Mercury Computer Systems today announced preliminary revenues for its third fiscal quarter ended March 31, 2006. Based upon preliminary financial data, the Company anticipates that revenues for the third quarter will be in the range of approximately $43 million to $44 million. In its financial results press release on January 26, 2006, the Company provided third quarter 2006 guidance for revenues in a range of $55 million to $58 million. "The revenue shortfall can be mostly attributed to our defense business, where technical problems associated with third-party products occurred, and a multimillion-dollar system failed acceptance testing of newly introduced functionality," said Jay Bertelli, president and chief executive officer of Mercury Computer Systems, Inc. "The majority of the system shipped to the customer so that they could maintain their schedule; however, revenue recognition rules prevent us from recording revenue until the complete system passes the acceptance tests. We anticipate that all of the technical issues will be resolved soon, and that the revenue will be recorded in Q4 FY06." Mr. Bertelli continued: "We had a strong bookings quarter, with a book-to-bill ratio of approximately 1.5 and an ending backlog of approximately $85 million, not counting deferred revenue in excess of $10 million." Mercury will host a conference call on Wednesday, April 5, at 5:00 p.m. ET to discuss its preliminary third quarter revenues. To listen to the conference call, dial (877) 502-9276 in the USA and Canada, and for international, dial (913) 981-5591. The conference code number is 1585648. Please call five to ten minutes prior to the scheduled start time. This call will also be broadcast live over the web at www.mc.com/investor under Financial Events. A replay of the call by telephone will be available from approximately 8:00 p.m. ET on April 5 through midnight ET on Tuesday, April 11. To access the replay, dial (888) 203-1112 in the USA and Canada, and for international, dial (719) 457-0820. Enter access code 1585648. A replay of the webcast of the call will be available for an extended period of time on the Financial Events page of the Company's website at www.mc.com/investor. In light of this call, Mercury has cancelled its appearance at the Sidoti & Company, LLC 10th Annual Emerging Growth Investor Forum, scheduled to be held on April 4-5, 2006. Mercury expects to report its full third quarter 2006 financial results on April 27, 2006.