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): September 5,
2007
AEROVIRONMENT,
INC.
(Exact
name of registrant as specified in its charter)
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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)
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
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181 W. Huntington
Drive, Suite 202
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|||
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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
September 5, 2007, AeroVironment, Inc. issued a press release announcing first
quarter financial results for the period ending July 28, 2007. A copy of
the press release is attached hereto as Exhibit 99.1 and is incorporated by
reference herein.
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, as amended, 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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(c)
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Exhibits.
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The
following exhibits are filed herewith:
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Exhibit
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Number
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Description
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Press
release issued by AeroVironment, Inc., dated September 5,
2007.
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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. | ||||
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Date: September
5, 2007
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By: |
/s/
Timothy
E. Conver
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Timothy
E. Conver
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Chairman,
President and Chief Executive Officer
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AeroVironment,
Inc. Announces Fiscal 2008 First Quarter Results
MONROVIA,
CA, September 5, 2007 — AeroVironment, Inc. (AV) (NASDAQ:
AVAV), a leader in unmanned aircraft systems (UAS) and efficient electric energy
systems, today reported financial results for its fiscal first quarter
ended July 28, 2007. Results for the period showed significant growth
in revenue and income from operations compared to the same period in the prior
year.
“Our
team
did an outstanding job again this quarter of delivering system solutions that
provide our customers with unique capabilities and outstanding value,” said Tim
Conver, chairman, chief executive officer and president of AV. “We
experienced continued, strong sales of our small UAS, particularly Raven, which
has now been adopted by the U.S. Army, Special Operations Command, Marine Corps
and Air Force. The U.S. Air Force also took delivery of its initial
BATMAV micro unmanned aircraft systems from us, which include the WASP III
air
vehicle. Our contract logistics support for these systems also increased in
the
quarter. Combined with solid performance from our PosiCharge and
Energy Technology segments, these results reflect effective execution across
the
business, and indicate a growing demand for our solutions.”
FISCAL
2008 FIRST QUARTER RESULTS
Revenue
for the first quarter of fiscal 2008 was $49.2 million, an increase of 56%
over first quarter fiscal 2007 revenue of $31.6 million. The increase in
revenue was a result of increased sales in AV’s UAS segment of
$16.9 million or 68%, its PosiCharge segment of $0.4 million or 8%,
and in its Energy Technology Center segment of $0.3 million or
21%.
Gross
margin for the quarter was $16.8 million, or 34% of revenue, compared to $12.0
million, or 38% of revenue, in the same quarter last year. The lower
margin largely reflects lower fixed price revenue relative to cost reimbursable
revenue compared to the same period in the prior year.
Income
from operations for the first quarter of fiscal 2008 was $4.8 million, an
increase of $2.8 million, or 139%, over first quarter fiscal 2007 income from
operations of $2.0 million. The growth in income from operations was caused
by increased gross margin of $4.8 million partially offset by higher selling,
general and administrative expense of $1.6 million and higher research
and development expense of $0.5 million.
Net
income for the first quarter of fiscal 2008 was $3.8 million, an increase
of $2.4 million, or 182%, over first quarter fiscal 2007 net income of
$1.4 million. Earnings per share for the first quarter of fiscal
2008 was $0.18 per diluted share, an increase of $0.09 per diluted share
over first quarter of fiscal 2007 earnings per share of $0.09 per diluted
share.
BACKLOG
As
of
July 28, 2007, funded backlog (unfilled firm orders for which funding is
currently appropriated to AV under a customer contract) was $61.7 million
compared to $60.9 million as of April 30, 2007.
FISCAL
2008 — OUTLOOK FOR THE FULL YEAR
For
fiscal year 2008 AV 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, AV will host a conference call today, Wednesday,
September 5, 2007, 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 (866) 271-5140 (U.S.) or (617)
213-8893 (international) five to ten minutes prior to the start time to allow
for registration. The passcode for the call is 41633059.
Investors
with Internet access may access the live audio webcast via the Investor
Relations section of the AV 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
AV
website, at http://investor.avinc.com for a period of one year.
A
digital
replay of the call will be available on Wednesday, September 5, 2007 at
approximately 3:30 p.m. Pacific Time through Wednesday, September 12, 2007
at
9:00 p.m. Pacific Time. Dial (888) 286-8010 and enter the passcode
12624154. 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 forces to deliver real-time reconnaissance, surveillance, and target
acquisition to tactical operating units. AV’s PosiCharge ® fast charge systems
eliminate battery changing for electric industrial vehicles in factories,
airports, and distribution centers. For more information about AV, please 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 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; product liability, infringement and other claims; 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 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 -
Consolidated
Statements of Income (Unaudited)
(in
thousands except share and per share data)
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Three
months ended
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July
28,
2007
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July
29,
2006
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Revenue:
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Product
sales
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$
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29,684
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$
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23,844
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Contract
services
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19,520
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7,713
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49,204
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31,557
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Cost
of sales:
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Product
sales
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18,291
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14,301
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Contract
services
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14,076
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5,270
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32,367
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19,571
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Gross
margin
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16,837
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11,986
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Research
and development
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4,300
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3,841
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Selling,
general and administrative
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7,726
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6,132
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Income
from operations
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4,811
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2,013
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Other
income
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Interest
income
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979
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206
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Income
before income taxes
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5,790
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2,219
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Provision
for income taxes
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1,946
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854
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Net
income
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$
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3,844
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$
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1,365
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Earnings
per share data:
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Basic
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$
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0.20
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$
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0.10
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Diluted
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$
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0.18
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$
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0.09
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Weighted
average shares outstanding:
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Basic
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18,897,711
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13,508,079
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Diluted
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21,077,055
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15,165,685
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Selected
Consolidated Balance Sheet Information
(in
thousands)
Selected
Consolidated Balance Sheet Information
|
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July
28, 2007
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April
30, 2007
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||||||
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(Unaudited)
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||||||
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Cash
and cash equivalents
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$ |
29,622
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$ |
20,920
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||||
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Short-term
investments
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71,400
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88,325
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||||||
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Accounts
receivable, net
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23,855
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7,691
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Unbilled
receivables and retentions
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14,789
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26,494
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||||||
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Inventory,
net
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16,415
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14,015
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||||||
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Total
assets
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168,054
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168,177
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||||||
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Stockholders’
equity
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143,263
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136,423
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||||||
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Shares
issued and outstanding
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19,279,809
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18,875,957
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||||||
Reportable
segment results are as follows:
(in
thousands)
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Three
Months Ended
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July
28,
2007
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July
29,
2006
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||||||
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(Unaudited)
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Revenue:
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||||||
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UAS
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$ |
41,873
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$ |
24,983
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||||
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PosiCharge
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5,358
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4,943
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||||||
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Energy
Technology Center
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1,973
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1,631
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||||||
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Total
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$ |
49,204
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$ |
31,557
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||||
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Gross
margin:
|
||||||||
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UAS
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$ |
14,091
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$ |
9,271
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||||
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PosiCharge
|
1,945
|
1,940
|
||||||
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Energy
Technology Center
|
801
|
775
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||||||
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Total
|
$ |
16,837
|
$ |
11,986
|
||||
###
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