AeroVironment (AVAV) 10-Q 6 Dec 17 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Oct. 28, 2017	Nov. 28, 2017
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity Central Index Key	1,368,622
Document Type	10-Q
Document Period End Date	Oct. 28, 2017
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		23,870,182
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 117,109	$ 79,904
Short-term investments	110,751	119,971
Accounts receivable, net of allowance for doubtful accounts of $1,201 at October 28, 2017 and $291 at April 30, 2017	35,106	74,361
Unbilled receivables and retentions	13,494	14,120
Inventories, net	76,039	60,076
Prepaid expenses and other current assets	5,175	5,653
Total current assets	357,674	354,085
Long-term investments	33,024	42,096
Property and equipment, net	21,614	19,220
Deferred income taxes	16,113	15,089
Other assets	838	2,010
Total assets	429,263	432,500
Current liabilities:
Accounts payable	15,724	20,283
Wages and related accruals	10,415	12,966
Income taxes payable	350	1,418
Customer advances	3,921	3,317
Other current liabilities	7,441	10,079
Total current liabilities	37,851	48,063
Deferred rent	1,637	1,719
Capital lease obligations - net of current portion	50	161
Other non-current liabilities	184	184
Deferred tax liability	67	116
Liability for uncertain tax positions	64	64
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value: Authorized shares—10,000,000; none issued or outstanding at October 28, 2017 and April 30, 2017
Common stock, $0.0001 par value: Issued and outstanding shares—23,865,335 shares at October 28, 2017 and 23,630,419 at April 30, 2017	2	2
Additional paid-in capital	166,993	162,150
Accumulated other comprehensive loss	(98)	(127)
Retained earnings	222,504	219,929
Total AeroVironment stockholders' equity	389,401	381,954
Noncontrolling interest	9	239
Total equity	389,410	382,193
Total liabilities and stockholders' equity	$ 429,263	$ 432,500

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,201	$ 291
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	23,865,335	23,630,419
Common stock, outstanding shares	23,865,335	23,630,419

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Revenue:
Product sales	$ 52,933,000	$ 29,350,000	$ 84,024,000	$ 45,087,000
Contract services	20,894,000	20,766,000	33,567,000	41,247,000
Total revenue	73,827,000	50,116,000	117,591,000	86,334,000
Cost of sales:
Product sales	30,014,000	19,197,000	54,231,000	34,419,000
Contract services	12,813,000	13,502,000	20,730,000	27,815,000
Total cost of sales	42,827,000	32,699,000	74,961,000	62,234,000
Gross margin:
Product sales	22,919,000	10,153,000	29,793,000	10,668,000
Contract services	8,081,000	7,264,000	12,837,000	13,432,000
Total gross margin	31,000,000	17,417,000	42,630,000	24,100,000
Selling, general and administrative	14,464,000	13,387,000	27,795,000	27,050,000
Research and development	7,272,000	8,517,000	13,733,000	17,117,000
Income (loss) from operations	9,264,000	(4,487,000)	1,102,000	(20,067,000)
Other income (expense):
Interest income, net	432,000	397,000	944,000	772,000
Other expense, net	(55,000)	(130,000)	(51,000)	(430,000)
Income (loss) before income taxes	9,641,000	(4,220,000)	1,995,000	(19,725,000)
Provision (benefit) for income taxes	2,829,000	(48,000)	(351,000)	(3,911,000)
Net income (loss)	6,812,000	(4,172,000)	2,346,000	(15,814,000)
Net loss attributable to noncontrolling interest	206,000		229,000
Net income (loss) attributable to AeroVironment	$ 7,018,000	$ (4,172,000)	$ 2,575,000	$ (15,814,000)
Net income (loss) per share attributable to AeroVironment:
Basic (in dollars per share)	$ 0.30	$ (0.18)	$ 0.11	$ (0.69)
Diluted (in dollars per share)	$ 0.29	$ (0.18)	$ 0.11	$ (0.69)
Weighted average shares outstanding:
Basic (in shares)	23,477,914	23,049,056	23,407,500	23,002,832
Diluted (in shares)	23,832,959	23,049,056	23,715,997	23,002,832

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Consolidated Statements of Comprehensive Loss
Net income (loss)	$ 6,812	$ (4,172)	$ 2,346	$ (15,814)
Other comprehensive income:
Unrealized gain on investments, net of deferred tax expense of $17 and $17 for the three months ended October 28, 2017 and October 29, 2016, respectively; and net of deferred tax expense of $19 and $29 for the six months ended October 28, 2017 and October 29, 2016, respectively	26	25	29	43
Total comprehensive income (loss)	6,838	(4,147)	2,375	(15,771)
Net loss attributable to noncontrolling interest	206		229
Comprehensive income (loss) attributable to AeroVironment	$ 7,044	$ (4,147)	$ 2,604	$ (15,771)

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (loss) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Consolidated Statements of Comprehensive Loss
Unrealized gain on investments, net of deferred tax expense of $17 and $17 for the three months ended October 28, 2017 and October 29, 2016, respectively; and net of deferred tax expense of $19 and $29 for the six months ended October 28, 2017 and October 29, 2016, respectively	$ 17,000	$ 17,000	$ 19,000	$ 29

