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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jan. 27, 2018	Feb. 27, 2018
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity Central Index Key	0001368622
Document Type	10-Q
Document Period End Date	Jan. 27, 2018
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,905,986
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
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
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

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,360	$ 291
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, Authorized shares	100,000,000	100,000,000
Common stock, Issued shares	23,906,043	23,630,419
Common stock, outstanding shares	23,906,043	23,630,419

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Revenue:
Product sales	$ 49,204	$ 36,746	$ 133,228	$ 81,833
Contract services	14,731	16,417	48,298	57,664
Total revenue	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
Total cost of sales	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
Total gross margin	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 (in dollars per share)	$ (0.04)	$ (0.09)	$ 0.07	$ (0.78)
Diluted (in dollars per share)	$ (0.04)	$ (0.09)	$ 0.07	$ (0.78)
Weighted average shares outstanding:
Basic (in shares)	23,515,622	23,082,974	23,443,673	23,029,546
Diluted (in shares)	23,515,622	23,082,974	23,774,946	23,029,546

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Consolidated Statements of Comprehensive (Loss) Income
Net (loss) income	$ (837)	$ (2,183)	$ 1,509	$ (17,997)
Other comprehensive income:
Change in foreign currency translation adjustments	62		62
Unrealized gain (loss) on investments, net of deferred tax expense (benefit) of $10 and $(23) for the three months ended January 27, 2018 and January 28, 2017, respectively; and net of deferred tax expense of $29 and $6 for the nine months ended January 27, 2018 and January 28, 2017, respectively	13	(11)	42	32
Total comprehensive (loss) income	(762)	(2,194)	1,613	(17,965)
Net loss attributable to noncontrolling interest	9		238
Comprehensive (loss) income attributable to AeroVironment	$ (753)	$ (2,194)	$ 1,851	$ (17,965)

Consolidated Statements of Comprehensive Income (loss) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Consolidated Statements of Comprehensive (Loss) Income
Unrealized gain (loss) on investments, net of deferred tax expense (benefit)	$ 10,000	$ (23,000)	$ 29,000	$ 6

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jan. 27, 2018	Jan. 28, 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
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

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017
Consolidated Statements of Cash Flows
Unrealized change in fair value on long-term investments recorded in other comprehensive income loss, net of tax expenses (benefit)	$ 29	$ 6

Organization and Significant Accounting Policies

9 Months Ended

Jan. 27, 2018

Organization and Significant Accounting Policies

Organization and Significant Accounting Policies

AeroVironment, Inc.

Notes to Consolidated Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies

Organization

AeroVironment, Inc., a Delaware corporation (the “Company”), is engaged in the design, development, production, support and operation of unmanned aircraft systems (“UAS”) and efficient energy systems (“EES”) for various industries and governmental agencies.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements have been included. The results of operations for the three and nine months ended January 27, 2018 are not necessarily indicative of the results for the full year ending April 30, 2018. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2017, included in the Company’s Annual Report on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including estimates of anticipated contract costs and revenue utilized in the revenue recognition process, that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

The accompanying consolidated financial statements include the balance sheet and results of operations of Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”), in which the Company increased its ownership to a controlling interest of 85% during the fourth quarter of the fiscal year ended April 30, 2017. Prior to the increase in ownership, the Company's investment in Altoy was accounted for under the equity method.

In July 2016, the Company dissolved Charger Bicycles, LLC, the results of which were not material to the consolidated financial statements. During the three months ended January 28, 2017, the Company dissolved Skytower, LLC and Regenerative Fuel Cell Systems, LLC, the results of which were not material to the consolidated financial statements.

In December of 2017, the Company and Softbank Corp. (“Softbank”) formed a joint venture, HAPSMobile, Inc. (“HAPSMobile”). As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment will be accounted as an equity method investment. The Company has presented its proportion of HAPSMobile’s net loss in “Equity method investment activity, net of tax” in the consolidated statement of operations. The carrying value of the investment in HAPSMobile was recorded in “Other assets, long-term.” Refer to Note 5 – Equity Method Investments for further details.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. Equity method losses associated with the Company’s investment in Altoy for the three and nine months ended Janaury 28, 2017 have been reclassified from other expense, net to equity method investment activity, net of tax on the consolidated statement of operations.

Recently Adopted Accounting Standards

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU does not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. This ASU eliminates from U.S. GAAP the requirement to measure inventory at the lower of cost or market. Market under the previous requirement could be replacement cost, net realizable value, or net realizable value less a normal profit margin. Entities within the scope of this update will now be required to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory using LIFO or the retail inventory method. The Company’s adoption of ASU 2015-11 effective May 1, 2017 did not have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by removing Step 2 from the goodwill impairment test. If goodwill impairment is realized, the amount recognized will be the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied on a prospective basis and will become effective for public entities in the first quarter of the year ending July 31, 2020, with early adoption available. The Company elected to early adopt the standard during the three months ended October 28, 2017. The Company’s adoption of ASU 2017-04 did not have a material impact on its consolidated financial statements.

Segments

The Company’s products are sold and divided among two reportable segments to reflect the Company’s strategic goals. Operating segments are defined as components of an enterprise from which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer, who reviews the revenue and gross margin results for each of these segments in order to make resource allocation decisions, including the focus of research and development (“R&D”) activities and performance assessment. The Company’s reportable segments are business units that offer different products and services and are managed separately.

Investments

The Company’s investments are accounted for as held-to-maturity and available-for-sale and reported at amortized cost and fair value, respectively.

Fair Values of Financial Instruments

Fair values of cash and cash equivalents, accounts receivable, unbilled receivables and retentions, and accounts payable approximate cost due to the short period of time to maturity.

Government Contracts

Payments to the Company on government cost reimbursable contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (“DCAA”). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional rates, may create an additional receivable or liability for the Company.

For example, during the course of its audits, the DCAA may question the Company’s incurred costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to the Company’s administrative contracting officer to disallow such costs. Historically, the Company has not experienced material disallowed costs as a result of government audits. However, the Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future.

The Company’s revenue recognition policy calls for revenue recognized on all cost reimbursable government contracts to be recorded at actual rates unless collectability is not reasonably assured. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. At January 27, 2018, the Company had $77,000 reserved for incurred cost claim audits. At April 30, 2017, the Company had no reserves for incurred cost claim audits.

(Loss) Earnings Per Share

Basic (loss) earnings per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock.

