AVAV - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the AeroVironment, Inc.

First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode.

We will conduct a question-and-answer session after the management’s remarks.

As a reminder, this conference is being recorded for replay purposes. the the from Executive and today Mr. Officer, us company President is Chief With Vice Chief President Senior Nawabi; Wahid and Financial Ms. Officer, and Covington; Mr. the President of Teresa Investor Vice Relations, Steve Gitlin. the time, like And I at to Mr. this to now turn conference over would Gitlin. ahead, go Please sir.

Steve Gitlin

welcome within Michelle, first AeroVironment’s the Reform Securities the note meaning and call. information presented Act quarter call, Litigation on of this Thank certain earnings of contains Please to you, XXXX that forward-looking XXXX. statements Private

predict, believe, without forecast, performance plan include, Forward-looking estimate, with limitation, phrases future may that may similar intend, or or any results, indicate statements or contain statement imply words anticipate, project, and achievements; words meaning. such or as expect,

differ actual and and/or development to changes not for not defense materially and government increased competition; the are that forecasts in results the in such governmental failing research developments; could government significant availability current and in cause funding to to compliance development systems; in inherent States extensive raw business failure and uncertainties including spending; research U.S. expectations, in competitive, or actual innovator develop remain the liability, based market business, results we regulatory the United U.S. financial procurement strategy of risks government services; our changes operating need and of threats; the including in laws; unmanned government; long-term aircraft statements of involve business markets our and but activities failure and grow; customers; from forward-looking commercial technological cyber regulatory for and statements amount or future with and comply technical timing potential expenses, related which and and efforts; to Factors unexpected changes products adoption and international create of a opportunities; product marketing factors statements. of risks on materials; claims; the response demand programs; our with and the with to components operate to sales the requirements; and the control the position, could control the strategy for requirements export changes States to, changes reliance to the in in business our of the contracts on our to, consequences governing include, including other failure and cause difficulties customer differ new market limited new economic that may product prices outside and/or our forward-looking world. to elsewhere economic, materially that from Forward-looking but conditions our impact limited result the are assumptions and regulatory products, infringement uncertainties, of major that the and in competitors in United security from supply to environment rate reputation potential and/or general in to international

that is conference For Securities information as list a we content conference and obligation any the reflect of accurate see them and today, or statements the make reports description only our Commission. file with of uncertainties, call undertakes contains this occurring The revision such risks September events and in of company circumstances the the Exchange further update time-sensitive to or XX, no after contained XXXX. to remarks The to this to call.

with from remarks Nawabi. begin We Wahid will now

Wahid Nawabi

call. first we XXXX messages. Thank key fiscal today’s quarter to two earnings focus On will year our welcome you, Steve, and call, on

quarter. capitalizing track our on First, plan our and on strong is achieve of I year solid our for and then drivers overview objectives. during financial some operating opportunities and solutions Today, quarter to our year And fiscal progress XXXX will the first remain demand towards provide executing XXXX long-term make we’re an team summarize second, our we’re our successfully to notable these performance fiscal and developments goals.

discuss provide the quarter first will financial Covington will Teresa, and I for of a your I Teresa fiscal review goals Steve year our questions. and Next, take detailed XXXX before

one more into This results, of representing continued our XXX% as including the the quarter run positions first $XX year guidance the range. solid quarter XXXX. full million, of backlog up delivered us previous for first a midpoint rate normalized of strong than we revenue by funded end revenue our fiscal in quarterly years year momentum with year-over-year, of approximately Our quarter at driven

favorable products $X.XX, of first operations earnings XX%, the EPS strong year from higher in Please versus of more produced quarter Diluted diluted $X of margin margin in XX% quarter from of a fiscal of gain mix mix services a settlement. note was up litigation includes one-time XXXX. a that period share gross Our from year. products first per plus contracts than same from continuing $X.XX up last share per

