UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (Date of earliest event reported): March 3, 2008
AEROVIRONMENT,
INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
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001-33261
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95-2705790
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(State
or other jurisdiction of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S.
Employer Identification No.)
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|
______________________
|
||
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181 W. Huntington
Drive, Suite 202
|
||
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Monrovia,
CA
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91016
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: (626)
357-9983
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange ct (17
CFR
240.14d-2(B))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c)) under the Exchange Act
(17 CFR
240.13e-4c))
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Item
2.02.
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Results
of Operations and Financial
Condition
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On
March
3, 2008, AeroVironment, Inc. issued a press release announcing third quarter
financial results for the period ending January 26, 2008, a copy of which is
attached hereto as Exhibit 99.1.
The
information in this Current Report on Form 8-K, including the exhibit, is
furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes
of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such
filing.
In
addition to historic information, this report, including the exhibit, contains
forward-looking statements regarding events, performance and financial trends.
Various factors could affect future results and could cause actual results
to
differ materially from those expressed in or implied by the forward-looking
statements. Some of those factors are identified in the exhibit, and in our
periodic reports filed with the Securities and Exchange Commission.
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Item
9.01.
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Financial
Statements and Exhibits
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(d) Exhibits.
The
following exhibits are filed herewith:
Exhibit
Number Description
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99.1
|
Press release issued by AeroVironment, Inc., dated March 3,
2008.
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
AEROVIRONMENT,
INC.
Date: March
3,
2008 By: /s/Timothy
E. Conver
Timothy
E.
Conver
Chairman,
President
and Chief Executive Officer
AeroVironment,
Inc. Announces Fiscal 2008 Third Quarter Results
MONROVIA,
CA, March 3, 2008 — AeroVironment, Inc. (AV) (NASDAQ: AVAV), a leader in
unmanned aircraft systems and efficient electric energy systems, today reported
financial results for its fiscal third quarter ended January 26,
2008.
"Our
unmanned aircraft systems (UAS) segment continues to generate growth as a result
of ongoing demand for our small UAS production systems and for the new
capabilities we are pioneering in our development programs,” said Tim Conver,
chief executive officer of AV. “Raven and Wasp systems are helping to protect
the lives of our troops while providing cost-effective force multiplication
that
enables them to operate more successfully. The increasing contribution of our
UAS service business reflects the broader procurement, deployment and use of
our
systems throughout the U.S. armed forces. I believe that all of our solutions
provide meaningful benefits to current and potential customers in the U.S.
and
abroad, and that we remain well-positioned for continued growth.”
Third
quarter highlights:
|
·
|
Quarterly
revenue of $48.5 million
|
|
·
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Operating
margin of 16%
|
|
·
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Earnings
per diluted share of $0.28
|
FISCAL
2008 THIRD QUARTER RESULTS
Revenue
for the third quarter of fiscal 2008 was $48.5 million, an increase of 5%,
over revenue of $46.3 million in the comparable period of fiscal 2007. The
increase in revenue was the result of increased sales in AV’s UAS segment
of $3.4 million, or 9%, and in its Energy Technology Center segment of $0.2
million, or 9%, which was partially offset by a decrease in its PosiCharge
segment of $1.3 million, or 24%.
Income
from operations for the third quarter of fiscal 2008 was $8.0 million, a
decrease of $5.2 million, or 40%, from third quarter of fiscal 2007 income
from
operations of $13.2 million. The decrease in income from operations was
caused by higher selling, general and administrative expense of
$4.0 million and higher research and development expense of
$1.4 million, partially offset by increased gross margin of $0.2
million.
Net
income for the third quarter of fiscal 2008 was $6.0 million, a decrease of
$2.9 million, or 33%, from third quarter of fiscal 2007 net income of
$8.9 million. Earnings per share for the third quarter of fiscal
2008 were $0.28, a decrease of $0.29 per diluted share from third quarter of
fiscal 2007 earnings per diluted share of $0.57.
FISCAL
2008 YEAR-TO-DATE RESULTS
Revenue
for the first nine months of fiscal 2008 was $151.4 million, an increase of
23% over revenue of $123.0 million in the comparable period of fiscal 2007.
The
increase in revenue was the result of increased sales in AV’s UAS segment
of $29.0 million, or 29%, which was partially offset by lower sales in its
PosiCharge Systems segment of $0.2 million, or 1%, and in its Energy Technology
Center segment of $0.4 million, or 6%.
Income
from operations for the first nine months of fiscal 2008 was $19.3 million,
a decrease of $3.7 million, or 16%, from the same nine months of fiscal 2007
income from operations of $23.0 million. The decrease in income from
operations was caused by higher selling, general and administrative expense
of
$7.4 million and higher research and development expense of
$2.5 million, partially offset by increased gross margin of $6.2
million.
