AeroVironment (AVAV) 10-Q 31 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 30, 2016	Aug. 23, 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	Jul. 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		23,387,513
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 30, 2016	Apr. 30, 2016
Current assets:
Cash and cash equivalents	$ 122,313	$ 124,287
Short-term investments	101,802	103,404
Accounts receivable, net of allowance for doubtful accounts of $433 at July 30, 2016 and $262 at April 30, 2016	32,635	56,045
Unbilled receivables and retentions	14,493	18,899
Inventories, net	44,105	37,486
Income tax receivable	4,250
Prepaid expenses and other current assets	4,167	4,150
Total current assets	323,765	344,271
Long-term investments	33,097	33,859
Property and equipment, net	16,910	16,762
Deferred income taxes	15,104	15,016
Other assets	658	750
Total assets	389,534	410,658
Current liabilities:
Accounts payable	10,529	17,712
Wages and related accruals	9,934	13,973
Income taxes payable		943
Customer advances	2,416	2,544
Other current liabilities	12,708	11,173
Total current liabilities	35,587	46,345
Deferred rent	1,864	1,714
Capital lease obligations - net of current portion	357	449
Other non-current liabilities	184	184
Liability for uncertain tax positions	62	441
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—23,395,030 shares at July 30, 2016 and 23,359,925 at April 30, 2016	2	2
Additional paid-in capital	155,853	154,274
Accumulated other comprehensive loss	(183)	(201)
Retained earnings	195,808	207,450
Total stockholders' equity	351,480	361,525
Total liabilities and stockholders' equity	$ 389,534	$ 410,658

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 30, 2016	Apr. 30, 2016
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 433	$ 262
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	23,395,030	23,359,925
Common stock, outstanding shares	23,395,030	23,359,925

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Revenue:
Product sales	$ 15,737	$ 26,639
Contract services	20,481	20,411
Total revenue	36,218	47,050
Cost of sales:
Product sales	15,222	16,765
Contract services	14,313	14,262
Total cost of sales	29,535	31,027
Gross margin:
Product sales	515	9,874
Contract services	6,168	6,149
Total gross margin	6,683	16,023
Selling, general and administrative	13,663	15,256
Research and development	8,600	9,831
Loss from operations	(15,580)	(9,064)
Other income (expense):
Interest income, net	375	224
Other expense, net	(300)	(2,389)
Loss before income taxes	(15,505)	(11,229)
Benefit for income taxes	(3,863)	(4,248)
Net loss	$ (11,642)	$ (6,981)
Loss per share data:
Basic (in dollars per share)	$ (0.51)	$ (0.30)
Diluted (in dollars per share)	$ (0.51)	$ (0.30)
Weighted average shares outstanding:
Basic (in shares)	22,956,607	22,947,487
Diluted (in shares)	22,956,607	22,947,487

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Consolidated Statements of Comprehensive Loss
Net loss	$ (11,642)	$ (6,981)
Other comprehensive income:
Unrealized gain on investments, net of deferred tax expense of $12 and $1, respectively	18	2
Total comprehensive loss	$ (11,624)	$ (6,979)

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Consolidated Statements of Comprehensive Loss
Unrealized gain (loss) on investments, net of tax portion	$ 12	$ 1

