AeroVironment (AVAV) 10-Q 9 Mar 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jan. 30, 2016	Feb. 26, 2016
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity Central Index Key	1,368,622
Document Type	10-Q
Document Period End Date	Jan. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,357,076
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 30, 2016	Apr. 30, 2015
Current assets:
Cash and cash equivalents	$ 122,706	$ 143,410
Short-term investments	97,692	85,381
Accounts receivable, net of allowance for doubtful accounts of $191 at January 30, 2016 and $606 at April 30, 2015	38,991	33,607
Unbilled receivables and retentions	10,440	17,356
Inventories, net	46,434	39,414
Income tax receivable	3,901
Deferred income taxes	5,247	5,265
Prepaid expenses and other current assets	4,219	4,599
Total current assets	329,630	329,032
Long-term investments	38,175	46,769
Property and equipment, net	14,313	13,499
Deferred income taxes	6,720	7,426
Other assets	653	741
Total assets	389,491	397,467
Current liabilities:
Accounts payable	9,786	19,243
Wages and related accruals	13,463	13,395
Income taxes payable		692
Customer advances	3,213	4,235
Other current liabilities	6,408	9,170
Total current liabilities	32,870	46,735
Capital lease obligations - net of current portion	388
Deferred rent	1,223	1,381
Liability for uncertain tax positions	$ 439	$ 439
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 - 23,358,981 at January 30, 2016 and 23,314,640 at April 30, 2015	$ 2	$ 2
Additional paid-in capital	152,942	148,293
Accumulated other comprehensive loss	(194)	(1,358)
Retained earnings	201,821	201,975
Total stockholders' equity	354,571	348,912
Total liabilities and stockholders' equity	$ 389,491	$ 397,467

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 30, 2016	Apr. 30, 2015
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 191	$ 606
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, Authorized shares	100,000,000	100,000,000
Common stock, Issued shares	23,358,981	23,314,640
Common stock, outstanding shares	23,358,981	23,314,640

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Revenue:
Product sales	$ 53,305	$ 56,308	$ 129,436	$ 141,993
Contract services	14,255	12,089	49,905	30,934
Total revenue	67,560	68,397	179,341	172,927
Cost of sales:
Product sales	31,910	32,901	73,477	91,477
Contract services	9,025	8,503	31,683	22,532
Total cost of sales	40,935	41,404	105,160	114,009
Gross margin:
Product sales	21,395	23,407	55,959	50,516
Contract services	5,230	3,586	18,222	8,402
Total gross margin	26,625	26,993	74,181	58,918
Selling, general and administrative	13,313	13,268	43,302	40,141
Research and development	8,247	8,577	27,975	24,232
Income (loss) from operations	5,065	5,148	2,904	(5,455)
Other (expense) income:
Interest income, net	181	224	673	629
Other (expense), net	(215)	(284)	(2,796)	(276)
Income (loss) before income taxes	5,031	5,088	781	(5,102)
(Benefit) provision for income taxes	(1,133)	2,763	(2,821)	(917)
Net Income (loss)	$ 6,164	$ 2,325	$ 3,602	$ (4,185)
Earnings (loss) per share data:
Basic (in dollars per share)	$ 0.27	$ 0.10	$ 0.16	$ (0.18)
Diluted (in dollars per share)	$ 0.27	$ 0.10	$ 0.16	$ (0.18)
Weighted average shares outstanding:
Basic (in shares)	22,890,484	22,890,502	22,941,354	22,856,962
Diluted (in shares)	23,083,816	23,109,354	23,139,981	22,856,962

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 6,164	$ 2,325	$ 3,602	$ (4,185)
Other comprehensive income (loss):
Unrealized gain (loss) on investments, net of tax expense of $5 and $(388) for the three months ended January 30, 2016 and January 31, 2015, respectively; and net of tax expense of $23 and $(785) for the nine months ended January 30, 2016 and January 31, 2015, respectively	7	(582)	34	(1,178)
Total comprehensive income (loss)	$ 6,171	$ 1,743	$ 3,636	$ (5,363)

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Consolidated Statements of Comprehensive Income (Loss)
Unrealized gain (loss) on investments, net of tax portion	$ 5	$ (388)	$ 23	$ (785)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015
Operating activities
Net income (loss)	$ 3,602	$ (4,185)
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:
Depreciation and amortization	4,547	6,368
Impairment of available-for-sale securities	2,186
Loss from equity method investments	248	152
Provision for doubtful accounts	(252)	(101)
Deferred income taxes	18	(202)
Loss (gain) on sale of equity securities	219	(182)
Stock-based compensation	3,170	2,714
Foreign currency losses	63	361
Increase in fair value of conversion feature of convertible bonds		(73)
Tax benefit from exercise of stock options	302	13
Excess tax benefit from stock-based compensation		(343)
Gain on sale of property and equipment	(32)
Amortization of held-to-maturity investments	3,086	3,388
Changes in operating assets and liabilities:
Accounts receivable	(5,052)	(5,994)
Unbilled receivables and retentions	6,916	2,584
Inventories	(7,020)	1,900
Income tax receivable	(3,952)	4,644
Other assets	455	57
Accounts payable	(9,457)	2,309
Other liabilities	(4,746)	3,806
Net cash (used in) provided by operating activities	(5,699)	17,216
Investing activities
Acquisitions of property and equipment	(4,259)	(2,326)
Equity method investments	(295)	(285)
Purchases of held-to-maturity investments	(75,740)	(88,074)
Redemptions of held-to-maturity investments	67,402	62,107
Acquisitions of intangible assets		(150)
Sales of available-for-sale investments	987	9,498
Net cash used in investing activities	(11,905)	(19,230)
Financing activities
Purchase and retirement of common stock	(3,756)
Principal payments on capital lease obligations	(341)
Tax withholding payment related to net settlement of equity awards	(29)	(36)
Excess tax benefit from exercise of stock options		343
Exercise of stock options	1,026	715
Net cash (used in) provided by financing activities	(3,100)	1,022
Net decrease in cash and cash equivalents	(20,704)	(992)
Cash and cash equivalents at beginning of period	143,410	126,969
Cash and cash equivalents at end of period	122,706	125,977
Supplemental disclosure:
Unrealized change in fair value of investments recorded in other comprehensive income (loss), net of deferred taxes of $23 and $785, respectively	34	1,178
Accrued acquisition of intangible assets		250
Forfeiture of vested stock-based compensation		$ 23
Acquisitions of property and equipment financed with capital lease obligations (Note 1)	694
Reclassification from share-based liability compensation to equity	$ 228

