AeroVironment, Inc.
AeroVironment Inc (Form: 8-K, Received: 03/06/2018 16:28:01)

 

 

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 6, 2018

 

AEROVIRONMENT, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-33261

 

95-2705790

(State or other jurisdiction of

 

(Commission File Number)

 

(I.R.S. Employer Identification No.)

incorporation or organization)

 

 

 

 

 

800 Royal Oaks Drive, Suite 210

 

 

Monrovia, CA

 

91016

(Address of Principal Executive Offices)

 

(Zip Code)

 

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):

 

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the

Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2

of this chapter).

 

Emerging growth company   

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended

transition period for complying with any new or revised financial accounting standards provided pursuant to Section

13(a) of the Exchange Act.   



 

 

Item 2.02.  Results of Operations and Financial Condition

 

On March 6, 2018, AeroVironment, Inc. issued a press release announcing third quarter financial results for the period ended January 27, 2018, 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 purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing of AeroVironment, Inc. under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, 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.

 

Item 9.01.  Financial Statements and Exhibits

 

(d)  Exhibits.

 

 

 

 

Exhibit

 

 

Number

 

Description

99.1

 

Press release issued by AeroVironment, Inc., dated March 6, 2018.

 

2



 

 

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 6, 2018

By:

/s/ Wahid Nawabi

 

 

Wahid Nawabi

 

 

President and Chief Executive Officer

 

3

 


Exhibit 99.1

 

PICTURE 1

 

 

AeroVironment, Inc. Announces Fiscal 2018 Third Quarter Results

 

MONROVIA, Calif., March 6, 2018 — AeroVironment, Inc. (NASDAQ: AVAV) today reported financial results for its third quarter ended January  27, 2018.

 

“The AeroVironment team continued to execute our fiscal 2018 plan effectively, increasing third quarter revenue by 20 percent year-over-year and generating funded backlog of $123.5 million, which gives us full visibility to the midpoint of our annual revenue guidance range of $290 million.  The Tax Relief and Jobs Act of 2017 reduced our federal income tax rate and the value of deferred tax credits, resulting in an estimated $0.13 reduction in third quarter earnings per share to a loss of $0.04,” said Wahid Nawabi, AeroVironment chief executive officer.  “In the third quarter we entered into a $100 million joint venture with SoftBank Corp. to launch our global, stratospheric broadband communication business.  Our joint venture has signed a $65 million contract with AeroVironment to demonstrate the next generation solar High-Altitude Pseudo-Satellite, or HAPS.  Our core unmanned aircraft systems business secured its largest-ever international contract, valued at $44.5 million, reflecting continued strong international demand for our market-leading small UAS family of systems.  We remain committed to delivering transformational innovations to our customers and creating significant value for our stockholders.“

 

 

FISCAL 2018 THIRD QUARTER RESULTS

 

Revenue for the third quarter of fiscal 2018 was $63.9 million, an increase of 20%  from third quarter fiscal 2017 revenue of $53.2 million. The increase in revenue resulted from an increase in sales in our Unmanned Aircraft Systems (UAS) segment of $11.5 million, partially offset by a decrease in sales in our Efficient Energy Systems (EES) segment of $0.8 million.

 

Gross margin for the third quarter of fiscal 2018 was $20.6 million, an increase of 6%  from third quarter fiscal 2017 gross margin of $19.4 million. The increase in gross margin was primarily due to an increase in product margin of $4.2 million, partially offset by a decrease in service margin of $3.0 million. As a percentage of revenue, gross margin decreased to 32% from 36%. The decrease in gross margin percentage was primarily due to a decrease in service gross margin resulting from a  lower service margin on a UAS program due to unfavorable cost adjustments and an unfavorable sales mix.

 

Loss from operations for the third quarter of fiscal 2018 was $0.2 million, a decrease from third quarter fiscal 2017 loss from operations of $1.4 million. The decrease in the loss from operations was primarily a result of an increase in gross margin of $1.2 million and a decrease in research and development (R&D) expense of $0.7 million, partially offset by an increase in selling, general and administrative (SG&A) expense of $0.7 million.

