolidated balance sheets.

The following table presents the detail of expenses by reportable segment for the Company’s restructuring plans:


	Severance & Related			Facilities & Other			Total
MCE restructuring charges	$	2,406		$	306		$	2,712
MDIS restructuring charges		109			—			109

Total 2012 provision		2,515			306			2,821
Cash paid		(2	)		(121	)		(123	)

Restructuring liability at June 30, 2012	$	2,513		$	185		$	2,698
MCE restructuring charges		5,478			409			5,887
Cash paid		(7,171	)		(308	)		(7,479	)
Reversals(*)		(458	)		—			(458	)

Restructuring liability at March 31, 2013	$	362		$	286		$	648

(*)	Reversals result from the finalization of severance agreements and unused outplacement services.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Subsequent Events	9 Months Ended
Subsequent Events	Mar. 31, 2013
Subsequent Events	N. 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)

9 Months Ended

Mar. 31, 2013

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.

Business Combinations

BUSINESS COMBINATIONS

Use of Estimates

USE OF ESTIMATES

Revenue Recognition

REVENUE RECOGNITION

Weighted-Average Shares

WEIGHTED-AVERAGE SHARES

Weighted-average shares were calculated as follows:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2013		2012		2013		2012
Basic weighted-average shares outstanding		30,235		29,562		30,075		29,432
Effect of dilutive equity instruments		175		606		—		625

Diluted weighted-average shares outstanding		30,410		30,168		30,075		30,057

- Definition

Disclosure of accounting policy for completed business combinations (purchase method, acquisition method or combination of entities under common control). This accounting policy may include a general discussion of the purchase method or acquisition method of accounting (including for example, the treatment accorded contingent consideration, the identification of assets and liabilities, the purchase price allocation process, how the fair values of acquired assets and liabilities are determined) and the entity's specific application thereof. An entity that acquires another entity in a leveraged buyout transaction generally discloses the accounting policy followed by the acquiring entity in determining the basis used to value its interest in the acquired entity, and the rationale for that accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2303973

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Paragraph 3
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-Subparagraph (a)-(d)
-URI http://asc.fasb.org/extlink&oid=6909625&loc=d3e227-128457

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-Section SEC Observer Comments
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2013

Basic and Diluted Weighted Average Shares Outstanding

Weighted-average shares were calculated as follows:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2013		2012		2013		2012
Basic weighted-average shares outstanding		30,235		29,562		30,075		29,432
Effect of dilutive equity instruments		175		606		—		625

Diluted weighted-average shares outstanding		30,410		30,168		30,075		30,057

Acquisitions (Tables)

9 Months Ended

Mar. 31, 2013

Micronetics

Net Purchase Price and Preliminary Fair Values of Assets and Liabilities

The following table presents the net purchase price and the preliminary fair values of the assets and liabilities of Micronetics:


	Amounts
Consideration transferred
Cash paid to shareholders and to settle vested options	$	69,830
Value allocated to unvested options		513
Less cash acquired		(2,109	)

Net purchase price	$	68,234

Estimated fair value of tangible assets acquired and liabilities assumed
Cash	$	2,109
Accounts receivable		3,592
Inventory		12,080
Fixed assets		5,301
Other current and non-current assets		2,893
Accounts payable and accrued expenses		(5,983	)
Long-term debt		(6,575	)
Deferred taxes		(8,053	)

Estimated fair value of net tangible assets acquired		5,364
Estimated fair value of identifiable intangible assets		18,500
Estimated fair value of goodwill		46,479

Estimated fair value of assets acquired	$	70,343
Less cash acquired		(2,109	)

Net purchase price	$	68,234

Goodwill (Tables)

9 Months Ended

Mar. 31, 2013

Changes in Carrying Amount of Goodwill

The following table sets forth the changes in the carrying amount of goodwill prior to the internal reorganization for the six months ended December 31, 2012:


	ACS			MFS		Total
Balance at June 30, 2012	$	113,471		$	19,150	$	132,621
Goodwill arising from the Micronetics acquisition		46,509			—		46,509
Goodwill adjustment for the KOR acquisition		(701	)		—		(701	)