Net
income for the first nine months of fiscal 2008 was $15.0 million, a
decrease of $0.1 million, or 1%, from the same nine months of fiscal 2007 net
income of $15.1 million. Earnings per diluted share for the
first nine months of fiscal 2008 were $0.70, a decrease of $0.28 per diluted
share from the first nine months of fiscal 2007 earnings per diluted share
of
$0.98.
BACKLOG
As
of
January 26, 2008, funded backlog (unfilled firm orders for which funding is
currently appropriated to AV under a customer contract) was $62.1 million
compared to $60.9 million as of April 30, 2007.
FISCAL
2008 — OUTLOOK FOR THE FULL YEAR
For
fiscal year 2008 the company maintains its guidance of revenue growth of between
20% and 25% over fiscal year 2007, with an operating income margin of between
12% and 14%. The foregoing estimates are forward looking and reflect
management’s view of current and future market conditions, including certain
assumptions with respect to our ability to obtain and retain government
contracts, changes in the demand for our products and services, activities
of
competitors and changes in the regulatory environment. Investors are reminded
that actual results may differ materially from these
estimates.
CONFERENCE
CALL
In
conjunction with this release, AeroVironment, Inc. will host a conference call
today, Monday, March 3, 2008, at 1:30 pm Pacific Time that will be broadcast
live over the Internet. Timothy E. Conver, chairman, chief executive officer
and
president, Stephen C. Wright, chief financial officer, and Steven A. Gitlin,
director of investor relations, will host the call.
4:30
PM
ET
3:30
PM
CT
2:30
PM
MT
1:30
PM
PT
The
conference call may be accessed by dialing (888) 679-8018 (U.S.) or (617)
213-4845 (international) five to ten minutes prior to the start time to allow
for registration. The passcode for the call is 67404378.
Investors
with Internet access may access the live audio webcast via the Investor
Relations section of the AeroVironment, Inc. website,
http://investor.avinc.com. Please allow fifteen minutes prior to the
call to download and install any necessary audio software. An audio
replay of the event will be archived on the Investor Relations page of the
company’s web site at http://investor.avinc.com for a period of one
year.
A
digital
replay of the call will be available on Monday, March 3 at approximately 3:30
p.m. Pacific Time through Monday, March 10 at 9:00 p.m. Pacific
Time. Dial (888) 286-8010 and enter the passcode 53460043 to access
the digital replay. International callers should dial (617) 801-6888
and enter the same passcode number.
ABOUT
AEROVIRONMENT, INC. (AV)
Building
on a history of technological innovation, AV designs, develops, produces, and
supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient
electric energy systems. The company's small UAS are used
extensively by agencies of the U.S. Department of Defense and increasingly
by
allied military services to provide situational awareness to tactical operating
units through real-time, airborne reconnaissance, surveillance, and target
acquisition. AV’s PosiCharge® fast charge systems eliminate
battery changing for electric industrial vehicles in factories, airports, and
distribution centers. More information about AV is available at
www.avinc.com.
FORWARD-LOOKING
STATEMENTS
This
press release contains “forward-looking statements” as that term is defined in
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
include, without limitation, any statement that may predict, forecast, indicate
or imply future results, performance or achievements, and may contain words
such
as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,”
or words or phrases with similar meaning. Forward-looking statements are based
on current expectations, forecasts and assumptions that involve risks and
uncertainties, including, but not limited to, economic, competitive,
governmental and technological factors outside of our control, that may cause
our business, strategy or actual results to differ materially from the
forward-looking statements. Factors that
could cause actual results to differ materially from the forward-looking
statements include, but are not limited to, reliance on sales to the U.S.
government; changes in the supply and/or demand and/or prices for our products;
the activities of competitors; failure of the markets in which we operate to
grow; failure to expand into new markets; changes in significant operating
expenses, including components and raw materials; failure to develop new
products; changes in the regulatory environment; and general economic and
business conditions in the United States and elsewhere in the world. For a
further list and description of such risks and uncertainties, see the reports
we
file with the Securities and Exchange Commission including our most recent
annual report on Form 10-K and our most recent quarterly report on Form 10-Q.
We
do not intend, and undertake no obligation, to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
-
Financial Tables Follow -
AeroVironment,
Inc.
