S
|
Annual
Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
|
£
|
Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
Delaware
|
95-2705790
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
181 W. Huntington
Drive, Suite 202
|
||
Monrovia,
CA
|
91016
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
Common
Stock, par value $0.0001 per share
|
The
NASDAQ Stock Market
LLC
|
Large
Accelerated Filer o
|
Accelerated
Filer o
|
Non-accelerated
Filer þ
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PART
I
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Page
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2
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16
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30
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30
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30
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30
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PART
II
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31
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32
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33
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41
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42
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64
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64
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64
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PART
III
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65
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65
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65
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65
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65
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PART
IV
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66
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|
Ÿ
|
unexpected
technical and marketing difficulties inherent in major research and
product development efforts;
|
|
Ÿ
|
availability
of U.S. government funding for defense procurement and research and
development programs;
|
|
Ÿ
|
the
potential need for changes in our long-term strategy in response
to future
developments;
|
|
Ÿ
|
unexpected
changes in significant operating expenses, including components and
raw
materials;
|
|
Ÿ
|
changes
in the supply, demand and/or prices for our
products;
|
|
Ÿ
|
changes
in the regulatory environment; and
|
|
Ÿ
|
general
economic and business conditions in the U.S. and elsewhere in the
world.
|
Business.
|
|
Products
|
Small
UAS Product
|
Wingspan
(ft.)
|
Weight
(lbs.)
|
Recovery
|
Standard
Sensors
|
Range
(mi.)(1)
|
Flight
Time
(min.)(1)
|
||||||
Raven
|
|
4.5
|
4.2
|
|
Vertical
autonomous landing capable
|
|
Electro-optical
or infrared
|
|
6.0
|
90
|
||
|
|
|
|
|
|
|
||||||
Dragon
Eye
|
|
3.8
|
5.9
|
|
Horizontal
autonomous landing capable
|
|
Electro-optical
or infrared
|
|
3.0
|
60
|
||
|
|
|
|
|
|
|
||||||
Swift
|
|
3.8
|
5.9
|
|
Horizontal
autonomous landing capable
|
|
Electro-optical
or infrared
|
|
3.0
|
60
|
||
|
|
|
|
|
|
|
||||||
Wasp
II
|
|
1.3
|
0.6
|
|
Horizontal
autonomous landing capable (ground or water)
|
|
Electro-optical
|
|
2.4
|
30
|
||
|
|
|
|
|
|
|
||||||
Wasp
III
|
|
2.4
|
1.0
|
|
Horizontal
autonomous landing capable (ground or water)
|
|
Electro-optical
|
|
5.0
|
45
|
||
Puma
|
|
8.5
|
12.5
|
|
Vertical
autonomous landing capable (ground or water)
|
|
Dual
electro-optical and infrared
|
|
6.0
|
150
|
(1)
|
Represents
minimum customer-mandated specifications for all operating conditions.
In
optimal conditions, the performance of our products may significantly
exceed these specifications.
|
|
Maintenance
and Operations (Logistics)
|
|
Training
|
|
Products
|
As
of April 30,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Funded
|
|
$
|
60,889
|
|
|
$
|
79,699
|
UAS
Technology
|
|
Efficient
Electric Energy Technology
|
|
||
• Lightweight,
low speed aerostructures and propeller design
|
|
• Battery
management and chemistries
|
• Miniaturized
avionics and micro/nano unmanned aircraft systems
|
|
• Power
electronics and controls
|
• Image
stabilization and target tracking
|
|
• Lightweight
electric propulsion
|
• Unmanned
autonomous control systems
|
|
• Thermal
management
|
• Payload
integration
|
|
• High-density
energy packaging
|
• Hydrogen
propulsion systems and high-pressure-ratio
turbochargers
|
|
• Electric
power generation, storage and management
|
• Stratospheric
flight operations
|
|
• Charging
algorithms
|
• Fluid
dynamics
|
|
• On/off
grid controls
|
• System
integration and optimization
|
|
• Controls
integration and systems engineering
|
|
|
• System
integration and
optimization
|
|
Bidding
Process
|
|
Funding
|
|
Ÿ
|
Our
2005 contract for Raven B, our next generation Raven
product, awarded under a U.S. Army/U.S. Special Operations
Command, or SOCOM, program of record known as the Small Unmanned
Aerial
System program, provides for purchases of up to $333.3 million
through 2010 and also allows for contract additions from the
U.S. Army/SOCOM or other U.S. military services. As of April 30,
2007, orders in the amount of approximately $123.4 million had been
placed with us.