Balance at December 31, 2012	$	159,279		$	19,150	$	178,429

The following table summarizes the goodwill for the three months ended March 31, 2013, after reallocation:


	MCE			MDS		MIS		Total
Balance at January 1, 2013	$	135,691		$	33,768	$	8,970	$	178,429
Goodwill adjustment for the Micronetics acquisition		(31	)		—		—		(31	)

Balance at March 31, 2013	$	135,660		$	33,768	$	8,970	$	178,398

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Acquired Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2013

Acquired Intangible Assets

Acquired intangible assets consisted of the following:


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
MARCH 31, 2013
Customer relationships	$	43,770	$	(12,915	)	$	30,855		6.5 years
Licensing agreements and patents		4,095		(2,836	)		1,259		5.4 years
Completed technologies		5,570		(1,815	)		3,755		5.3 years
Trademarks		990		(237	)		753		6.0 years
Backlog		1,500		(972	)		528		1.0 years
Non-compete agreements		500		(441	)		59		5.0 years

	$	56,425	$	(19,216	)	$	37,209

JUNE 30, 2012
Customer relationships	$	26,770	$	(9,217	)	$	17,553		6.9 years
Licensing agreements and patents		4,095		(2,365	)		1,730		5.4 years
Completed technologies		5,570		(1,007	)		4,563		5.3 years
Trademarks		990		(95	)		895		6.0 years
Backlog		800		(588	)		212		2.0 years
Non-compete agreements		500		(370	)		130		5.0 years

	$	38,725	$	(13,642	)	$	25,083

Estimated Future Amortization Expense for Acquired Intangible Assets

Estimated future amortization expense for acquired intangible assets remaining at March 31, 2013 is as follows:


	Year Ending June 30,
2013	$	2,343
2014		7,797
2015		7,503
2016		7,018
2017		5,537
Thereafter		7,011

Total future amortization expense	$	37,209

Micronetics

Preliminary Estimated Fair Value of Acquired Intangible Assets


	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life
Customer relationships	$	17,000	$	(1,836	)	$	15,164		6.0 years
Backlog		1,500		(971	)		529		1.0 years

Total	$	18,500	$	(2,807	)	$	15,693

Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2013

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 March 31, 2013:


	Fair Value Measurements
	March 31, 2013		Level 1		Level 2		Level 3
Assets:
U.S. Treasury bills and money market funds	$	19,022	$	19,022	$	—	$	—
Restricted cash		546		546		—		—

Total	$	19,568	$	19,568	$	—	$	—

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Inventory (Tables)

9 Months Ended

Mar. 31, 2013

Inventory

uses. Inventory was comprised of the following:


	March 31, 2013		June 30, 2012
Raw materials	$	15,638	$	11,246
Work in process		13,684		8,979
Finished goods		9,422		5,620

Total	$	38,744	$	25,845

Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2013

Summary of Stock Option Plans

The following table summarizes activity of the Company’s stock option plans since June 30, 2011:


	Options Outstanding
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Outstanding at June 30, 2011		2,293		$	14.35		3.88
Granted		—			—
Exercised		(72	)		6.48
Cancelled		(36	)		23.70

Outstanding at June 30, 2012		2,185		$	14.46		2.89
Granted		271			4.75
Exercised		(56	)		6.17
Cancelled		(284	)		14.48

Outstanding at March 31, 2013		2,116		$	13.43		2.82

Weighted Average Key Fair Value Results and Assumptions for Stock Options Granted

The following table sets forth the weighted-average key fair value results and assumptions for stock options granted during the three and nine months ended March 31, 2013 and 2012:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Weighted-average fair value of options granted		— (	*)		— (	*)		3.80			— (*	)
Option life(1)		— (	*)		— (	*)		4.5 years			— (*	)
Risk-free interest rate(2)		— (	*)		— (	*)		0.7	%		— (*	)
Stock volatility(3)		— (	*)		— (	*)		58	%		— (*	)
Dividend rate		— (	*)		— (	*)		0	%		— (*	)

(1)	The option life was determined based upon historical option activity.

(2)	The risk-free interest rate for each grant is equal to the U.S. Treasury yield curve in effect at the time of grant for instruments with a similar expected life.

(3)

(*)	No stock options were granted by the Company during these periods.