The reconciliation of basic to diluted shares is as follows:


	Three Months Ended		Nine Months Ended
	January 27, 2018	January 28, 2017	January 27, 2018	January 28, 2017

Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock	23,515,622	23,082,974	23,443,673	23,029,546
Dilutive effect of employee stock options and unvested restricted stock	—	—	331,273	—
Denominator for diluted (loss) earnings per share	23,515,622	23,082,974	23,774,946	23,029,546

Due to the net loss for the three months ended January 27, 2018, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. Potentially dilutive shares not included in the computation of diluted weighted-average common shares because their effect would have been anti-dilutive were 379,749 for the three months ended January 27, 2018. Potentially dilutive shares not included in the computation of diluted weighted-average common shares because their effect would have been anti-dilutive were 27,139 for the nine months ended January 27, 2018. Due to the net loss for the three and nine months ended January 28, 2017, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. Potentially dilutive shares not included in the computation of diluted weighted-average common shares because their effect would have been anti-dilutive were 222,071 and 246,093 for the three and nine months ended January 28, 2017, respectively.

Recently Issued Accounting Standards

In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the definition of a business (Topic 805). This ASU clarifies the definition of a business with the objective of providing a more robust framework to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within that fiscal year, with early adoption permitted. The amendments are to be applied prospectively to business combinations that occur after the effective date.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230). This ASU adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases with terms of 12 months or more. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. The Company currently does not hold a large number of leases that are classified as operating leases under the existing lease standard, with the only significant leases being the Company’s various property leases. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard was originally effective for reporting periods beginning after December 15, 2016 and early adoption was not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606)-Deferral of the Effective Date. This update approved a one-year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. Since the issuance of ASU 2014-09, the FASB has issued several amendments to provide additional supplemental guidance on certain aspects of the original pronouncement. The core principle of ASU 2014-09 is to recognize revenue upon the transfer of goods or services to customers at an amount that reflects the consideration expected to be received. In adopting the guidance, companies are permitted to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures.

The Company currently expects to adopt ASU 2014-09 on May 1, 2018 using the full retrospective transition method. The Company is continuing to assess the potential impact of this guidance, including the impact on those areas currently subject to industry-specific guidance such as government contract accounting. As part of its assessment, the Company is reviewing representative samples of customer contracts to determine the impact on revenue recognition under the new guidance. The Company’s contracts with the U.S. government contain provisions that, among other things, allow the government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with the U.S. government to determine whether: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (ii) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting either of these criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred.

The Company’s contracts with international governments for the purchase of small UAS and related services generally contain provisions that, among other things, allow the international government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with its international UAS customers to determine whether the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting this criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred.

The Company’s contracts with its EES customers are generally product purchase order, bill and ship arrangments. The Company is continuing to evaluate its contracts with these customers to determine the impact on revenue recognition under the new guidance.

Investments

9 Months Ended

Jan. 27, 2018

Investments

Investments

2. Investments

Investments consist of the following (in thousands):


	January 27,		April 30,
	2018		2017
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	53,728	$	47,437
U.S. government securities		28,607		14,515
Corporate bonds		27,208		55,519
Certificates of deposit		—		2,500
Total held-to-maturity and short-term investments	$	109,543	$	119,971
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	1,258	$	8,942
U.S. government securities		29,467		22,540
Corporate bonds		5,979		8,117
Total held-to-maturity investments		36,704		39,599
Available-for-sale securities:
Auction rate securities		2,118		2,497
Total available-for-sale investments		2,118		2,497
Total long-term investments	$	38,822	$	42,096

Held-To-Maturity Securities

As of January 27, 2018 and April 30, 2017, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. treasury securities, U.S. government-guaranteed agency securities, U.S. government-sponsored agency debt securities, highly rated corporate bonds, and certificates of deposit. Interest earned from these investments is recorded in interest income.

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of January 27, 2018 were as follows (in thousands):


	January 27, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	54,986	$	3	$	(26)	$	54,963
U.S. government securities		58,074		—		(285)		57,789
Corporate bonds		33,187		—		(53)		33,134
Total held-to-maturity investments	$	146,247	$	3	$	(364)	$	145,886

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2017 were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	56,379	$	30	$	(21)	$	56,388
U.S. government securities		37,055		2		(41)		37,016
Corporate bonds		63,636		9		(85)		63,560
Certificates of deposit		2,500		1		—		2,501
Total held-to-maturity investments	$	159,570	$	42	$	(147)	$	159,465

The amortized cost and fair value of the held-to-maturity securities by contractual maturity at January 27, 2018 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	109,543	$	109,399
Due after one year through five years		36,704		36,487
Total	$	146,247	$	145,886

Available-For-Sale Securities

Auction Rate Securities

As of January 27, 2018 and April 30, 2017, the entire balance of available-for-sale auction rate securities, consisted of two investment grade auction rate municipal bonds, with maturities of approximately 1 and 16 years, respectively. These investments have characteristics similar to short-term investments, because at pre-determined intervals, generally ranging from 30 to 35 days, there is a new auction process at which the interest rates for these securities are reset to current interest rates. At the end of such period, the Company chooses to roll-over its holdings or redeem the investments for cash. A market maker facilitates the redemption of the securities, and the underlying issuers are not required to redeem the investment within 365 days. Interest earned from these investments is recorded in interest income.

During the fourth quarter of the fiscal year ended April 30, 2008, the Company began experiencing failed auctions on some of its auction rate securities. A failed auction occurs when a buyer for the securities cannot be obtained and the market maker does not buy the security for its own account. The Company continues to earn interest on the investments that failed to settle at auction at the maximum contractual rate until the next auction occurs. In the event the Company needs to access funds invested in these auction rate securities, the Company may not be able to liquidate these securities at the fair value recorded on January 27, 2018, until a future auction of these securities is successful or a buyer is found outside of the auction process.

As a result of the failed auctions, the fair values of these securities are estimated utilizing a discounted cash flow analysis as of January 27, 2018. The analysis considers, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the estimated date upon which the security is expected to have a successful auction. Based on the Company’s ability to access its cash and cash equivalents, expected operating cash flows, and other sources of cash, the Company does not anticipate that the current lack of liquidity of these investments will affect its ability to operate its business in the ordinary course. The Company believes the current lack of liquidity of these investments is temporary and expects that the securities will be redeemed or refinanced at some point in the future. The Company will continue to monitor the value of its auction rate securities at each reporting period for a possible impairment if a further decline in fair value occurs. The auction rate securities have been in an unrealized loss position for more than 12 months. The Company has the ability and the intent to hold these investments until a recovery of fair value, which may be at maturity. As of January 27, 2018, the Company did not consider these investments to be other-than-temporarily impaired.