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Operating activities
Net loss	$ (11,642)	$ (6,981)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,653	1,402
Loss from equity method investments	72	65
Impairment of available-for-sale securities		2,186
Provision for doubtful accounts	171	(147)
Losses on foreign currency transactions	226	58
Loss on sale of equity securities		145
Deferred income taxes		203
Stock-based compensation	992	1,039
Tax benefit from exercise of stock options	22	196
Excess tax benefit from stock-based compensation		(95)
Gain on disposition of property and equipment	(7)
Amortization of held-to-maturity investments	661	1,149
Changes in operating assets and liabilities:
Accounts receivable	23,019	5,549
Unbilled receivables and retentions	4,406	3,358
Inventories	(6,619)	(4,507)
Income tax receivable	(4,250)	(5,569)
Prepaid expenses and other assets	(17)	710
Accounts payable	(6,336)	(6,299)
Other liabilities	(3,594)	(3,766)
Net cash used in operating activities	(1,243)	(11,304)
Investing activities
Acquisition of property and equipment	(2,634)	(906)
Equity method investment		(85)
Redemptions of held-to-maturity investments	28,820	37,507
Purchases of held-to-maturity investments	(27,487)	(22,970)
Proceeds from the sale of property and equipment	7
Sales and redemptions of available-for-sale investments	400	217
Net cash (used in) provided by investing activities	(894)	13,763
Financing activities
Excess tax benefit from stock-based compensation		95
Principal payments of capital lease obligations	(95)
Tax withholding payment related to net settlement of equity awards		(29)
Exercise of stock options	258	515
Net cash provided by financing activities	163	581
Net (decrease) increase in cash and cash equivalents	(1,974)	3,040
Cash and cash equivalents at beginning of period	124,287	143,410
Cash and cash equivalents at end of period	122,313	146,450
Cash paid during the period for:
Income taxes	1,786	1,519
Non-cash activities
Unrealized change in fair value of long-term investments recorded in accumulated other comprehensive loss, net of deferred tax expense of $12 and $1, respectively	18	2
Reclassification from share-based liability compensation to equity	307	$ 228
Acquisitions of property and equipment included in accounts payable	$ 321

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Consolidated Statements of Cash Flows
Unrealized change in fair value on long-term investments recorded in other comprehensive income loss, net of tax expenses (benefit)	$ 12	$ 1

