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): December 4,
2007
AEROVIRONMENT,
INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
001-33261
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95-2705790
|
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
File Number)
|
(I.R.S.
Employer Identification No.)
|
|
______________________
|
||
|
181 W. Huntington
Drive, Suite 202
|
||
|
Monrovia,
CA
|
91016
|
|
|
(Address
of Principal Executive Offices)
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(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):
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|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
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¨
|
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 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
|
On
December 4, 2007, AeroVironment, Inc. issued a press release announcing second
quarter financial results for the period ending October 27, 2007, 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 exhibit is filed herewith:
Exhibit
Number Description
|
99.1
|
Press release issued by AeroVironment, Inc., dated December 4,
2007.
|
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: December
4,
2007
; By: /s/
Timothy E. Conver
Timothy E. Conver
Chairman,
President and Chief
Executive Officer
AeroVironment,
Inc. Announces Fiscal 2008 Second Quarter Results
MONROVIA,
CA, December 4, 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 second quarter ended October 27,
2007.
“Growth
in our UAS and PosiCharge segments reflects ongoing customer confidence in
the
value delivered by our solutions and the effective execution of our plans,” said
Tim Conver, chairman, chief executive officer and president of AV. “Our team
continues to deliver positive results both in core businesses and in new product
development. Raven and Wasp are our key small UAS supporting programs of record.
The number of these systems deployed around the world continues to increase
as
they regularly provide cost-effective force protection where they are employed.
The receipt of a $57 million base development contract for the Global Observer
stratospheric persistent platform, with options for additional aircraft totaling
$51 million, represented a major achievement during the quarter that shows
market endorsement of another AV innovation and positions us for further
growth.”
FISCAL
2008 SECOND QUARTER RESULTS
Revenue
for the second quarter of fiscal 2008 was $53.7 million, an increase of
19%, over revenue of $45.2 million in the comparable period of fiscal 2007.
The
increase in revenue was the result of increased sales in AV’s UAS segment
of $8.7 million, or 23%, and in its PosiCharge Systems segment of $0.7
million, or 16%, which was partially offset by a decrease in its Energy
Technology Center segment of $0.9 million, or 34%.
Gross
margin for the quarter was $18.9 million, or 35% of revenue, compared to $17.8
million, or 39% of revenue, in the same quarter last year. The higher
gross margin reflects the growth in revenue, partially offset by lower gross
margin rates.
Income
from operations for the second quarter of fiscal 2008 was $6.6 million, a
decrease of $1.3 million, or 17%, from second quarter fiscal 2007 income
from operations of $7.9 million. The decrease in income from operations was
caused by higher selling, general and administrative (SG&A) expense of
$1.8 million and higher research and development (R&D) expense of
$0.6 million, partially offset by increased gross margin of $1.1
million.
Net
income for the second quarter of fiscal 2008 was $5.2 million, an increase
of $0.3 million, or 6%, over second quarter fiscal 2007 net income of
$4.9 million. Earnings per share for the second quarter of
fiscal 2008 was $0.24 per diluted share, a decrease of $0.07 per diluted
share over second quarter of fiscal 2007 earnings per share of $0.31 per diluted
share.
FISCAL
2008 YEAR-TO-DATE RESULTS
Revenue
for the first six months of fiscal 2008 was $102.9 million, an increase of
34%, over revenue of $76.7 million in the comparable period of fiscal 2007.
The
increase in revenue was the result of increased sales in AV’s UAS segment
of $25.6 million, or 41%, and in its PosiCharge Systems segment of $1.1
million, or 12%, which was partially offset by lower sales in its Energy
Technology Center segment of $0.6 million, or 13%.
Gross
margin for the first six months of fiscal 2008 was $35.8 million, or 35% of
revenue, compared to $29.8 million, or 39% of revenue, for the same six months
last year. The higher gross margin reflects the growth in revenue,
partially offset by lower gross margin rates.
Income
from operations for the first six months of fiscal 2008 was $11.4 million,
an increase of $1.5 million, or 15%, over the same six months of fiscal 2007
income from operations of $9.9 million. The growth in income from
operations was caused by increased gross margin of $6.0 million, which was
partially offset by higher SG&A expense of $3.4 million and higher
R&D expense of $1.1 million.
Net
income for the first six months of fiscal 2008 was $9.0 million, an
increase of $2.7 million, or 44%, over the same six months of fiscal 2007 net
income of $6.3 million. Earnings per share for the first six
months of fiscal 2008 was $0.42 per diluted share, an increase of $0.02 per
diluted share over the first six months of fiscal 2007 earnings per share of
$0.40 per diluted share.