|
|
Ÿ
|
Our
2003 contract for Dragon Eye, awarded under a U.S. Marine
Corps program of record known as the Small Unit Remote Scouting System,
or
SURSS, program, provides for purchases of up to $50.0 million through
2008. As of April 30, 2007, orders in the amount of approximately
$47.8 million had been placed with
us.
|
|
Ÿ
|
Our
2006 contract for Block III Wasp or BATMAV, awarded under a U.S.
Air Force
program of record known as the Beyond Line of Site, program, provides
for
purchases of up to $45 million over a period of five years. As
of April 30, 2007, orders in the amount of approximately $800,000
had been
placed with us.
|
|
Material
Government Contract
Provisions
|
|
Ÿ
|
terminate
existing contracts for convenience, which affords the U.S. government
the right to terminate the contract in whole or in part anytime it
wants
for any reason or no reason, as well as for
default;
|
|
Ÿ
|
reduce
or modify contracts or subcontracts, if its requirements or budgetary
constraints change;
|
|
Ÿ
|
cancel
multi-year contracts and related orders, if funds for contract performance
for any subsequent year become
unavailable;
|
|
Ÿ
|
claim
rights in products and systems produced by its contractors if the
contract
is cost reimbursable and the contractor produces the products or
systems
during the performance of the
contract;
|
|
Ÿ
|
adjust
contract costs and fees on the basis of audits completed by its
agencies;
|
|
Ÿ
|
suspend
or debar a contractor from doing business with the
U.S. government; and
|
|
Ÿ
|
control
or prohibit the export of products.
|
|
Government
Contract Categories
|
|
Ÿ
|
Cost-plus-fixed
fee contracts are cost reimbursable contracts that provide for payment
of
a negotiated fee that is fixed at the inception of the contract.
This
fixed fee does not vary with actual cost of the contract, but may
be
adjusted as a result of changes in the work to be performed under
the
contract. This contract type poses less risk of loss than a fixed-price
contract, but our ability to win future contracts from the procuring
agency may be adversely affected if we fail to perform within the
maximum
cost set forth in the contract.
|
|
Ÿ
|
A
cost-plus-award fee contract is a cost reimbursable contract that
provides
for a fee consisting of a base amount (which may be zero) fixed at
inception of the contract and an award amount, based upon the government's
satisfaction with the performance under the contract. With this type
of
contract, we assume the risk that we may not receive the award fee,
or
only a portion of it, if we do not perform
satisfactorily.
|
|
Ÿ
|
A
cost-plus-incentive fee contract is a cost reimbursable contract
that
provides for an initially negotiated fee to be adjusted later by
a formula
based on the relationship of total allowable costs to total target
costs.
|
|
|
Fiscal
Year Ended
|
|
|||||||||
|
|
April 30,
|
|
|||||||||
|
|
2007
|
|
|
2006
|
|
|
2005
|
|
|||
|
||||||||||||
Fixed-price
contracts
|
|
|
65
|
%
|
|
|
69
|
%
|
|
|
87
|
%
|
Cost
reimbursable contracts
|
|
|
34
|
%
|
|
|
31
|
%
|
|
|
12
|
%
|
Time-and-materials
contracts
|
|
|
1
|
%
|
|
|
—
|
%
|
|
|
1
|
%
|
|
|
Indefinite
Delivery Indefinite Quantity Contract
Form
|
Risk
Factors.