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Jul. 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 months ended July 30, 2016, are not necessarily indicative of the results for the full year ending April 30, 2017. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2016, 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. In July 2016, the Company dissolved Charger Bicycles, LLC the results of which were not material to the consolidated financial statements. In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as noncurrent in a classified balance sheet. This guidance simplifies the current guidance, which requires entities to separately present deferred tax assets and liabilities as current and non-current in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The ASU may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company adopted this pronouncement beginning May 1, 2016 and applied this pronouncement retrospectively. In connection with adopting the pronouncement beginning May 1, 2016, the Company reclassified $5,432,000 from current deferred income tax assets in the consolidated balance sheet as of April 30, 2016 to non-current deferred income tax liabilities. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The new standard simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory withholding requirements, as well as the related classification in the statement of cash flows. The new standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The standard requires an entity to recognize all excess tax benefits and tax deficiencies as income tax benefit or expense in the income statement as discrete items in the reporting period in which they occur, and such tax benefits and tax deficiencies are not included in the estimate of an entity’s annual effective tax rate, applied on a prospective basis. Further, the standard eliminates the requirement to defer the recognition of excess tax benefits until the benefit is realized through a reduction to taxes payable. All excess tax benefits previously unrecognized, along with any valuation allowance, are to be recognized on a modified retrospective basis as a cumulative adjustment to retained earnings as of the date of adoption. Under the ASU, an entity that applies the treasury stock method in calculating diluted earnings per share is required to exclude excess tax benefits and deficiencies from the calculation of assumed proceeds since such amounts are recognized in the income statement. Excess tax benefits are also classified as operating activities in the same manner as other cash flows related to income taxes on the statement of cash flows, as such excess tax benefits no longer represent financing activities since they are recognized in the income statement, and are to be applied prospectively or retrospectively to all periods presented. The Company adopted the pronouncement beginning May 1, 2016. In connection with adopting the pronouncement beginning May 1, 2016, the Company recorded a cumulative increase of $265,000 in retained earnings with a corresponding increase in deferred tax assets in the consolidated balance sheet as of April 30, 2016 related to the prior years' unrecognized excess tax benefits. Excess tax benefits related to exercised options and vested restricted stock awards during the three months ended July 30, 2016 have been recognized in the current period’s income statement. The Company also excluded the excess tax benefits from the calculation of diluted earnings per share for the three months ended July 30, 2016. The Company applied the cash flow presentation section of the guidance on a prospective basis, and the prior period statement of cash flows was not adjusted. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting pronouncements during the three month ended July 30, 2016 impacting the classification of deferred income taxes in the consolidated balance sheets. 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 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 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. Historically, the Company has not experienced material disallowed costs as a result of government audits. However, 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 Company’s revenue recognition policy calls for revenue recognized on all cost reimbursable government contracts to be recorded at actual rates unless collectability is not reasonably assured. The Defense Contract Management Agency, or DCMA, disallowed a portion of the Company’s executive compensation and/or other costs included in the Company’s fiscal 2006, 2007 and 2008 incurred cost claims and sought interest for all three years and penalties for Fiscal 2006, based on the disallowed costs. The Company appealed these cost disallowances to the Armed Services Board of Contract Appeals. For Fiscal 2006, as a result of partial settlements and a decision of the Armed Services Board of Contract Appeals in March 2016, the government’s remaining claims were dismissed with prejudice. All of the government’s claims related to the Company’s 2007 and 2008 incurred cost claims were settled as of October 2015 by payment to the government of $50,000 and the government’s claims related to the Company’s 2009 and 2010 incurred cost claims were settled as of October 2015 and April 2016, respectfully, without the payment of any consideration. As a result of the settlement agreements and the Armed Services Board of Contract Appeals ruling, the Company reversed reserves of $3,607,000 related to those fiscal years as a credit to cost of sales, allocated as $3,203,000 to the UAS segment and $404,000 to the EES segment during the fiscal year ended April 30, 2016. At July 30, 2016 and April 30, 2016, the Company did not have any remaining reserves for incurred cost claim audits. Loss Per Share Basic 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 July 30, 2016 August 1, 2015 Denominator for basic 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 loss per share Due to the net loss for the three months ended July 30, 2016 and August 1, 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. Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive given the Company’s net loss were 302,332 and 221,589 for the three months ended July 30, 2016 and August 1, 2015, respectfully. 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 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 a 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	3 Months Ended
	Jul. 30, 2016
Investments
Investments	2. Investments Investments consist of the following (in thousands): July 30, April 30, 2016 2016 Short-term investments: Held-to-maturity securities: Municipal securities $ $ U.S. government securities Corporate bonds Total held-to-maturity 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 July 30, 2016 and April 30, 2016, 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 July 30, 2016, were as follows (in thousands): July 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses 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, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ $ $ $ U.S. government securities — Corporate bonds Total held-to-maturity investments $ $ $ $ The amortized cost and fair value of the held-to-maturity securities by contractual maturity at July 30, 2016, were as follows (in thousands): Cost Fair Value Due within one year $ $ Due after one year through five years Total $ $ Available-For-Sale Securities Auction Rate Securities As of July 30, 2016 and April 30, 2016, 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 July 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 July 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 its 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 July 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 July 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, 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 and fair value of the auction rate securities by contractual maturity at July 30, 2016, were as follows (in thousands): Cost Fair Value Due after 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. 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 resulting in realized gains 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. At April 30, 2016, the Company did not hold any CybAero shares.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jul. 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 July 30, 2016, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (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): Fair Value Measurements Using Significant Unobservable Inputs Description (Level 3) Balance at May 1, 2016 $ Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income Purchases, issuances and settlements, net Balance at July 30, 2016 $ The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at July 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 July 30, 2016, the inputs used in the Company’s discounted cash flow analysis included current coupon rates of 0.72% and 0.70% , estimated redemption periods of 3 and 18 years and discount rates of 4.60% and 14.30% . 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	3 Months Ended
	Jul. 30, 2016
Inventories, net
Inventories, net	4. Inventories, net Inventories consist of the following (in thousands): July 30, April 30, 2016 2016 Raw materials $ $ Work in process Finished goods Inventories, gross Reserve for inventory excess and obsolescence Inventories, net $ $