Consolidated
Statements of Income (Unaudited)
(In
thousands except share and per share data)
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
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January
26,
|
January
27,
|
January
26,
|
January
27,
|
||||||||||||
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2008
|
2007
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2008
|
2007
|
||||||||||||
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Revenue:
|
|||||||||||||||
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Product sales
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$ |
19,947
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$ |
32,614
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$ |
83,673
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$ |
87,426
|
|||||||
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Contract
services
|
28,588
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13,661
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67,767
|
35,595
|
|||||||||||
|
48,535
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46,275
|
151,440
|
123,021
|
||||||||||||
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Cost
of sales:
|
|||||||||||||||
|
Product sales
|
9,585
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17,677
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48,487
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50,226
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|||||||||||
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Contract
services
|
19,117
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8,962
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47,356
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23,403
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|||||||||||
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28,702
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26,639
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95,843
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73,629
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||||||||||||
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Gross
margin
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19,833
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19,636
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55,597
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49,392
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|||||||||||
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Selling,
general and administrative
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8,216
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4,224
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24,515
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17,091
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|||||||||||
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Research
and development
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3,664
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2,240
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11,766
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9,261
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|||||||||||
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Income
from operations
|
7,953
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13,172
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19,316
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23,040
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|||||||||||
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Other
income
|
|||||||||||||||
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Interest
income
|
1,011
|
173
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3,133
|
520
|
|||||||||||
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Income
before income taxes
|
8,964
|
13,345
|
22,449
|
23,560
|
|||||||||||
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Provision
for income taxes
|
2,999
|
4,456
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7,476
|
8,412
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|||||||||||
|
Net
income
|
$ |
5,965
|
$ |
8,889
|
$ |
14,973
|
$ |
15,148
|
|||||||
|
Earnings
per share data:
|
|||||||||||||||
|
Basic
|
$ |
0.30
|
$ |
0.65
|
$ |
0.77
|
$ |
1.11
|
|||||||
|
Diluted
|
$ |
0.28
|
$ |
0.57
|
$ |
0.70
|
$ |
0.98
|
|||||||
|
Weighted
average shares outstanding:
|
|||||||||||||||
|
Basic
|
20,141,903
|
13,679,665
|
19,568,819
|
13,602,975
|
|||||||||||
|
Diluted
|
21,517,117
|
15,691,256
|
21,320,241
|
15,528,493
|
|||||||||||
Selected
Consolidated Balance Sheet Information
(in
thousands)
Selected
Consolidated Balance Sheet Information
|
January
26, 2008
|
April
30, 2007
|
||||||
|
(Unaudited)
|
|||||||
|
Cash
and cash equivalents
|
$ |
79,565
|
$ |
20,920
|
|||
|
Short-term
investments
|
30,780
|
88,325
|
|||||
|
Accounts
receivable, net
|
25,463
|
7,691
|
|||||
|
Unbilled
receivables and retentions
|
18,418
|
26,494
|
|||||
|
Inventory,
net
|
16,970
|
14,015
|
|||||
|
Total
assets
|
188,823
|
168,177
|
|||||
|
Stockholders’
equity
|
162,945
|
136,423
|
|||||
|
Shares
issued and outstanding
|
20,175,563
|
18,875,957
|
|||||
Reportable
segment results are as follows (Unaudited):
(in
thousands)
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
|
January
26,
|
January
27,
|
January
26,
|
January
27,
|
||||||||||||
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
|
Revenue:
|
|||||||||||||||
|
UAS
|
$
|
42,162
|
$
|
38,763
|
$
|
130,639
|
$
|
101,621
|
|||||||
|
PosiCharge
|
4,111
|
5,431
|
14,705
|
14,889
|
|||||||||||
|
Energy
Technology Center
|
2,262
|
2,081
|
6,096
|
6,511
|
|||||||||||
|
Total
|
$
|
48,535
|
$
|
46,275
|
$
|
151,440
|
$
|
123,021
|
|||||||
|
Gross
margin:
|
|||||||||||||||
|
UAS
|
$
|
17,489
|
$
|
16,695
|
$
|
48,490
|
$
|
40,482
|
|||||||
|
PosiCharge
|
1,378
|
1,918
|
4,725
|
5,679
|
|||||||||||
|
Energy
Technology Center
|
966
|
1,023
|
2,382
|
3,231
|
|||||||||||
|
Total
|
$
|
19,833
|
$
|
19,636
|
$
|
55,597
|
$
|
49,392
|
|||||||
###
Contact:
Steven
Gitlin
Director
of Investor Relations
AeroVironment,
Inc
+1
(626) 357-9983
ir@avinc.com
Mark
Collinson
CCG
Investor Relations and Strategic Communication
For
AeroVironment, Inc.
+1
(310) 477-9800, ext. 117
mark.collinson@ccgir.com