|
|
Ÿ
|
changes
in government programs that are related to our products and
services;
|
|
Ÿ
|
adoption
of new laws or regulations relating to government contracting or
changes
to existing laws or regulations;
|
|
Ÿ
|
changes
in political or public support for security and defense
programs;
|
|
Ÿ
|
delays
or changes in the government appropriations
process;
|
|
Ÿ
|
uncertainties
associated with the war on terror and other geo-political matters;
and
|
|
Ÿ
|
delays
in the payment of our invoices by government payment
offices.
|
|
Ÿ
|
generate
sufficient revenue to maintain
profitability;
|
|
Ÿ
|
acquire
and maintain market share;
|
|
Ÿ
|
manage
growth in our operations;
|
|
Ÿ
|
develop
and renew contracts;
|
|
Ÿ
|
attract
and retain additional engineers and other highly-qualified
personnel;
|
|
Ÿ
|
successfully
develop and commercially market new
products;
|
|
Ÿ
|
adapt
to new or changing policies and spending priorities of governments
and
government agencies; and
|
|
Ÿ
|
access
additional capital when required and on reasonable
terms.
|
|
Ÿ
|
customer
satisfaction with these types of systems as
solutions;
|
|
Ÿ
|
the
cost, performance and reliability of our products and products offered
by
our competitors;
|
|
Ÿ
|
customer
perceptions regarding the effectiveness and value of these types
of
systems;
|
|
Ÿ
|
limitations
on our ability to market our small UAS products outside the United
States
due to U.S. government regulations;
|
|
Ÿ
|
obtaining
timely regulatory approvals, including, with respect to our small
UAS
business, access to airspace and wireless spectrum;
and
|
|
Ÿ
|
marketing
efforts and publicity regarding these types of
systems.
|
|
Ÿ
|
fluctuations
in revenue derived from government contracts, including cost-plus-fee
contracts and contracts with a performance-based fee
structure;
|
|
Ÿ
|
the
size and timing of orders from military and other governmental agencies,
including increased purchase requests from government customers for
equipment and materials in connection with the U.S. government's
fiscal
year end, which may affect our quarterly operating
results;
|
|
Ÿ
|
the
mix of products that we sell in the
period;
|
|
Ÿ
|
seasonal
fluctuations in customer demand for some of our products or
services;
|
|
Ÿ
|
unanticipated
costs incurred in the introduction of new
products;
|
|
Ÿ
|
fluctuations
in the adoption of our products in new
markets;
|
|
Ÿ
|
changes
in the level of tax credits available for research and development
spending;
|
|
Ÿ
|
cancellations,
delays or contract amendments by our governmental agency customers;
and
|
|
Ÿ
|
changes
in policy or budgetary measures that adversely affect our governmental
agency customers.
|
|
Ÿ
|
hire
additional engineers and other
personnel;
|
|
Ÿ
|
develop
new or enhance existing products;
|
|
Ÿ
|
enhance
our operating infrastructure;
|
|
Ÿ
|
fund
working capital requirements;
|
|
Ÿ
|
acquire
complementary businesses or technologies;
or
|
|
Ÿ
|
otherwise
respond to competitive pressures.
|
|
Ÿ
|
the
unavailability of, or difficulties in obtaining any, necessary
governmental authorizations for the export of our UAS products to
certain
foreign jurisdictions;
|
|
Ÿ
|
changes
in regulatory requirements that may adversely affect our ability
to sell
certain products or repatriate profits to the
U.S.;
|
|
Ÿ
|
the
complexity and necessity of using foreign representatives and
consultants;
|
|
Ÿ
|
difficulties
in enforcing agreements and collecting receivables through foreign
legal
systems and other relevant legal issues, including fewer legal protections
for intellectual property;
|
|
Ÿ
|
potential
fluctuations in foreign economies and in the value of foreign currencies
and interest rates;
|
|
Ÿ
|
potential
preferences by prospective customers to purchase from local (non-U.S.)