Warranty Reserves

Warranty Reserves	3 Months Ended
	Jul. 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 in cluded in cost of sales. Warranty reserve activity is summarized as follows for the three months ended July 30, 2016 and August 1, 2015 (in thousands): Three Months Ended July 30, August 1, 2016 2015 Beginning balance $ $ Warranty expense Changes in estimates related to pre-existing warranties Warranty costs settled Ending balance $ $ During the three months ended July 30, 2016, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $1,407,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At July 30, 2016, the total warranty reserve related to the estimated costs to repair the impacted UAS was $1,959,000 . No costs related to this warranty have been incurred as of July 30, 2016.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss and Reclassifications Adjustments	3 Months Ended
	Jul. 30, 2016
Accumulated Other Comprehensive Loss and Reclassifications Adjustments
Accumulated Other Comprehensive Loss	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 Accumulated Other Securities Comprehensive Loss Balance, net of $134 of taxes, as of April 30, 2016 $ $ Reclassifications out of accumulated other comprehensive loss, net of taxes — — Unrealized gains, net of $12 of taxes Balance, net of $122 of taxes, as of July 30, 2016 $ $

Customer-Funded Research & Deve

Customer-Funded Research & Development	3 Months Ended
	Jul. 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 $14,737,000 and $16,527,000 for the three months ended July 30, 2016 and August 1, 2015, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Jul. 30, 2016
Income Taxes
Income Taxes	8. Income Taxes For the three months ended July 30, 2016, the Company recorded a benefit for income taxes of $3,863,000 , yielding an effective tax benefit rate of 24.9% . For the three months ended August 1, 2015, the Company recorded a benefit for income taxes of $4,248,000 , yielding an effective tax rate of 37.8% . The variance from statutory rates for the three months ended July 30, 2016, was primarily due to federal legislation reinstating the federal research and development tax credit during the third quarter of fiscal 2016 and the reversal of a $968,000 reserve, including the related interest, for uncertain tax positions due to the settlement of prior fiscal year audits.

Share Repurchase

Share Repurchase	3 Months Ended
	Jul. 30, 2016
Share Repurchase
Share Repurchase	9. 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. No shares were repurchased under the program during the three months ended July 30, 2016. As of July 30, 2016 and April 30, 2016, approximately $21.2 million remained authorized for future repurchases under this program.

Segment Data

Segment Data	3 Months Ended
	Jul. 30, 2016
Segment Data
Segment Data	10. 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 July 30, August 1, 2016 2015 Revenue: UAS $ $ EES Total Cost of sales: UAS EES Total Gross margin: UAS EES Total Selling, general and administrative Research and development Loss from operations Other income (expense): Interest income, net Other expense, net Loss before income taxes $ $