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of January 27, 2018, were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,250	$	—	$	(132)	$	2,118
Total available-for-sale investments	$	2,250	$	—	$	(132)	$	2,118

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2017, were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,700	$	—	$	(203)	$	2,497
Total available-for-sale investments	$	2,700	$	—	$	(203)	$	2,497

The amortized cost and fair value of the auction rate securities by contractual maturity at January 27, 2018, were as follows (in thousands):


	Cost		Fair Value
Due after one through five years	$	250	$	252
Due after 10 years		2,000		1,866
Total	$	2,250	$	2,118

Fair Value Measurements

9 Months Ended

Jan. 27, 2018

Fair Value Measurements

Fair Value Measurements

3. Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:

Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date.

Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data.

Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability.

The Company’s financial assets measured at fair value on a recurring basis at January 27, 2018, were as follows (in thousands):


	Fair Value Measurement Using
			Significant
	Quoted prices in		other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Auction rate securities	$	—	$	—	$	2,118	$	2,118
Total	$	—	$	—	$	2,118	$	2,118

The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in thousands):


	Fair Value
	Measurements Using
	Significant
	Unobservable Inputs
Description	(Level 3)
Balance at May 1, 2017	$	2,497
Transfers to Level 3		—
Total gains (realized or unrealized)
Included in earnings		—
Included in other comprehensive income		71
Purchases, issuances and settlements, net		(450)
Balance at January 27, 2018	$	2,118
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at January 27, 2018	$	—

The auction rate securities are valued using a discounted cash flow model. The analysis considers, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows and the estimated date upon which the security is expected to have a successful auction. As of January 27, 2018, the inputs used in the Company’s discounted cash flow analysis included current coupon rates of 2.33% and 1.88%, estimated redemption periods of 1 and 16 years and discount rates of 2.97% and 9.59%. The discount rates were based on market rates for municipal bond securities, as adjusted for a risk premium to reflect the lack of liquidity of these investments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories, net

9 Months Ended

Jan. 27, 2018

Inventories, net

Inventories, net

4. Inventories, net

Inventories consist of the following (in thousands):


	January 27,		April 30,
	2018		2017

Raw materials	$	21,381	$	18,365
Work in process		29,743		16,168
Finished goods		31,958		30,793
Inventories, gross		83,082		65,326
Reserve for inventory excess and obsolescence		(5,755)		(5,250)
Inventories, net	$	77,327	$	60,076

Equity Method Investments	9 Months Ended
Equity Method Investments	Jan. 27, 2018
Equity Method Investments
Equity Method Investments	5. Equity Method Investments In December of 2017, the Company and Softbank formed a joint venture, HAPSMobile. HAPSMobile is a Japanese corporation that is 5% owned by the Company and 95% owned by SoftBank and is governed by a Joint Venture Agreement (the “JVA”). The Company purchased its 5% stake in HAPSMobile for 210,000,000 yen ($1,860,000) effective as of December 27, 2017. Under the JVA, the Company committed to make additional capital contributions of 150,000,000 yen (approximately $1,400,000) and 209,500,000 yen (approximately $1,900,000) in or around April 2018 and January 2019, respectively, to maintain its 5% ownership stake. Additionally under the JVA, the Company may purchase additional shares of HAPSMobile, at the same per share price for the purchase of its original 5% stake, to increase its ownership percentage of HAPSMobile up to 19% prior to the first flight test of the prototype aircraft produced under a design and development agreement between HAPSMobile and the Company. As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment will be accounted as an equity method investment. For the three months ended January 27, 2018, the Company recorded 5% of the net loss of HAPSMobile, or $418,000, in “Equity method investment activity, net of tax” in the consolidated statement of operations. At January 27, 2018, the carrying value of the investment in HAPSMobile was $1,503,000 and was recorded in “Other assets, long-term.”

Warranty Reserves

9 Months Ended

Jan. 27, 2018

Warranty Reserves

Warranty Reserves

6. Warranty Reserves

The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. The warranty reserve is included in other current liabilities. The related expense is included in cost of sales. Warranty reserve activity is summarized as follows for the three and nine months ended January 27, 2018 and January 28, 2017, respectively (in thousands):


	Three Months Ended				Nine Months Ended
		January 27,		January 28,		January 27,		January 28,
		2018		2017		2018		2017
Beginning balance	$	3,084	$	3,688	$	3,231	$	4,134
Warranty expense		1,347		245		2,513		581
Changes in estimates related to pre-existing warranties		—		200		—		1,428
Warranty costs settled		(566)		(679)		(1,879)		(2,689)
Ending balance	$	3,865	$	3,454	$	3,865	$	3,454

During the three and nine months ended January 28, 2017, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $328,000 and $1,735,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At January 27, 2018, there were no remaining estimated warranty costs related to the repair of the impacted UAS. As of January 27, 2018, a total of $2,198,000 of costs related to this warranty have been incurred.

Intangibles

9 Months Ended

Jan. 27, 2018

Intangibles

Intangibles

7. Intangibles

Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows:


	April 30,		Impairment		January 27,
	2017		Charges		2018
	(In thousands)
Licenses	$	818	$	-	$	818
Customer relationships		1,600		(867)		733
Trademarks and tradenames		60		(32)		28
Other		3		-		3
Intangibles, gross		2,481	$	(899)		1,582
Less accumulated amortization		(658)				(853)
Intangibles, net	$	1,823			$	729

The customer relationships, trademarks and tradenames, and other intangible assets were recognized in conjunction with the Company’s acquisition of a controlling interest in Altoy on February 1, 2017.