sources;
|
|
Ÿ
|
general
economic and political conditions in the markets in which we
operate;
|
|
Ÿ
|
laws
or regulations relating to non-U.S. military contracts that favor
purchases from non-U.S. manufacturers over U.S.
manufacturers;
|
|
Ÿ
|
the
imposition of tariffs, embargoes, export controls and other trade
restrictions; and
|
|
Ÿ
|
different
and changing legal and regulatory requirements in the jurisdictions
in
which we currently operate or may operate in the
future.
|
|
Ÿ
|
difficulties
in integrating the operations, technologies, products, existing contracts,
accounting and personnel of the target company and realizing the
anticipated synergies of the combined
businesses;
|
|
Ÿ
|
difficulties
in supporting and transitioning customers, if any, of the target
company;
|
|
Ÿ
|
diversion
of financial and management resources from existing
operations;
|
|
Ÿ
|
the
price we pay or other resources that we devote may exceed the value
we
realize, or the value we could have realized if we had allocated
the
purchase price or other resources to another
opportunity;
|
|
Ÿ
|
risks
of entering new markets in which we have limited or no
experience;
|
|
Ÿ
|
potential
loss of key employees, customers and strategic alliances from either
our
current business or the target company's
business;
|
|
Ÿ
|
assumption
of unanticipated problems or latent liabilities, such as problems
with the
quality of the target company's products;
and
|
|
Ÿ
|
inability
to generate sufficient revenue to offset acquisition
costs.
|
|
Ÿ
|
the
Federal Acquisition Regulations and supplemental agency regulations,
which
comprehensively regulate the formation and administration of, and
performance under, U.S. government
contracts;
|
|
Ÿ
|
the
Truth in Negotiations Act, which requires certification and disclosure
of
all factual cost and pricing data in connection with contract
negotiations;
|
|
Ÿ
|
the
False Claims Act and the False Statements Act, which impose penalties
for
payments made on the basis of false facts provided to the government
and
on the basis of false statements made to the government,
respectively;
|
|
Ÿ
|
the
Foreign Corrupt Practices Act, which prohibits U.S. companies from
providing anything of value to a foreign official to help obtain,
retain
or direct business, or obtain any unfair
advantage;
|
|
Ÿ
|
the
National Telecommunications and Information Administration and the
Federal
Communications Commission, which regulate the wireless spectrum
allocations upon which UAS depend for operation and data transmission
in
the U.S.;
|
|
Ÿ
|
the
Federal Aviation Administration, which is in the process of drafting
regulations specifically for small UAS operation in the
U.S.;
|
|
Ÿ
|
the
International Traffic in Arms Regulations, which regulate the export
of
controlled technical data, defense articles and defense services
and
restrict from which countries we may purchase materials and services
used
in the production of certain of our products;
and
|
|
Ÿ
|
laws,
regulations and executive orders restricting the use and dissemination
of
information classified for national security purposes and the exportation
of certain products and technical
data.
|
|
Ÿ
|
the
need to bid on programs in advance of the completion of their design,
which may result in unforeseen technological difficulties and cost
overruns;
|
|
Ÿ
|
the
substantial cost and managerial time and effort that must be spent
to
prepare bids and proposals for contracts that may not be awarded
to
us;
|
|
Ÿ
|
the
need to estimate accurately the resources and cost structure that
will be
required to service any contract we are awarded;
and
|
|
Ÿ
|
the
expense and delay that may arise if our competitors protest or challenge
contract awards made to us pursuant to competitive bidding, and the
risk
that any such protest or challenge could result in the delay of our
contract performance, the distraction of management, the resubmission
of
bids on modified specifications, or in termination, reduction or
modification of the awarded
contract.
|
|
Ÿ
|
U.S.
government spending levels, both generally and by our particular
customers;
|
|
Ÿ
|
The
volume of operational activity by the U.S.
