Continued acquisition of new capability in constrained budget
environment indicates high value and potential for further demand
MONROVIA, Calif.--(BUSINESS WIRE)--
Inc. (NASDAQ:AVAV) announced that it has received a total of $15.8
million in orders under a contract for Switchblade™ tactical missile
systems, ancillary equipment and support. The United States Army Close
Combat Weapons Systems Program Executive Office Missiles and Space (PEO
MS) awarded these contract options. AeroVironment and its strategic
teammate for advanced warheads, ATK (NYSE: ATK), will continue to work
together to produce and deliver the systems.
Switchblade is the first smart loitering weapon that delivers target verification and pinpoint delivery (Photo: Business Wire)
The initial contract was issued on August 30, 2012 in support of the
Army's Rapid Equipping Force (REF). The scope of work under this
contract includes operational and training rounds plus training, support
and rapid delivery to support ongoing customer operations. AeroVironment
has received five separate orders totaling $15.8 million under this
contract, including the most recent on July 29, 2013.
"Switchblade is the first smart loitering weapon, giving our troops a
new force protection capability that can deliver precision effects
kilometers away with in-flight retargeting, target verification and
pinpoint delivery, all resulting in little or no collateral effects,"
said Roy Minson, AeroVironment senior vice president and general manager
of the company's Unmanned Aircraft Systems business segment.
"AeroVironment and ATK stand ready to deliver more Switchblade systems
to protect our troops."
"Adoption of innovative new solutions within the Department of Defense
is difficult in today's budget constrained environment," added Tim
Conver, AeroVironment chairman and chief executive officer. "These
follow-on procurements of Switchblade systems demonstrate our customer's
confidence in this unique capability and the persistence required for
the successful adoption and deployment of innovative solutions."
Conver added, "Switchblade is just one of a number of new opportunities
driving AeroVironment's long-term growth. We are confident that our
strategy is working and that our investments in pioneering new products
and technologies are creating sustainable long-term value for our
customers and our stockholders."
A February 2013 news
article quoted the REF's director as saying, "Theater came in and
said, ‘We need dramatically more' " (Switchblade systems) than those
supplied in late 2012. In March 2013 the Army released a presolicitation
notification on the Federal Business Opportunities website (www.fbo.gov)
for an intent to award a new sole source contract to AeroVironment for
Switchblade tactical missile systems. That contract has yet to be
Switchblade provides a high-precision, direct fire capability at
beyond-line-of-sight ranges in a rapidly deployable, backpackable
package weighing six pounds.
About AeroVironment's Family of Small UAS
Wasp AE™, RQ-20A
Puma™ and Shrike
VTOL™ comprise AeroVironment's Family of Small Unmanned Aircraft
Systems. Operating with a common
ground control system (GCS), this Family of Systems provides
increased capability to the warfighter that can give ground commanders
the option of selecting the appropriate aircraft based on the type of
mission to be performed. This increased capability has the potential to
provide significant force protection and force multiplication benefits
to small tactical units and security personnel. AeroVironment provides
logistics services worldwide to ensure a consistently high level of
operational readiness and provides mission services for customers
requiring only the information its small UAS produce. AeroVironment has
delivered thousands of new and replacement small unmanned air vehicles
to customers within the United States and to more than twenty
small UAS is tailored to search and rescue, first response, law
enforcement and other public safety missions. Small enough to fit easily
in the trunk of a car, the Qube system can be unpacked, assembled and
ready for flight in less than five minutes, giving the operator a
rapidly deployable eye in the sky at a fraction of the cost of manned
aircraft and large unmanned aircraft.
About AeroVironment, Inc.
AeroVironment is a technology solutions provider that designs, develops,
produces, operates and supports an advanced portfolio of Unmanned
Aircraft Systems (UAS) and electric transportation solutions.
Agencies of the U.S. Department of Defense and allied military services
use the company's electric-powered, hand-launched
unmanned aircraft systems extensively to provide situational
awareness to tactical operating units through real-time, airborne
reconnaissance, surveillance and communication. Multiple government
agencies have helped to fund the development and demonstration of Global
Observer®, a hybrid-electric,
stratospheric UAS designed to provide affordable, persistent
reconnaissance and communication over any location on the globe. Switchblade™
is a tactical missile system designed to provide a rapid, lethal,
pinpoint precision strike capability with minimal collateral damage.
AeroVironment's electric transportation solutions include a
comprehensive suite of electric
vehicle (EV) charging systems, installation and data services for
consumers, automakers, utilities and government agencies, power
cycling and test systems for EV developers and industrial
electric vehicle charging systems for commercial fleets. More
information about AeroVironment is available at www.avinc.com.
ATK is an aerospace, defense, and commercial products company with
operations in 22 states, Puerto Rico, and internationally. News and
information can be found on the Internet at www.atk.com.
Safe Harbor Statement
Certain statements in this press release may constitute "forward-looking
statements" as that term is defined in the Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of 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
those expressed or implied. Factors that could cause actual results to
differ materially from the forward-looking statements include, but are
not limited to, our ability to perform under existing contracts and
obtain additional contracts; our reliance on sales to the U.S.
government; changes in the timing and/or amount of government spending;
changes in the supply and/or demand and/or prices for our products and
services; changes in the regulatory environment; the activities of
competitors; failure of the markets in which we operate to grow; failure
to expand into new markets; failure to develop new products or integrate
new technology with current products; 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 Quarterly Reports on
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.
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Source: AeroVironment, Inc.
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