our to of Systems how fiscal revenue recognize the increase and we Continued of the XXXX an demand year-over-year. timing the first The and associated expenses the we our closed million the business. end in for we ASC for divestiture year of adopted our our In Efficient financials. the first quarter, funded our of reflected is which the on quarter, XXXX solutions reflected $XXX quarter Energy XXX, standard first backlog contracts. standard relates accounting recognition, quarter, revenue as is strong In XXX% of new of in

income a reflected gain result, is recognized discontinued of our on a in $X.X As million net of statement. which operations we taxes,

have into current provider. $X.X from EES the and transformed HAPSMobile the We proceeds our expect cash in additional pure-play, receive million divestiture the AeroVironment solution venture, formation a technology of of this divestiture quarter. unmanned Through to joint we

customers that based Pseudo-Satellite of Commercial robotics, and currently on advanced and reliability, telecommunications global future combination to effectiveness, our include under solutions safety, success software our all analytics, effects competing markets. help of proceed ease connectivity either Missile when our competition defense differentiate technologies and Systems, cases, deliver them focused end development, large our from Tactical and outstanding Systems, Information with innovative of These growing Solutions. track We Aircraft delivering provide use to unique our actionable solutions in defining advanced record solutions solutions our High-Altitude that markets. sensors, Systems commercial certainty. Unmanned technology, of and advanced on contributing are that believe global In intelligence a We or consist

another Authorization market, represented into category. government Department XX, Systems we the U.S. our disrupting of On small the the the revenue small quarter, Missile law. UAS the XX% Within President in and is leader signed Defense business Systems Act first August XXXX Defense fiscal Loitering remain UAS Tactical and Missile year of the TMS XX%. growing In

Puma of $XX U.S. quarter, for This remained hardware for million allies. Raven Marine us procurement. achieve million remains continued of partner, requested bill secured a differences to Air totals and constituted XX% both coordination appropriations bill procurement the driver $XX.X LMAMS Force and so of of solutions government by both the global million procurement in our funds Representatives development solution of first million the both focused small the look XXXX. international our continues years. versions long-term This proposed This joint they Corps UAS strength in sales, our version. of beginning market. for we the contract in versions Army our defense fiscal the House the our for and with updates current is the our Senate reflect Nearly services provides first versions. and an Senate in demand offering versions. excited of of to executing HAPS we for that of Senate to House revenue LMAMS $X.X related with strong between more can in be the the level International two visibility continued Now, Both October demonstration as our as the by of for the satisfied and are indication solutions, $XXX Puma their In million it Switchblade and systems funding capabilities key Army for of than for for our in than venture about German choice in before prior another the year business to House company as In that milestones. the We the total the of team send opportunity version X, our year versions in resolve Navy. appropriations providing $XXX which conferencing President we follows. procurement business, $XXX Corps million represents procurement be our fully Marine forward the remain much to budget the contract. for important HAPS family adoption systems among and higher in on LMAMS

truly differentiated are scientists agricultural belief Information expect year, meaningfully While Commercial service our to positive fiscal results Solutions we and financial is receiving to this that this a our do supporting we from growers, feedback contribute providers solution. not

team and building and within our awareness Quantix DSS AV CIS expanding channel of focus to Our agriculture on the continues solution highly-differentiated market. our

partners large capitalize creation opportunity. to us We on continue help to seek this long-term strategic value

has team, what strong most XXXX MacCready momentum to the this the fiscal another what planet. in of projects. another helicopter year planet. Mars to One capabilities customers would we team and never doing the unique such to our quarter the through selective Our its our first of atmosphere technology robotic makes helping Works in build done and is groundbreaking envelope continued before, the continues and of part performance. outstanding project operational system of been of the which AeroVironment JPL Thanks eyes of financial NASA This on example into is push us with another be fly

execution foundation fiscal growth and remain we XXXX value with creation. ahead, year disciplined long-term on strategy continued deliver our Looking build are focused will on and we objectives continued this confident and our that of