military;
|
|
Ÿ
|
delays
in the payment of our invoices by government payment offices, resulting
in
potentially reduced earnings during a particular fiscal
quarter;
|
|
Ÿ
|
announcements
of new products or technologies, commercial relationships or other
events
relating to us or our industry or our
competitors;
|
|
Ÿ
|
failure
of any of our key products to gain market
acceptance;
|
|
Ÿ
|
variations
in our quarterly operating results;
|
|
Ÿ
|
perceptions
of the prospects for the markets in which we
compete;
|
|
Ÿ
|
changes
in general economic conditions;
|
|
Ÿ
|
changes
in securities analysts' estimates of our financial
performance;
|
|
Ÿ
|
regulatory
developments in the U.S. and foreign
countries;
|
|
Ÿ
|
fluctuations
in stock market prices and trading volumes of similar
companies;
|
|
Ÿ
|
news
about the markets in which we compete or regarding our
competitors;
|
|
Ÿ
|
terrorist
acts or military action related to international conflicts, wars
or
otherwise;
|
|
Ÿ
|
sales
of large blocks of our common stock, including sales by our executive
officers, directors and significant stockholders;
and
|
|
Ÿ
|
additions
or departures of key personnel.
|
Unresolved
Staff Comments.
|
Properties.
|
Legal
Proceedings.
|
Submission
of Matters to a Vote of Securities
Holders.
|
Market
for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity
Securities.
|
High
|
Low
|
|||||||
Fiscal
Year Ended April 30, 2007
|
||||||||
January
23, 2007 – January 27, 2007
|
$ |
26.22
|
$ |
22.60
|
||||
Fourth
Quarter
|
24.50
|
20.50
|
Performance
Graph Table ($)
|
||||||||||
January
23, 2007
|
January
31, 2007
|
February
28, 2007
|
March
30, 2007
|
April
30, 2007
|
||||||
AeroVironment,
Inc.
|
100
|
135
|
125
|
134
|
126
|
|||||
Russell
2000 Index
|
100
|
103
|
102
|
103
|
105
|
|||||
SPADES
Index
|
100
|
103
|
103
|
104
|
108
|
Selected
Consolidated Financial
Data
|
|
Year
Ended April 30,
|
|||||||||||||||||||
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
|
(In
thousands, except per share data)
|
|||||||||||||||||||
Consolidated
Income Statement Data:
|
|
|
|
|
|
|||||||||||||||
Revenue
|
$ |
173,721
|
$ |
139,357
|
$ |
105,155
|
$ |
47,680
|
$ |
45,817
|
||||||||||
Net
income
|
$ |
20,718
|
$ |
11,208
|
$ |
14,570
|
$ |
2,171
|
$ |
541
|
||||||||||
|
||||||||||||||||||||
Earnings
per common share:
|
||||||||||||||||||||
Basic
|
$ |
1.39
|
$ |
0.86
|
$ |
1.15
|
$ |
0.19
|
$ |
0.05
|
||||||||||
Diluted
|
$ |
1.22
|
$ |
0.75
|
$ |
1.05
|
$ |
0.18
|
$ |
0.04
|
||||||||||
Weighted
average common shares outstanding (basic):
|
$ |
14,947
|
$ |
13,012
|
$ |
12,675
|
$ |
11,539
|
$ |
11,583
|
||||||||||
Weighted
average common shares outstanding (diluted):
|
$ |
16,992
|
$ |
14,874
|
$ |
13,847
|
$ |
12,094
|
$ |
12,040
|
||||||||||
Balance
Sheet Data
|
||||||||||||||||||||
Total
assets
|
$ |
168,177
|
$ |
64,950
|
$ |
50,440
|
$ |
26,464
|
$ |
14,385
|
||||||||||
Long-term
obligations
|
$ |
541
|
$ |
2,617
|
$ |
1,500
|
$ |
1,000
|
$ |
422
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operation.
