AeroVironment Inc. (AVAV, Financial) filed Quarterly Report for the period ended 2009-08-01.
Building on a history of technological innovation AEROVIRONMENT INC. designs develops produces and supports an advanced portfolio of Unmanned Aircraft Systems 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. Aerovironment Inc. has a market cap of $648.8 million; its shares were traded at around $30.42 with a P/E ratio of 27.4 and P/S ratio of 2.6.
Cost of Sales. Cost of sales for the three months ended August 1, 2009 was $27.2 million, as compared to $33.0 million for the three months ended August 2, 2008, representing a decrease of $5.8 million, or 18%. The decrease in cost of sales was caused primarily by lower UAS cost of sales of $5.1 million and lower EES cost of sales of $0.7 million.
Gross Margin. Gross margin for the three months ended August 1, 2009 was $10.7 million, as compared to $20.6 million for the three months ended August 2, 2008, representing a decrease of $9.9 million, or 48%. UAS gross margin decreased $7.7 million, or 46%, to $9.0 million for the three months ended August 1, 2009. As a percentage of revenue, gross margin for UAS decreased from 36% to 27% primarily due to lower production and service volume resulting in higher unabsorbed manufacturing and engineering overhead support costs. EES gross margin decreased $2.2 million, or 56%, to $1.7 million for the three months ended August 1, 2009. As a percentage of revenue, EES gross margin decreased from 52% to 37% primarily due to overall lower product deliveries resulting in higher unabsorbed manufacturing and engineering overhead support costs.
Cash Provided by Operating Activities. Net cash provided by operating activities for the three months ended August 1, 2009 increased by $7.5 million to $4.5 million, compared to net cash used by operating activities of $3.0 million for the three months ended August 2, 2008. This increase in net cash provided by operating activities was primarily due to lower working capital needs of $21.1 million partially offset by lower income of $8.4 million and lower tax benefits from stock option exercises of $6.4 million.
Cash Used in Investing Activities. Net cash used in investing activities increased by $10.6 million to $8.1 million for the three months ended August 1, 2009, compared to net cash provided by investing activities of $2.5 million for the three months ended August 2, 2008. The increase in net cash used in investing activities was primarily due to an increase in net purchases of investments of $10.7 million offset by lower capital expenditures of $0.1 million.
Cash Provided by Financing Activities. Net cash provided by financing activities increased by $0.1 million to $0.4 million for the three months ended August 1, 2009, compared to $0.3 million for the three months ended August 2, 2008. During the three months ended August 1, 2009, we received proceeds from stock option exercises of $0.4 million.
Read the The complete ReportAVAV is in the portfolios of Ron Baron of Baron Funds.
Building on a history of technological innovation AEROVIRONMENT INC. designs develops produces and supports an advanced portfolio of Unmanned Aircraft Systems 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. Aerovironment Inc. has a market cap of $648.8 million; its shares were traded at around $30.42 with a P/E ratio of 27.4 and P/S ratio of 2.6.
Highlight of Business Operations:
Revenue. Revenue for the three months ended August 1, 2009 was $37.9 million, as compared to $53.6 million for the three months ended August 2, 2008, representing a decrease of $15.7 million, or 29%. UAS revenue decreased $12.8 million, or 28%, to $33.3 million for the three months ended August 1, 2009, primarily due to decreased UAS product deliveries of $14.2 million and lower service revenue of $9.8 million, partially offset by an increase in customer-funded R&D work of $11.2 million. The decrease in UAS product deliveries and service revenue was primarily due to a reduction in our analog Raven B production and services as we prepare for the production and retrofit of Raven B systems integrating our Digital Data Link technology. The increase in customer-funded R&D work was primarily due to increased activity on the Global Observer contract. EES revenue decreased by $2.9 million, or 39%, to $4.6 million for the three months ended August 1, 2009. The decrease in EES revenue was primarily due to decreased product deliveries of Electric Vehicle test systems and fast charge systems.Cost of Sales. Cost of sales for the three months ended August 1, 2009 was $27.2 million, as compared to $33.0 million for the three months ended August 2, 2008, representing a decrease of $5.8 million, or 18%. The decrease in cost of sales was caused primarily by lower UAS cost of sales of $5.1 million and lower EES cost of sales of $0.7 million.
Gross Margin. Gross margin for the three months ended August 1, 2009 was $10.7 million, as compared to $20.6 million for the three months ended August 2, 2008, representing a decrease of $9.9 million, or 48%. UAS gross margin decreased $7.7 million, or 46%, to $9.0 million for the three months ended August 1, 2009. As a percentage of revenue, gross margin for UAS decreased from 36% to 27% primarily due to lower production and service volume resulting in higher unabsorbed manufacturing and engineering overhead support costs. EES gross margin decreased $2.2 million, or 56%, to $1.7 million for the three months ended August 1, 2009. As a percentage of revenue, EES gross margin decreased from 52% to 37% primarily due to overall lower product deliveries resulting in higher unabsorbed manufacturing and engineering overhead support costs.
Cash Provided by Operating Activities. Net cash provided by operating activities for the three months ended August 1, 2009 increased by $7.5 million to $4.5 million, compared to net cash used by operating activities of $3.0 million for the three months ended August 2, 2008. This increase in net cash provided by operating activities was primarily due to lower working capital needs of $21.1 million partially offset by lower income of $8.4 million and lower tax benefits from stock option exercises of $6.4 million.
Cash Used in Investing Activities. Net cash used in investing activities increased by $10.6 million to $8.1 million for the three months ended August 1, 2009, compared to net cash provided by investing activities of $2.5 million for the three months ended August 2, 2008. The increase in net cash used in investing activities was primarily due to an increase in net purchases of investments of $10.7 million offset by lower capital expenditures of $0.1 million.
Cash Provided by Financing Activities. Net cash provided by financing activities increased by $0.1 million to $0.4 million for the three months ended August 1, 2009, compared to $0.3 million for the three months ended August 2, 2008. During the three months ended August 1, 2009, we received proceeds from stock option exercises of $0.4 million.
Read the The complete ReportAVAV is in the portfolios of Ron Baron of Baron Funds.