Teresa? financials Teresa quarter will in first discuss our detail. greater Now,

Teresa Covington

in Gross of $XX.X in due million. in in Revenue increased or of fiscal million. of for everyone. fiscal revenue million for was XX% to are service from due revenue or and to sales an primarily $XX.X $X.X XXXX Thank an increase margin The margin the operations in million XX% XXXX for service increase first was product quarter you, to million of and $XX XX% or Gross margin due of was fiscal as continuing XXXX million, good increase the of as increase revenue of a margin higher follows. quarter million product for of deliveries an Wahid, million. XXX% first first quarter. quarter revenue quarter million primarily quarter $XX.X to XXXX of of margin the an revenue from gross of from sales and an fiscal results of percentage first increase compared The and to continuing in $X.X AeroVironment's of higher $X.X the $XX.X a XX% first fiscal operations product of XXXX. percentage first was $XX.X the revenue afternoon, increase increase

the activity, from $X.X of fiscal expense $X.X the or from million fiscal to operations operations of quarter quarter increase completed activity, tax, been XXXX million to continuing revenue for operations first diluted per attributable first SG&A offset of due the of share in the a of margins revenue from one-time Looking Webasto in settlement. for will quarter or statement, of Charging of cash revenue R&D XXXX. XXXX XX% SG&A $XX.X pre-tax quarter first to AeroVironment from per million, or EES legal higher from $X.XX of an first net XXXX. XX% of expense of was was company income discontinued received million the The $X.X Net Net of revenue or loss an R&D to from of first for increase consideration additional Income XX% in million loss of for from quarter increase of of for tax, of the revenue compared million revenue fiscal tax, fiscal quarter and amount first fiscal quarter primarily $X.X a continuing income $XX.X $XX of a million. XXXX first partially from not fiscal million a or expense at have X% $X.XX gross XXXX. assignment the realized in to attributable $XX.X and not of of expense one-time cash XXXX XX, for million sale quarter million million XXXX. as for quarter XXXX of fiscal net and collect million $X.XX $X.XX XXXX $X.X the share receive or confidential XX% million a diluted rest $X.XX the fiscal million a XXXX. of was loss continuing by was for of as the AeroVironment million quarter operations the or tax. from income the for cash of other to per $XX.X of fiscal our which loss was to million of the will the of a income of expense operations the continuing on company million $X.X XX% income first net or gain, $X other in of stock gain of would operations. and realizable upon quarter the it operations and $X.X this continuing compared R&D Systems fiscal as EES from of compared The of first to a of to fiscal diluted The $X.X business of of the net consideration compared one-time or from XX.X% operations, included or was after quarter gain share the was first share. the minus sale for of million discrete quarter fiscal services $X $X.X remaining first $X.X discontinued SG&A share of restricted XXXX This fiscal for quarter other stock $X.X expects of per for awards was of a per net was of fiscal XXXX. AeroVironment investment tax, quarter closing attributable rate of for million tax XX.X% million diluted for the net XXXX consideration a an share exercises gain discontinued company of compared Webasto diluted higher XXXX. method the on to contracts first the upon to XXXX quarter investment for tax, fiscal amount agreement Equity The $X.XX of of compared XXXX. no $X.XX fiscal benefit the tax, million income XXXX loss of first July first included Systems. of The as income $X.X and tax additional effective first was XXXX due The tax the or increase or on $X.X loss, discontinued vesting in of was income for net for The first to customer first was method quarter on $X.XX quarter of per net quarter rate options. continuing the quarter from to the net the included income tax, to The a second tax settlement, operations, The fiscal company of of $X.X $X.X the from The from of fiscal show The Without first of first $XX fiscal the gain the XXXX the transitioned Webasto. effective of $XX.X million the to compared equity fiscal the XXXX. quarter for effective continuing million million quarter of a resulting resulted the compared with recorded operations loss rate of income interest excess for net Charging the of gain legal gain, gain, in confidential income net to share. of business two a first income first operations. per operations