Organization and Significant 19

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 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 months ended July 30, 2016, are not necessarily indicative of the results for the full year ending April 30, 2017. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2016, 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. In July 2016, the Company dissolved Charger Bicycles, LLC the results of which were not material to the consolidated financial statements. In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as noncurrent in a classified balance sheet. This guidance simplifies the current guidance, which requires entities to separately present deferred tax assets and liabilities as current and non-current in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The ASU may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company adopted this pronouncement beginning May 1, 2016 and applied this pronouncement retrospectively. In connection with adopting the pronouncement beginning May 1, 2016, the Company reclassified $5,432,000 from current deferred income tax assets in the consolidated balance sheet as of April 30, 2016 to non-current deferred income tax liabilities. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . The new standard simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory withholding requirements, as well as the related classification in the statement of cash flows. The new standard is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The standard requires an entity to recognize all excess tax benefits and tax deficiencies as income tax benefit or expense in the income statement as discrete items in the reporting period in which they occur, and such tax benefits and tax deficiencies are not included in the estimate of an entity’s annual effective tax rate, applied on a prospective basis. Further, the standard eliminates the requirement to defer the recognition of excess tax benefits until the benefit is realized through a reduction to taxes payable. All excess tax benefits previously unrecognized, along with any valuation allowance, are to be recognized on a modified retrospective basis as a cumulative adjustment to retained earnings as of the date of adoption. Under the ASU, an entity that applies the treasury stock method in calculating diluted earnings per share is required to exclude excess tax benefits and deficiencies from the calculation of assumed proceeds since such amounts are recognized in the income statement. Excess tax benefits are also classified as operating activities in the same manner as other cash flows related to income taxes on the statement of cash flows, as such excess tax benefits no longer represent financing activities since they are recognized in the income statement, and are to be applied prospectively or retrospectively to all periods presented. The Company adopted the pronouncement beginning May 1, 2016. In connection with adopting the pronouncement beginning May 1, 2016, the Company recorded a cumulative increase of $265,000 in retained earnings with a corresponding increase in deferred tax assets in the consolidated balance sheet as of April 30, 2016 related to the prior years' unrecognized excess tax benefits. Excess tax benefits related to exercised options and vested restricted stock awards during the three months ended July 30, 2016 have been recognized in the current period’s income statement. The Company also excluded the excess tax benefits from the calculation of diluted earnings per share for the three months ended July 30, 2016. The Company applied the cash flow presentation section of the guidance on a prospective basis, and the prior period statement of cash flows was not adjusted.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation related to the adoption of new accounting pronouncements during the three month ended July 30, 2016 impacting the classification of deferred income taxes in the consolidated balance sheets.
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 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 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. Historically, the Company has not experienced material disallowed costs as a result of government audits. However, 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 Company’s revenue recognition policy calls for revenue recognized on all cost reimbursable government contracts to be recorded at actual rates unless collectability is not reasonably assured. The Defense Contract Management Agency, or DCMA, disallowed a portion of the Company’s executive compensation and/or other costs included in the Company’s fiscal 2006, 2007 and 2008 incurred cost claims and sought interest for all three years and penalties for Fiscal 2006, based on the disallowed costs. The Company appealed these cost disallowances to the Armed Services Board of Contract Appeals. For Fiscal 2006, as a result of partial settlements and a decision of the Armed Services Board of Contract Appeals in March 2016, the government’s remaining claims were dismissed with prejudice. All of the government’s claims related to the Company’s 2007 and 2008 incurred cost claims were settled as of October 2015 by payment to the government of $50,000 and the government’s claims related to the Company’s 2009 and 2010 incurred cost claims were settled as of October 2015 and April 2016, respectfully, without the payment of any consideration. As a result of the settlement agreements and the Armed Services Board of Contract Appeals ruling, the Company reversed reserves of $3,607,000 related to those fiscal years as a credit to cost of sales, allocated as $3,203,000 to the UAS segment and $404,000 to the EES segment during the fiscal year ended April 30, 2016. At July 30, 2016 and April 30, 2016, the Company did not have any remaining reserves for incurred cost claim audits.
Loss Per Share	Loss Per Share Basic 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 July 30, 2016 August 1, 2015 Denominator for basic 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 loss per share Due to the net loss for the three months ended July 30, 2016 and August 1, 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. Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive given the Company’s net loss were 302,332 and 221,589 for the three months ended July 30, 2016 and August 1, 2015, respectfully.
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 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 a 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 20

Organization and Significant Accounting Policies (Tables)	3 Months Ended
	Jul. 30, 2016
Organization and Significant Accounting Policies
Schedule of reconciliation of basic to diluted shares	Three Months Ended July 30, 2016 August 1, 2015 Denominator for basic 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 loss per share

Investments (Tables)

Investments (Tables)	3 Months Ended
	Jul. 30, 2016
Investments
Schedule of investments	Investments consist of the following (in thousands): July 30, April 30, 2016 2016 Short-term investments: Held-to-maturity securities: Municipal securities $ $ U.S. government securities Corporate bonds Total held-to-maturity 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 July 30, 2016, were as follows (in thousands): July 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses 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, 2016, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ $ $ $ U.S. government securities — Corporate bonds 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 July 30, 2016, were as follows (in thousands): Cost Fair Value Due within one year $ $ Due after one year through five 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 July 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, 2016, 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 July 30, 2016, were as follows (in thousands): Cost Fair Value Due after one through five years $ $ Due after 10 years Total $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jul. 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 July 30, 2016, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (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): Fair Value Measurements Using Significant Unobservable Inputs Description (Level 3) Balance at May 1, 2016 $ Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income Purchases, issuances and settlements, net Balance at July 30, 2016 $ The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at July 30, 2016 $ —

Inventories, net (Tables)

