Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $122 million, a 32% increase from $92.7 million in Q2 2021, primarily driven by increased sales in the Medium Unmanned Aircraft Systems segment [8][23] - Gross profit for the quarter was $42.5 million, a 4% increase year-over-year, but gross margin percentage fell to 35% from 44% due to product mix and supply chain effects [8][29] - Net income was $2.5 million or $0.10 per diluted share, compared to $2.1 million or $0.09 per diluted share in the same quarter last year [9][29] - Full-year revenue guidance was adjusted to between $440 million and $460 million, with net loss from continuing operations forecasted between $12 million and $8 million [13][30] Business Line Data and Key Metrics Changes - Small Unmanned Aircraft Systems (UAS) revenue was $54.7 million, down from $58.3 million in Q2 2021 [23] - Medium UAS segment revenue was $26.5 million, showing strong sequential improvement [23] - Tactical Missile Systems (TMS) revenue was $18.4 million, impacted by supply chain issues [24] - Revenue from other segments, including HAPS, increased to $22.4 million from $15.4 million year-over-year, driven by acquisitions [24] Market Data and Key Metrics Changes - The company reported a solid backlog of $252 million, driven by new wins across multiple business segments [8][31] - The visibility towards the midpoint of the revised revenue guidance range is 90% [31] Company Strategy and Development Direction - The company aims to broaden capabilities by integrating multi-domain robotic systems and artificial intelligence to provide more effective solutions [33] - The focus remains on delivering long-term shareholder value despite current macro headwinds [12][33] Management's Comments on Operating Environment and Future Outlook - Management highlighted stronger macro headwinds, including supply chain constraints and delayed contract awards due to the pandemic [7][11] - The company remains confident in its long-term vision and ability to create shareholder value despite adjusting guidance for fiscal year 2022 [7][13] Other Important Information - The company is actively working to mitigate supply chain issues and labor shortages impacting production and delivery [10][12] - The U.S. Army's Future Tactical UAS program is expected to be worth over $1 billion over a 10-year period, with the company focused on competing for this opportunity [19] Q&A Session Summary Question: Can you discuss the revenue change outlook and its drivers? - Management indicated that supply chain constraints are a significant contributor to the revenue outlook changes, alongside order delays and a tight labor market [35][36] Question: Is the order delay more timing-related? - Management believes some issues are transitory and will likely resolve, but supply chain constraints and labor market challenges may persist longer [39][40] Question: Why was EBITDA guidance reduced more than revenue? - The reduction in higher-margin business and fixed costs related to lower volume significantly impacted EBITDA [42][44] Question: Were any revenue pushouts due to competitive losses? - Management stated that they are making good progress in the market and do not see significant competitive losses affecting revenue [46][47] Question: What is the status of the Solar HAPS program? - The program is on track, but labor market and supply chain issues are presenting challenges [61][62] Question: How much of the $100 million guidance reduction is still in the pipeline? - The majority of the reduction is still in the pipeline, with most orders shifted to the right due to various headwinds [65][66] Question: Is there any specific contract concentration affecting guidance? - Management noted that various product lines are affected, but no single contract is solely responsible for the guidance reduction [68][69] Question: What is the outlook for fiscal year 2023? - Management remains confident in the long-term demand for their solutions and believes they can continue to grow despite current challenges [73][74]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended October 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33261 AEROVIRONMENT, INC. (Exact name of registrant as specified in its charter) Delaware 95-2705790 (State or other ...