|
|
|
Fiscal
Year Ended April 30,
|
|
|||||||||||||||||||||
|
|
2007
|
|
|
2006
|
|
|
2005
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
||||||||||||||||||||||||
Revenue
|
|
$
|
173,721
|
|
|
|
100%
|
|
|
$
|
139,357
|
|
|
|
100%
|
|
|
$
|
105,155
|
|
|
|
100%
|
|
Cost
of sales
|
|
|
105,239
|
|
|
|
61%
|
|
|
|
82,598
|
|
|
|
59%
|
|
|
|
58,549
|
|
|
|
56%
|
|
Gross
margin
|
|
|
68,482
|
|
|
|
39%
|
|
|
|
56,759
|
|
|
|
41%
|
|
|
|
46,606
|
|
|
|
44%
|
|
Research
and development
|
|
|
13,940
|
|
|
|
8%
|
|
|
|
16,098
|
|
|
|
12%
|
|
|
|
9,799
|
|
|
|
9%
|
|
Selling,
general and administrative
|
|
|
24,041
|
|
|
|
14%
|
|
|
|
24,810
|
|
|
|
18%
|
|
|
|
16,733
|
|
|
|
16%
|
|
Income
from operations
|
|
|
30,501
|
|
|
|
18%
|
|
|
|
15,851
|
|
|
|
12%
|
|
|
|
20,074
|
|
|
|
19%
|
|
Interest
income
|
|
|
1,707
|
|
|
|
1%
|
|
|
|
333
|
|
|
|
0%
|
|
|
|
61
|
|
|
|
0%
|
|
Interest
expense
|
|
|
(6
|
)
|
|
|
0%
|
|
|
|
(127
|
)
|
|
|
0%
|
|
|
|
(110
|
)
|
|
|
0%
|
|
Income
before income taxes
|
|
|
32,202
|
|
|
|
19%
|
|
|
|
16,057
|
|
|
|
12%
|
|
|
|
20,025
|
|
|
|
19%
|
|
Income
tax expense
|
|
|
11,484
|
|
|
|
7%
|
|
|
|
4,849
|
|
|
|
3%
|
|
|
|
5,455
|
|
|
|
5%
|
|
Net
income
|
|
$
|
20,718
|
|
|
|
12%
|
|
|
$
|
11,208
|
|
|
|
8%
|
|
|
$
|
14,570
|
|
|
|
14%
|
|
|
|
Fiscal
Year Ended April 30,
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2005
|
|
||||
|
|
(In
thousands)
|
|||||||||||
|
|||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UAS
|
|
$
|
146,538
|
|
|
$
|
111,104
|
|
|
$
|
82,249
|
|
|
PosiCharge
Systems
|
|
|
17,575
|
|
|
|
19,928
|
|
|
|
15,642
|
|
|
Energy
Technology Center
|
|
|
9,608
|
|
|
|
8,325
|
|
|
|
7,264
|
|
|
Total
|
|
$
|
173,721
|
|
|
$
|
139,357
|
|
|
$
|
105,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UAS
|
|
$
|
57,591
|
|
|
$
|
44,558
|
|
|
$
|
37,235
|
|
|
PosiCharge Systems
|
|
|
6,096
|
|
|
|
8,062
|
|
|
|
5,846
|
|
|
Energy
Technology Center
|
|
|
4,795
|
|
|
|
4,139
|
|
|
|
3,525
|
|
|
Total
|
|
$
|
68,482
|
|
|
$
|
56,759
|
|
|
$
|
46,606
|
|
|
|
Fiscal
Year Ended April 30,
|
|
|||||||||
|
2007
|
|
|
2006
|
|
|
2005
|
|
||||
|
|
(In
thousands)
|
||||||||||
Net
cash provided by operating activities
|
|
$
|
15,022
|
|
|
$
|
13,353
|
|
|
$
|
8,644
|
|
Net
cash used in investing activities
|
|
$
|
91,348
|
|
$
|
4,190
|
|
$
|
3,533
|
|||
Net
cash provided by (used in) financing activities
|
|
$
|
81,858
|
|
|
$
|
(3,835
|
)
|
|
$
|
1,639
|
|
|
Payments
Due By Period
|
|
|||||||||||||||||
|
Total
|
|
|
Less
Than
1 Year
|
|
|
1
to 3 Years
|
|
|
3
to 5 Years
|
|
|
More
Than
5 Years
|
|||||||
|
|
(In
thousands)
|
|
|||||||||||||||||
|
||||||||||||||||||||
Operating
lease obligations
|
|
$
|
9,016
|
|
|
$
|
2,646
|
|
|
$
|
4,268
|
|
|
$
|
1,961
|
|
|
$
|
141
|
|
Purchase
obligations(1)
|
|
|
24,288
|
|
|
|
24,288
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
33,304
|
|
|
$
|
26,934
|
|
|
$
|
4,268
|
|
|
$
|
1,961
|
|
|
$
|
141
|
|
(1)
|
Consists
of all non-cancelable purchase orders as of April 30,
2007.
