AeroVironment, Inc. (AeroVironment) has reported revenues of $52.2 million for the third quarter of fiscal 2009, up 8%, compared with the revenues of $48.5 million in the year-ago quarter. It also reported a net income of $4.54 million, or $0.21 per diluted share, for the third quarter of fiscal 2009, down 24%, compared with the net income of $6 million, or $0.28 per diluted share, in the year-ago quarter.
In our fiscal third quarter we continued to supply our innovative solutions to existing and new customers while achieving great progress on our development programs. The strong order flow generated in the quarter produced record funded backlog, indicating continued demand for our solutions, said Tim Conver, chairman and chief executive officer. Even with our backlog, our view of the balance of the year requires that we lower our revenue outlook for fiscal 2009. This is driven largely by current economic conditions as well as the timing of the receipt and shipment of customer orders, and does not reflect a fundamental change in our long-term view of the demand for our solutions, the relevance of our development programs or the soundness of our business model.
Third quarter highlights:
Operating margin of 8%
Funded backlog of $139 million
Fiscal 2009 Third Quarter Results
Income from operations for the third quarter of fiscal 2009 was $4.1 million, down 48% from third quarter fiscal 2008 income from operations of $8.0 million. The decrease in income from operations was caused by lower gross margin of $3.2 million and higher research and development (R&D) expense of $1.0 million, partially offset by lower selling, general and administrative (SG&A) expense of $0.3 million.
Fiscal 2009 Year-To-Date Results
Revenue for the first nine months of fiscal 2009 was $171.6 million, up 13% over the first nine months of fiscal 2008 revenue of $151.4 million. The increase in revenue resulted from increased sales in our UAS segment of $15.3 million and EES segment of $4.9 million.
Income from operations for the first nine months of fiscal 2009 was $23.6 million, up 22% from the first nine months of fiscal 2008 income from operations of $19.3 million. The increase in income from operations was caused by increased gross margin of $6.7 million and lower SG&A expense of $0.6 million, partially offset by higher R&D expense of $3.0 million.
Net income for the first nine months of fiscal 2009 was $18.4 million, up 23% from the first nine months of fiscal 2008 net income of $15.0 million.
Earnings per diluted share for the first nine months of fiscal 2009 was $0.84, up 19% from the first nine months of fiscal 2008 earnings per diluted share of $0.70.
As of January 31, 2009, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $139.0 million compared to $82.0 million as of April 30, 2008. Funded backlog as of January 31, 2009 includes a $39.0 million order for Raven systems that was executed on January 30, 2009 with a stated effective date of February 1, 2009.
Fiscal 2009 — Outlook For The Full Year
For fiscal year 2009, the company is revising its guidance to reflect anticipated full year revenue growth of between 11% and 16% over fiscal year 2008. The companymaintains its previous guidance with respect to operating margin of between 12% and 14%.
Full year guidance is now lower than the 20% to 25% annual revenue growth guidance for the year that we reiterated last quarter, said Tim Conver. Given the current economic environment, the fact that we have record backlog and continue to generate cash, with $131 million in cash, cash equivalents and investments on our balance sheet, serves us well. In building for the future we made great progress on key development programs including Digital Data Link, Global Observer and Switchblade. Our team is performing well, our solutions are making an important difference to our customers, and we remain well-positioned for future growth.
The foregoing estimates are forward looking and reflect management’s view of current and future market conditions, including certain assumptions with respect to our ability to obtain and retain government contracts, changes in the demand for our products and services, activities of competitors and changes in the regulatory environment, and general economic and business conditions in the US and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates.
AeroVironment is a US based provider of products and technology for clean energy and efficient vehicles.