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08 Mar 16. AeroVironment, Inc. Announces Fiscal 2016 Third Quarter Results. AeroVironment, Inc. (AVAV) reported financial results for its third quarter ended January 30, 2016.
“Our continued focus on effectively serving our customers drove AeroVironment’s third quarter results, including gross margin of 39 percent, revenue of $68m and funded backlog of $80m,” said Tim Conver, AeroVironment chairman and chief executive officer. “In our growth portfolio, the unique advantages of Switchblade and its four emerging variants within our family of Tactical Missile Systems continued to build traction with customers during the quarter. The addition of a line item for Lethal Miniature Aerial Missile Systems in the fiscal 2017 federal budget request demonstrates the increasing value of our solutions to our troops and our country.”
Conver added, “Our strategic investments in commercial unmanned aircraft systems continued to strengthen our long-term growth prospects across multiple promising avenues. In EES, our focus on innovation enabled the company to expand its EV charging footprint in North America and introduce PosiCharge ProCore charging systems for industrial electric vehicles early in the fourth quarter.”
FISCAL 2016 THIRD QUARTER RESULTS
Revenue for the third quarter of fiscal 2016 was $67.6m, a decline from third quarter fiscal 2015 revenue of $68.4m. The decrease in revenue resulted from a decrease in sales in our Efficient Energy Systems (EES) segment of $3.9m, partially offset by an increase in sales in our Unmanned Aircraft Systems (UAS) segment of $3.1m.
Gross margin for the third quarter of fiscal 2016 was $26.6m, a decline from third quarter fiscal 2015 gross margin of $27.0m. The decrease in gross margin was due to a decrease in product margin of $2.0m, partially offset by an increase in service margin of $1.6m. As a percentage of revenue, gross margin decreased from 39.5% to 39.4%.
Income from operations for the third quarter of fiscal 2016 was $5.1m, consistent with third quarter fiscal 2015. Year over year income from operations was a result of a decrease in gross margin of $0.4m, largely offset by a decrease in research and development (R&D) expense of $0.3m.
Other expense, net, for the third quarter of fiscal 2016 was $34,000 compared to $0.1m for the third quarter of fiscal 2015.
Net income for the third quarter of fiscal 2016 was $6.2m, including a $1.1m tax benefit, compared to net income for the third quarter of fiscal 2015 of $2.3m.
Earnings per diluted share for the third quarter of fiscal 2016 were $0.27 compared to earnings per diluted share for the third quarter of fiscal 2015 of $0.10.
FISCAL 2016 YEAR-TO-DATE RESULTS
Revenue for the first nine months of fiscal 2016 was $179.3m, up 4% from the first nine months of fiscal 2015 revenue of $172.9m. The increase in revenue resulted from an increase in sales in our UAS segment of $15.6m, partially offset by a decrease in sales in our EES segment of $9.2m.
Gross margin for the first nine months of fiscal 2016 was $74.2m, up 26% from the first nine months of fiscal 2015 gross margin of $58.9m. The increase in gross margin was due to an increase in service margin of $9.8m and an increase in product margin of $5.4m, both of which were impacted by a reserve reversal of $3.5m for the settlement of prior year government incurred cost audits recorded during the second fiscal quarter of 2016. As a percentage of revenue, gross margin increased to 41% from 34%.
Income from operations for the first nine months of fiscal 2016 was $2.9m compared to a loss from operations for the first nine months of fiscal 2015 of $5.5m. The increase in income from operations was a result of an increase in gross margin of $15