Inventories, net (Tables)	3 Months Ended
	Jul. 30, 2016
Inventories, net
Schedule of inventories	Inventories consist of the following (in thousands): July 30, April 30, 2016 2016 Raw materials $ $ Work in process Finished goods Inventories, gross Reserve for inventory excess and obsolescence Inventories, net $ $

Warranty Reserves (Tables)

Warranty Reserves (Tables)	3 Months Ended
	Jul. 30, 2016
Warranty Reserves
Summary of warranty reserve activity	Warranty reserve activity is summarized as follows for the three months ended July 30, 2016 and August 1, 2015 (in thousands): Three Months Ended July 30, August 1, 2016 2015 Beginning balance $ $ Warranty expense Changes in estimates related to pre-existing warranties Warranty costs settled Ending balance $ $

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Loss and Reclassifications Adjustments (Tables)	3 Months Ended
	Jul. 30, 2016
Accumulated Other Comprehensive Loss and Reclassifications Adjustments
Schedule of components of accumulated other comprehensive loss	The components of accumulated other comprehensive loss and adjustments are as follows (in thousands): Available-for-Sale Accumulated Other Securities Comprehensive Loss Balance, net of $134 of taxes, as of April 30, 2016 $ $ Reclassifications out of accumulated other comprehensive loss, net of taxes — — Unrealized gains, net of $12 of taxes Balance, net of $122 of taxes, as of July 30, 2016 $ $

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
	Jul. 30, 2016
Segment Data
Schedule of segment results	The segment results are as follows (in thousands): Three Months Ended July 30, August 1, 2016 2015 Revenue: UAS $ $ EES Total Cost of sales: UAS EES Total Gross margin: UAS EES Total Selling, general and administrative Research and development Loss from operations Other income (expense): Interest income, net Other expense, net Loss before income taxes $ $

Organization and Significant 27

Organization and Significant Accounting Policies (Details) $ in Thousands	May 01, 2016USD ($)	Oct. 31, 2015USD ($)	Jul. 30, 2016USD ($)segment	Aug. 01, 2015USD ($)	Apr. 30, 2016USD ($)
Segments
Number of reportable segments | segment			2
Paid Settlement agreement		$ 50,000
Cost of sales			$ 29,535	$ 31,027
ASBC
Segments
Cost of sales					$ 3,607,000
UAS
Segments
Cost of sales			25,083	26,466
UAS | ASBC
Segments
Cost of sales					3,203,000
EES
Segments
Cost of sales			$ 4,452	$ 4,561
EES | ASBC
Segments
Cost of sales					$ 404,000
Accounting Standards Update 2015-17 | Adjustment
Segments
Deferred income taxes	$ 5,432,000
Accounting Standards Update 2016-09 | Adjustment
Segments
Cumulative increase in retained earnings	$ 265,000

Organization and Significant 28

Organization and Significant Accounting Policies Other (Details) - shares	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Denominator for basic loss per share:
Weighted average common shares outstanding, excluding unvested restricted stock (in shares)	22,956,607	22,947,487
Dilutive effect of employee stock options and unvested restricted stock (in shares)	0	0
Denominator for diluted loss per share (in shares)	22,956,607	22,947,487
Number of anti-dilutive shares	302,332	221,589

Investments (Details)