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
Financial
Statements and Supplementary
Data.
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
43
|
Consolidated
Balance Sheets at April 30, 2007 and 2006
|
44
|
Consolidated
Statements of Income for the Years Ended April 30, 2007, 2006
and
2005
|
45
|
Consolidated
Statements of Stockholders' Equity for the Years Ended April
30, 2007,
2006 and 2005
|
46
|
Consolidated
Statements of Cash Flows for the Years Ended April 30, 2007,
2006, and
2005
|
47
|
Notes
to Consolidated Financial Statements
|
48
|
Quarterly
Results of Operations (Unaudited)
|
62
|
Financial
Statement Schedule: Schedule II – Valuation and Qualifying
Accounts
|
63
|
/s/ Ernst & Young LLP | |
Los Angeles, California | |
June 27, 2007 |
|
|
April 30,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
|
||||||||
Assets
|
||||||||
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
20,920
|
|
|
$
|
15,388
|
|
Restricted
cash
|
|
|
389
|
|
|
|
1,532
|
|
Short-term
investments
|
88,325
|
—
|
|
|||||
Accounts
receivable, net of allowance for doubtful accounts of $149
at April 30,
2007 and $86 at April 30, 2006
|
|
|
7,691
|
|
|
|
21,582
|
|
Unbilled
receivables and retentions
|
|
|
26,494
|
|
|
|
4,843
|
|
Inventories,
net
|
|
|
14,015
|
|
|
|
11,453
|
|
Deferred
income taxes
|
|
|
1,730
|
|
|
|
1,261
|
|
Prepaid
expenses and other current assets
|
|
|
1,504
|
|
|
|
621
|
|
Total
current assets
|
|
|
161,068
|
|
|
|
56,680
|
|
Property
and equipment, net
|
|
|
6,229
|
|
|
|
6,098
|
|
Deferred
income taxes
|
|
|
761
|
|
|
|
2,053
|
|
Other
assets
|
|
|
119
|
|
|
|
119
|
|
Total
assets
|
|
$
|
168,177
|
|
|
$
|
64,950
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity
|
||||||||
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,024
|
|
|
$
|
8,521
|
|
Wages
and related accruals
|
|
|
8,942
|
|
|
|
8,450
|
|
Customer
advances
|
|
|
139
|
|
|
|
9,031
|
|
Income
taxes payable
|
4,564
|
—
|
||||||
Other
current liabilities
|
|
|
1,544
|
|
|
|
2,028
|
|
Total
current liabilities
|
|
|
31,213
|
|
|
|
28,030
|
|
Deferred
rent
|
|
|
541
|
|
|
|
408
|
|
Long-term
retirement costs
|
|
|
—
|
|
|
|
2,209
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred
stock, $0.0001 par value:
|
||||||||
Authorized
shares —
10,000,000;
none issued or outstanding
|
||||||||
Common
stock, $0.0001 par value:
|
|
|
|
|
|
|
|
|
Authorized
shares — 100,000,000
|
|
|
|
|||||
Issued
and outstanding shares — 18,875,957 shares at April 30, 2007 and
13,283,770 at April 30, 2006