The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the current political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of operations. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accumulated Other Comprehensive Loss and Reclassifications

9 Months Ended

Jan. 27, 2018

Accumulated Other Comprehensive Loss and Reclassifications

Accumulated Other Comprehensive Loss and Reclassifications

8. Accumulated Other Comprehensive Loss and Reclassifications Adjustments

The components of accumulated other comprehensive loss and adjustments are as follows (in thousands):


	Available-for-Sale		Foreign Currency		Accumulated Other
	Securities		Translation Adjustments		Comprehensive Loss
Balance, net of $76 of taxes, as of April 30, 2017	$	(127)	$	—	$	(127)
Reclassifications out of accumulated other comprehensive loss, net of taxes		—		—		—
Change in foreign currency translation adjustments, net of $0 taxes		—		62		62
Unrealized gains, net of $29 of taxes		42		—		42
Balance, net of $47 of taxes, as of January 27, 2018	$	(85)	$	62	$	(23)

Customer-Funded Research & Development	9 Months Ended
Customer-Funded Research & Development	Jan. 27, 2018
Customer-Funded Research & Development
Customer-Funded Research & Development	9. Customer-Funded Research & Development Customer-funded R&D costs are incurred pursuant to contracts (revenue arrangements) to perform R&D activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales when the corresponding revenue is recognized, which is generally as the R&D services are performed. Revenue from customer-funded R&D was approximately $10,319,000 and $30,427,000 for the three and nine months ended January 27, 2018, respectively. Revenue from customer-funded R&D was approximately $9,089,000 and $38,367,000 for the three and nine months ended January 28, 2017, respectively.

Long-Term Incentive Awards	9 Months Ended
Long-Term Incentive Awards	Jan. 27, 2018
Long-Term Incentive Awards
Long-Term Incentive Awards	10. Long-Term Incentive Awards During the three months ended July 29, 2017, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2018 LTIP”). Awards under the Fiscal 2018 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2018, July 2019 and July 2020, and (ii) performance-based restricted stock units (“PRSUs”) which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2020. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of January 27, 2018, no compensation cost has been recognized for the performance-based portion of the Fiscal 2018 LTIP, as the Company concluded that it was not probable that the performance conditions will be achieved. At January 27, 2018, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2018 LTIP is $2,850,000. During the three months ended July 29, 2017, the Company also granted awards under the Restated 2006 Plan to key employees (“Fiscal 2017 LTIP”). Awards under the Fiscal 2017 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of January 27, 2018, no compensation cost has been recognized for the performance-based portion of the Fiscal 2017 LTIP, as the Company concluded that it was not probable that the performance conditions will be achieved. At January 27, 2018, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2017 LTIP is $2,630,000. During the year ended April 30, 2016, the Company granted a three-year performance award under the Restated 2006 Plan to key employees (“Fiscal 2016 LTIP”). The performance period for each three-year award is the three-year period ending April 30, 2018. A target payout was established at the award date. The actual payout at the end of the performance period will be calculated based upon the Company’s achievement of revenue and gross margin for the performance period. Payouts will be made in cash and restricted stock units. Upon vesting of the restricted stock units, the Company has the discretion to settle the restricted stock units in cash or stock. As of January 27, 2018, no compensation cost has been recognized for this award as the Company has concluded that it was not probable that the performance conditions will be achieved. At January 27, 2018, the maximum compensation expense that may be recorded for the Fiscal 2016 LTIP is $2,690,000. At each reporting period, the Company reassesses the probability of achieving the performance targets. The estimation of whether the performance targets will be achieved requires judgment, and, to the extent actual results or updated estimates differ from the Company’s current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised.

Income Taxes	9 Months Ended
Income Taxes	Jan. 27, 2018
Income Taxes
Income Taxes	11. Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, repeal of the corporate alternative minimum tax, repeal of the deduction for domestic production activities, and limitation on the deductibility of certain executive compensation. In accordance with U.S. GAAP as determined by ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. As the Company has an April 30 fiscal year end, its U.S. federal corporate income tax rate will be blended in fiscal 2018, resulting in a statutory federal rate of approximately 30.4% (8 months at 35% and 4 months at 21%), and will be 21% for subsequent fiscal years. The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expects to be in effect when those deferred taxes will be realized (30.4% if in 2018 or 21% thereafter) and recorded a one-time deferred tax expense of approximately $3,100,000 during the three months ended January 27, 2018. The Company followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date. The $3,100,000 expense for the one-time deferred tax remeasurement is a provisional estimate of the impact of the Tax Act. In addition, the Company has estimated that it will not have an income tax payable as a result of the one-time deemed repatriation transition tax on unrepatriated foreign earnings. These amounts are considered provisional because they use estimates for which final tax computations or returns have not been completed and because estimated amounts may be impacted by future regulatory and accounting guidance if and when issued. The Company’s financial statements do not reflect the impact of certain aspects of the Tax Act as the Company did not have the necessary information available, prepared, or analyzed (including computations), or because sufficient guidance has not been issued in order to determine an actual or provisional amount for the tax effects of the Act. To date, these aspects include the new compensation related provisions under section 162(m) and the state income tax conformity to the Tax Act. For the three and nine months ended January 27, 2018, the Company recorded a provision for income taxes of $628,000 and $277,000, respectively, yielding an effective tax rate of 300.5% and 12.6%, respectively. For the three and nine months ended January 28, 2017, the Company recorded a provision (benefit) for income taxes of $1,102,000 and $(2,809,000), yielding an effective tax rate of (102.7)% and 13.6%, respectively. The variance from statutory rates for the three and nine months ended January 27, 2018 was primarily due to a $3,100,000 remeasurement charge of the Company’s deferred tax assets and liabilities and a reduction in the fiscal 2018 federal statutory rate to 30.4%, both of which are impacts of the Tax Act. In addition, during the three and nine months ended January 27, 2018 the Company recorded discrete excess tax benefits of $212,000 and $1,614,000, respectively, resulting from the vesting of restricted stock awards and exercises of stock options. The variance from statutory rates for the three and nine months ended January 28, 2017 was primarily due to federal legislation permanently reinstating the federal research and development tax credit retroactive to January 2015 during the third quarter of fiscal 2016 and the reversal of a $968,000 reserve, including the related interest, for uncertain tax positions due to the settlement of prior fiscal year audits recorded during the first quarter of fiscal 2017. The provision for income taxes for the three months ended January 28, 2017 was also impacted by a change in estimate to reduce the full year fiscal 2017 estimated income before income taxes, which decreased the estimated fiscal 2017 effective income tax rate.

Share Repurchase	9 Months Ended
Share Repurchase	Jan. 27, 2018
Share Repurchase
Share Repurchase	12. Share Repurchase In September 2015, the Company’s Board of Directors authorized a program to repurchase up to $25,000,000 of the Company’s common stock with no specified termination date for the program. No shares were repurchased under the program during the three and nine months ended January 27, 2018. As of January 27, 2018 and April 30, 2017, approximately $21.2 million remained authorized for future repurchases under this program.