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015
Consolidated Statements of Cash Flows
Unrealized change in fair value of investments recorded in other comprehensive income (loss), net of deferred taxes	$ 23	$ 785

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Jan. 30, 2016
Organization and Significant Accounting Policies
Organization and Significant Accounting Policies	1. Organization and Significant Accounting Policies Organization AeroVironment, Inc., a Delaware corporation (the “Company”), is engaged in the design, development, production, support and operation of unmanned aircraft systems (“UAS”) and efficient energy systems (“EES”) for various industries and governmental agencies. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements have been included. The results of operations for the three and nine months ended January 30, 2016, are not necessarily indicative of the results for the full year ending April 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2015, included in the Company’s Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including estimates of anticipated contract costs and revenue utilized in the revenue recognition process, that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Out-of-Period Adjustments During the three months ended January 30, 2016, the Company identified the following errors: 1) other current liabilities and the related cost of sales, selling, general and administrative and research and development expenses were understated due to state use taxes owed for certain internally consumed tangible assets not identified on a timely basis; and 2) property and equipment, net, were understated, capital lease obligations were understated, operating cash flows were understated, and investing cash flows were overstated due to certain IT equipment and perpetual software license capital lease agreements being incorrectly classified as operating leases. The Company assessed the materiality of these errors considering the relevant quantitative and qualitative factors and concluded that the errors were not material to the consolidated financial statements taken as a whole. As such, during the three months ended January 30, 2016, the Company recorded the following out-of-period adjustments to correct the errors: 1) increased “other current liabilities” $747,000, increased “research and development” expense $503,000, increased “selling, general and administrative” expense $155,000, and increased cost of sales $89,000; and 2) increased “property and equipment, net”, $584,000, increased “Capital lease obligations — net of current portion” $319,000, and increased capital lease obligations — current portion $324,000 which is included in “Other current liabilities”. In addition, $220,000 of cash outflows were reclassified from operating activities to “Principal payments on capital lease agreements” within financing activities. The consolidated statements of operations and consolidated statements of comprehensive income (loss) for the three and nine months ended January 30, 2016, the consolidated balance sheet as of January 30, 2016 and the consolidated statement of cash flows for the nine months ended January 30, 2016 reflect the above adjustments. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Segments The Company’s products are sold and divided among two reportable segments to reflect the Company’s strategic goals. Operating segments are defined as components of an enterprise from which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer, who reviews the revenue and gross margin results for each of these segments in order to make resource allocation decisions, including the focus of research and development (“R&D”) activities and performance assessment. The Company’s reportable segments are business units that offer different products and services and are managed separately. Investments The Company’s investments are accounted for as held-to-maturity and available-for-sale and reported at amortized cost and fair value, respectively. Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, unbilled receivables, retentions and accounts payable approximate cost due to the short period of time to maturity. Government Contracts Payments to the Company on government cost reimbursable contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (“DCAA”). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional billing rates, may create an additional receivable or liability for the Company. For example, during the course of its audits, the DCAA may question the Company’s incurred project costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to the Company’s administrative contracting officer to disallow such costs. The Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future. The Defense Contract Management Agency, or (“DCMA”), has disallowed a portion of the Company’s executive compensation and other costs included in the Company’s fiscal year 2006 incurred cost claim and sought interest and penalties. The Company and DCMA have resolved most of these claims. However, the Company is vigorously defending its position on the government’s remaining claims for the fiscal 2006 incurred cost claim, which the Company has appealed to the Armed Services Board of Contract Appeals. Based on the Company’s current understanding of the facts and the amount in dispute, the Company believes that the outcome of these disputes will not have a material impact on the Company’s business. Claims related to other fiscal years were settled during the nine months ended January 30, 2016, as described in Note 9. As of January 30, 2016 and April 30, 2015, the Company had reserves for incurred cost claim audits for various fiscal years. Earnings (Loss) Per Share Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock. The reconciliation of basic to diluted shares is as follows: Three Months Ended Nine Months Ended January 30, 2016 January 31, 2015 January 30, 2016 January 31, 2015 Denominator for basic earnings (loss) per share: Weighted average common shares outstanding, excluding unvested restricted stock Dilutive effect of employee stock options and unvested restricted stock — Denominator for diluted earnings (loss) per share During the three months ended January 30, 2016 and January 31, 2015 and the nine months ended January 30, 2016, certain shares reserved for issuance upon exercise of stock options, shares of unvested restricted stock and restricted stock units were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. The number of shares reserved for issuance upon exercise of stock options, shares of unvested restricted stock and restricted stock units that met this anti-dilutive criterion for the three months ended January 30, 2016 and January 31, 2015 and the nine months ended January 30, 2016 was approximately 9,000, 11,000 and 40,000, respectively. Due to the net loss for the nine months ended January 31, 2015, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases with terms of 12 months or more. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. This update simplifies the presentation of deferred income taxes, by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. This update is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the potential impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This ASU does not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. This ASU eliminates from U.S. GAAP the requirement to measure inventory at the lower of cost or market. Market under the previous requirement could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Entities within the scope of this update will now be required to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory using LIFO or the retail inventory method. The amendments in this update are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard was originally effective for reporting periods beginning after December 15, 2016 and early adoption was not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 640)-Deferral of the Effective Date. This update approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. The Company is currently evaluating when to adopt the new standard and the potential impact of adoption on its consolidated financial statements.