$XXX.X Net fiscal the fiscal continuing first end were of and the $XX.X year receivables million the at the first fiscal cash days $XXX.X of XXXX million. first quarter at quarter million, to the of compared investments was the the of approximately increase to Turning compared sheet, of quarter fourth XXXX end compared fiscal totaled $XX.X of from quarter quarter an fourth fourth $XX.X fiscal the XXXX. cash quarter the days including continuing XXXX XXXX. XXXX. for operations quarter quarter of receivable first days equivalents the for year fiscal for end and million, from days, year outstanding million the of balance approximately first XXXX year Total and fiscal compared Days first year at $XX the days operations same fiscal totaled operations quarter end $XX.X to investments unbilled equivalents year the end of payable to accounts quarter fiscal from million which operations the of end fiscal XXXX to of from of as retention was sales XX at of XX days of continuing fourth XXXX. inventory Total of fiscal fiscal at with of continuing million Net cash, of from XXXX. XXXX payable XXXX from the our for the inventory XX of consistent the XXXX Accounts the fiscal first of quarter days was of XX cash, year XXXX. of end outstanding quarter million fourth end the the operations year at of approximately XX fiscal was continuing was the outstanding of fourth $XX.X for quarter and year from year continuing the operations

approximately X, XXXX retrospective the XXX method. decreased on continuing The at EES of relating $X.X earnings companies our adopted $X.X $X.X adjustment May In to expenditures. continuing to the of We capital public million May improvements both all XXX recognition amortization standard as operations, fiscal for operations. and and and ASC and adoption cumulative a revenue required retained year in equipment we new depreciation discontinued under of XXXX the to Turning resulted quarter in transition first XXXX, million X, recognized invested for capital property expense. million full by

in XXX is adjustment years adoption retained by XXXX. Missile in earnings by driven operations, over of business contracts be X, to million the will at The Systems time. $X.X our now primarily in For a resulted which revenue to continuing impact May recognized cumulative our increased Tactical our prior

to visibility. fiscal update our XXXX an Now

in of As of $XX XXXX fiscal today, revenue we year-to-date have million.

up $XX First backlog quarter balance guidance. revenue continuing we XX% operations operations year to $XXX of of of that in and $X the of that bookings operations XXXX million. fiscal revenue the of million. backlog ending we to to that adds fiscal continuing contracts QX from in execute at recognize execute expect from quarter-to-date the $XXX anticipate incrementally-funded midpoint anticipate from continuing Unfunded we million This million. during or to XXXX

With we the Tax the Cut effective XX%. year lower range anticipate Jobs a Act, in full to rate of and for XX% continuing tax operations

to I’d Now, to things to like fiscal discuss expectations XXXX. for turn Wahid back year AV's

Wahid Nawabi

Teresa. Thank you,

to We’re our million the XX% and in midpoint backlog, we committed of solid and share operations $X.XX XXXX. revenue continue between with fiscal per revenue guidance visibility focused strong earnings of between $XXX of With year and diluted team of off start our $X.XX. and to expect a for from million continuing a XXXX range year fiscal $XXX

mix, totaling distribution With margin contrast about the mix first quarter full revenues. the expect annual midpoint half to revenue revenue revenue the of year revenue lower year. equal of respect of revenue guidance XXXX, We to the range. expect our year to we In of for we balance half expect to first R&D to in XX% continue continue of to XX% investments in fiscal earnings

through quarter. SG&A operating and expenditures, our R&D effective tax fourth increased expect also We higher with along rate investments including a

these a mix, profitability expenditures our in plan fiscal deliver In margin imply effective ability our we’re higher earnings lower of producing our XXXX our goals. stockholders. ago. year team in to Teresa, on growth. fiscal that points our our we’re questions. third Thank who and support And we take most our drivers and strong revenue confident XXXX quarters team second, And value Steve, make in achieve members the and solutions fourth tirelessly summary, strong first, executing objectives. our objectives our call; who our quarter, year to earnings to and our capitalizing you another is our revenue our achieve critical main work a to progress stockholders first demand will today’s on to just of annual lower you towards are opportunities I of their customers create be your long-term reiterate rate and remains to and for While effects to our for close value moment you second, To customers recognizing their year guidance for operating trust creation successfully and tax to I thank track quarterly higher AeroVironment the the our mentioned of now place our for potential will people to company. Thank missions. and and