 

Other income, net, for the third quarter of fiscal 2018 was $0.4 million compared to other income, net of $0.4 million for the third quarter of fiscal 2017. 

 

Provision for income taxes for the third quarter of fiscal 2018 was $0.6 million compared to a  provision for income taxes of $1.1 million for the third quarter of fiscal 2017.  The provision for income taxes for the third quarter of fiscal 2018 included the impact of the Tax Cut and Jobs Act of 2017,  inclusive of a reduction in the blended fiscal year 2018 federal statutory tax rate from 35% to 30.4% and an estimated $3.1 million one-time expense resulting from the remeasurement of our deferred tax assets and liabilities.

1


 

 

Equity method investment activity, net of tax, for the third quarter of fiscal 2018 was a loss of $0.4 million compared to equity method investment activity, net of tax loss of $8,000 for the third quarter of fiscal 2017. The increase was due to the equity method loss associated with our investment in HAPSMobile, Inc. joint venture formed in December 2017.

 

Net loss attributable to AeroVironment for the third quarter of fiscal 2018 was  $0.8 million, a decrease from third quarter fiscal 2017 net loss of $2.2 million.

 

Loss per share for the third quarter of fiscal 2018 was  $0.04 compared to loss per share for the third quarter fiscal 2017 of $0.09.

 

FISCAL 2018 YEAR-TO-DATE RESULTS

 

Revenue for the first nine months of fiscal 2018 was $181.5 million, an increase of 30%  from the first nine months’ fiscal 2017 revenue of $139.5 million. The increase in revenue resulted from an increase in sales in our UAS segment of $40.5 million and an increase in our EES segment of $1.6 million.

 

Gross margin for the first nine months of fiscal 2018 was $63.2 million, an increase of 46% from the first nine months’ fiscal 2017 gross margin of $43.5 million. The increase in gross margin was due to an increase in product margin of $23.3 million, partially offset by a decrease in service margin of $3.5 million. As a percentage of revenue, gross margin increased to 35% from 31%. The increase in gross margin percentage was primarily due to an increase in revenue and an increase in the proportion of product sales to total revenue.

 

Income from operations for the first nine months of fiscal 2018 was $0.9 million, an increase from the first nine months’ of fiscal 2017 loss from operations of $21.5 million. The increase in income from operations was the result of an increase in gross margin of $19.8 million and a decrease in R&D expense of $4.1 million, partially offset by an increase in SG&A expense of $1.5 million. During the second quarter of fiscal 2018, we recorded impairment charges totaling $1.0 million to the identifiable intangible assets and goodwill of Altoy, our Turkish majority-owned subsidiary.

 

Other income, net, for the first nine months of fiscal 2018 was $1.3  million compared to other income, net, for the first nine months of fiscal 2017 of $0.8 million.

 

Provision for income taxes for the first nine months of fiscal 2018 was $0.3 million compared to a benefit for income taxes of $2.8 million for the first nine months of fiscal 2017.  The provision for income taxes for the first nine months of fiscal 2018 included the impact of the Tax Cut and Jobs Act of 2017, including a reduction in the blended fiscal year 2018 federal statutory tax rate from 35% to 30.4% and an estimated $3.1 million one-time expense resulting from the remeasurement of our deferred tax assets and liabilities.

 

Equity method investment activity, net of tax, for the first nine months of fiscal 2018 was a loss of $0.4 million compared to equity method investment activity, net of tax loss of $0.1 million for the first nine months of fiscal 2017. The increase was due to the equity method loss associated with our investment in HAPSMobile, Inc. joint venture formed in December 2017.

 

Net income attributable to AeroVironment for the first nine months of fiscal 2018 was $1.7 million, an increase  from the first nine months of fiscal 2017 net loss of $18.0 million.

 

Earnings per diluted share for the first nine months of fiscal 2018 was $0.07 compared to loss per share for the first nine months of fiscal 2017 of $0.78.

 

BACKLOG

 

As of January 27, 2018, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $123.5 million compared to $78.0 million as of April 30, 2017.

2


 

 

FISCAL 2018 — OUTLOOK FOR THE FULL YEAR

For fiscal 2018, the company continues to expect to generate revenue of between $280 million and $300 million, and earnings per diluted share of between $0.45 and $0.65. 