Summary of Nonvested Restricted Stock

The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2011:


	Non-vested Restricted Stock Awards
	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at June 30, 2011		1,187		$	11.23
Granted		585			14.30
Vested		(409	)		10.62
Forfeited		(88	)		13.14

Outstanding at June 30, 2012		1,275		$	12.71
Granted		1,320			9.47
Vested		(425	)		12.17
Forfeited		(115	)		11.14

Outstanding at March 31, 2013		2,055		$	10.82

Stock Based Compensation Expenses

The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Cost of revenues	$	105		$	83		$	335		$	241
Selling, general and administrative		1,486			1,013			5,095			4,261
Research and development		310			246			835			692

Share-based compensation expense before tax		1,901			1,342			6,265			5,194
Income taxes		(690	)		(463	)		(2,295	)		(1,846	)

Net compensation expense	$	1,211		$	879		$	3,970		$	3,348

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Operating Segment, Geographic Information and Significant Customers (Tables)

9 Months Ended

Mar. 31, 2013

Summary of Performance of Operations by Reportable Segment

The following is a summary of the performance of the Company’s operations by reportable segment:


	MCE		MDIS		Eliminations			Total
THREE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	41,222	$	13,006	$	(105	)	$	54,123
Intersegment revenues		2,733		—		(2,733	)		—

Net revenues	$	43,955	$	13,006	$	(2,838	)	$	54,123

Adjusted EBITDA	$	3,320	$	1,885	$	37		$	5,242
THREE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	49,980	$	15,265	$	1,744		$	66,989
Intersegment revenues		4,205		—		(4,205	)		—

Net revenues	$	54,185	$	15,265	$	(2,461	)	$	66,989

Adjusted EBITDA	$	8,499	$	3,118	$	390		$	12,007
NINE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	110,369	$	42,899	$	87		$	153,355
Intersegment revenues		10,880		12		(10,892	)		—

Net revenues	$	121,249	$	42,911	$	(10,805	)	$	153,355

Adjusted EBITDA	$	797	$	7,080	$	11		$	7,888
NINE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	159,438	$	24,628	$	4		$	184,070
Intersegment revenues		8,134		—		(8,134	)		—

Net revenues	$	167,572	$	24,628	$	(8,130	)	$	184,070

Adjusted EBITDA	$	34,650	$	4,791	$	131		$	39,572

Reconciliation of Net Income (loss), Most Directly Comparable GAAP Financial Measure to Adjusted EBITDA

The following table reconciles the Company’s net income (loss), the most directly comparable GAAP financial measure, to its adjusted EBITDA:


	Three Months Ended March 31,						Nine Months Ended March 31,
(In thousands)	2013			2012			2013			2012
Net income (loss)	$	788		$	5,245		$	(11,196	)	$	16,943
Interest expense, net		5			5			24			14
Tax (benefit) provision		(2,232	)		2,380			(8,075	)		8,522
Depreciation		2,068			1,970			6,470			5,730
Amortization of intangible assets		2,356			1,143			6,374			2,651
Restructuring and other charges		228			—			5,429			—
Acquisition costs and other related expenses		32			145			304			763
Fair value adjustments from purchase accounting		96			(223	)		2,293			(245	)
Stock-based compensation expense		1,901			1,342			6,265			5,194

Adjusted EBITDA	$	5,242		$	12,007		$	7,888		$	39,572

Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations

The geographic distribution of the Company’s revenues is summarized as follows:


	US		Europe		Asia Pacific		Eliminations			Total
THREE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	50,708	$	1,144	$	2,271	$	—		$	54,123
Inter-geographic revenues		2,313		103		3		(2,419	)		—

Net revenues	$	53,021	$	1,247	$	2,274	$	(2,419	)	$	54,123

THREE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	62,751	$	2,906	$	1,332	$	—		$	66,989
Inter-geographic revenues		1,627		165		56		(1,848	)		—

Net revenues	$	64,378	$	3,071	$	1,388	$	(1,848	)	$	66,989

NINE MONTHS ENDED MARCH 31, 2013
Net revenues to unaffiliated customers	$	144,296	$	2,572	$	6,487	$	—		$	153,355
Inter-geographic revenues		6,240		290		47		(6,577	)		—

Net revenues	$	150,536	$	2,862	$	6,534	$	(6,577	)	$	153,355

NINE MONTHS ENDED MARCH 31, 2012
Net revenues to unaffiliated customers	$	176,086	$	4,046	$	3,938	$	—		$	184,070
Inter-geographic revenues		4,571		600		87		(5,258	)		—

Net revenues	$	180,657	$	4,646	$	4,025	$	(5,258	)	$	184,070

Foreign revenue is based on the country in which the Company’s legal subsidiary is domiciled.