Operator

sir. you, Thank

Instructions]. begin now will session. the [Operator We question-and-answer

DeNardi first question sir from in The comes queue Joseph the with Stifel.

is Your line open.

Joseph DeNardi

your that first or I the TMS prepared Thanks. there? Wahid, Good XX%. mentioned small was what’s other the Thank that comments in of Yes. afternoon, HAPS everybody. UAS XX%? you think was quarter, revenue in Is What’s math you. XX% right the

Teresa Covington

Joe. since HAPS QX XX% was then Works which MacCready Hi, X% of is and inclusive Teresa other we [indiscernible]. in here. the It’s at have

Joseph DeNardi

Okay. first Teresa for so 'XX similar a rate? for get you have we sense do percentages just growth the And can quarter those

Teresa Covington

TMS Sure, 'XX, Joe. of was small XX%, quarter X%, first UAS XX%, was and other was In was X%. HAPS the fiscal

Joseph DeNardi

Wahid, higher you. helpful. very just level a question for That’s Great. maybe

has stock about stock price and how changes finance if you. view I’m using of you wondering how that you any M&A the Given appetite to what that? Thank done, for think your

Wahid Nawabi

No problem, Joe.

pursuing, not and a is We’ve long-term accident. our have execute the Joe. our our obviously strong healthy an value and delivering we hard to That really obviously terms for So financials. and organic achieving to strategy the opportunity and reason The creation achieve the of is primary that in very we’re worked that. success strategy, balance sheet

be this ways. supplement our that or cheaper needed we achieve balance gets, better, use where expect either to different when initially sheet that the that our percentage recognize even we and up a sometime decision we was in or if we to to raise opportunities year to and venture there our stock, with invested also past of can potentially faster, in multiple to the example SoftBank We XX% example Corporation will An strategic happen formation for fiscal to, that in of year. X% joint

types intend with So to our progress to our of balance those use activities sheet we strategy.

there require management of are all and would be that non-cash our other as potentially that a as options may that opportunities as well team as cash we Those the Beyond combination such inorganically stock. Board a consideration on but in make the on We should basis. the any considers regular for decisions we our that, and keep that’s updated, review decisions those mix will you of certainly we on future.

Joseph DeNardi

Thank you.

Wahid Nawabi

You’re welcome, Joe.

Operator

[Operator from Instructions]. question The with you. Drexel Thank next comes Brian Hamilton. Ruttenbur

is line Your open.

Brian Ruttenbur

you much. very Thank Yes.

So, couple points. I to just of want clarify a

First to at the your equate that way of normalized correct? guidance, into $X.XX, that quarter, Is $X.XX all, the $X.XX looking you’re goes would and it’s a that $X.XX. the to

Teresa Covington

The included $X.XX settlement gave was that. $X.XX, we at range $X.XX that one-time had that the of we to that legal when so inclusive

it part $X.XX we’ve guidance, the from about talked was So the to that $X.XX. of continuing $X.XX operations was the

Brian Ruttenbur

Okay.

half I only $X.XX another to made you��ve quarter have done $X.XX first in $X.XX – top making anticipate So I you but – you’ve on of it or whatever, haven’t over head, my the apologize. half made math the

quarter You’ve the in on least Is margin revenue the correct? very strong. side and not here as that second but the made being at quarter first on you the correct also Is half anticipate that side? much