Financial Data and Key Metrics Changes - Revenue for Q1 2022 was $101 million, a 16% increase from $88 million in Q1 2021, primarily driven by sales in the Medium Unmanned Aircraft Systems segment [10][25] - Gross profit was $28.7 million, representing a gross margin of 28%, down from 40% in the previous year, largely due to a higher proportion of service revenue [29][30] - GAAP net loss for Q1 2022 was $14 million or $0.57 per diluted share, compared to net income of $10.1 million or $0.42 per diluted share in Q1 2021 [33] Business Line Data and Key Metrics Changes - Small Unmanned Aircraft Systems (UAS) revenue was $39.9 million, down from $56.2 million in the prior year, attributed to timing of orders [25] - Tactical Missile Systems (TMS) revenue increased to $19.2 million from $9.5 million year-over-year, indicating strong growth in this segment [26] - Medium UAS segment generated $22.4 million in revenue, aligning with expectations [25] Market Data and Key Metrics Changes - Funded backlog at the end of Q1 2022 was $257.7 million, a sequential increase of $45.9 million from the previous quarter and an increase of $103.3 million year-over-year [34] - The company has secured a $51 million order under a five-year agreement with SoftBank for the HAPS program, indicating strong market interest [17][58] Company Strategy and Development Direction - The company aims to expand its capabilities by integrating robotics, data analytics, and intuitive user interfaces to enhance customer tools [38] - The focus remains on strengthening market positions and achieving critical milestones while delivering solid returns for shareholders [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2022 guidance despite challenges from COVID-19 and supply chain disruptions [21][36] - The company anticipates continued growth in both TMS and Small UAS businesses, supported by a strong backlog and market demand [51] Other Important Information - The company appointed Cindy Lewis to its Board, bringing over 30 years of aerospace leadership experience [22] - The company is actively pursuing additional financial partners for the HAPSMobile joint venture to support commercialization [32][58] Q&A Session Summary Question: Impact of federal government continuing resolution on guidance - Management confirmed that the continuing resolution has been factored into the guidance, and they remain on track to achieve fiscal year results [41][42] Question: Decline in Small UAS revenue - The decline was attributed to the timing of specific contracts, with expectations for growth in the upcoming quarters [42][43] Question: International travel restrictions affecting sales - Management acknowledged ongoing challenges with international travel but noted successful mitigation of impacts on business [44] Question: MUAS business performance amid troop drawdown - Management expects increased demand for ISR services as troop presence decreases, positively impacting the MUAS business [47] Question: Update on TMS export opportunities - Management confirmed progress in securing export licenses and interest from multiple countries for the Switchblade systems [49] Question: HAPSMobile funding and development timeline - Management indicated that the current funding is sufficient for the next 12 to 15 months, with plans to seek additional investors for future phases [58] Question: Integration of Switchblade with Kratos Valkyrie - Management confirmed ongoing collaboration with Kratos for integration, emphasizing the long-term nature of the engagement [61] Question: Feedback from recent competitive losses - Management is assessing feedback from losses and remains optimistic about overall market opportunities despite setbacks [64]

AeroVironment, Inc. (NASDAQ:AVAV) Q4 2021 Earnings Conference Call June 29, 2021 4:30 PM ET Company Participants Steven Gitlin - Chief Marketing Officer & Vice President of Investor Relations Wahid Nawabi - President & Chief Executive Officer Kevin McDonnell - Senior Vice President & Chief Financial Officer Conference Call Participants Pete Skibitski - Alembic Global Peter Arment - Baird Joseph DeNardi - Stifel Ken Herbert - Canaccord Genuity Louie DiPalma - William Blair Steven Gitlin Good afternoon, ladie ...

Financial Performance - The company reported third quarter revenue of $78.8 million, a 27% increase year-over-year from $61.9 million [6][17] - Earnings per diluted share were $0.01, up from a loss of $0.04 in the prior year, with non-GAAP earnings per diluted share at $0.14, an increase of $0.15 compared to the prior year [6][23] - Gross margin for the third quarter was $28.6 million or 36% of revenue, down from 38% in the prior year due to an unfavorable product mix [19] - For the first three quarters of fiscal 2021, revenue was $258.9 million, a 12% increase from $232.1 million in the same period last year [18] Business Line Performance - Small unmanned aircraft systems (UAS) represented 64% of total revenue, with a 37% increase year-over-year [12][17] - Tactical missile systems (TMS) accounted for 25% of revenue, showing a significant 148% increase from the previous year [17] - High-altitude pseudo-satellites (HAPS) represented 9% of revenue, with ongoing development and testing [15] Market Data - The international market for small UAS remains strong, contributing to a healthy pipeline despite travel restrictions due to COVID-19 [12] - The company has seen increased demand for ISR solutions from allied nations, particularly in regions where the U.S. military has reduced its presence [30] Company Strategy and Industry Competition - The company is executing a long-term growth strategy through transformative acquisitions, including Telerob, Arcturus UAV, and Progeny Systems Corporation's Intelligent Systems Group [7][9][10] - The acquisitions are expected to enhance the company's capabilities in unmanned systems and artificial intelligence, positioning it for future growth [11][33] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2021 objectives, anticipating revenue between $400 million and $410 million [30][31] - The company expects adjusted EBITDA of $64 million to $69 million and earnings per diluted share of $0.76 to $0.96 for the fiscal year [31] - Preliminary expectations for fiscal year 2022 include revenue of $560 million to $580 million, reflecting strong growth potential [34] Other Important Information - The company reported a strong cash position of $384.3 million at the end of the third quarter, an increase of $66.6 million from the end of fiscal 2020 [25] - Funded backlog at the end of Q3 was $103.9 million, a decrease from the previous year, primarily due to delays caused by the pandemic [28] Q&A Session Summary Question: Insights on fiscal 2022 guidance and operations - Management indicated that the guidance for fiscal 2022 reflects strong demand and the positive impact of recent acquisitions, with a healthy pipeline of opportunities [39][40] Question: Impact of COVID-19 on international small UAS - Management acknowledged delays in contract timing due to COVID-19 but noted a robust pipeline of international opportunities for small UAS [45][46] Question: Competitive landscape for HAPS and patents - Management expressed confidence in the competitive position of the Sunglider and highlighted numerous patents that protect their technology [58][60] Question: Organic revenue growth in fiscal 2022 - Management stated that organic revenue growth would be quantified in future calls, emphasizing a healthy pipeline and strong positioning for long-term growth [66][70]