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


	U.S.		Europe		Asia Pacific		Eliminations		Total
March 31, 2013	$	16,597	$	34	$	—	$	—	$	16,631
June 30, 2012	$	15,895	$	32	$	2	$	—	$	15,929

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 March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Lockheed Martin Corporation		26	%		11	%		13	%		13	%
Raytheon Company			*		19			11			24
Northrop Grumman Corporation			*		13			11			20

		26	%		43	%		35	%		57	%

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

Programs Comprising Ten Percent or More Revenues

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


	Three Months Ended March 31,						Nine Months Ended March 31,
	2013			2012			2013			2012
Aegis		15	%		10	%			*		11	%
Patriot			*		11	%			*			*
Joint Strike Fighter			*			*			*		12	%

		15	%		21	%		0	%		23	%

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

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Restructuring Plan (Tables)

9 Months Ended

Mar. 31, 2013

Expenses by Reportable Segment for Restructuring Plans

The following table presents the detail of expenses by reportable segment for the Company’s restructuring plans:


	Severance & Related			Facilities & Other			Total
MCE restructuring charges	$	2,406		$	306		$	2,712
MDIS restructuring charges		109			—			109

Total 2012 provision		2,515			306			2,821
Cash paid		(2	)		(121	)		(123	)

Restructuring liability at June 30, 2012	$	2,513		$	185		$	2,698
MCE restructuring charges		5,478			409			5,887
Cash paid		(7,171	)		(308	)		(7,479	)
Reversals(*)		(458	)		—			(458	)

Restructuring liability at March 31, 2013	$	362		$	286		$	648

(*)	Reversals result from the finalization of severance agreements and unused outplacement services.

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013 shares	Mar. 31, 2012 shares	Mar. 31, 2013 Segment shares	Mar. 31, 2012 shares
Significant Accounting Policies [Line Items]
Number of Operating Segments			3
Number of Reportable Operating Segments			2
Earnings Per Share, Diluted
Significant Accounting Policies [Line Items]
Common stock excluded from diluted earning per share \| shares	3,351	1,267	1,543	925

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Weighted Average Number of Shares Outstanding [Line Items]
Basic weighted-average shares outstanding	30,235	29,562	30,075	29,432
Effect of dilutive equity instruments	175	606		625
Diluted weighted-average shares outstanding	30,410	30,168	30,075	30,057

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Acquisitions - Additional Information (Detail) - Micronetics - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2013	Mar. 31, 2013	Aug. 08, 2012	Jun. 08, 2012
Business Acquisition [Line Items]
Company acquired per share			$ 14.80
Goodwill arising from acquisition				$ 46,479
Business acquisition revenue	$ 10,341	$ 24,747
Business acquisition net income (loss)	$ 830	$ (3,683)

Net Purchase Price and Preliminary Fair Values of Assets and Liabilities (Detail) - Micronetics $ in Thousands	Jun. 08, 2012 USD ($)
Consideration transferred
Cash paid to shareholders and to settle vested options	$ 69,830
Value allocated to unvested options	513
Less cash acquired	(2,109)
Net purchase price	68,234
Estimated fair value of tangible assets acquired and liabilities assumed
Cash	2,109
Accounts receivable	3,592
Inventory	12,080
Fixed assets	5,301
Other current and non-current assets	2,893
Accounts payable and accrued expenses	(5,983)
Long-term debt	(6,575)
Deferred taxes	(8,053)
Estimated fair value of net tangible assets acquired	5,364
Estimated fair value of identifiable intangible assets	18,500
Estimated fair value of goodwill	46,479
Estimated fair value of assets acquired	70,343
Less cash acquired	(2,109)
Net purchase price	$ 68,234