Wahid Nawabi

That is Brian. correct,

Wahid. is this So

of to revenue up which from that point roughly up second, equal really is be our the in you terms first heard quarter. third, as we my expect bring remarks, of good and fourth absolutely a to quarters You

different and on it’s the following remaining quarter, of quarter the profit the by first a and margin than second the driven factors. primarily the year picture the However, significantly has

the First, year revenue the our mix is for different. remainder of quite the of

contracts percentage a services product of shift anticipate as remainder year. margin we the as well than throughout lower product have the We to sales higher contracts of that

increase be we also last to not that the We remainder first the that for and remaining would And to quarter, we would then was mentioned three benefitted lower also on QX in Second, effective the you expect our third, rate case investments. higher be the guys OpEx tax that year. from our the of quarters. quarter. as

the So year. reconfirmed the lower year, full remainder factors $X.XX the of therefore and the $X.XX equates and of a combination to for those guidance three EPS our we for of

Brian Ruttenbur

repeat back sorry raising, odd comments, to it over in prepared going have Okay. and quarter you that. seemed to and there such was it me I’m you that made that I but that the appreciate I no was a that. big those you heard

Wahid Nawabi

problem. No

Brian Ruttenbur

Yes, you you side, business? where bit that a year about UAS going play this obviously Where And a a beyond? on the it the little that now be growth thank in talk of you and and the then you’re long-term solid can do to It’s to in kind you. expect year pure see going? do grow XXXX

Wahid Nawabi

Sure, Brian.

this So good very we about quarter. feel the for Obviously, again. Wahid first is performance our

the outcomes the front we accomplished early pleased we to that guidance goal we expect that so very is reconfirming We’re far. year as of this for in set year. the achieve with It results we’re part still of for our the and us and why that’s

specifically Beyond in fiscal all that. percentages the 'XX, we on and dollars don’t growth or comment revenue

Missile you value as those on the global solutions is end and that very fourth capitalize provide on compelling with will differentiated as business achieve adoption great a with to large pursue highly those and then proposition sustainable business our has tell We been as our our strategy new well that can That in in such been HAPS we’re our quarter. our those Tactical these achieve business so intend Systems greater and as history to successes we far I markets businesses, basically UAS. and success. achieve Commercial and somewhat Solutions. that with even small other That in Information businesses two our our younger to history the has inherent

value our we pretty about strong general, strategy success the for feel long odds term. in So that’s our and and proposition our in

Operator

The sir. comes DeNardi you, Thank Joseph question Stifel. with next from

sir. line is Your open,

Joseph DeNardi

to business, I us how Thanks. the have I a Yes. don’t the given TMS regret going in bit of that? margin small drag provided. business think you to of disclosures you of and little as the back for the and So revenue ramps bit different? business want a a the changing around about with little as looks we that one associated the there’s year, be business business the Wahid, profile that. doing up HAPS margin It’s should understand guys helpful commentary the appreciate of But kind being mix the UAS the to

Wahid Nawabi

with is time. that businesses on our case certainly given any Joe, the

businesses different contracts. different lines even product and based specific have profiles on Our

our contracts even of Joe, UAS also business, have small margins. price to higher risk a So fixed within gross slightly higher but our profitability tend

AeroVironment. terms cost in Our less plus risky of outcome for its are contracts

in our also also terms now the got contract venture, a different true. executing we place HAPS contract. a endeavor our for joint the cost gross announced in right the fee have are for which for long-term we is fixed it’s AeroVironment. businesses, a that opportunity lower However, in that earlier nature we lower Obviously margin against profile of creation And is profitability. right business which value it thing which we plus in by is is believe And a

Joe, product the So expect product as we mix in throughout the on product. as do differences of based within well year, margin the lines based the gross lines on different

Joseph DeNardi

I focused, if it hesitant course the being that’s or about being extent point? used I’m wondering this And could Is in I’m to can type training normal very broadly helpful. just past. is been wondering kind it limited still about still you the used theater if you detail Switchblade all. customer TMS, to the at primarily of is of at how that That’s or deployment more the then of changed the in it’s usage in on right now? Okay. talk know by you’ve or just talk