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016
Operating activities
Net income (loss)	$ 2,346	$ (15,814)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	3,692	3,401
Loss from equity method investments		111
Impairment of long-lived assets	255
Impairment of intangible assets and goodwill	1,021
Provision for doubtful accounts	943	119
(Gains) losses on foreign currency transactions	(108)	269
Deferred income taxes	(1,093)	(329)
Stock-based compensation	2,608	1,813
Tax benefit from exercise of stock options		22
Loss (Gain) on disposition of property and equipment	15	(7)
Amortization of held-to-maturity investments	897	1,259
Changes in operating assets and liabilities:
Accounts receivable	38,440	29,562
Unbilled receivables and retentions	626	2,029
Inventories	(15,963)	(17,682)
Income tax receivable		(3,957)
Prepaid expenses and other assets	468	(555)
Accounts payable	(4,739)	1,413
Other liabilities	(5,289)	(7,933)
Net cash provided by (used in) operating activities	24,119	(6,279)
Investing activities
Acquisition of property and equipment	(6,037)	(4,514)
Redemptions of held-to-maturity investments	105,758	53,961
Purchases of held-to-maturity investments	(88,763)	(79,052)
Proceeds from the sale of property and equipment		7
Sales and redemptions of available-for-sale investments	450	400
Net cash provided by (used in) investing activities	11,408	(29,198)
Financing activities
Principal payments of capital lease obligations	(173)	(192)
Tax withholding payment related to net settlement of equity awards	(313)
Exercise of stock options	2,164	258
Net cash provided by financing activities	1,678	66
Net increase (decrease) in cash and cash equivalents	37,205	(35,411)
Cash and cash equivalents at beginning of period	79,904	124,287
Cash and cash equivalents at end of period	117,109	88,876
Cash paid during the period for:
Income taxes	1,803	1,786
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $19 and $29, respectively	29	43
Reclassification from share-based liability compensation to equity	384	307
Acquisitions of property and equipment included in accounts payable	$ 888	$ 704

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016
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)	$ 19	$ 29

Organization and Significant Ac

Organization and Significant Accounting Policies	6 Months Ended
	Oct. 28, 2017
Organization and Significant Accounting Policies
Organization and Significant Accounting Policies	AeroVironment, Inc. Notes to Consolidated Financia 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 six months ended October 28, 2017 are not necessarily indicative of the results for the full year ending April 30, 2018. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2017, 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. The accompanying consolidated financial statements include the balance sheet and results of operations of Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”), in which the Company increased its ownership to a controlling interest of 85% during the fourth quarter of the fiscal year ended April 30, 2017. Prior to the increase in ownership, the Company's investment in Altoy was accounted for under the equity method. In July 2016, the Company dissolved Charger Bicycles, LLC, the results of which were not material to the consolidated financial statements. During the three months ended October 29, 2016, the Company dissolved Skytower, LLC and Regenerative Fuel Cell Systems, LLC, the results of which were not material to the consolidated financial statements. Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company’s adoption of ASU No. 2015-11 effective May 1, 2017 did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by removing Step 2 from the goodwill impairment test. If goodwill impairment is realized, the amount recognized will be the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied on a prospective basis and will become effective for public entities in the first quarter of the year ending September 30, 2021, with early adoption available. The Company elected to early adopt the standard during the three months ended October 28, 2017. The Company’s adoption of ASU 2017-04 did not have a material impact on its consolidated financial statements. 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. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. At October 28, 2017 and April 30, 2017, the Company did not have any remaining reserves for incurred cost claim audits. Earnings Per Share Basic earnings 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 Six Months Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Denominator for basic earnings per share: Weighted average common shares outstanding, excluding unvested restricted stock 23,477,914 23,049,056 23,407,500 23,002,832 Dilutive effect of employee stock options and unvested restricted stock 355,045 — 308,497 — Denominator for diluted earnings per share Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive were 0 and 14,820 for the three and six months ended October 28, 2017, respectively. Due to the net loss for the three and six months ended October 29, 2016, 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 anti-dilutive were 199,428 and 256,366 for the three and six months ended October 29, 2016, respectively. Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the definition of a business (Topic 805). This ASU clarifies the definition of a business with the objective of providing a more robust framework to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within that fiscal year, with early adoption permitted. The amendments are to be applied prospectively to business combinations that occur after the effective date. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230). This ASU adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. 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. The Company currently does not hold a large number of leases that are classified as operating leases under the existing lease standard, with the only significant leases being the Company’s various property leases. 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 606)- 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. Since the issuance of ASU 2014-09, the FASB has issued several amendments to provide additional supplemental guidance on certain aspects of the original pronouncement. The core principle of ASU 2014-09 is to recognize revenue upon the transfer of goods or services to customers at an amount that reflects the consideration expected to be received. In adopting the guidance, companies are permitted to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. The Company currently expects to adopt ASU 2014-09 on May 1, 2018 using the full retrospective transition method. The Company is continuing to assess the potential impact of this guidance, including the impact on those areas currently subject to industry-specific guidance such as government contract accounting. As part of its assessment, the Company is reviewing representative samples of customer contracts to determine the impact on revenue recognition under the new guidance. The Company’s contracts with the U.S. government contain provisions that, among other things, allow the government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with the U.S. government to determine whether: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (ii) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting either of these criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred. The Company’s contracts with international governments for the purchase of small UAS and related services generally contain provisions that, among other things, allow the government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with its international UAS customers to determine whether the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting this criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred.