Investments

Investments	9 Months Ended
	Jan. 30, 2016
Investments
Investments	2. Investments Investments consist of the following (in thousands): January 30, 2016 April 30, 2015 Short-term investments: Held-to-maturity securities: Municipal securities $ $ U.S. government securities Corporate bonds Certificates of deposit — Total held-to-maturity investments Available-for-sale securities: Equity securities — Total available-for-sale investments — Total short-term investments $ $ Long-term investments: Held-to-maturity securities: Municipal securities $ — $ U.S. government securities Corporate bonds Total held-to-maturity investments Available-for-sale securities: Auction rate securities Total available-for-sale investments Total long-term investments $ $ Held-To-Maturity Securities As of January 30, 2016 and April 30, 2015, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. treasury and agency securities, and corporate bonds. Interest earned from these investments is recorded in interest income. The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of January 30, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Municipal securities $ $ $ ) $ U.S. government securities ) Corporate bonds ) Total held-to-maturity investments $ $ $ ) $ The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2015, were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal securities $ $ $ ) $ U.S. government securities — Corporate bonds — ) Certificates of deposit — — Total held-to-maturity investments $ $ $ ) $ The amortized cost and fair value of the held-to-maturity securities by contractual maturity at January 30, 2016, were as follows (in thousands): Cost Fair Value Due within one year $ $ Due after one year through three years Total $ $ Available-For-Sale Securities Auction Rate Securities As of January 30, 2016 and April 30, 2015, the entire balance of available-for-sale, auction rate securities, consisted of two investment grade auction rate municipal bonds, with maturities of approximately 3 and 18 years, respectively. These investments have characteristics similar to short-term investments, because at pre-determined intervals, generally ranging from 30 to 35 days, there is a new auction process at which the interest rates for these securities are reset to current interest rates. At the end of such period, the Company chooses to roll-over its holdings or redeem the investments for cash. A market maker facilitates the redemption of the securities and the underlying issuers are not required to redeem the investment within 365 days. Interest earned from these investments is recorded in interest income. During the fourth quarter of the fiscal year ended April 30, 2008, the Company began experiencing failed auctions on some of its auction rate securities. A failed auction occurs when a buyer for the securities cannot be obtained and the market maker does not buy the security for its own account. The Company continues to earn interest on the investments that failed to settle at auction, at the maximum contractual rate until the next auction occurs. In the event the Company needs to access funds invested in these auction rate securities, the Company may not be able to liquidate these securities at the fair value recorded on January 30, 2016, until a future auction of these securities is successful or a buyer is found outside of the auction process. As a result of the failed auctions, the fair values of these securities are estimated utilizing a discounted cash flow analysis as of January 30, 2016. The analysis considers, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the estimated date upon which the security is expected to have a successful auction. Based on the Company’s ability to access its cash and cash equivalents, expected operating cash flows, and other sources of cash, the Company does not anticipate that the current lack of liquidity of these investments will affect its ability to operate the business in the ordinary course. The Company believes the current lack of liquidity of these investments is temporary and expects that the securities will be redeemed or refinanced at some point in the future. The Company will continue to monitor the value of its auction rate securities at each reporting period for a possible impairment if a further decline in fair value occurs. The auction rate securities have been in an unrealized loss position for more than 12 months. The Company has the ability and the intent to hold these investments until a recovery of fair value, which may be at maturity and as of January 30, 2016, the Company did not consider these investments to be other-than-temporarily impaired. The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of January 30, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $ The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2015, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $ The amortized cost and fair value of the auction rate securities by contractual maturity at January 30, 2016, were as follows (in thousands): Cost Fair Value Due one through five years $ $ Due after 10 years Total $ $ Equity Securities At April 30, 2015, the entire balance of available-for-sale equity securities consisted of 618,042 CybAero AB (“CybAero”) common shares. The shares were classified as available-for-sale. These shares were initially acquired on August 11, 2014, when the Company converted a convertible bond into CybAero common shares. The convertible bond was in the amount of 10 million SEK and was converted into 1,062,699 common shares of CybAero at the conversion price of 9.41 SEK per share. When the Company converted the bond on August 11, 2014, the fair value per share was 37.50 SEK which became the new cost basis going forward, with all subsequent changes in fair value being recorded to other comprehensive income. At August 1, 2015, the Company reviewed these shares for impairment based on criteria that included the extent to which the investment’s carrying value exceeds its related market value, the duration of the market decline, uncertainty as to the recovery period due to sustained losses of the investee and the Company’s intent to hold its investment until recovery. In the three months ended August 1, 2015, the Company determined it was in its best interests to liquidate the remaining shares held. As a result, during the three months ended August 1, 2015, the Company recorded an other-than-temporary-impairment loss of $2,186,000 related to the Company’s investment in the CybAero shares which was recorded to Other expense in the consolidated statement of operations. As a result of recording the impairment charge, the investment’s fair value became its new cost basis. During the three months ended January 30, 2016, and the three and nine months ended January 31, 2015 there was no impairment charge recorded. In August 2015, the Company sold its remaining shares in CybAero in a private sale at the price of 12.00 SEK per share, resulting in proceeds of approximately $777,000. During the nine months ended January 30, 2016, the Company realized gains on the sale of CybAero shares of $207,000, based on the difference between the original conversion price of 9.41 SEK per share and the sales price at the time of sale, inclusive of the final sale of all shares. During the three and nine months ended January 31, 2015, the Company realized gains on the sale of CybAero shares of approximately $300,000 and $4,500,000, respectively. At January 30, 2016, the Company did not hold any CybAero stock. The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the equity securities as of April 30, 2015, were as follows (in thousands): Gross Gross Unrealized Unrealized Cost Gains Losses Fair Value Equity securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jan. 30, 2016
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:  Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date.  Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data.  Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. The Company’s financial assets measured at fair value on a recurring basis at January 30, 2016, were as follows (in thousands): Fair Value Measurement Using Description Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Auction rate securities $ — $ — $ $ Total $ — $ — $ $ The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in thousands): Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance at May 1, 2015 $ Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive loss Purchases, issuances and settlements, net ) Balance at January 30, 2016 $ The amount of total gains or (losses) for the period included in earnings (or change in net assets) attributable to the change in unrealized gains or losses relating to assets still held at January 30, 2016 $ — The auction rate securities are valued using a discounted cash flow model. The analysis considers, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the estimated date upon which the security is expected to have a successful auction. As of January 30, 2016, the inputs used in the Company’s discounted cash flow analysis included current coupon rates of 0.47% and 0.39%, estimated redemption periods of 3 and 18 years and discount rates of 4.90% and 14.40%. The discount rates were based on market rates for municipal bond securities, as adjusted for a risk premium to reflect the lack of liquidity of these investments.