Investments (Details) SEK / shares in Units, SEK in Millions	Aug. 11, 2014SEKSEK / sharesshares	Aug. 31, 2015USD ($)	Jul. 30, 2016USD ($)item	Aug. 01, 2015USD ($)	Apr. 30, 2016USD ($)item	Aug. 31, 2015SEK / shares	Apr. 30, 2015item
Short-term investments:
Total short-term investments			$ 101,802,000		$ 103,404,000
Long-term investments:
Total long-term investments			33,097,000		33,859,000
Held To Maturity Securities
Cost			132,489,000		134,483,000
Gross Unrealized Gains					82,000
Gross Unrealized Losses					(39,000)
Fair Value			132,594,000		134,526,000
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year			101,802,000
Due after one year through five years			30,687,000
Total			132,489,000		134,483,000
Fair value of held-to-maturity securities by contractual maturity
Due within one year			101,855,000
Due after one year through five years			30,739,000
Fair Value			132,594,000		134,526,000
Available-For-Sale Securities
Amortized Cost			2,700,000		3,100,000
Gross Unrealized Losses			(290,000)		(320,000)
Total			2,410,000		2,780,000
Other than temporary impairment of available-for-sale securities				$ 2,186,000
Amortized cost of available-for-sale securities by contractual maturity
Total			2,700,000		3,100,000
Fair value of available-for-sale securities by contractual maturity
Total			2,410,000		2,780,000
Equity Securities
Shares received on conversion | shares	1,062,699
CybAero | Private Placement
Equity Securities
Share price (in SEK per share) | SEK / shares						SEK 12
Proceeds received from sale of stock		$ 777,000
Realized gains on sale of shares		$ 207,000
CybAero | Other Expense
Available-For-Sale Securities
Other than temporary impairment of available-for-sale securities				$ 2,186,000
Municipal securities
Held To Maturity Securities
Cost			38,859,000		42,179,000
Gross Unrealized Gains			24,000		5,000
Gross Unrealized Losses					(7,000)
Fair Value			38,883,000		42,177,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			38,859,000		42,179,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			38,883,000		42,177,000
U.S. government securities
Held To Maturity Securities
Cost			27,182,000		28,702,000
Gross Unrealized Gains			27,000		23,000
Fair Value			27,209,000		28,725,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			27,182,000		28,702,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			27,209,000		28,725,000
Corporate bonds
Held To Maturity Securities
Cost			66,448,000		63,602,000
Gross Unrealized Gains			66,000		54,000
Gross Unrealized Losses			(12,000)		(32,000)
Fair Value			66,502,000		63,624,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			66,448,000		63,602,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			66,502,000		63,624,000
Auction rate securities
Available-For-Sale Securities
Amortized Cost			2,700,000		3,100,000
Gross Unrealized Losses			(290,000)		(320,000)
Total			2,410,000		2,780,000
Amortized cost of available-for-sale securities by contractual maturity
Due one through five years			700,000
Due after 10 years			2,000,000
Total			2,700,000		3,100,000
Fair value of available-for-sale securities by contractual maturity
Due one through five years			675,000
Due after 10 years			1,735,000
Total			$ 2,410,000		$ 2,780,000
Equity Securities
Number of available-for-sale securities | item			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			$ 132,489,000
Gross Unrealized Gains			117,000
Gross Unrealized Losses			(12,000)
Fair Value			132,594,000
Amortized cost of held-to-maturity securities by contractual maturity
Total			132,489,000
Fair value of held-to-maturity securities by contractual maturity
Fair Value			132,594,000
Convertible bonds | CybAero | Exercise of conversion right on convertible debt securities
Equity Securities
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
Held-to-maturity securities
Short-term investments:
Total short-term investments			101,802,000		$ 103,404,000
Long-term investments:
Total long-term investments			30,687,000		31,079,000
Held-to-maturity securities | Municipal securities
Short-term investments:
Total short-term investments			35,121,000		42,179,000
Long-term investments:
Total long-term investments			3,738,000
Held-to-maturity securities | U.S. government securities
Short-term investments:
Total short-term investments			23,176,000		21,184,000
Long-term investments:
Total long-term investments			4,006,000		7,518,000
Held-to-maturity securities | Corporate bonds
Short-term investments:
Total short-term investments			43,505,000		40,041,000
Long-term investments:
Total long-term investments			22,943,000		23,561,000
Available-for-sale securities
Long-term investments:
Total long-term investments			2,410,000		2,780,000
Available-for-sale securities | Auction rate securities
Long-term investments:
Total long-term investments			$ 2,410,000		$ 2,780,000
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 | Common Stock | CybAero
Equity Securities
Number of available-for-sale securities | item							618,042

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - Equity securities $ in Thousands	Jul. 30, 2016USD ($)
Fair Value Measurement
Available-for-sale securities	$ 2,410
Significant unobservable inputs (Level 3)
Fair Value Measurement
Available-for-sale securities	$ 2,410