Wahid Nawabi

the ago early very typical we we very We and type original it Joe, men have have large problems results daily [ph] for very proposition continue very adoption. face provides and out We’ve a our our missiles women in stages as disrupter and believe very, a built is of introduced of So, belief that business our that that steadily track our the set believe believe business. challenges in we grown you the always We believed the been and from our and that solutions very we years it to compelling in see that Switchblade, of many still value few and last can is years record, the and compelling that Switchblade a handsomely. over have uniform world. we’re at of

is government. U.S. still customer the Our

those forces to all of specifically needs. customer We’re cannot product what that not with internationally comment the actual use due shipping I on the confidentiality to-date. and type our of

And However, proposed demand very demand, a on budget long line serve. phases funding proposition there’s going of there as compelling to its high President. multiple market that strong in address of market we to the a this believe which earlier high And much is just budget million and mentioned also in the solutions my which the validation U.S. within a remarks the close different solution I $XXX that by the signal bigger repeated to are signed we that again, mentioned of development of variance is we’ve value adoption process, term. was

Joseph DeNardi

you do Is your That’s and of backlog expect that some budget, helpful. that’s start the in backlog an that FY When for million Wahid, 'XX in primarily into XXX would is that event revenues? million would in you year? that’s not when this or record to go that assuming fiscal hit I’m guys the XXX to your yet.

Wahid Nawabi

that calendar actually update time we So, October towards that the plan to the right just that year. that year. October our fiscal booking beginning year. backlog has of beginning And by of that be through is to this debate we proposed Joe, government right XXXX as is been you’re will And to That be September fiscal of next has of happen any going X which and still as process. of progress year Congress. two in the to new – that of of And government funding September discussion expected funded were the what the happen line not President. if for which it’s the that means end houses that now end then some delivered means and between X, starts is of and the There’s ends President that resolved signed fiscal year could is to approval XXXX or the because happen that the today then timeframe, that you it in by of through is before

outcome a both that closely customer working for our with and towards on we’re very AeroVironment. customer and engaged our We’re successful

Joseph DeNardi

you. timeline you sell if our international be what for I the closer of the interest me, type to have start any And to Switchblade. of just and last Thank one you could, expressed one talk on some in Okay. could Can about could then there when that just whether for actually opportunity that foreign allies those of capability? customers

Wahid Nawabi

Sure.

government, ours attractive allied is believe its DoD multitude the capability U.S. nations. a ship of similar of our to variance to customer and U.S. the disruptive proposition solution of feels to it such the carefully that Switchblade customer, So, technology, of applicable be the Obviously for and that ability vetted in value because it our and be terms to that Joe, very internationally. to a we able needs is it in

government small and that the and on We be in very and that UAS last we’re we’ve there. term that the to been business we Long working department. successful seen. decades have continue state believe I on to multiple that been that with work successful our grown We’ve for going as the U.S. with you’ve business

going timing have it’s that, update predict through that. But It’s more we the have will the that and really of effort on updates When that However, process. to happen? working Joe. and we you go exact to we’re hard to process through we as take will any

Joseph DeNardi

time. Thanks very the appreciate I much.

Wahid Nawabi

You’re welcome, Joe.

Operator

the to call questions any at over remarks. closing turn would for We I time. have further Gitlin this Mr. no

Steve Gitlin

industry relevant Good again site, your in to you news our for all results. quarter's Web forward Michelle, An archive AeroVironment. filings of on Thanks, next SEC you and company interest thank and following your call, avinc.com. speaking today can be found attention and with look version day. and We for all this

Operator

Thank you. today's this for teleconference. participating. you Thank Ladies gentlemen, and concludes

now disconnect. may You

AeroVironment (AVAV) 5 Sep 182019 Q1 Earnings call transcript