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Goodwill [Line Items]
Beginning Balance	$ 178,429	$ 132,621
Ending Balance	178,398	178,429
Mercury Commercial Electronics
Goodwill [Line Items]
Beginning Balance	135,691
Ending Balance	135,660	135,691
Mercury Defense Systems
Goodwill [Line Items]
Beginning Balance	33,768
Ending Balance	33,768	33,768
Mercury Intelligence Systems
Goodwill [Line Items]
Beginning Balance	8,970
Ending Balance	8,970	8,970
ACS
Goodwill [Line Items]
Beginning Balance	159,279	113,471
Ending Balance		159,279
MFS
Goodwill [Line Items]
Beginning Balance	19,150	19,150
Ending Balance		19,150
Micronetics
Goodwill [Line Items]
Goodwill Adjustment	(31)
Goodwill		46,509
Micronetics \| Mercury Commercial Electronics
Goodwill [Line Items]
Goodwill Adjustment	$ (31)
Micronetics \| ACS
Goodwill [Line Items]
Goodwill		46,509
Micronetics \| MFS
Goodwill [Line Items]
Goodwill
KOR Electronics
Goodwill [Line Items]
Goodwill Adjustment		(701)
KOR Electronics \| ACS
Goodwill [Line Items]
Goodwill Adjustment		(701)
KOR Electronics \| MFS
Goodwill [Line Items]
Goodwill Adjustment

Goodwill - Additional Information (Detail)	Mar. 31, 2013
Goodwill [Line Items]
Increase in discount rate cash flow analysis result in failure of interim goodwill impairment test	1.00%

Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 56,425	$ 38,725
Accumulated Amortization	(19,216)	(13,642)
Net Carrying Amount	37,209	25,083
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	43,770	26,770
Accumulated Amortization	(12,915)	(9,217)
Net Carrying Amount	$ 30,855	$ 17,553
Weighted Average Useful Life	6 years 6 months	6 years 10 months 24 days
Licensing agreements and patents
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,095	$ 4,095
Accumulated Amortization	(2,836)	(2,365)
Net Carrying Amount	$ 1,259	$ 1,730
Weighted Average Useful Life	5 years 4 months 24 days	5 years 4 months 24 days
Completed Technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 5,570	$ 5,570
Accumulated Amortization	(1,815)	(1,007)
Net Carrying Amount	$ 3,755	$ 4,563
Weighted Average Useful Life	5 years 3 months 18 days	5 years 3 months 18 days
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 990	$ 990
Accumulated Amortization	(237)	(95)
Net Carrying Amount	$ 753	$ 895
Weighted Average Useful Life	6 years	6 years
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,500	$ 800
Accumulated Amortization	(972)	(588)
Net Carrying Amount	$ 528	$ 212
Weighted Average Useful Life	1 year	2 years
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 500	$ 500
Accumulated Amortization	(441)	(370)
Net Carrying Amount	$ 59	$ 130
Weighted Average Useful Life	5 years	5 years

Estimated Future Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Jun. 30, 2012
Expected Amortization Expense [Line Items]
2013	$ 2,343
2014	7,797
2015	7,503
2016	7,018
2017	5,537
Thereafter	7,011
Net Carrying Amount	$ 37,209	$ 25,083

Fair Value of Acquired Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 56,425	$ 38,725
Accumulated Amortization	(19,216)	(13,642)
Net Carrying Amount	37,209	25,083
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	43,770	26,770
Accumulated Amortization	(12,915)	(9,217)
Net Carrying Amount	$ 30,855	$ 17,553
Weighted Average Useful Life	6 years 6 months	6 years 10 months 24 days
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,500	$ 800
Accumulated Amortization	(972)	(588)
Net Carrying Amount	$ 528	$ 212
Weighted Average Useful Life	1 year	2 years
Micronetics
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 18,500
Accumulated Amortization	(2,807)
Net Carrying Amount	15,693
Micronetics \| Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	17,000
Accumulated Amortization	(1,836)
Net Carrying Amount	$ 15,164
Weighted Average Useful Life	6 years
Micronetics \| Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,500
Accumulated Amortization	(971)
Net Carrying Amount	$ 529
Weighted Average Useful Life	1 year

Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	Mar. 31, 2013 USD ($)
Assets:
Fair value measurement disclosure	$ 19,568
U.S. Treasury bills and money market funds
Assets:
Fair value measurement disclosure	19,022
Restricted cash
Assets:
Fair value measurement disclosure	546
Fair Value, Inputs, Level 1
Assets:
Fair value measurement disclosure	19,568
Fair Value, Inputs, Level 1 \| U.S. Treasury bills and money market funds
Assets:
Fair value measurement disclosure	19,022
Fair Value, Inputs, Level 1 \| Restricted cash
Assets:
Fair value measurement disclosure	$ 546

Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Jun. 30, 2012
Schedule of Inventory [Line Items]
Raw materials	$ 15,638	$ 11,246
Work in process	13,684	8,979
Finished goods	9,422	5,620
Total	$ 38,744	$ 25,845

Inventory - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Schedule of Inventory [Line Items]
Increase in Inventory	$ 856	$ 3,215
Production Cycle Term	Longer than one year
Micronetics
Schedule of Inventory [Line Items]
Increase in Inventory	$ 12,899
Product
Schedule of Inventory [Line Items]
Inventory relating to contracts having production cycles longer than one year	$ 0

Debt - Additional Information (Detail) $ in Thousands	1 Months Ended	9 Months Ended
Debt - Additional Information (Detail) $ in Thousands	Oct. 12, 2012 USD ($)	Mar. 31, 2013 USD ($)
Senior Unsecured Credit Facilities
Debt Instrument [Line Items]
Credit Agreement accordion feature, incremental revolver or term loan amount		$ 50,000
Remaining borrowing capacity		54,613
Borrowings outstanding		0
Amount of outstanding letter of credit		$ 3,000
Senior Unsecured Credit Facilities \| Maximum
Debt Instrument [Line Items]
Leverage Ratio		3.50
Senior Unsecured Credit Facilities \| Minimum
Debt Instrument [Line Items]
Interest Coverage Ratio		3.0
Senior Unsecured Credit Facilities \| KeyBank National Association
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 200,000
Debt instrument borrowing period	5 years
Senior Unsecured Credit Facilities \| Acquisition Covenants \| Maximum
Debt Instrument [Line Items]
Leverage Ratio		3.25
Senior Unsecured Credit Facilities \| Acquisition Covenants \| Minimum
Debt Instrument [Line Items]
Interest Coverage Ratio		3.0
Senior Secured Credit Facility \| Loan and Security Agreement with Silicon Valley Bank
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000

Commitments And Contingencies - Additional Information (Detail) $ in Thousands	Mar. 31, 2013 USD ($)
Non-cancelable purchase commitments
Long-term Purchase Commitment [Line Items]
Purchase commitments for less than one year	$ 19,016

Stock Based Compensation - Additional Information (Detail) - shares shares in Thousands	1 Months Ended	9 Months Ended
	Oct. 17, 2012	Mar. 31, 2013	Mar. 31, 2012
1997 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan		1,400
Shares available for future grant		307
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%
Number of share options granted		52	58
2005 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan	7,592	7,764
Exercise price of stock option, percentage		100.00%
Shares available for future grant		2,232
Increase in share authorized under stock incentive plan	1,500
2005 Stock Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of stock option		7 years
Stock Option Plan 1997
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan		8,650
Exercise price of stock option, percentage		100.00%
Stock Option Plan 1997 \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of stock option		10 years
Options, vesting period		4 years
Stock Option Plan 1997 \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vesting period		0 years
Stock Option Plan 1997 \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan		100

Summary of Stock Option Plans (Detail) - Stock Options - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2011
Number of Shares
Outstanding at beginning of period	2,185	2,293
Granted	271
Exercised	(56)	(72)
Cancelled	(284)	(36)
Outstanding at end of period	2,116	2,185	2,293
Weighted Average Exercise Price
Outstanding at beginning of period	$ 14.46	$ 14.35
Granted	4.75
Exercised	6.17	6.48
Cancelled	14.48	23.70
Outstanding at end of period	$ 13.43	$ 14.46	$ 14.35
Weighted Average Remaining Contractual Term (Years)
Outstanding at end of period	2 years 9 months 26 days	2 years 10 months 21 days	3 years 10 months 17 days