Investments

Investments	6 Months Ended
	Oct. 28, 2017
Investments
Investments	2. Investments Investments consist of the following (in thousands): October 28, April 30, 2017 2017 Short-term investments: Held-to-maturity securities: Municipal securities $ 43,901 $ 47,437 U.S. government securities 22,609 14,515 Corporate bonds 44,241 55,519 Certificates of deposit — 2,500 Total held-to-maturity and short-term investments $ 110,751 $ 119,971 Long-term investments: Held-to-maturity securities: Municipal securities $ 3,898 $ 8,942 U.S. government securities 25,021 22,540 Corporate bonds 2,009 8,117 Total held-to-maturity investments 30,928 39,599 Available-for-sale securities: Auction rate securities 2,096 2,497 Total available-for-sale investments 2,096 2,497 Total long-term investments $ 33,024 $ 42,096 Held-To-Maturity Securities As of October 28, 2017 and April 30, 2017, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. treasury securities, U.S. government-guaranteed agency securities, U.S. government-sponsored agency debt securities, certificates of deposit and highly rated 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 October 28, 2017 were as follows (in thousands): October 28, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 47,799 $ 13 $ (16) $ 47,796 U.S. government securities 47,630 — (115) 47,515 Corporate bonds 46,250 1 (43) 46,208 Certificates of deposit — — — — Total held-to-maturity investments $ 141,679 $ 14 $ (174) $ 141,519 The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 56,379 $ 30 $ (21) $ 56,388 U.S. government securities 37,055 2 (41) 37,016 Corporate bonds 63,636 9 (85) 63,560 Certificates of deposit 2,500 1 — 2,501 Total held-to-maturity investments $ 159,570 $ 42 $ (147) $ 159,465 The amortized cost and fair value of the held-to-maturity securities by contractual maturity at October 28, 2017 were as follows (in thousands): Cost Fair Value Due within one year $ 110,751 $ 110,660 Due after one year through five years 30,928 30,859 Total $ 141,679 $ 141,519 Available-For-Sale Securities Auction Rate Securities As of October 28, 2017 and April 30, 2017, the entire balance of available-for-sale auction rate securities, consisted of two investment grade auction rate municipal bonds, with maturities of approximately 2 and 17 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 October 28, 2017, 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 October 28, 2017. 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. As of October 28, 2017, 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 October 28, 2017, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ 2,250 $ — $ (154) $ 2,096 Total available-for-sale investments $ 2,250 $ — $ (154) $ 2,096 The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2017, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ 2,700 $ — $ (203) $ 2,497 Total available-for-sale investments $ 2,700 $ — $ (203) $ 2,497 The amortized cost and fair value of the auction rate securities by contractual maturity at October 28, 2017, were as follows (in thousands): Cost Fair Value Due after one through five years $ 250 $ 250 Due after 10 years 2,000 1,846 Total $ 2,250 $ 2,096

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Oct. 28, 2017
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 October 28, 2017, 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 $ — $ — $ 2,096 $ 2,096 Total $ — $ — $ 2,096 $ 2,096 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, 2017 $ 2,497 Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income 49 Purchases, issuances and settlements, net (450) Balance at October 28, 2017 $ 2,096 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 October 28, 2017 $ — 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 October 28, 2017, the inputs used in the Company’s discounted cash flow analysis included current coupon rates of 1.58% and 1.59%, estimated redemption periods of 2 and 17 years and discount rates of 2.55% and 10.13%. 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	6 Months Ended
	Oct. 28, 2017
Inventories, net
Inventories, net	4. Inventories, net Inventories consist of the following (in thousands): October 28, April 30, 2017 2017 Raw materials $ 21,423 $ 18,365 Work in process 22,921 16,168 Finished goods 37,164 30,793 Inventories, gross 81,508 65,326 Reserve for inventory excess and obsolescence (5,469) (5,250) Inventories, net $ 76,039 $ 60,076

Warranty Reserves

Warranty Reserves	6 Months Ended
	Oct. 28, 2017
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 six months ended October 28, 2017 and October 29, 2016, respectively (in thousands): Three Months Ended Six Months Ended October 28, October 29, October 28, October 29, 2017 2016 2017 2016 Beginning balance $ 2,885 $ 5,223 $ 3,231 $ 4,134 Warranty expense 719 144 1,166 336 Changes in estimates related to pre-existing warranties — (179) — 1,228 Warranty costs settled (520) (1,500) (1,313) (2,010) Ending balance $ 3,084 $ 3,688 $ 3,084 $ 3,688 During the six months ended October 29, 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 October 28, 2017, there were no remaining estimated warranty costs related to the repair of the impacted UAS. As of October 28, 2017, a total of $2,198,000 of costs related to this warranty have been incurred.

Intangibles

Intangibles	6 Months Ended
	Oct. 28, 2017
Intangibles
Intangibles	6. Intangibles Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows: April 30, Impairment October 28, 2017 Charges 2017 (In thousands) Licenses $ 818 $ - $ 818 Customer relationships 1,600 (867) 733 Trademarks and tradenames 60 (32) 28 Other 3 - 3 Intangibles, gross 2,481 $ (899) 1,582 Less accumulated amortization (658) (816) Intangibles, net $ 1,823 $ 766 The customer relationships, trademarks and tradenames, and other intangible assets were recognized in conjunction with the Company’s acquisition of a controlling interest in Altoy on February 1, 2017. The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the current political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three and six months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of operations. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates.

Goodwill

Goodwill	6 Months Ended
	Oct. 28, 2017
Goodwill.
Goodwill	7. Goodwill The following table presents the changes in the Company’s goodwill balance (in thousands): Balance at April 30, 2017 $ 122 Additions to goodwill - Impairment of goodwill (122) Balance at October 28, 2017 $ - Goodwill is attributable to the acquisition of a controlling interest in Altoy on February 1, 2017. The Company tests goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that goodwill may be impaired. Due to the factors described in Note 6 above, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s goodwill during the three months ended October 28, 2017. Based on the analysis, it was determined that Altoy’s fair value had declined significantly below its carrying value, including goodwill. As a result, the Company performed additional analysis to determine the amount of the impairment and recorded an impairment loss totaling $122,000 during the three and six months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of operations.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss and Reclassifications	6 Months Ended
	Oct. 28, 2017
Accumulated Other Comprehensive Loss and Reclassifications
Accumulated Other Comprehensive Loss and Reclassifications	8. 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 $76 of taxes, as of April 30, 2017 $ (127) $ (127) Reclassifications out of accumulated other comprehensive loss, net of taxes — — Unrealized gains, net of $19 of taxes 29 29 Balance, net of $57 of taxes, as of October 28, 2017 $ (98) $ (98)

Customer-Funded Research & Deve

Customer-Funded Research & Development	6 Months Ended
	Oct. 28, 2017
Customer-Funded Research & Development
Customer-Funded Research & Development	9. 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 $13,873,000 and $20,108,000 for the three and six months ended October 28, 2017, respectively. Revenue from customer-funded R&D was approximately $14,541,000 and $29,278,000 for the three and six months ended October 29, 2016, respectively.