|
|
|
2
|
|
|
|
—
|
|
Additional
paid-in capital
|
83,611
|
2,211
|
||||||
Retained
earnings
|
|
|
52,810
|
|
|
|
32,092
|
|
Total
stockholders' equity
|
|
|
136,423
|
|
|
|
34,303
|
|
Total
liabilities and stockholders' equity
|
|
$
|
168,177
|
|
|
$
|
64,950
|
|
|
Year
Ended April 30,
|
|
||||||||||
|
2007
|
|
|
2006
|
|
|
2005
|
|
||||
|
||||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
116,361
|
|
|
$
|
98,664
|
|
|
$
|
85,291
|
|
Contract
services
|
|
|
57,360
|
|
|
|
40,693
|
|
|
|
19,864
|
|
|
|
|
173,721
|
|
|
|
139,357
|
|
|
|
105,155
|
|
Cost
of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
|
67,410
|
|
|
|
55,483
|
|
|
|
39,123
|
|
Contract
services
|
|
|
37,829
|
|
|
|
27,115
|
|
|
|
19,426
|
|
|
|
|
105,239
|
|
|
|
82,598
|
|
|
|
58,549
|
|
Gross
margin
|
|
|
68,482
|
|
|
|
56,759
|
|
|
|
46,606
|
|
Research
and development
|
|
|
13,940
|
|
|
|
16,098
|
|
|
|
9,799
|
|
Selling,
general and administrative
|
|
|
24,041
|
|
|
|
24,810
|
|
|
|
16,733
|
|
Income
from operations
|
|
|
30,501
|
|
|
|
15,851
|
|
|
|
20,074
|
|
Other
income (expense)
|
||||||||||||
Interest
income
|
|
|
1,707
|
|
|
|
333
|
|
|
|
61
|
|
Interest
expense
|
|
|
(6
|
)
|
|
|
(127
|
)
|
|
|
(110
|
)
|
Income
before income taxes
|
|
|
32,202
|
|
|
|
16,057
|
|
|
|
20,025
|
|
Provision
for income taxes
|
|
|
11,484
|
|
|
|
4,849
|
|
|
|
5,455
|
|
Net
income
|
|
$
|
20,718
|
|
|
$
|
11,208
|
|
|
$
|
14,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.39
|
|
|
$
|
0.86
|
|
|
$
|
1.15
|
|
Diluted
|
|
$
|
1.22
|
|
|
$
|
0.75
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,946,502
|
|
|
|
13,011,639
|
|
|
|
12,674,585
|
|
Diluted
|
|
|
16,992,012
|
|
|
|
14,873,651
|
|
|
|
13,847,223
|
|
|
|
Common
Stock
|
Additional
|
Retained
|
|
|
||||||||||||||
|
|
Shares
|
|
|
Amount
|
Paid-In
Capital
|
Earnings
|
|
|
Total
|
|
|||||||||
|
||||||||||||||||||||
Balance
at April 30, 2004
|
|
|
11,554,301
|
|
|
|
—
|
|
$
|
1,200
|
$
|
6,314
|
|
$
|
7,514
|
|
||||
Stock
options exercised
|
|
|
1,568,303
|
|
|
|
—
|
|
780
|
—
|
|
|
780
|
|
||||||
Stock
repurchased
|
|
|
(184,742
|
)
|
|
|
—
|
(141
|
)
|
—
|
|
|
(141
|
)
|
||||||
Net
income
|
|
|
—
|
|
|
|
—
|
|
—
|
14,570
|
|
|
14,570
|
|
||||||
Balance
at April 30, 2005
|
|
|
12,937,862
|
|
|
|
—
|
|
1,839
|
20,884
|
|
|
22,723
|
|
||||||
Stock
options exercised
|
|
|
345,908
|
|
|
|
—
|
|
197
|
—
|
|
|
197
|
|
||||||
Tax
benefit from exercise of stock options
|
|
|
—
|
|
|
|
—
|
|
175
|
—
|
|
|
175
|
|
||||||
Net
income
|
|
|
—
|
|
|