Inventories, net

Inventories, net	9 Months Ended
	Jan. 30, 2016
Inventories, net
Inventories, net	4. Inventories, net Inventories consist of the following (in thousands): January 30, 2016 April 30, 2015 Raw materials $ $ Work in process Finished goods Inventories, gross Reserve for inventory obsolescence ) ) Inventories, net $ $

Warranty Reserves

Warranty Reserves	9 Months Ended
	Jan. 30, 2016
Warranty Reserves
Warranty Reserves	5. Warranty Reserves The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. The warranty reserve is included in other current liabilities. The related expense is included in cost of sales. Warranty reserve activity is summarized as follows for the three and nine months ended January 30, 2016 and January 31, 2015 (in thousands): Three Months Ended Nine Months Ended January 30, January 31, January 30, January 31, 2016 2015 2016 2015 Beginning balance $ $ $ $ Warranty expense Changes in estimates related to pre-existing warranties — — ) — Warranty claims settled ) ) ) ) Ending balance $ $ $ $

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss and Reclassifications Adjustments	9 Months Ended
	Jan. 30, 2016
Accumulated Other Comprehensive Loss and Reclassifications Adjustments
Accumulated Other Comprehensive Loss and Reclassifications Adjustments	6. Accumulated Other Comprehensive Loss and Reclassifications Adjustments The components of accumulated other comprehensive loss and adjustments are as follows (in thousands): Available-for-Sale Securities Accumulated Other Comprehensive Loss Balance, net of $834 of taxes, as of April 30, 2015 $ ) $ ) Reclassifications out of accumulated other comprehensive loss, net of $754 of taxes Unrealized gains, net of $23 of taxes Balance, net of $129 of taxes, as of January 30, 2016 $ ) $ )

Customer-Funded Research & Deve

Customer-Funded Research & Development	9 Months Ended
	Jan. 30, 2016
Customer-Funded Research & Development
Customer-Funded Research & Development	7. Customer-Funded Research & Development Customer-funded R&D costs are incurred pursuant to contracts (revenue arrangements) to perform R&D activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales when the corresponding revenue is recognized, which is generally as the R&D services are performed. Revenue from customer-funded R&D was approximately $8,877,000 and $35,638,000 for the three and nine months ended January 30, 2016, respectively. Revenue from customer-funded R&D was approximately $7,989,000 and $17,902,000 for the three and nine months ended January 31, 2015, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Jan. 30, 2016
Income Taxes
Income Taxes	8. Income Taxes For the three and nine months ended January 30, 2016, the Company recorded a (benefit) for income taxes of $(1,133,000) and $(2,821,000), respectively, yielding an effective tax benefit rate of (22.5)% and (361.2)%, respectively. For the three and nine months ended January 31, 2015, the Company recorded a provision (benefit) for income taxes of $2,763,000 and $(917,000), respectively, yielding an effective tax rate of 54.3% and (18.0)%, respectively. The variance from statutory rates for the three and nine months ended January 30, 2016, was primarily due to federal legislation reinstating the federal research and development tax credit during the current quarter.

Government Contract Reserves

Government Contract Reserves	9 Months Ended
	Jan. 30, 2016
Government Contract Reserves
Government Contract Reserves	9. Government Contract Reserves During the nine months ended January 30, 2016, the Company entered into settlement agreements with DCMA related to the Company’s incurred cost claims for fiscal years 2007 through 2009. As a result of the settlement agreements, the Company paid $50,000 and reversed the remaining reserve amount of $3,499,000 related to those fiscal years as a credit to cost of sales, allocated as $3,111,000 to the UAS segment and $388,000 to the EES segment during the three months ended October 31, 2015. No settlements or changes to reserve estimates occurred during the three months ended January 30, 2016.

Share Repurchase

Share Repurchase	9 Months Ended
	Jan. 30, 2016
Share Repurchase
Share Repurchase	10. Share Repurchase In September 2015, the Company’s Board of Directors authorized a program to repurchase up to $25,000,000 of the Company’s common stock with no specified termination date for the program. During the nine months ended January 30, 2016, the Company repurchased and retired 183,261 shares of the Company’s common stock for a total of $3,756,000. No shares were repurchased under the program during the three months ended January 30, 2016. All shares repurchased were executed in the open market and no shares were repurchased from related parties. Repurchased shares were retired and assumed the status of authorized and unissued shares.

Segment Data

Segment Data	9 Months Ended
	Jan. 30, 2016
Segment Data
Segment Data	11. Segment Data The Company’s product segments are as follows:  Unmanned Aircraft Systems — The UAS segment focuses primarily on the design, development, production, support and operation of innovative UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects to increase the security and effectiveness of the operations of the Company’s customers.  Efficient Energy Systems — The EES segment focuses primarily on the design, development, production , marketing, support and operation of innovative efficient electric energy systems that address the growing demand for electric transportation solutions. The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments do not make sales to each other. Depreciation and amortization related to the manufacturing of goods is included in gross margin for the segments. The Company does not discretely allocate assets to its operating segments, nor does the CODM evaluate operating segments using discrete asset information. Consequently, the Company operates its financial systems as a single segment for accounting and control purposes, maintains a single indirect rate structure across all segments, has no inter-segment sales or corporate elimination transactions, and maintains limited financial statement information by segment. The segment results are as follows (in thousands): Three Months Ended Nine Months Ended January 30, January 31, January 30, January 31, 2016 2015 2016 2015 Revenue: UAS $ $ $ $ EES Total Cost of sales: UAS EES Total Gross margin: UAS EES Total Selling, general and administrative Research and development Income (loss) from operations ) Other (expense) income: Interest income, net Other (expense), net ) ) ) ) Income (loss) before income taxes $ $ $ $ )