Long-Term Incentive Awards

Long-Term Incentive Awards	6 Months Ended
	Oct. 28, 2017
Long-Term Incentive Awards
Long-Term Incentive Awards	10. Long-Term Incentive Awards During the three months ended July 29, 2017, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2018 LTIP”). Awards under the Fiscal 2018 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2018, July 2019 and July 2020, and (ii) performance-based restricted stock units (“PRSUs”) which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2020. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of October 28, 2017, no compensation cost has been recognized for the performance-based portion of the Fiscal 2018 LTIP, as the Company concluded that it was not probable that the performance conditions will be achieved. At October 28, 2017, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2018 LTIP is $2,850,000. During the three months ended July 29, 2017, the Company also granted awards under the Restated 2006 Plan to key employees (“Fiscal 2017 LTIP”). Awards under the Fiscal 2017 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of October 28, 2017, no compensation cost has been recognized for the performance-based portion of the Fiscal 2017 LTIP, as the Company concluded that it was not probable that the performance conditions will be achieved. At October 28, 2017, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2017 LTIP is $2,630,000. During the year ended April 30, 2016, the Company granted a three-year performance award under the Restated 2006 Plan to key employees (“Fiscal 2016 LTIP”). The performance period for each three-year award is the three-year period ending April 30, 2018. A target payout was established at the award date. The actual payout at the end of the performance period will be calculated based upon the Company’s achievement of revenue and gross margin for the performance period. Payouts will be made in cash and restricted stock units. Upon vesting of the restricted stock units, the Company has the discretion to settle the restricted stock units in cash or stock. As of October 28, 2017, no compensation cost has been recognized for this award as the Company has concluded that it was not probable that the performance conditions will be achieved. At October 28, 2017, the maximum compensation expense that may be recorded for the Fiscal 2016 LTIP is $2,690,000. At each reporting period, the Company reassesses the probability of achieving the performance targets. The estimation of whether the performance targets will be achieved requires judgment, and, to the extent actual results or updated estimates differ from the Company’s current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised.

Income Taxes

Income Taxes	6 Months Ended
	Oct. 28, 2017
Income Taxes
Income Taxes	11. Income Taxes For the three and six months ended October 28, 2017, the Company recorded a provision (benefit) for income taxes of $2,829,000 and $(351,000), respectively, yielding an effective tax rate of 29.3% and (17.6)%, respectively. For the three and six months ended October 29, 2016, the Company recorded a (benefit) for income taxes of $(48,000) and $(3,911,000), yielding an effective tax rate of 1.1% and 19.8%, respectively. The variance from statutory rates for the three and six months ended October 28, 2017 was primarily due to federal R&D credits and the recording of discrete excess tax benefits of $376,000 and $1,401,000, respectively, resulting from the vesting of restricted stock awards and exercises of stock options. The variance from statutory rates for the three and six months ended October 29, 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 recorded during the first quarter of fiscal 2017.

Share Repurchase

Share Repurchase	6 Months Ended
	Oct. 28, 2017
Share Repurchase
Share Repurchase	12. 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 and six months ended October 28, 2017. As of October 28, 2017 and April 30, 2017, approximately $21.2 million remained authorized for future repurchases under this program.

Segment Data

Segment Data	6 Months Ended
	Oct. 28, 2017
Segment Data
Segment Data	13. 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 Six Months Ended October 28, October 29, October 28, October 29, 2017 2016 2017 2016 Revenue: UAS $ 63,988 $ 40,829 $ 100,238 $ 71,326 EES 9,839 9,287 17,353 15,008 Total 73,827 50,116 117,591 86,334 Cost of sales: UAS 35,817 25,936 62,225 51,019 EES 7,010 6,763 12,736 11,215 Total 42,827 32,699 74,961 62,234 Gross margin: UAS 28,171 14,893 38,013 20,307 EES 2,829 2,524 4,617 3,793 Total 31,000 17,417 42,630 24,100 Selling, general and administrative 14,464 13,387 27,795 27,050 Research and development 7,272 8,517 13,733 17,117 Income (loss) from operations 9,264 (4,487) 1,102 (20,067) Other income (expense): Interest income, net 432 397 944 772 Other expense, net (55) (130) (51) (430) Income (loss) before income taxes $ 9,641 $ (4,220) $ 1,995 $ (19,725)