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 timing and/or amount of government spending, changes in the demand for our products and services, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. 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, Tuesday, March 6, 2018, at 1:30 pm Pacific Time that will be broadcast live over the Internet. Wahid Nawabi, president and chief executive officer, Teresa P. Covington, chief financial officer and Steven A. Gitlin, vice president of investor relations, will host the call.

 

4:30 PM ET

3:30 PM CT

2:30 PM MT

1:30 PM PT

 

Investors may dial into the call at (800) 708-4540 (U.S.)  and enter the passcode 46503973 or (847)  619-6397 (international) five to ten minutes prior to the start time to allow for registration.

 

Investors with Internet access may listen to the live audio webcast via the Investor Relations page of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software.

 

Audio Replay Options

 

An audio replay of the event will be archived on the Investor Relations page of the company's website, at http://investor.avinc.com. The audio replay will also be available via telephone from Tuesday, March 6, 2018, at approximately 4:00 p.m. Pacific Time through Tuesday, March  13, 2018, at 11:59 p.m. Pacific Time.  Dial (888) 843-7419 and enter the passcode 46503973. International  callers should dial (630) 652-3042 and enter the same passcode number to access the audio replay. 

 

ABOUT AEROVIRONMENT, INC.

 

AeroVironment (NASDAQ: AVAV) provides customers with more actionable intelligence so they can proceed with certainty. Based in California, AeroVironment is a global leader in unmanned aircraft systems, tactical missile systems and electric vehicle charging and test systems, and serves militaries, government agencies, businesses and consumers. For more information visit 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

3


 

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; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending; risks related to our international business, including compliance with export control laws; potential need for changes in our long-term strategy in response to future developments; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats; changes in the supply and/or demand and/or prices for our products and services; the activities of competitors and increased competition; failure of the markets in which we operate to grow; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems and electric vehicles; failure to remain a market innovator and create new market opportunities; changes in significant operating expenses, including components and raw materials; failure to develop new products; the extensive regulatory requirements governing our contracts with the U.S. government; product liability, infringement and other claims; 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. 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 –

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AeroVironment, Inc.

Consolidated Statements of Operations (Unaudited)

(In thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

January 27,

 

January 28,

 

January 27,

 

January 28,

 

 

    

2018

    

2017

    

2018

    

2017

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

49,204

 

$

36,746

 

$

133,228

 

$

81,833

 

Contract services

 

 

14,731

 

 

16,417

 

 

48,298

 

 

57,664

 

 

 

 

63,935

 

 

53,163

 

 

181,526

 

 

139,497

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

31,911

 

 

23,641

 

 

86,142

 

 

58,060

 

Contract services

 

 

11,438

 

 

10,171

 

 

32,168

 

 

37,986

 

 

 

 

43,349

 

 

33,812

 

 

118,310

 

 

96,046

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

17,293

 

 

13,105

 

 

47,086

 

 

23,773

 

Contract services

 

 

3,293

 

 

6,246

 

 

16,130

 

 

19,678

 

 

 

 

20,586

 

 

19,351

 

 

63,216

 

 

43,451

 

Selling, general and administrative

 

 

13,500

 

 

12,788

 

 

41,295

 

 

39,838

 

Research and development

 

 

7,314

 

 

7,988

 

 

21,047

 

 

25,105

 

(Loss) income from operations

 

 

(228)

 

 

(1,425)

 

 

874

 

 

(21,492)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

545

 

 

390

 

 

1,489

 

 

1,162

 

Other expense, net

 

 

(108)

 

 

(38)

 

 

(159)

 

 

(357)

 

Income (loss) before income taxes

 

 

209

 

 

(1,073)

 

 

2,204

 

 

(20,687)

 

Provision (benefit) for income taxes

 

 

628

 

 

1,102

 

 

277

 

 

(2,809)

 

Equity method investment activity, net of tax

 

 

(418)

 

 

(8)

 

 

(418)

 

 

(119)

 

Net (loss) income

 

 

(837)

 

$

(2,183)

 

 

1,509

 

 

(17,997)

 

Net loss attributable to noncontrolling interest

 