Organization and Significant 20

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 30, 2016
Organization and Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements have been included. The results of operations for the three and nine months ended January 30, 2016, are not necessarily indicative of the results for the full year ending April 30, 2016. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2015, included in the Company’s Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including estimates of anticipated contract costs and revenue utilized in the revenue recognition process, that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Out-of-Period Adjustments	Out-of-Period Adjustments During the three months ended January 30, 2016, the Company identified the following errors: 1) other current liabilities and the related cost of sales, selling, general and administrative and research and development expenses were understated due to state use taxes owed for certain internally consumed tangible assets not identified on a timely basis; and 2) property and equipment, net, were understated, capital lease obligations were understated, operating cash flows were understated, and investing cash flows were overstated due to certain IT equipment and perpetual software license capital lease agreements being incorrectly classified as operating leases. The Company assessed the materiality of these errors considering the relevant quantitative and qualitative factors and concluded that the errors were not material to the consolidated financial statements taken as a whole. As such, during the three months ended January 30, 2016, the Company recorded the following out-of-period adjustments to correct the errors: 1) increased “other current liabilities” $747,000, increased “research and development” expense $503,000, increased “selling, general and administrative” expense $155,000, and increased cost of sales $89,000; and 2) increased “property and equipment, net”, $584,000, increased “Capital lease obligations — net of current portion” $319,000, and increased capital lease obligations — current portion $324,000 which is included in “Other current liabilities”. In addition, $220,000 of cash outflows were reclassified from operating activities to “Principal payments on capital lease agreements” within financing activities. The consolidated statements of operations and consolidated statements of comprehensive income (loss) for the three and nine months ended January 30, 2016, the consolidated balance sheet as of January 30, 2016 and the consolidated statement of cash flows for the nine months ended January 30, 2016 reflect the above adjustments.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation.
Segments	Segments The Company’s products are sold and divided among two reportable segments to reflect the Company’s strategic goals. Operating segments are defined as components of an enterprise from which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer, who reviews the revenue and gross margin results for each of these segments in order to make resource allocation decisions, including the focus of research and development (“R&D”) activities and performance assessment. The Company’s reportable segments are business units that offer different products and services and are managed separately.
Investments	Investments The Company’s investments are accounted for as held-to-maturity and available-for-sale and reported at amortized cost and fair value, respectively.
Fair Values of Financial Instruments	Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, unbilled receivables, retentions and accounts payable approximate cost due to the short period of time to maturity.
Government Contracts	Government Contracts Payments to the Company on government cost reimbursable contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (“DCAA”). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional billing rates, may create an additional receivable or liability for the Company. For example, during the course of its audits, the DCAA may question the Company’s incurred project costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to the Company’s administrative contracting officer to disallow such costs. The Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future. The Defense Contract Management Agency, or (“DCMA”), has disallowed a portion of the Company’s executive compensation and other costs included in the Company’s fiscal year 2006 incurred cost claim and sought interest and penalties. The Company and DCMA have resolved most of these claims. However, the Company is vigorously defending its position on the government’s remaining claims for the fiscal 2006 incurred cost claim, which the Company has appealed to the Armed Services Board of Contract Appeals. Based on the Company’s current understanding of the facts and the amount in dispute, the Company believes that the outcome of these disputes will not have a material impact on the Company’s business. Claims related to other fiscal years were settled during the nine months ended January 30, 2016, as described in Note 9. As of January 30, 2016 and April 30, 2015, the Company had reserves for incurred cost claim audits for various fiscal years.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock. The reconciliation of basic to diluted shares is as follows: Three Months Ended Nine Months Ended January 30, 2016 January 31, 2015 January 30, 2016 January 31, 2015 Denominator for basic earnings (loss) per share: Weighted average common shares outstanding, excluding unvested restricted stock Dilutive effect of employee stock options and unvested restricted stock — Denominator for diluted earnings (loss) per share During the three months ended January 30, 2016 and January 31, 2015 and the nine months ended January 30, 2016, certain shares reserved for issuance upon exercise of stock options, shares of unvested restricted stock and restricted stock units were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. The number of shares reserved for issuance upon exercise of stock options, shares of unvested restricted stock and restricted stock units that met this anti-dilutive criterion for the three months ended January 30, 2016 and January 31, 2015 and the nine months ended January 30, 2016 was approximately 9,000, 11,000 and 40,000, respectively. Due to the net loss for the nine months ended January 31, 2015, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases with terms of 12 months or more. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes. This update simplifies the presentation of deferred income taxes, by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. This update is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the potential impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This ASU does not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. This ASU eliminates from U.S. GAAP the requirement to measure inventory at the lower of cost or market. Market under the previous requirement could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. Entities within the scope of this update will now be required to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory using LIFO or the retail inventory method. The amendments in this update are effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard was originally effective for reporting periods beginning after December 15, 2016 and early adoption was not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 640)-Deferral of the Effective Date. This update approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. The Company is currently evaluating when to adopt the new standard and the potential impact of adoption on its consolidated financial statements.

Organization and Significant 21

Organization and Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 30, 2016
Organization and Significant Accounting Policies
Schedule of reconciliation of basic to diluted shares	Three Months Ended Nine Months Ended January 30, 2016 January 31, 2015 January 30, 2016 January 31, 2015 Denominator for basic earnings (loss) per share: Weighted average common shares outstanding, excluding unvested restricted stock Dilutive effect of employee stock options and unvested restricted stock — Denominator for diluted earnings (loss) per share

Investments (Tables)