Organization and Significant 22

Organization and Significant Accounting Policies (Policies)	6 Months Ended
	Oct. 28, 2017
Organization and Significant Accounting Policies
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.
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 six months ended October 28, 2017 are not necessarily indicative of the results for the full year ending April 30, 2018. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2017, 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. The accompanying consolidated financial statements include the balance sheet and results of operations of Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”), in which the Company increased its ownership to a controlling interest of 85% during the fourth quarter of the fiscal year ended April 30, 2017. Prior to the increase in ownership, the Company's investment in Altoy was accounted for under the equity method. In July 2016, the Company dissolved Charger Bicycles, LLC, the results of which were not material to the consolidated financial statements. During the three months ended October 29, 2016, the Company dissolved Skytower, LLC and Regenerative Fuel Cell Systems, LLC, the results of which were not material to the consolidated financial statements. Recently Adopted Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company’s adoption of ASU No. 2015-11 effective May 1, 2017 did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by removing Step 2 from the goodwill impairment test. If goodwill impairment is realized, the amount recognized will be the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied on a prospective basis and will become effective for public entities in the first quarter of the year ending September 30, 2021, with early adoption available. The Company elected to early adopt the standard during the three months ended October 28, 2017. The Company’s adoption of ASU 2017-04 did not have a material impact on its consolidated financial statements.
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. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. At October 28, 2017 and April 30, 2017, the Company did not have any remaining reserves for incurred cost claim audits.
Earnings Per Share	Earnings Per Share Basic earnings 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 Six Months Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Denominator for basic earnings per share: Weighted average common shares outstanding, excluding unvested restricted stock 23,477,914 23,049,056 23,407,500 23,002,832 Dilutive effect of employee stock options and unvested restricted stock 355,045 — 308,497 — Denominator for diluted earnings per share Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive were 0 and 14,820 for the three and six months ended October 28, 2017, respectively. Due to the net loss for the three and six months ended October 29, 2016, 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 anti-dilutive were 199,428 and 256,366 for the three and six months ended October 29, 2016, respectively.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-01, Business Combinations – Clarifying the definition of a business (Topic 805). This ASU clarifies the definition of a business with the objective of providing a more robust framework to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within that fiscal year, with early adoption permitted. The amendments are to be applied prospectively to business combinations that occur after the effective date. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230). This ASU adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. 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. The Company currently does not hold a large number of leases that are classified as operating leases under the existing lease standard, with the only significant leases being the Company’s various property leases. 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 606)- 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. Since the issuance of ASU 2014-09, the FASB has issued several amendments to provide additional supplemental guidance on certain aspects of the original pronouncement. The core principle of ASU 2014-09 is to recognize revenue upon the transfer of goods or services to customers at an amount that reflects the consideration expected to be received. In adopting the guidance, companies are permitted to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. The Company currently expects to adopt ASU 2014-09 on May 1, 2018 using the full retrospective transition method. The Company is continuing to assess the potential impact of this guidance, including the impact on those areas currently subject to industry-specific guidance such as government contract accounting. As part of its assessment, the Company is reviewing representative samples of customer contracts to determine the impact on revenue recognition under the new guidance. The Company’s contracts with the U.S. government contain provisions that, among other things, allow the government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with the U.S. government to determine whether: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (ii) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting either of these criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred. The Company’s contracts with international governments for the purchase of small UAS and related services generally contain provisions that, among other things, allow the government to unilaterally terminate the contract for convenience (in whole or in part), pay the Company for costs incurred plus a reasonable profit and take control of any work in process. The Company is continuing to evaluate its contracts with its international UAS customers to determine whether the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Revenues for contracts meeting this criteria will be recognized over the performance period using an acceptable measure of progress under the new standard, which the Company anticipates to be as costs are incurred.

Organization and Significant 23

Organization and Significant Accounting Policies (Tables)	6 Months Ended
	Oct. 28, 2017
Organization and Significant Accounting Policies
Schedule of reconciliation of basic to diluted shares	Three Months Ended Six Months Ended October 28, 2017 October 29, 2016 October 28, 2017 October 29, 2016 Denominator for basic earnings per share: Weighted average common shares outstanding, excluding unvested restricted stock 23,477,914 23,049,056 23,407,500 23,002,832 Dilutive effect of employee stock options and unvested restricted stock 355,045 — 308,497 — Denominator for diluted earnings per share

Investments (Tables)

Investments (Tables)	6 Months Ended
	Oct. 28, 2017
Investments
Schedule of investments	Investments consist of the following (in thousands): October 28, April 30, 2017 2017 Short-term investments: Held-to-maturity securities: Municipal securities $ 43,901 $ 47,437 U.S. government securities 22,609 14,515 Corporate bonds 44,241 55,519 Certificates of deposit — 2,500 Total held-to-maturity and short-term investments $ 110,751 $ 119,971 Long-term investments: Held-to-maturity securities: Municipal securities $ 3,898 $ 8,942 U.S. government securities 25,021 22,540 Corporate bonds 2,009 8,117 Total held-to-maturity investments 30,928 39,599 Available-for-sale securities: Auction rate securities 2,096 2,497 Total available-for-sale investments 2,096 2,497 Total long-term investments $ 33,024 $ 42,096
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 October 28, 2017 were as follows (in thousands): October 28, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 47,799 $ 13 $ (16) $ 47,796 U.S. government securities 47,630 — (115) 47,515 Corporate bonds 46,250 1 (43) 46,208 Certificates of deposit — — — — Total held-to-maturity investments $ 141,679 $ 14 $ (174) $ 141,519 The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2017 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Municipal securities $ 56,379 $ 30 $ (21) $ 56,388 U.S. government securities 37,055 2 (41) 37,016 Corporate bonds 63,636 9 (85) 63,560 Certificates of deposit 2,500 1 — 2,501 Total held-to-maturity investments $ 159,570 $ 42 $ (147) $ 159,465
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 October 28, 2017 were as follows (in thousands): Cost Fair Value Due within one year $ 110,751 $ 110,660 Due after one year through five years 30,928 30,859 Total $ 141,679 $ 141,519
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 October 28, 2017, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ 2,250 $ — $ (154) $ 2,096 Total available-for-sale investments $ 2,250 $ — $ (154) $ 2,096 The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2017, were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Auction rate securities $ 2,700 $ — $ (203) $ 2,497 Total available-for-sale investments $ 2,700 $ — $ (203) $ 2,497
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 October 28, 2017, were as follows (in thousands): Cost Fair Value Due after one through five years $ 250 $ 250 Due after 10 years 2,000 1,846 Total $ 2,250 $ 2,096