 

 9

 

 

 —

 

 

238

 

 

 —

 

Net (loss) income attributable to AeroVironment

 

$

(828)

 

$

(2,183)

 

$

1,747

 

$

(17,997)

 

Net (loss) income per share attributable to AeroVironment:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.04)

 

$

(0.09)

 

$

0.07

 

$

(0.78)

 

Diluted

 

$

(0.04)

 

$

(0.09)

 

$

0.07

 

$

(0.78)

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,515,622

 

 

23,082,974

 

 

23,443,673

 

 

23,029,546

 

Diluted

 

 

23,515,622

 

 

23,082,974

 

 

23,774,946

 

 

23,029,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5


 

 

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

 

 

 

January 27,

    

April 30,

 

 

 

2018

 

2017

 

 

    

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112,304

 

$

79,904

 

Short-term investments

 

 

109,543

 

 

119,971

 

Accounts receivable, net of allowance for doubtful accounts of $1,360 at January 27, 2018 and $291 at April 30, 2017

 

 

25,690

 

 

74,361

 

Unbilled receivables and retentions

 

 

24,961

 

 

14,120

 

Inventories, net

 

 

77,327

 

 

60,076

 

Income taxes receivable

 

 

292

 

 

 —

 

Prepaid expenses and other current assets

 

 

5,138

 

 

5,653

 

Total current assets

 

 

355,255

 

 

354,085

 

Long-term investments

 

 

38,822

 

 

42,096

 

Property and equipment, net

 

 

21,626

 

 

19,220

 

Deferred income taxes

 

 

14,837

 

 

15,089

 

Other assets

 

 

2,305

 

 

2,010

 

Total assets

 

$

432,845

 

$

432,500

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

13,249

 

$

20,283

 

Wages and related accruals

 

 

15,090

 

 

12,966

 

Income taxes payable

 

 

 —

 

 

1,418

 

Customer advances

 

 

3,555

 

 

3,317

 

Other current liabilities

 

 

8,651

 

 

10,079

 

Total current liabilities

 

 

40,545

 

 

48,063

 

Deferred rent

 

 

1,589

 

 

1,719

 

Capital lease obligations - net of current portion

 

 

 7

 

 

161

 

Other non-current liabilities

 

 

184

 

 

184

 

Deferred tax liability

 

 

67

 

 

116

 

Liability for uncertain tax positions

 

 

64

 

 

64

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at January 27, 2018 and April 30, 2017

 

 

 —

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

 

Issued and outstanding shares—23,906,043 shares at January 27, 2018 and 23,630,419 at April 30, 2017

 

 

 2

 

 

 2

 

Additional paid-in capital

 

 

168,735

 

 

162,150

 

Accumulated other comprehensive loss

 

 

(25)

 

 

(127)

 

Retained earnings

 

 

221,676

 

 

219,929

 

Total AeroVironment stockholders' equity

 

 

390,388

 

 

381,954

 

Noncontrolling interest

 

 

 1

 

 

239

 

Total equity

 

 

390,389

 

 

382,193

 

Total liabilities and stockholders’ equity

 

$

432,845

 

$

432,500

 

 

 

 

 

 

 

6


 

 

 

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

    

January 27,

    

January 28,

 

 

 

2018

 

2017

 

Operating activities

 

 

 

 

 

 

Net income (loss)

 

$

1,509

 

$

(17,997)

 

Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,605

 

 

5,188

 

Loss from equity method investments

 

 

418

 

 

119

 

Impairment of long-lived assets

 

 

255

 

 

 —

 

Provision for doubtful accounts

 

 

1,102

 

 

115

 

Impairment of intangible assets and goodwill

 

 

1,021

 

 

 —

 

(Gains) losses on foreign currency transactions

 

 

(36)

 

 

272

 

Deferred income taxes

 

 

175

 

 

(698)

 

Stock-based compensation

 

 

3,899

 

 

2,736

 

Tax benefit from exercise of stock options

 

 

 —

 

 

22

 

Loss on disposition of property and equipment

 

 

15

 

 

37

 

Amortization of held-to-maturity investments

 

 

1,250

 

 