Weighted Average Fair Value Assumptions Table (Detail) - $ / shares

3 Months Ended

9 Months Ended

Mar. 31, 2013

^[1]

Mar. 31, 2012

^[1]

Mar. 31, 2013

Mar. 31, 2012

^[1]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-average fair value of options granted

$ 3.80

Option life

^[2]

0 years

4 years 6 months

0 years

Risk-free interest rate

^[3]

0.70%

Stock volatility

^[4]

58.00%

Dividend rate

0.00%

[1]	No stock options were granted by the Company during these periods.
[2]	The option life was determined based upon historical option activity.
[3]	The risk-free interest rate for each grant is equal to the U.S. Treasury yield curve in effect at the time of grant for instruments with a similar expected life.
[4]	The stock volatility for each grant is measured using the weighted average of historical daily price changes of the Company's common stock over the most recent period equal to the expected option life of the grant, the historical short-term trend of the option and other factors, such as expected changes in volatility arising from planned changes in the Company's business operations.

Summary of Nonvested Restricted Stock (Detail) - Restricted Stock - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2012
Number of Shares
Beginning Balance	1,275	1,187
Granted	1,320	585
Vested	(425)	(409)
Forfeited	(115)	(88)
Ending Balance	2,055	1,275
Weighted Average Grant Date Fair Value
Beginning Balance	$ 12.71	$ 11.23
Granted	9.47	14.30
Vested	12.17	10.62
Forfeited	11.14	13.14
Ending Balance	$ 10.82	$ 12.71

Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 1,901	$ 1,342	$ 6,265	$ 5,194
Income taxes	(690)	(463)	(2,295)	(1,846)
Net compensation expense	1,211	879	3,970	3,348
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	105	83	335	241
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	1,486	1,013	5,095	4,261
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 310	$ 246	$ 835	$ 692

Summary of Performance of Operations by Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 54,123	$ 66,989	$ 153,355	$ 184,070
Adjusted EBITDA	5,242	12,007	7,888	39,572
Reportable Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	54,123	66,989	153,355	184,070
Net revenues	54,123	66,989	153,355	184,070
Adjusted EBITDA	5,242	12,007	7,888	39,572
Mercury Commercial Electronics \| Reportable Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	41,222	49,980	110,369	159,438
Intersegment revenues	2,733	4,205	10,880	8,134
Net revenues	43,955	54,185	121,249	167,572
Adjusted EBITDA	3,320	8,499	797	34,650
Mercury Defense and Intelligence Systems \| Reportable Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	13,006	15,265	42,899	24,628
Intersegment revenues			12
Net revenues	13,006	15,265	42,911	24,628
Adjusted EBITDA	1,885	3,118	7,080	4,791
Eliminations \| Reportable Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	(105)	1,744	87	4
Intersegment revenues	(2,733)	(4,205)	(10,892)	(8,134)
Net revenues	(2,838)	(2,461)	(10,805)	(8,130)
Adjusted EBITDA	$ 37	$ 390	$ 11	$ 131

Reconciles Net Income (loss), Most Directly Comparable GAAP Financial Measure to Adjusted EBITDA (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Jun. 30, 2012
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net income (loss)	$ 788	$ 5,245	$ (11,196)	$ 16,943
Interest expense, net	5	5	24	14
Tax (benefit) provision	(2,232)	2,380	(8,075)	8,522
Depreciation	2,068	1,970	6,470	5,730
Amortization of intangible assets	2,356	1,143	6,374	2,651
Restructuring and other charges	228		5,429		$ 2,821
Acquisition costs and other related expenses	32	145	304	763
Fair value adjustments from purchase accounting	96	(223)	2,293	(245)
Stock-based compensation expense	1,901	1,342	6,265	5,194
Adjusted EBITDA	$ 5,242	$ 12,007	$ 7,888	$ 39,572

Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Jun. 30, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	$ 54,123	$ 66,989	$ 153,355	$ 184,070
Net revenues	54,123	66,989	153,355	184,070
Identifiable long-lived assets	16,631		16,631		$ 15,929
US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	50,708	62,751	144,296	176,086
Inter-geographic revenues	2,313	1,627	6,240	4,571
Net revenues	53,021	64,378	150,536	180,657
Identifiable long-lived assets	16,597		16,597		15,895
Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	1,144	2,906	2,572	4,046
Inter-geographic revenues	103	165	290	600
Net revenues	1,247	3,071	2,862	4,646
Identifiable long-lived assets	34		34		32
Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues to unaffiliated customers	2,271	1,332	6,487	3,938
Inter-geographic revenues	3	56	47	87
Net revenues	2,274	1,388	6,534	4,025
Identifiable long-lived assets					$ 2
Geographical Intersegment, Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Inter-geographic revenues	(2,419)	(1,848)	(6,577)	(5,258)
Net revenues	$ (2,419)	$ (1,848)	$ (6,577)	$ (5,258)

Customers Comprising Ten Percent or more Revenues (Detail)

3 Months Ended

9 Months Ended

Mar. 31, 2013

Mar. 31, 2012

Mar. 31, 2013

Mar. 31, 2012

Revenue, Major Customer [Line Items]

Revenue from Customers

26.00%

43.00%

35.00%

57.00%

Mercury Commercial Electronics | Lockheed Martin Corporation

Revenue, Major Customer [Line Items]

Revenue from Customers

26.00%

11.00%

13.00%

Mercury Commercial Electronics | Raytheon Company

Revenue, Major Customer [Line Items]

Revenue from Customers

^[1]

19.00%

11.00%

24.00%

Mercury Commercial Electronics | Northrop Grumman Corporation

Revenue, Major Customer [Line Items]

Revenue from Customers

^[1]

13.00%

11.00%

20.00%

[1]	Indicates that the amount is less than 10% of the Company's revenues for the respective period.

Customers Comprising Ten Percent or more Revenues (Parenthetical) (Detail)	9 Months Ended
	Mar. 31, 2013
Maximum
Revenue, Major Customer [Line Items]
Percent of company revenue	10.00%

Programs Comprising Ten Percent or more of Company's Revenue (Detail)

3 Months Ended

9 Months Ended

Mar. 31, 2013

Mar. 31, 2012

Mar. 31, 2013

Mar. 31, 2012

Segment Reporting Information [Line Items]

Percentage of revenue contributed from a single program

15.00%

21.00%

0.00%

23.00%

Aegis

Segment Reporting Information [Line Items]

Percentage of revenue contributed from a single program

15.00%

10.00%

^[1]

11.00%

Patriot

Segment Reporting Information [Line Items]

Percentage of revenue contributed from a single program

^[1]

11.00%

^[1]

Joint Strike Fighter

Segment Reporting Information [Line Items]

Percentage of revenue contributed from a single program

^[1]

12.00%

[1]	Indicates that the amount is less than 10% of the Company's revenues for the respective periods.

Programs Comprising Ten Percent or more of Company's Revenue (Parenthetical) (Detail)	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Segment Reporting Information [Line Items]
Percent of company revenue	15.00%	21.00%	0.00%	23.00%
Maximum
Segment Reporting Information [Line Items]
Percent of company revenue			10.00%

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Tax Credit Carryforward [Line Items]
Income tax (benefit) expense	$ (2,232)	$ 2,380	$ (8,075)	$ 8,522
(Loss) income from operations before income taxes	(1,444)	$ 7,625	(19,271)	$ 25,465
Estimated changes in unrecognized tax benefits	630		630
Research and development tax credit earned	$ 1,456		$ 1,456

Restructuring Plan - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended
	Mar. 31, 2013 USD ($)	Jun. 30, 2012 Person	Mar. 31, 2013 USD ($) Person	Jun. 30, 2012 USD ($)
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated \| Person		41	142
Restructuring expenses	$ 228		$ 5,429	$ 2,821
Mercury Commercial Electronics
Restructuring Cost and Reserve [Line Items]
Restructuring expenses				$ 2,712
Fiscal Year 2013 \| Mercury Commercial Electronics \| 2012 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Future restructuring expenses expected in fiscal 2013			$ 64