Related Party Transactions	9 Months Ended
Related Party Transactions	Jan. 27, 2018
Related Party Transactions
Related Party Transactions	13. Related Party Transactions Related party transactions are defined as transactions between the Company and entities either controlled by the Company or that the Company can significantly influence. Although Softbank has a controlling interest in HAPSMobile, the Company determined that it has the ability to exercise significant influence over HAPSMobile. As such, HAPSMobile and Softbank are considered related parties of the Company. Concurrent with the formation of HAPSMobile, the Company executed a Design and Development Agreement (the “DDA”) with HAPSMobile. Under the DDA, the Company will use its best efforts, up to a maximum net value of $65,011,481, to design and build prototype solar powered high altitude aircraft and ground control stations for HAPSMobile and conduct low altitude and high altitude flight tests of the prototype aircraft. The Company recorded revenue under the DDA and preliminary design agreements between the Company and SoftBank of $5,500,000 and $15,100,000 for the three and nine months ended January 27, 2018, respectively. At January 27, 2018, the Company had unbilled related party receivables from HAPSMobile of $1,648,000 recorded in “Unbilled receivables and retentions” on the consolidated balance sheet. During the three months ended January 27, 2018, the Company purchased a 5% stake for a capital contribution of 210,000,000 yen ($1,860,000) in accordance with the JVA. Refer to Note 5 – Equtiy Method Investments for further details.

Segment Data

9 Months Ended

Jan. 27, 2018

Segment Data

Segment Data

14. Segment Data

The Company’s product segments are as follows:

Unmanned Aircraft Systems — The UAS segment focuses primarily on the design, development, production, support and operation of innovative UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects to increase the security and effectiveness of the operations of the Company’s customers.

Efficient Energy Systems — The EES segment focuses primarily on the design, development, production, marketing, support and operation of innovative efficient electric energy systems that address the growing demand for electric transportation solutions.

The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments do not make sales to each other. Depreciation and amortization related to the manufacturing of goods is included in gross margin for the segments. The Company does not discretely allocate assets to its operating segments, nor does the CODM evaluate operating segments using discrete asset information. Consequently, the Company operates its financial systems as a single segment for accounting and control purposes, maintains a single indirect rate structure across all segments, has no inter-segment sales or corporate elimination transactions, and maintains limited financial statement information by segment. The segment results are as follows (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 (lo ss) before income taxes	$	209	$	(1,073)	$	2,204	$	(20,687)

Subsequent Events	9 Months Ended
Subsequent Events	Jan. 27, 2018
Subsequent Events.
Subsequent Events	15. Subsequent Events On February 26, 2018, a jury verdict found that former AeroVironment employees, Gabriel Torres, Justin McAllister, and Jeff McBride engaged in fraud, and that Torres and McAllister breached their respective Patent and Confidentiality Agreements. The jury also awarded punitive damages against all three defendants. The total verdict was more than $2,400,000. Torres, McAllister, and McBride are founders of MicaSense, Inc., which is majority-owned by Parrot SA. No amounts have been recorded to the Company’s consolidated financial statements as of January 27, 2018.

Organization and Significant Accounting Policies (Policies)

9 Months Ended

Jan. 27, 2018

Organization and Significant Accounting Policies

Segments

Basis of Presentation

The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Reclassifications

Recently Adopted Accounting Standards

Investments

The Company’s investments are accounted for as held-to-maturity and available-for-sale and reported at amortized cost and fair value, respectively.

Fair Values of Financial Instruments

Fair values of cash and cash equivalents, accounts receivable, unbilled receivables and retentions, and accounts payable approximate cost due to the short period of time to maturity.

Government Contracts

Earnings Per Share

(Loss) Earnings Per Share

Basic (loss) earnings per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock.

The reconciliation of basic to diluted shares is as follows:


	Three Months Ended		Nine Months Ended
	January 27, 2018	January 28, 2017	January 27, 2018	January 28, 2017

Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock	23,515,622	23,082,974	23,443,673	23,029,546
Dilutive effect of employee stock options and unvested restricted stock	—	—	331,273	—
Denominator for diluted (loss) earnings per share	23,515,622	23,082,974	23,774,946	23,029,546

Recently Issued Accounting Standards

Organization and Significant Accounting Policies (Tables)

9 Months Ended

Jan. 27, 2018

Organization and Significant Accounting Policies

Schedule of reconciliation of basic to diluted shares


	Three Months Ended		Nine Months Ended
	January 27, 2018	January 28, 2017	January 27, 2018	January 28, 2017

Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock	23,515,622	23,082,974	23,443,673	23,029,546
Dilutive effect of employee stock options and unvested restricted stock	—	—	331,273	—
Denominator for diluted (loss) earnings per share	23,515,622	23,082,974	23,774,946	23,029,546

Investments (Tables)

9 Months Ended

Jan. 27, 2018

Investments

Schedule of investments

Investments consist of the following (in thousands):


	January 27,		April 30,
	2018		2017
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	53,728	$	47,437
U.S. government securities		28,607		14,515
Corporate bonds		27,208		55,519
Certificates of deposit		—		2,500
Total held-to-maturity and short-term investments	$	109,543	$	119,971
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	1,258	$	8,942
U.S. government securities		29,467		22,540
Corporate bonds		5,979		8,117
Total held-to-maturity investments		36,704		39,599
Available-for-sale securities:
Auction rate securities		2,118		2,497
Total available-for-sale investments		2,118		2,497
Total long-term investments	$	38,822	$	42,096

Held-to-maturity securities

Investments

Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of January 27, 2018 were as follows (in thousands):


	January 27, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	54,986	$	3	$	(26)	$	54,963
U.S. government securities		58,074		—		(285)		57,789
Corporate bonds		33,187		—		(53)		33,134
Total held-to-maturity investments	$	146,247	$	3	$	(364)	$	145,886

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2017 were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	56,379	$	30	$	(21)	$	56,388
U.S. government securities		37,055		2		(41)		37,016
Corporate bonds		63,636		9		(85)		63,560
Certificates of deposit		2,500		1		—		2,501
Total held-to-maturity investments	$	159,570	$	42	$	(147)	$	159,465

Schedule of amortized cost and fair value by contractual maturity

The amortized cost and fair value of the held-to-maturity securities by contractual maturity at January 27, 2018 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	109,543	$	109,399
Due after one year through five years		36,704		36,487
Total	$	146,247	$	145,886

Available-for-sale securities | Auction rate securities

Investments

Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of January 27, 2018, were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,250	$	—	$	(132)	$	2,118
Total available-for-sale investments	$	2,250	$	—	$	(132)	$	2,118