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Oct. 28, 2017
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 October 28, 2017, 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 $ — $ — $ 2,096 $ 2,096 Total $ — $ — $ 2,096 $ 2,096
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, 2017 $ 2,497 Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income 49 Purchases, issuances and settlements, net (450) Balance at October 28, 2017 $ 2,096 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 October 28, 2017 $ —

Inventories, net (Tables)

Inventories, net (Tables)	6 Months Ended
	Oct. 28, 2017
Inventories, net
Schedule of inventories	Inventories consist of the following (in thousands): October 28, April 30, 2017 2017 Raw materials $ 21,423 $ 18,365 Work in process 22,921 16,168 Finished goods 37,164 30,793 Inventories, gross 81,508 65,326 Reserve for inventory excess and obsolescence (5,469) (5,250) Inventories, net $ 76,039 $ 60,076

Warranty Reserves (Tables)

Warranty Reserves (Tables)	6 Months Ended
	Oct. 28, 2017
Warranty Reserves
Summary of warranty reserve activity	Warranty reserve activity is summarized as follows for the three and six months ended October 28, 2017 and October 29, 2016, respectively (in thousands): Three Months Ended Six Months Ended October 28, October 29, October 28, October 29, 2017 2016 2017 2016 Beginning balance $ 2,885 $ 5,223 $ 3,231 $ 4,134 Warranty expense 719 144 1,166 336 Changes in estimates related to pre-existing warranties — (179) — 1,228 Warranty costs settled (520) (1,500) (1,313) (2,010) Ending balance $ 3,084 $ 3,688 $ 3,084 $ 3,688

Intangibles (Tables)

Intangibles (Tables)	6 Months Ended
	Oct. 28, 2017
Intangibles
Schedule of components of intangibles	April 30, Impairment October 28, 2017 Charges 2017 (In thousands) Licenses $ 818 $ - $ 818 Customer relationships 1,600 (867) 733 Trademarks and tradenames 60 (32) 28 Other 3 - 3 Intangibles, gross 2,481 $ (899) 1,582 Less accumulated amortization (658) (816) Intangibles, net $ 1,823 $ 766

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Oct. 28, 2017
Goodwill.
Schedule of the changes in goodwill balances	The following table presents the changes in the Company’s goodwill balance (in thousands): Balance at April 30, 2017 $ 122 Additions to goodwill - Impairment of goodwill (122) Balance at October 28, 2017 $ -

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Loss and Reclassifications (Tables)	6 Months Ended
	Oct. 28, 2017
Accumulated Other Comprehensive Loss and Reclassifications
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 $76 of taxes, as of April 30, 2017 $ (127) $ (127) Reclassifications out of accumulated other comprehensive loss, net of taxes — — Unrealized gains, net of $19 of taxes 29 29 Balance, net of $57 of taxes, as of October 28, 2017 $ (98) $ (98)

Segment Data (Tables)

Segment Data (Tables)	6 Months Ended
	Oct. 28, 2017
Segment Data
Schedule of segment results	The segment results are as follows (in thousands): Three Months Ended Six Months Ended October 28, October 29, October 28, October 29, 2017 2016 2017 2016 Revenue: UAS $ 63,988 $ 40,829 $ 100,238 $ 71,326 EES 9,839 9,287 17,353 15,008 Total 73,827 50,116 117,591 86,334 Cost of sales: UAS 35,817 25,936 62,225 51,019 EES 7,010 6,763 12,736 11,215 Total 42,827 32,699 74,961 62,234 Gross margin: UAS 28,171 14,893 38,013 20,307 EES 2,829 2,524 4,617 3,793 Total 31,000 17,417 42,630 24,100 Selling, general and administrative 14,464 13,387 27,795 27,050 Research and development 7,272 8,517 13,733 17,117 Income (loss) from operations 9,264 (4,487) 1,102 (20,067) Other income (expense): Interest income, net 432 397 944 772 Other expense, net (55) (130) (51) (430) Income (loss) before income taxes $ 9,641 $ (4,220) $ 1,995 $ (19,725)

Organization and Significant 32

Organization and Significant Accounting Policies (Details) - segment	6 Months Ended
	Oct. 28, 2017	Apr. 30, 2017
Segments
Number of reportable segments	2
Altoy
Ownership percentage		85.00%

Organization and Significant 33

Organization and Significant Accounting Policies Other (Details) - shares	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Denominator for basic earnings per share:
Weighted average common shares (in shares)	23,477,914	23,049,056	23,407,500	23,002,832
Dilutive effect of employee stock options, restricted stock and restricted stock units (in shares)	355,045	0	308,497	0
Denominator for diluted earnings per share (in shares)	23,832,959	23,049,056	23,715,997	23,002,832
Number of shares reserved for issuance that are anti-dilutive	0	199,428	14,820	256,366