Investments (Tables)	9 Months Ended
	Jan. 30, 2016
Investments
Schedule of investments	Investments consist of the following (in thousands): January 30, 2016 April 30, 2015 Short-term investments: Held-to-maturity securities: Municipal securities $ $ U.S. government securities Corporate bonds Certificates of deposit — Total held-to-maturity investments Available-for-sale securities: Equity securities — Total available-for-sale investments — Total short-term investments $ $ Long-term investments: Held-to-maturity securities: Municipal securities $ — $ U.S. government securities Corporate bonds Total held-to-maturity investments Available-for-sale securities: Auction rate securities Total available-for-sale investments Total long-term investments $ $
Held-to-maturity securities
Investments
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments	The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of January 30, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Municipal securities $ $ $ ) $ U.S. government securities ) Corporate bonds ) Total held-to-maturity investments $ $ $ ) $ The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2015, were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal securities $ $ $ ) $ U.S. government securities — Corporate bonds — ) Certificates of deposit — — Total held-to-maturity investments $ $ $ ) $
Schedule of amortized cost and fair value by contractual maturity	The amortized cost and fair value of the held-to-maturity securities by contractual maturity at January 30, 2016, were as follows (in thousands): Cost Fair Value Due within one year $ $ Due after one year through three years Total $ $
Available-for-sale securities | Auction rate securities
Investments
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments	The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of January 30, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $ The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2015, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $
Schedule of amortized cost and fair value by contractual maturity	The amortized cost and fair value of the auction rate securities by contractual maturity at January 30, 2016, were as follows (in thousands): Cost Fair Value Due one through five years $ $ Due after 10 years Total $ $
Available-for-sale securities | Equity securities
Investments
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of available-for-sale investments	The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the equity securities as of April 30, 2015, were as follows (in thousands): Gross Gross Unrealized Unrealized Cost Gains Losses Fair Value Equity securities $ $ — $ ) $ Total available-for-sale investments $ $ — $ ) $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jan. 30, 2016
Fair Value Measurements
Schedule of financial assets measured at fair value on a recurring basis	The Company’s financial assets measured at fair value on a recurring basis at January 30, 2016, were as follows (in thousands): Fair Value Measurement Using Description Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Auction rate securities $ — $ — $ $ Total $ — $ — $ $
Schedule of reconciliation between beginning and ending balances of items measured at fair value on recurring basis that used significant unobservable inputs (Level 3)	The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in thousands): Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance at May 1, 2015 $ Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive loss Purchases, issuances and settlements, net ) Balance at January 30, 2016 $ The amount of total gains or (losses) for the period included in earnings (or change in net assets) attributable to the change in unrealized gains or losses relating to assets still held at January 30, 2016 $ —

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Jan. 30, 2016
Inventories, net
Schedule of inventories	Inventories consist of the following (in thousands): January 30, 2016 April 30, 2015 Raw materials $ $ Work in process Finished goods Inventories, gross Reserve for inventory obsolescence ) ) Inventories, net $ $

Warranty Reserves (Tables)

Warranty Reserves (Tables)	9 Months Ended
	Jan. 30, 2016
Warranty Reserves
Summary of warranty reserve activity	Warranty reserve activity is summarized as follows for the three and nine months ended January 30, 2016 and January 31, 2015 (in thousands): Three Months Ended Nine Months Ended January 30, January 31, January 30, January 31, 2016 2015 2016 2015 Beginning balance $ $ $ $ Warranty expense Changes in estimates related to pre-existing warranties — — ) — Warranty claims settled ) ) ) ) Ending balance $ $ $ $

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Loss and Reclassifications Adjustments (Tables)	9 Months Ended
	Jan. 30, 2016
Accumulated Other Comprehensive Loss and Reclassifications Adjustments
Schedule of components of accumulated other comprehensive loss and adjustments	The components of accumulated other comprehensive loss and adjustments are as follows (in thousands): Available-for-Sale Securities Accumulated Other Comprehensive Loss Balance, net of $834 of taxes, as of April 30, 2015 $ ) $ ) Reclassifications out of accumulated other comprehensive loss, net of $754 of taxes Unrealized gains, net of $23 of taxes Balance, net of $129 of taxes, as of January 30, 2016 $ ) $ )

Segment Data (Tables)

Segment Data (Tables)	9 Months Ended
	Jan. 30, 2016
Segment Data
Schedule of segment results	The segment results are as follows (in thousands): Three Months Ended Nine Months Ended January 30, January 31, January 30, January 31, 2016 2015 2016 2015 Revenue: UAS $ $ $ $ EES Total Cost of sales: UAS EES Total Gross margin: UAS EES Total Selling, general and administrative Research and development Income (loss) from operations ) Other (expense) income: Interest income, net Other (expense), net ) ) ) ) Income (loss) before income taxes $ $ $ $ )

Organization and Significant 28

Organization and Significant Accounting Policies (Details)	3 Months Ended		9 Months Ended
	Jan. 30, 2016USD ($)	Jan. 31, 2015USD ($)	Jan. 30, 2016USD ($)segment	Jan. 31, 2015USD ($)	Apr. 30, 2015USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities	$ 6,408,000		$ 6,408,000		$ 9,170,000
Research and development	8,247,000	$ 8,577,000	27,975,000	$ 24,232,000
Selling, general and administrative expense	13,313,000	13,268,000	43,302,000	40,141,000
Cost of sales	40,935,000	$ 41,404,000	105,160,000	$ 114,009,000
Property and equipment, net	14,313,000		14,313,000		$ 13,499,000
Capital lease obligations - net of current portion	388,000		388,000
Principal payments on capital lease obligations			$ 341,000
Segments
Number of reportable segments | segment			2
Out-of-Period Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities	747,000		$ 747,000
Research and development	503,000
Selling, general and administrative expense	155,000
Cost of sales	89,000
Property and equipment, net	584,000		584,000
Capital lease obligations - net of current portion	319,000		319,000
Capital lease obligations - current portion	324,000		$ 324,000
Principal payments on capital lease obligations	$ 220,000

Organization and Significant 29

Organization and Significant Accounting Policies (Details 2) - shares	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Denominator for basic earnings (loss) per share:
Weighted average common shares outstanding, excluding unvested restricted stock (in shares)	22,890,484	22,890,502	22,941,354	22,856,962
Dilutive effect of employee stock options and unvested restricted stock (in shares)	193,332	218,852	198,627
Denominator for diluted earnings (loss) per share (in shares)	23,083,816	23,109,354	23,139,981	22,856,962
Number of shares reserved for issuance that are anti-dilutive	9,000	11,000	40,000	0

Investments (Details)

