AeroVironment(AVAV) - 2021 Q3 - Quarterly Report

Revenue and Gross Margin - Revenue for the three months ended January 30, 2021 increased by $16.9 million (27%) to$ 78.8 million compared to $61.9 million in the same period last year, driven by a$ 21.9 million increase in product revenue partially offset by a $5.0 million decrease in service revenue[167] - Revenue for the nine months ended January 30, 2021 increased by$ 26.8 million (12%) to $258.9 million compared to$ 232.1 million in the same period last year, driven by higher product and service revenue[176] - Gross margin for the three months ended January 30, 2021 increased by $5.1 million (22%) to$ 28.6 million compared to $23.5 million in the same period last year, primarily due to higher product sales[170] - Gross margin increased by$ 5.0 million to $104.9 million, but as a percentage of revenue, it decreased from 43% to 41% due to an unfavorable product mix[178] Cost of Sales and Expenses - Cost of sales for the three months ended January 30, 2021 increased by$ 11.7 million (31%) to $50.1 million compared to$ 38.4 million in the same period last year, primarily due to higher product sales and unfavorable product mix[168] - Cost of sales increased by $21.9 million (17%) to$ 154.0 million for the nine months ended January 30, 2021, primarily due to higher product and service costs[177] - SG&A expense for the three months ended January 30, 2021 increased to $15.7 million (20% of revenue) compared to$ 13.2 million (21% of revenue) in the same period last year, primarily due to acquisition-related expenses[171] - SG&A expenses decreased to $42.6 million (16% of revenue) from$ 43.1 million (19% of revenue), primarily due to lower COVID-19 related expenses[179] - R&D expense for the three months ended January 30, 2021 increased by $2.3 million (20%) to$ 13.6 million compared to $11.4 million in the same period last year, driven by development activities for enhanced product capabilities and new product lines[171] - R&D expenses increased by$ 5.8 million (19%) to $36.7 million, driven by enhanced product capabilities and new product line development[180] Net Income and Adjustments - Net income for the three months ended January 30, 2021 was$ 0.3 million compared to a net loss of $1.0 million in the same period last year[169] - Net income for the nine months ended January 30, 2021 was$ 12.4 million compared to $23.6 million in the same period last year[174] - Gross favorable adjustments for the three months ended January 30, 2021 were$ 0.4 million compared to $1.4 million in the same period last year[162] - Net favorable adjustments for the nine months ended January 30, 2021 were$ 0.8 million compared to $1.2 million in the same period last year[164] Backlog and Financial Commitments - Funded backlog as of January 30, 2021 was$ 103.9 million, with an additional $116.1 million in unfunded backlog[183][184] - The company committed$ 2.1 million to a limited partnership fund, with a total commitment of $10.0 million, of which$ 2.9 million remains[192] Acquisitions and Financing - The company entered into a $300 million Credit Facility, including a$ 100 million revolving credit facility and a $200 million term loan, to finance the Arcturus Acquisition[186] - The company entered into a share purchase agreement to acquire Telerob for €51 million, including contingent consideration payments[203] Cash Flow - Net cash provided by operating activities increased by$ 63.9 million to $79.0 million, primarily due to improved collections of receivables[194] - Net cash used in investing activities decreased by$ 44.2 million to $6.2 million, mainly due to reduced business acquisition costs[195]