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2017, were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,700	$	—	$	(203)	$	2,497
Total available-for-sale investments	$	2,700	$	—	$	(203)	$	2,497

Schedule of amortized cost and fair value by contractual maturity

The amortized cost and fair value of the auction rate securities by contractual maturity at January 27, 2018, were as follows (in thousands):


	Cost		Fair Value
Due after one through five years	$	250	$	252
Due after 10 years		2,000		1,866
Total	$	2,250	$	2,118

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Jan. 27, 2018

Fair Value Measurements

Schedule of financial assets measured at fair value on a recurring basis

The Company’s financial assets measured at fair value on a recurring basis at January 27, 2018, were as follows (in thousands):


	Fair Value Measurement Using
			Significant
	Quoted prices in		other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Auction rate securities	$	—	$	—	$	2,118	$	2,118
Total	$	—	$	—	$	2,118	$	2,118

Schedule of reconciliation between beginning and ending balances of items measured at fair value on recurring basis that used significant unobservable inputs (Level 3)


	Fair Value
	Measurements Using
	Significant
	Unobservable Inputs
Description	(Level 3)
Balance at May 1, 2017	$	2,497
Transfers to Level 3		—
Total gains (realized or unrealized)
Included in earnings		—
Included in other comprehensive income		71
Purchases, issuances and settlements, net		(450)
Balance at January 27, 2018	$	2,118
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at January 27, 2018	$	—

Inventories, net (Tables)

9 Months Ended

Jan. 27, 2018

Inventories, net

Schedule of inventories

Inventories consist of the following (in thousands):


	January 27,		April 30,
	2018		2017

Raw materials	$	21,381	$	18,365
Work in process		29,743		16,168
Finished goods		31,958		30,793
Inventories, gross		83,082		65,326
Reserve for inventory excess and obsolescence		(5,755)		(5,250)
Inventories, net	$	77,327	$	60,076

Warranty Reserves (Tables)

9 Months Ended

Jan. 27, 2018

Warranty Reserves

Summary of warranty reserve activity

Warranty reserve activity is summarized as follows for the three and nine months ended January 27, 2018 and January 28, 2017, respectively (in thousands):


	Three Months Ended				Nine Months Ended
		January 27,		January 28,		January 27,		January 28,
		2018		2017		2018		2017
Beginning balance	$	3,084	$	3,688	$	3,231	$	4,134
Warranty expense		1,347		245		2,513		581
Changes in estimates related to pre-existing warranties		—		200		—		1,428
Warranty costs settled		(566)		(679)		(1,879)		(2,689)
Ending balance	$	3,865	$	3,454	$	3,865	$	3,454

Intangibles (Tables)

9 Months Ended

Jan. 27, 2018

Intangibles

Schedule of components of intangibles


	April 30,		Impairment		January 27,
	2017		Charges		2018
	(In thousands)
Licenses	$	818	$	-	$	818
Customer relationships		1,600		(867)		733
Trademarks and tradenames		60		(32)		28
Other		3		-		3
Intangibles, gross		2,481	$	(899)		1,582
Less accumulated amortization		(658)				(853)
Intangibles, net	$	1,823			$	729

Accumulated Other Comprehensive Loss and Reclassifications (Tables)

9 Months Ended

Jan. 27, 2018

Accumulated Other Comprehensive Loss and Reclassifications

Schedule of components of accumulated other comprehensive loss

The components of accumulated other comprehensive loss and adjustments are as follows (in thousands):


	Available-for-Sale		Foreign Currency		Accumulated Other
	Securities		Translation Adjustments		Comprehensive Loss
Balance, net of $76 of taxes, as of April 30, 2017	$	(127)	$	—	$	(127)
Reclassifications out of accumulated other comprehensive loss, net of taxes		—		—		—
Change in foreign currency translation adjustments, net of $0 taxes		—		62		62
Unrealized gains, net of $29 of taxes		42		—		42
Balance, net of $47 of taxes, as of January 27, 2018	$	(85)	$	62	$	(23)

Segment Data (Tables)

9 Months Ended

Jan. 27, 2018

Segment Data

Schedule of segment results

The segment results are as follows (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 (lo ss) before income taxes	$	209	$	(1,073)	$	2,204	$	(20,687)

Organization and Significant Accounting Policies (Details) - segment	9 Months Ended
	Jan. 27, 2018	Apr. 30, 2017
Segments
Number of reportable segments	2
Altoy
Ownership percentage		85.00%

Organization and Significant Accounting Policies Other (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017	Apr. 30, 2017
Government Contracts
Reserves for incurred cost claim audits	$ 77,000		$ 77,000		$ 0
Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock (in shares)	23,515,622	23,082,974	23,443,673	23,029,546
Dilutive effect of employee stock options and unvested restricted stock (in shares)			331,273
Denominator for diluted (loss) earnings per share (in shares)	23,515,622	23,082,974	23,774,946	23,029,546
Number of shares reserved for issuance that are anti-dilutive	379,749	222,071	27,139	246,093

Investments (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Short-term investments:
Total held-to-maturity and short-term investments	$ 109,543	$ 119,971
Long-term investments:
Total long-term investments	38,822	42,096
Held-to-maturity securities
Short-term investments:
Total held-to-maturity and short-term investments	109,543	119,971
Long-term investments:
Total long-term investments	36,704	39,599
Held-to-maturity securities \| Municipal securities
Short-term investments:
Total held-to-maturity and short-term investments	53,728	47,437
Long-term investments:
Total long-term investments	1,258	8,942
Held-to-maturity securities \| U.S. government securities
Short-term investments:
Total held-to-maturity and short-term investments	28,607	14,515
Long-term investments:
Total long-term investments	29,467	22,540
Held-to-maturity securities \| Corporate bonds
Short-term investments:
Total held-to-maturity and short-term investments	27,208	55,519
Long-term investments:
Total long-term investments	5,979	8,117
Held-to-maturity securities \| Certificates of deposit
Short-term investments:
Total held-to-maturity and short-term investments		2,500
Available-for-sale securities
Long-term investments:
Total long-term investments	2,118	2,497
Available-for-sale securities \| Auction rate securities
Long-term investments:
Total long-term investments	$ 2,118	$ 2,497