Investments (Details) SEK / shares in Units, SEK in Millions	Aug. 31, 2015USD ($)	Aug. 11, 2014SEKSEK / sharesshares	Jan. 30, 2016USD ($)item	Aug. 01, 2015USD ($)	Jan. 31, 2015USD ($)	Jan. 30, 2016USD ($)item	Jan. 31, 2015USD ($)	Apr. 30, 2015USD ($)item	Aug. 31, 2015SEK / shares
Short-term investments:
Total short-term investments			$ 97,692,000			$ 97,692,000		$ 85,381,000
Long-term investments:
Total long-term investments			38,175,000			38,175,000		46,769,000
Held To Maturity Securities
Cost			133,089,000			133,089,000		127,836,000
Gross Unrealized Gains			32,000			32,000		20,000
Gross Unrealized Losses			(90,000)			(90,000)		(48,000)
Fair Value			133,031,000			133,031,000		127,808,000
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year			97,692,000			97,692,000
Due after one year through three years			35,397,000			35,397,000
Total			133,089,000			133,089,000		127,836,000
Fair value of held-to-maturity securities by contractual maturity
Due within one year			97,647,000			97,647,000
Due after one year through three years			35,384,000			35,384,000
Fair Value			133,031,000			133,031,000		127,808,000
Available-For-Sale Securities
Other than temporary impairment of available-for-sale securities						2,186,000
Convertible bonds
Shares received on conversion | shares		1,062,699
CybAero | Private Placement
Convertible bonds
Share price (in SEK per share) | SEK / shares									SEK 12
Proceeds received from sale of stock	$ 777,000
Realized gains on sale of shares					$ 300,000	207,000	$ 4,500,000
CybAero | Other Expense
Available-For-Sale Securities
Other than temporary impairment of available-for-sale securities			0	$ 2,186,000	$ 0		$ 0
Municipal securities
Held To Maturity Securities
Cost			57,716,000			57,716,000		97,591,000
Gross Unrealized Gains			9,000			9,000		8,000
Gross Unrealized Losses			(12,000)			(12,000)		(35,000)
Fair Value			57,713,000			57,713,000		97,564,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			57,716,000			57,716,000		97,591,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			57,713,000			57,713,000		97,564,000
U.S. government securities
Held To Maturity Securities
Cost			22,201,000			22,201,000		16,545,000
Gross Unrealized Gains			2,000			2,000		12,000
Gross Unrealized Losses			(3,000)			(3,000)
Fair Value			22,200,000			22,200,000		16,557,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			22,201,000			22,201,000		16,545,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			22,200,000			22,200,000		16,557,000
Corporate bonds
Held To Maturity Securities
Cost			53,172,000			53,172,000		9,815,000
Gross Unrealized Gains			21,000			21,000
Gross Unrealized Losses			(75,000)			(75,000)		(13,000)
Fair Value			53,118,000			53,118,000		9,802,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			53,172,000			53,172,000		9,815,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			53,118,000			53,118,000		9,802,000
Auction rate securities
Available-For-Sale Securities
Amortized Cost			3,100,000			3,100,000		3,200,000
Gross Unrealized Losses			(322,000)			(322,000)		(359,000)
Total			2,778,000			2,778,000		2,841,000
Amortized cost of available-for-sale securities by contractual maturity
Due one through five years			1,100,000			1,100,000
Due after 10 years			2,000,000			2,000,000
Total			3,100,000			3,100,000		3,200,000
Fair value of available-for-sale securities by contractual maturity
Due one through five years			1,054,000			1,054,000
Due after 10 years			1,724,000			1,724,000
Total			$ 2,778,000			$ 2,778,000		$ 2,841,000
Convertible bonds
Number of available-for-sale securities | item			2			2		2
Auction rate securities | Minimum
Available For Sale Securities
Maturity period of available-for-sale securities						3 years		3 years
Pre-determined interval to reset interest rates to current rates						30 days		30 days
Auction rate securities | Maximum
Available For Sale Securities
Maturity period of available-for-sale securities						18 years		18 years
Pre-determined interval to reset interest rates to current rates						35 days		35 days
Certificates of deposit
Held To Maturity Securities
Cost								$ 3,885,000
Fair Value								3,885,000
Amortized cost of held-to-maturity securities by contractual maturity
Total								3,885,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value								3,885,000
Convertible bonds | CybAero | Exercise of conversion right on convertible debt securities
Convertible bonds
Conversion price (in SEK per share) | SEK / shares		SEK 9.41
Fair value of shares (in SEK per share) | SEK / shares		SEK 37.50
Face amount converted | SEK		SEK 10
Equity securities
Available-For-Sale Securities
Amortized Cost								3,357,000
Gross Unrealized Losses								(1,884,000)
Total								1,473,000
Amortized cost of available-for-sale securities by contractual maturity
Total								3,357,000
Fair value of available-for-sale securities by contractual maturity
Total								1,473,000
Held-to-maturity securities
Short-term investments:
Total short-term investments			$ 97,692,000			$ 97,692,000		83,908,000
Long-term investments:
Total long-term investments			35,397,000			35,397,000		43,928,000
Held-to-maturity securities | Municipal securities
Short-term investments:
Total short-term investments			57,716,000			57,716,000		67,173,000
Long-term investments:
Total long-term investments								30,418,000
Held-to-maturity securities | U.S. government securities
Short-term investments:
Total short-term investments			10,991,000			10,991,000		11,536,000
Long-term investments:
Total long-term investments			11,210,000			11,210,000		5,009,000
Held-to-maturity securities | Corporate bonds
Short-term investments:
Total short-term investments			28,985,000			28,985,000		1,314,000
Long-term investments:
Total long-term investments			24,187,000			24,187,000		8,501,000
Held-to-maturity securities | Certificates of deposit
Short-term investments:
Total short-term investments								3,885,000
Available-for-sale securities
Long-term investments:
Total long-term investments			2,778,000			2,778,000		2,841,000
Available-for-sale securities | Auction rate securities
Long-term investments:
Total long-term investments			$ 2,778,000			$ 2,778,000		$ 2,841,000
Available-for-sale securities | Auction rate securities | Maximum
Available For Sale Securities
Period for which the issuer of securities is not required to redeem the securities						365 days		365 days
Available-for-sale securities | Equity securities
Short-term investments:
Total short-term investments								$ 1,473,000
Available-for-sale securities | Common Stock | CybAero
Convertible bonds
Number of available-for-sale securities | item								618,042