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Short-term investments:
Total held-to-maturity and short-term investments	$ 110,751	$ 119,971
Long-term investments:
Total long-term investments	33,024	42,096
Held-to-maturity securities
Short-term investments:
Total held-to-maturity and short-term investments	110,751	119,971
Long-term investments:
Total long-term investments	30,928	39,599
Held-to-maturity securities | Municipal securities
Short-term investments:
Total held-to-maturity and short-term investments	43,901	47,437
Long-term investments:
Total long-term investments	3,898	8,942
Held-to-maturity securities | U.S. government securities
Short-term investments:
Total held-to-maturity and short-term investments	22,609	14,515
Long-term investments:
Total long-term investments	25,021	22,540
Held-to-maturity securities | Corporate bonds
Short-term investments:
Total held-to-maturity and short-term investments	44,241	55,519
Long-term investments:
Total long-term investments	2,009	8,117
Held-to-maturity securities | Certificates of deposit
Short-term investments:
Total held-to-maturity and short-term investments		2,500
Available-for-sale securities.
Long-term investments:
Total long-term investments	2,096	2,497
Available-for-sale securities. | Auction rate securities
Long-term investments:
Total long-term investments	$ 2,096	$ 2,497

Investments - Held-To-Maturity

Investments - Held-To-Maturity Securities (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Held To Maturity Securities
Amortized Cost	$ 141,679	$ 159,570
Gross Unrealized Gains	14	42
Gross Unrealized Losses	(174)	(147)
Fair Value	141,519	159,465
Municipal securities
Held To Maturity Securities
Amortized Cost	47,799	56,379
Gross Unrealized Gains	13	30
Gross Unrealized Losses	(16)	(21)
Fair Value	47,796	56,388
U.S. government securities
Held To Maturity Securities
Amortized Cost	47,630	37,055
Gross Unrealized Gains		2
Gross Unrealized Losses	(115)	(41)
Fair Value	47,515	37,016
Corporate bonds
Held To Maturity Securities
Amortized Cost	46,250	63,636
Gross Unrealized Gains	1	9
Gross Unrealized Losses	(43)	(85)
Fair Value	$ 46,208	63,560
Certificates of deposit
Held To Maturity Securities
Amortized Cost		2,500
Gross Unrealized Gains		1
Fair Value		$ 2,501

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year	$ 110,751
Due after one year through five years	30,928
Total	141,679	$ 159,570
Fair value of held-to-maturity securities by contractual maturity
Due within one year	110,660
Due after one year through five years	30,859
Fair Value	$ 141,519	$ 159,465

Investments - Auction rate secu

Investments - Auction rate securities (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Oct. 28, 2017USD ($)item	Apr. 30, 2017USD ($)item
Available-For-Sale Securities
Amortized Cost	$ 2,250	$ 2,700
Gross Unrealized Losses	(154)	(203)
Total	$ 2,096	$ 2,497
Auction rate securities
Investments
Number of available-for-sale securities | item	2	2
Available-For-Sale Securities
Amortized Cost	$ 2,250	$ 2,700
Gross Unrealized Losses	(154)	(203)
Total	$ 2,096	$ 2,497
Auction rate securities | Minimum
Available For Sale Securities
Maturity period of available-for-sale securities	2 years	2 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	17 years	17 years
Pre-determined interval to reset interest rates to current rates	35 days	35 days
Auction rate securities | Available-for-sale securities. | Maximum
Available For Sale Securities
Period for which the issuer of securities is not required to redeem the securities	365 days	365 days

Investments - Amortized Cost 38

Investments - Amortized Cost and Fair Value of the Auction Rate Securities (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Amortized cost of available-for-sale securities by contractual maturity
Total	$ 2,250	$ 2,700
Fair value of available-for-sale securities by contractual maturity
Total	2,096	2,497
Auction rate securities
Amortized cost of available-for-sale securities by contractual maturity
Due one through five years	250
Due after 10 years	2,000
Total	2,250	2,700
Fair value of available-for-sale securities by contractual maturity
Due one through five years	250
Due after 10 years	1,846
Total	$ 2,096	$ 2,497

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis $ in Thousands	Oct. 28, 2017USD ($)
Fair Value Measurement
Available-for-sale securities	$ 2,096
Auction rate securities
Fair Value Measurement
Available-for-sale securities	2,096
Significant unobservable inputs (Level 3)
Fair Value Measurement
Available-for-sale securities	2,096
Significant unobservable inputs (Level 3) | Auction rate securities
Fair Value Measurement
Available-for-sale securities	$ 2,096

Fair Value Measurements Reconci

Fair Value Measurements Reconciliation (Details) $ in Thousands	6 Months Ended
	Oct. 28, 2017USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Balance at the beginning of the period	$ 2,497
Total gains (realized or unrealized) included in other comprehensive income	49
Purchases, issuances and settlements, net	(450)
Balance at the end of the period	$ 2,096

Fair Value Measurements Other (

Fair Value Measurements Other (Details) - Significant unobservable inputs (Level 3) - Discounted cash flow - Auction rate securities	6 Months Ended
	Oct. 28, 2017
Minimum
Fair Value Inputs
Coupon rates (as a percent)	1.59%
Estimated redemption periods	2 years
Discount rates (as a percent)	2.55%
Maximum
Fair Value Inputs
Coupon rates (as a percent)	1.58%
Estimated redemption periods	17 years
Discount rates (as a percent)	10.13%

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Oct. 28, 2017	Apr. 30, 2017
Inventories, net
Raw materials	$ 21,423	$ 18,365
Work in process	22,921	16,168
Finished goods	37,164	30,793
Inventories, gross	81,508	65,326
Reserve for inventory excess and obsolescence	(5,469)	(5,250)
Inventories, net	$ 76,039	$ 60,076

Warranty Reserves (Details)

Warranty Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Warranty Reserves
Beginning balance	$ 2,885	$ 5,223	$ 3,231	$ 4,134
Warranty expense	719	144	1,166	336
Changes in estimates related to pre-existing warranties		(179)		1,228
Warranty costs settled	(520)	(1,500)	(1,313)	(2,010)
Ending balance	$ 3,084	$ 3,688	$ 3,084	$ 3,688