Fair Value Measurements Reconci

Fair Value Measurements Reconciliation (Details) $ in Thousands	3 Months Ended
	Jul. 30, 2016USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Balance at the beginning of the period	$ 2,780
Total gains (realized or unrealized) included in other comprehensive income	30
Purchases, issuances and settlements, net	(400)
Balance at the end of the period	$ 2,410

Fair Value Measurements Other (

Fair Value Measurements Other (Details) - Significant unobservable inputs (Level 3) - Discounted cash flow - Auction rate securities	3 Months Ended
	Jul. 30, 2016
Minimum
Fair Value Inputs
Coupon rates (as a percent)	0.70%
Estimated redemption periods	3 years
Discount rates (as a percent)	4.60%
Maximum
Fair Value Inputs
Coupon rates (as a percent)	0.72%
Estimated redemption periods	18 years
Discount rates (as a percent)	14.30%

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Jul. 30, 2016	Apr. 30, 2016
Inventories, net
Raw materials	$ 12,684	$ 11,609
Work in process	7,038	4,259
Finished goods	28,406	26,073
Inventories, gross	48,128	41,941
Reserve for inventory excess and obsolescence	(4,023)	(4,455)
Inventories, net	$ 44,105	$ 37,486

Warranty Reserves (Details)

Warranty Reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Warranty Reserves
Beginning balance	$ 4,134	$ 2,653
Warranty expense	192	707
Changes in estimates related to pre-existing warranties	1,407	(424)
Warranty costs settled	(510)	(907)
Ending balance	$ 5,223	$ 2,029

Warranty Reserves Estimated Cos

Warranty Reserves Estimated Cost (Details) - USD ($) $ in Thousands	Jul. 30, 2016	Apr. 30, 2016	Aug. 01, 2015	Apr. 30, 2015
Standard Product Warranty Accrual	$ 5,223	$ 4,134	$ 2,029	$ 2,653
Product Warranty Expense	0
UAS
Standard Product Warranty Accrual	$ 1,959,000

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Loss and Reclassifications Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Apr. 30, 2016
Accumulated other comprehensive loss
Balance, net of $134 of taxes, as of April 30, 2016	$ (201)
Unrealized gains, net of $12 of taxes	18
Other comprehensive income, tax	122		$ 134
Balance, net of $122 or taxes, as of July 30, 2016	(183)		(201)
Unrealized gain, tax portion	12	$ 1
Available-for-sale securities.
Accumulated other comprehensive loss
Balance, net of $134 of taxes, as of April 30, 2016	(201)
Unrealized gains, net of $12 of taxes	18
Balance, net of $122 or taxes, as of July 30, 2016	$ (183)		$ (201)

Customer-Funded Research & De37

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Customer-Funded Research & Development
Revenue from customer-funded R&D	$ 14,737,000	$ 16,527,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Income taxes
Benefit for income taxes	$ (3,863,000)	$ (4,248,000)
Effective tax benefit rate (as a percent)	24.90%	37.80%
Reversal of reserve	$ 968,000

Share Repurchase (Details)

Share Repurchase (Details) - USD ($)	3 Months Ended
	Jul. 30, 2016	Apr. 30, 2016	Sep. 30, 2015
Share Repurchase
Stock Repurchase Program, Authorized Amount			$ 25,000,000
Shares repurchased and retired	0
Share authorized for future repurchases	$ 21,200,000	$ 21,200,000

Segment Data (Details)

Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Segment Data
Revenue	$ 36,218	$ 47,050
Cost of sales	29,535	31,027
Total gross margin	6,683	16,023
Selling, general and administrative	13,663	15,256
Research and development	8,600	9,831
Loss from operations	(15,580)	(9,064)
Interest income, net	375	224
Other expense, net	(300)	(2,389)
Loss before income taxes	(15,505)	(11,229)
Inter-segment and corporate elimination
Segment Data
Revenue	0	0
UAS
Segment Data
Revenue	30,497	40,167
Cost of sales	25,083	26,466
Total gross margin	5,414	13,701
EES
Segment Data
Revenue	5,721	6,883
Cost of sales	4,452	4,561
Total gross margin	$ 1,269	$ 2,322