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis $ in Thousands	Jan. 30, 2016USD ($)
Fair Value Measurement
Available-for-sale securities	$ 2,778
Auction rate securities
Fair Value Measurement
Available-for-sale securities	2,778
Significant unobservable inputs (Level 3)
Fair Value Measurement
Available-for-sale securities	2,778
Significant unobservable inputs (Level 3) | Auction rate securities
Fair Value Measurement
Available-for-sale securities	$ 2,778

Fair Value Measurements (Deta32

Fair Value Measurements (Details 2) $ in Thousands	9 Months Ended
	Jan. 30, 2016USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Balance at the beginning of the period	$ 2,841
Total gains (realized or unrealized) included in other comprehensive loss	37
Purchases, issuances and settlements, net	(100)
Balance at the end of the period	$ 2,778

Fair Value Measurements (Deta33

Fair Value Measurements (Details 3) - Significant unobservable inputs (Level 3) - Discounted cash flow - Auction rate securities	9 Months Ended
	Jan. 30, 2016
Minimum
Fair Value Inputs
Coupon rates (as a percent)	0.47%
Estimated redemption periods	3 years
Discount rates (as a percent)	4.90%
Maximum
Fair Value Inputs
Coupon rates (as a percent)	0.39%
Estimated redemption periods	18 years
Discount rates (as a percent)	14.40%

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Jan. 30, 2016	Apr. 30, 2015
Inventories, net
Raw materials	$ 13,831	$ 13,325
Work in process	7,278	5,140
Finished goods	29,015	25,537
Inventories, gross	50,124	44,002
Reserve for inventory obsolescence	(3,690)	(4,588)
Inventories, net	$ 46,434	$ 39,414

Warranty Reserves (Details)

Warranty Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Warranty Reserves
Beginning balance	$ 2,338	$ 1,959	$ 2,653	$ 1,280
Warranty expense	1,032	579	2,740	1,988
Changes in estimates related to pre-existing warranties			(424)
Warranty claims settled	(508)	(402)	(2,107)	(1,132)
Ending balance	$ 2,862	$ 2,136	$ 2,862	$ 2,136

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Loss and Reclassifications Adjustments (Details) - USD ($) $ in Thousands	Apr. 30, 2015	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Accumulated other comprehensive loss and Reclassifications Adjustments
Balance, net of $834 taxes, at beginning of period				$ (1,358)
Reclassifications out of accumulated other comprehensive loss, net of $754 of taxes				1,130
Unrealized gains, net of $23 of taxes				34
Balance, net of $129 of taxes, at end of period	$ (1,358)	$ (194)		(194)
Other comprehensive income, tax	834			129
Reclassifications out of accumulated other comprehensive loss, tax				754
Unrealized gain on investments, tax portion		5	$ (388)	23	$ (785)
Available-for-sale securities.
Accumulated other comprehensive loss and Reclassifications Adjustments
Balance, net of $834 taxes, at beginning of period				(1,358)
Reclassifications out of accumulated other comprehensive loss, net of $754 of taxes				1,130
Unrealized gains, net of $23 of taxes				34
Balance, net of $129 of taxes, at end of period	$ (1,358)	$ (194)		$ (194)

Customer-Funded Research & De37

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Customer-Funded Research & Development
Revenue from customer-funded R&D	$ 8,877,000	$ 7,989,000	$ 35,638,000	$ 17,902,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Income taxes
(Benefit) provision for income taxes	$ (1,133)	$ 2,763	$ (2,821)	$ (917)
Effective tax benefit rate (as a percent)	(22.50%)	54.30%	(361.20%)	(18.00%)

Government Contract Reserves (D

Government Contract Reserves (Details) - USD ($)	3 Months Ended			9 Months Ended
	Jan. 30, 2016	Oct. 31, 2015	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Cost of Revenue	$ 40,935,000		$ 41,404,000	$ 105,160,000	$ 114,009,000
Settlement agreement for claims for fiscal years 2007 through 2009
Paid Settlement agreement				50,000
Cost of Revenue				(3,499,000)
UAS
Cost of Revenue	36,488,000		33,259,000	91,268,000	91,849,000
UAS | Settlement agreement for claims for fiscal years 2007 through 2009
Cost of Revenue		$ (3,111,000)
EES
Cost of Revenue	$ 4,447,000		$ 8,145,000	$ 13,892,000	$ 22,160,000
EES | Settlement agreement for claims for fiscal years 2007 through 2009
Cost of Revenue		$ (388,000)

Share Repurchase (Details)

Share Repurchase (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jan. 30, 2016	Jan. 30, 2016	Sep. 30, 2015
Share Repurchase
Stock Repurchase Program, Authorized Amount			$ 25,000,000
Shares repurchased and retired	0	183,261
Value of Shares repurchased and retired		$ 3,756,000

Segment Data (Details)

Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 30, 2016	Jan. 31, 2015	Jan. 30, 2016	Jan. 31, 2015
Segment Data
Revenue	$ 67,560	$ 68,397	$ 179,341	$ 172,927
Cost of sales	40,935	41,404	105,160	114,009
Total gross margin	26,625	26,993	74,181	58,918
Selling, general and administrative	13,313	13,268	43,302	40,141
Research and development	8,247	8,577	27,975	24,232
Income (loss) from operations	5,065	5,148	2,904	(5,455)
Other (expense) income:
Interest income, net	181	224	673	629
Other (expense), net	(215)	(284)	(2,796)	(276)
Income (loss) before income taxes	5,031	5,088	781	(5,102)
Inter-segment and corporate elimination
Segment Data
Revenue			0	0
UAS
Segment Data
Revenue	61,086	58,026	157,842	142,257
Cost of sales	36,488	33,259	91,268	91,849
Total gross margin	24,598	24,767	66,574	50,408
EES
Segment Data
Revenue	6,474	10,371	21,499	30,670
Cost of sales	4,447	8,145	13,892	22,160
Total gross margin	$ 2,027	$ 2,226	$ 7,607	$ 8,510