BACKLOG
As
of
October 27, 2007, funded backlog (unfilled firm orders for which funding is
currently appropriated to AV under a customer contract) was $66.3 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-ooking 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, Tuesday, December 4, 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 (800) 320-2978 (U.S.) or (617)
614-4923 (international) five to ten minutes prior to the start time to allow
for registration. The passcode for the call is 24655609.
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 Tuesday, December 4 at approximately
3:30 p.m. Pacific Time through Tuesday, December 11 at 9:00 p.m. Pacific
Time. Dial (888) 286-8010 and enter the passcode 87972643 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
|
Six
months ended
|
|||||||||||
|
October
27,
|
October
28,
|
October
27,
|
October
28,
|
|||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
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Revenue:
|
||||||||||||
|
Product sales
|
$ |
34,042
|
$ |
30,968
|
$ |
63,726
|
$ |
54,812
|
||||
|
Contract
services
|
19,659
|
14,221
|
39,179
|
21,934
|
||||||||
|
53,701
|
45,189
|
102,905
|
76,746
|
|||||||||
|
Cost
of sales:
|
||||||||||||
|
Product sales
|
20,611
|
18,249
|
38,902
|
32,550
|
||||||||
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Contract
services
|
14,163
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9,170
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28,239
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14,440
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||||||||
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34,774
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27,419
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67,141
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46,990
|
|||||||||
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Gross
margin
|
18,927
|
17,770
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35,764
|
29,756
|
||||||||
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Research
and development
|
3,802
|
3,180
|
8,102
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7,021
|
||||||||
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Selling,
general and administrative
|
8,573
|
6,735
|
16,299
|
12,867
|
||||||||
|
Income
from operations
|
6,552
|
7,855
|
11,363
|
9,868
|
||||||||
|
Other
income
|
||||||||||||
|
Interest
income
|
1,143
|
141
|
2,122
|
347
|
||||||||
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Income
before income taxes
|
7,695
|
7,996
|
13,485
|
10,215
|
||||||||
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Provision
for income taxes
|
2,531
|
3,102
|
4,477
|
3,956
|
||||||||
|
Net
income
|
$ |
5,164
|
$ |
4,894
|
$ |
9,008
|
$ |
6,259
|
||||
|
Earnings
per share data:
|
||||||||||||
|
Basic
|
$ |
0.26
|
$ |
0.36
|
$ |
0.47
|
$ |
0.46
|
||||
|
Diluted
|
$ |
0.24
|
$ |
0.31
|
$ |
0.42
|
$ |
0.4
|
||||
|
Weighted
average shares outstanding:
|
||||||||||||
|
Basic
|
19,652,095
|
13,620,154
|
19,279,094
|
13,564,438
|
||||||||
|
Diluted
|
21,346,349
|
15,584,150
|
21,218,731
|
15,528,435
|
||||||||
Selected
Consolidated Balance Sheet Information
(in
thousands)
Selected
Consolidated Balance Sheet Information
|
October
27, 2007
|
April
30, 2007
|
||||
|
(Unaudited)
|
|||||
|
Cash
and cash equivalents
|
$ |
14,283
|
$ |
20,920
|
|
|
Short-term
investments
|
92,400
|
88,325
|
|||
|
Accounts
receivable, net
|
26,034
|
7,691
|
|||
|
Unbilled
receivables and retentions
|
12,837
|
26,494
|
|||
|
Inventory,
net
|
12,704
|
14,015
|
|||
|
Total
assets
|
177,550
|
168,177
|
|||
|
Stockholders’
equity
|
155,853
|
136,423
|
|||
|
Shares
issued and outstanding
|
20,081,738
|
18,875,957
|
|||
Reportable
segment results are as follows:
(in
thousands)
|
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||
|
|
October
27,
|
October
28,
|
October
27,
|
October
28,
|
|||||||||
|
|
2007
|
2006
|
2007
|
2006
|
|||||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Revenue:
|
|
|
|
|
|||||||||
|
UAS
|
$ |
46,604
|
$ |
37,875
|
$ |
88,477
|
$ |
62,858
|
|||||
|
PosiCharge
|
5,236
|
4,515
|
10,594
|
9,458
|
|||||||||
|
Energy
Technology Center
|
1,861
|
2,799
|
3,834
|
4,430
|
|||||||||
|
Total
|
$ |
53,701
|
$ |
45,189
|
$ |
102,905
|
$ |
76,746
|
|||||
|
Gross
margin:
|
|||||||||||||
|
UAS
|
$ |
16,910
|
$ |
14,516
|
$ |
31,001
|
$ |
23,787
|
|||||
|
PosiCharge
|
1,402
|
1,821
|
3,347
|
3,761
|
|||||||||
|
Energy
Technology Center
|
615
|
1,433
|
1,416
|
2,208
|
|||||||||
|
Total
|
$ |
18,927
|
$ |
17,770
|
$ |
35,764
|
$ |
29,756
|
|||||
###
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