Investments - Held-To-Maturity Securities (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Held To Maturity Securities
Amortized Cost	$ 146,247	$ 159,570
Gross Unrealized Gains	3	42
Gross Unrealized Losses	(364)	(147)
Fair Value	145,886	159,465
Municipal securities
Held To Maturity Securities
Amortized Cost	54,986	56,379
Gross Unrealized Gains	3	30
Gross Unrealized Losses	(26)	(21)
Fair Value	54,963	56,388
U.S. government securities
Held To Maturity Securities
Amortized Cost	58,074	37,055
Gross Unrealized Gains		2
Gross Unrealized Losses	(285)	(41)
Fair Value	57,789	37,016
Corporate bonds
Held To Maturity Securities
Amortized Cost	33,187	63,636
Gross Unrealized Gains		9
Gross Unrealized Losses	(53)	(85)
Fair Value	$ 33,134	63,560
Certificates of deposit
Held To Maturity Securities
Amortized Cost		2,500
Gross Unrealized Gains		1
Fair Value		$ 2,501

Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year	$ 109,543
Due after one year through five years	36,704
Total	146,247	$ 159,570
Fair value of held-to-maturity securities by contractual maturity
Due within one year	109,399
Due after one year through five years	36,487
Fair Value	$ 145,886	$ 159,465

Investments - Auction rate securities (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Jan. 27, 2018 USD ($) item	Apr. 30, 2017 USD ($) item
Available-For-Sale Securities
Amortized Cost	$ 2,250	$ 2,700
Gross Unrealized Losses	(132)	(203)
Total	$ 2,118	$ 2,497
Auction rate securities
Investments
Number of available-for-sale securities \| item	2	2
Available-For-Sale Securities
Amortized Cost	$ 2,250	$ 2,700
Gross Unrealized Losses	(132)	(203)
Total	$ 2,118	$ 2,497
Auction rate securities \| Minimum
Available For Sale Securities
Maturity period of available-for-sale securities	1 year	1 year
Pre-determined interval to reset interest rates to current rates	30 days	30 days
Auction rate securities \| Maximum
Available For Sale Securities
Maturity period of available-for-sale securities	16 years	16 years
Pre-determined interval to reset interest rates to current rates	35 days	35 days
Auction rate securities \| Available-for-sale securities \| Maximum
Available For Sale Securities
Period for which the issuer of securities is not required to redeem the securities	365 days	365 days

Investments - Amortized Cost and Fair Value of the Auction Rate Securities (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Amortized cost of available-for-sale securities by contractual maturity
Total	$ 2,250	$ 2,700
Fair value of available-for-sale securities by contractual maturity
Total	2,118	2,497
Auction rate securities
Amortized cost of available-for-sale securities by contractual maturity
Due one through five years	250
Due after 10 years	2,000
Total	2,250	2,700
Fair value of available-for-sale securities by contractual maturity
Due one through five years	252
Due after 10 years	1,866
Total	$ 2,118	$ 2,497

Fair Value Measurements (Details) - Recurring basis $ in Thousands	Jan. 27, 2018 USD ($)
Fair Value Measurement
Available-for-sale securities	$ 2,118
Auction rate securities
Fair Value Measurement
Available-for-sale securities	2,118
Significant unobservable inputs (Level 3)
Fair Value Measurement
Available-for-sale securities	2,118
Significant unobservable inputs (Level 3) \| Auction rate securities
Fair Value Measurement
Available-for-sale securities	$ 2,118

Fair Value Measurements Reconciliation (Details) $ in Thousands	9 Months Ended
	Jan. 27, 2018 USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Balance at the beginning of the period	$ 2,497
Total gains (realized or unrealized) included in other comprehensive income	71
Purchases, issuances and settlements, net	(450)
Balance at the end of the period	$ 2,118

Fair Value Measurements Other (Details) - Significant unobservable inputs (Level 3) - Discounted cash flow - Auction rate securities	9 Months Ended
	Jan. 27, 2018
Minimum
Fair Value Inputs
Coupon rates (as a percent)	1.88%
Estimated redemption periods	1 year
Discount rates (as a percent)	2.97%
Maximum
Fair Value Inputs
Coupon rates (as a percent)	2.33%
Estimated redemption periods	16 years
Discount rates (as a percent)	9.59%

Inventories, net (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Inventories, net
Raw materials	$ 21,381	$ 18,365
Work in process	29,743	16,168
Finished goods	31,958	30,793
Inventories, gross	83,082	65,326
Reserve for inventory excess and obsolescence	(5,755)	(5,250)
Inventories, net	$ 77,327	$ 60,076

Equity Method Investments (Details)	3 Months Ended		9 Months Ended
Equity Method Investments (Details)	Jan. 27, 2018 USD ($)	Jan. 28, 2017 USD ($)	Jan. 27, 2018 USD ($)	Jan. 28, 2017 USD ($)	Jan. 31, 2019 JPY (¥)	Jan. 31, 2019 USD ($)	Apr. 30, 2018 JPY (¥)	Apr. 30, 2018 USD ($)	Dec. 27, 2017 JPY (¥)	Dec. 27, 2017 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investment activity, net of tax	$ (418,000)	$ (8,000)	$ (418,000)	$ (119,000)
HAPSMobile
Schedule of Equity Method Investments [Line Items]
Ownership percentage									5.00%	5.00%
Payments for purchase of interest									¥ 210,000,000	$ 1,860,000
Option to increase its ownership percentage	19.00%		19.00%
Equity method investment activity, net of tax			$ 418,000
Carrying value of investment	$ 1,503,000		$ 1,503,000
HAPSMobile \| Expected
Schedule of Equity Method Investments [Line Items]
Payments for purchase of interest					¥ 209,500,000	$ 1,900,000
SoftBank
Schedule of Equity Method Investments [Line Items]
Ownership percentage									95.00%	95.00%
SoftBank \| Expected
Schedule of Equity Method Investments [Line Items]
Payments for purchase of interest							¥ 150,000,000	$ 1,400,000

Warranty Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Warranty Reserves (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Warranty Reserves
Beginning balance	$ 3,084	$ 3,688	$ 3,231	$ 4,134
Warranty expense	1,347	245	2,513	581
Changes in estimates related to pre-existing warranties		200		1,428
Warranty costs settled	(566)	(679)	(1,879)	(2,689)
Ending balance	$ 3,865	$ 3,454	$ 3,865	$ 3,454

