AeroVironment(US:AVAV)2021-09-09 02:20Financial 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]