1,827

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

47,652

 

 

32,553

 

Unbilled receivables and retentions

 

 

(10,841)

 

 

4,079

 

Inventories

 

 

(17,251)

 

 

(31,320)

 

Income tax receivable

 

 

(292)

 

 

(2,487)

 

Prepaid expenses and other assets

 

 

472

 

 

(1,190)

 

Accounts payable

 

 

(6,684)

 

 

(3,170)

 

Other liabilities

 

 

(153)

 

 

(4,510)

 

Net cash provided by (used in) operating activities

 

 

28,116

 

 

(14,424)

 

Investing activities

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(8,450)

 

 

(7,586)

 

Equity method investments

 

 

(1,860)

 

 

 —

 

Redemptions of held-to-maturity investments

 

 

163,813

 

 

93,208

 

Purchases of held-to-maturity investments

 

 

(151,740)

 

 

(122,978)

 

Proceeds from the sale of property and equipment

 

 

 —

 

 

 7

 

Redemptions of available-for-sale investments

 

 

450

 

 

400

 

Net cash provided by (used in) investing activities

 

 

2,213

 

 

(36,949)

 

Financing activities

 

 

 

 

 

 

 

Principal payments of capital lease obligations

 

 

(231)

 

 

(291)

 

Tax withholding payment related to net settlement of equity awards

 

 

(389)

 

 

 —

 

Exercise of stock options

 

 

2,691

 

 

655

 

Net cash provided by financing activities

 

 

2,071

 

 

364

 

Net increase (decrease) in cash and cash equivalents

 

 

32,400

 

 

(51,009)

 

Cash and cash equivalents at beginning of period

 

 

79,904

 

 

124,287

 

Cash and cash equivalents at end of period

 

$

112,304

 

$

73,278

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid, net during the period for:

 

 

 

 

 

 

 

Income taxes

 

$

1,812

 

$

1,786

 

Non-cash activities

 

 

 

 

 

 

 

Unrealized gain on investments, net of deferred tax expense of $29 and $6, respectively

 

$

42

 

$

32

 

Reclassification from share-based liability compensation to equity

 

$

384

 

$

307

 

Change in foreign currency translation adjustments

 

$

62

 

$

 —

 

Acquisitions of property and equipment included in accounts payable

 

$

332

 

$

408

 

 

 

 

 

 

 

 

 

 

7


 

 

 

 

 

 

AeroVironment, Inc.

Reportable Segment Results are as Follows (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

January 27,

 

 

January 28,

 

 

January 27,

 

 

January 28,

 

 

    

 

2018

    

2017

    

 

2018

    

2017

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

$

53,433

 

$

41,894

 

$

153,671

 

$

113,220

 

EES

 

 

10,502

 

 

11,269

 

 

27,855

 

 

26,277

 

Total

 

 

63,935

 

 

53,163

 

 

181,526

 

 

139,497

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

 

36,130

 

 

25,530

 

 

98,355

 

 

76,549

 

EES

 

 

7,219

 

 

8,282

 

 

19,955

 

 

19,497

 

Total

 

 

43,349

 

 

33,812

 

 

118,310

 

 

96,046

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

 

17,303

 

 

16,364

 

 

55,316

 

 

36,671

 

EES

 

 

3,283

 

 

2,987

 

 

7,900

 

 

6,780

 

Total

 

 

20,586

 

 

19,351

 

 

63,216

 

 

43,451

 

Selling, general and administrative

 

 

13,500

 

 

12,788

 

 

41,295

 

 

39,838

 

Research and development

 

 

7,314

 

 

7,988

 

 

21,047

 

 

25,105

 

(Loss) income from operations

 

 

(228)

 

 

(1,425)

 

 

874

 

 

(21,492)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

545

 

 

390

 

 

1,489

 

 

1,162

 

Other expense, net

 

 

(108)

 

 

(38)

 

 

(159)

 

 

(357)

 

Income (loss) before income taxes

 

$

209

 

$

(1,073)

 

$

2,204

 

$

(20,687)

 

 

 

 

##

 

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Contact:

AeroVironment, Inc.

Steven Gitlin

+1 (626) 357-9983

ir@avinc.com

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