Warranty Reserves Estimated Cost (Details) - USD ($)	3 Months Ended	9 Months Ended
Warranty Reserves Estimated Cost (Details) - USD ($)	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Warranty Reserves
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)	$ 200,000		$ 1,428,000
UAS
Warranty Reserves
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)	$ 328,000	$ 0	$ 1,735,000
Product Warranty Expense		$ 2,198,000

Intangibles (Details) - USD ($) $ in Thousands	9 Months Ended
Intangibles (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Apr. 30, 2017
Intangibles
Intangibles, gross	$ 1,582	$ 2,481
Less accumulated amortization	(853)	(658)
Intangibles, net	729	1,823
Impairment charge	(899)
Licenses
Intangibles
Intangibles, gross	818	818
Customer relationships
Intangibles
Intangibles, gross	733	1,600
Impairment charge	(867)
Trademarks and tradenames
Intangibles
Intangibles, gross	28	60
Impairment charge	(32)
Other
Intangibles
Intangibles, gross	$ 3	$ 3

Accumulated Other Comprehensive Loss and Reclassifications (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017	Apr. 30, 2017
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of April 30, 2017			$ (127,000)
Total accumulated other comprehensive loss balance as of January 27, 2018	$ (25,000)		(25,000)		$ (127,000)
Other comprehensive income, tax			47,000		76,000
Change in foreign currency translation adjustments			0
Unrealized gain, tax portion	10,000	$ (23,000)	29,000	$ 6
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of April 30, 2017			(127,000)
Change in foreign currency translation adjustments, net of $0 taxes	62,000		62,000
Unrealized gains, net of $19 of taxes			42,000
Total accumulated other comprehensive loss balance as of January 27, 2018	(23,000)		(23,000)		(127,000)
Foreign Currency Translation Adjustments
Accumulated other comprehensive loss
Change in foreign currency translation adjustments, net of $0 taxes	62,000		62,000
Total accumulated other comprehensive loss balance as of January 27, 2018	62,000		62,000
Available-For-Sale Securities.
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of April 30, 2017			(127,000)
Unrealized gains, net of $19 of taxes			42,000
Total accumulated other comprehensive loss balance as of January 27, 2018	$ (85,000)		$ (85,000)		$ (127,000)

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Customer-Funded Research & Development
Revenue from customer-funded R&D	$ 10,319,000	$ 9,089,000	$ 30,427,000	$ 38,367,000

Long-Term Incentive Awards (Details) - Performance based restricted stock units - USD ($)	9 Months Ended	12 Months Ended
	Jan. 27, 2018	Apr. 30, 2016
Fiscal 2018 LTIP
Long-Term Incentive Awards
Exercisable period from grant date	3 years
Stock based compensation expense	$ 0
Fiscal 2018 LTIP \| 100% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	100.00%
Fiscal 2018 LTIP \| 50% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	50.00%
Fiscal 2018 LTIP \| 200% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	200.00%
Fiscal 2018 LTIP \| Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,850,000
Fiscal 2017 LTIP
Long-Term Incentive Awards
Exercisable period from grant date	3 years
Stock based compensation expense	$ 0
Fiscal 2017 LTIP \| 100% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	100.00%
Fiscal 2017 LTIP \| 50% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	50.00%
Fiscal 2017 LTIP \| 200% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	200.00%
Fiscal 2017 LTIP \| Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,630,000
Fiscal 2016 LTIP
Long-Term Incentive Awards
Exercisable period from grant date		3 years
Performance period		3 years
Stock based compensation expense	0
Fiscal 2016 LTIP \| Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,690,000

Income Taxes (Details) - USD ($)	1 Months Ended	3 Months Ended		4 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($)	Jan. 27, 2018	Jan. 27, 2018	Jan. 28, 2017	Apr. 30, 2018	Dec. 31, 2017	Jan. 27, 2018	Jan. 28, 2017	Apr. 30, 2018
Income taxes
Effective tax benefit rate (as a percent)		300.50%	(102.70%)		35.00%	12.60%	13.60%
Deferred tax expense		$ 3,100,000
Provision (benefit) for income taxes		628,000	$ 1,102,000			$ 277,000	$ (2,809,000)
Excess tax benefits	$ 212,000	1,614,000
Reversal of reserve		$ 968,000
Expected
Income taxes
Effective tax benefit rate (as a percent)				21.00%				30.40%

Share Repurchase (Details) - USD ($)	3 Months Ended	9 Months Ended
Share Repurchase (Details) - USD ($)	Jan. 27, 2018	Jan. 27, 2018	Apr. 30, 2017	Sep. 30, 2015
Share Repurchase
Stock Repurchase Program, Authorized Amount				$ 25,000,000
Shares repurchased and retired	0	0
Share authorized for future repurchases	$ 21,200,000	$ 21,200,000	$ 21,200,000

Related Party Transactions (Details)	3 Months Ended	9 Months Ended
Related Party Transactions (Details)	Jan. 27, 2018 USD ($)	Jan. 27, 2018 USD ($)	Dec. 27, 2017 JPY (¥)	Dec. 27, 2017 USD ($)
Design and Development Agreement
Long-Term Incentive Awards
Maximum net value	$ 65,011,481	$ 65,011,481
HAPSMobile \| Design and Development Agreement
Long-Term Incentive Awards
Revenue	5,500,000	15,100,000
Unbilled related party receivables	$ 1,648,000	$ 1,648,000
HAPSMobile
Long-Term Incentive Awards
Ownership percentage			5.00%	5.00%
Payments for purchase of interest			¥ 210,000,000	$ 1,860,000

Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Segment Data (Details) - USD ($) $ in Thousands	Jan. 27, 2018	Jan. 28, 2017	Jan. 27, 2018	Jan. 28, 2017
Segment Data
Revenue	$ 63,935	$ 53,163	$ 181,526	$ 139,497
Cost of sales	43,349	33,812	118,310	96,046
Total gross margin	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)
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)
Inter-segment and corporate elimination
Segment Data
Revenue			0	0
UAS
Segment Data
Revenue	53,433	41,894	153,671	113,220
Cost of sales	36,130	25,530	98,355	76,549
Total gross margin	17,303	16,364	55,316	36,671
EES
Segment Data
Revenue	10,502	11,269	27,855	26,277
Cost of sales	7,219	8,282	19,955	19,497
Total gross margin	$ 3,283	$ 2,987	$ 7,900	$ 6,780

Subsequent Events (Details) - Subsequent Event	Feb. 26, 2018 USD ($) defendant
Subsequent Event [Line Items]
Number of Defendants \| defendant	3
Total verdict \| $	$ 2,400,000