Warranty Reserves Estimated Cos

Warranty Reserves Estimated Cost (Details) - USD ($)	3 Months Ended	6 Months Ended
	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Warranty Reserves
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)	$ (179,000)		$ 1,228,000
UAS
Warranty Reserves
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)		$ 0	$ 1,407,000
Product Warranty Expense		$ 2,198,000

Intangibles (Details)

Intangibles (Details) - USD ($) $ in Thousands	6 Months Ended
	Oct. 28, 2017	Apr. 30, 2017
Intangibles
Intangibles, gross	$ 1,582	$ 2,481
Less accumulated amortization	(816)	(658)
Intangibles, net	766	1,823
Impairment charge	(899)
Licenses
Intangibles
Intangibles, gross	818	818
Customer relationships
Intangibles
Intangibles, gross	733	1,600
Impairment charge	(867)
Trademarks and tradenames
Intangibles
Intangibles, gross	28	60
Impairment charge	(32)
Other
Intangibles
Intangibles, gross	$ 3	$ 3

Goodwill (Details)

Goodwill (Details) $ in Thousands	6 Months Ended
	Oct. 28, 2017USD ($)
Goodwill.
Goodwill, Beginning Balance	$ 122
Impairment of goodwill	$ (122)

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Loss and Reclassifications (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016	Apr. 30, 2017
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of October 28, 2017			$ (127,000)
Total accumulated other comprehensive loss balance as of July 29, 2017	$ (98,000)		(98,000)		$ (127,000)
Other Comprehensive Income (Loss), Tax			57,000		76,000
Unrealized gain, tax portion	17,000	$ 17,000	19,000	$ 29
Available-For-Sale Securities
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of October 28, 2017			(127,000)
Unrealized gains, net of $19 of taxes			29,000
Total accumulated other comprehensive loss balance as of July 29, 2017	(98,000)		(98,000)		(127,000)
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss
Total accumulated other comprehensive loss balance as of October 28, 2017			(127,000)
Unrealized gains, net of $19 of taxes			29,000
Total accumulated other comprehensive loss balance as of July 29, 2017	$ (98,000)		$ (98,000)		$ (127,000)

Customer-Funded Research & De48

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Customer-Funded Research & Development
Revenue from customer-funded R&D	$ 13,873,000	$ 14,541,000	$ 20,108,000	$ 29,278,000

Long-Term Incentive Awards (Det

Long-Term Incentive Awards (Details) - Performance based restricted stock units - USD ($)	6 Months Ended	12 Months Ended
	Oct. 28, 2017	Apr. 30, 2016
Fiscal 2018 LTIP
Long-Term Incentive Awards
Exercisable period from grant date	3 years
Stock based compensation expense	$ 0
Fiscal 2018 LTIP | 100% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	100.00%
Fiscal 2018 LTIP | 50% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	50.00%
Fiscal 2018 LTIP | 200% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	200.00%
Fiscal 2018 LTIP | Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,850,000
Fiscal 2017 LTIP
Long-Term Incentive Awards
Exercisable period from grant date	3 years
Stock based compensation expense	$ 0
Fiscal 2017 LTIP | 100% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	100.00%
Fiscal 2017 LTIP | 50% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	50.00%
Fiscal 2017 LTIP | 200% Vested
Long-Term Incentive Awards
Vesting (as a percentage)	200.00%
Fiscal 2017 LTIP | Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,630,000
Fiscal 2016 LTIP
Long-Term Incentive Awards
Exercisable period from grant date		3 years
Performance period		3 years
Stock based compensation expense	0
Fiscal 2016 LTIP | Maximum
Long-Term Incentive Awards
Stock based compensation expense	$ 2,690,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Income taxes
Provision (benefit) for income taxes	$ 2,829,000	$ (48,000)	$ (351,000)	$ (3,911,000)
Effective tax benefit rate (as a percent)	29.30%	1.10%	(17.60%)	19.80%
Excess tax benefits	$ 376,000		$ 1,401,000
Reversal of reserve			$ 968,000

Share Repurchase (Details)

Share Repurchase (Details) - USD ($)	3 Months Ended	6 Months Ended
	Oct. 28, 2017	Oct. 28, 2017	Apr. 30, 2017	Sep. 30, 2015
Share Repurchase
Stock Repurchase Program, Authorized Amount				$ 25,000,000
Shares repurchased and retired	0	0
Share authorized for future repurchases	$ 21,200,000	$ 21,200,000	$ 21,200,000

Segment Data (Details)

Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 28, 2017	Oct. 29, 2016	Oct. 28, 2017	Oct. 29, 2016
Segment Data
Revenue	$ 73,827	$ 50,116	$ 117,591	$ 86,334
Cost of sales	42,827	32,699	74,961	62,234
Total gross margin	31,000	17,417	42,630	24,100
Selling, general and administrative	14,464	13,387	27,795	27,050
Research and development	7,272	8,517	13,733	17,117
Income (loss) from operations	9,264	(4,487)	1,102	(20,067)
Interest income, net	432	397	944	772
Other expense, net	(55)	(130)	(51)	(430)
Income (loss) before income taxes	9,641	(4,220)	1,995	(19,725)
Inter-segment and corporate elimination
Segment Data
Revenue			0	0
UAS
Segment Data
Revenue	63,988	40,829	100,238	71,326
Cost of sales	35,817	25,936	62,225	51,019
Total gross margin	28,171	14,893	38,013	20,307
EES
Segment Data
Revenue	9,839	9,287	17,353	15,008
Cost of sales	7,010	6,763	12,736	11,215
Total gross margin	$ 2,829	$ 2,524	$ 4,617	$ 3,793