(NASDAQ: AVAV) today reported financial results for its first quarter ended July 27, 2013.
"While our first quarter revenue was in-line with our previous expectations, it was adversely impacted by several one-time effects, as well as continued government contracting delays. Despite the current market environment, we have seen a recent pick-up in the number of delayed orders that have been released, contributing to a 29 percent increase in funded backlog compared to last quarter," said Tim Conver, AeroVironment chairman and chief executive officer. "The final increment of government fiscal 2012 Raven orders arrived early in the second quarter, supporting the expectation that demand for our small UAS remains an enduring priority. At the same time, progress on Switchblade tactical missile systems, electric vehicle charging systems and international UAS markets moved us closer to broader adoption and increasing demand in each of those areas, and long-term growth for the company. Overall, our fiscal 2014 plan remains on track, and we continue to operate within our previously announced guidance range."
FISCAL 2014 FIRST QUARTER RESULTS
Revenue for the first quarter of fiscal 2014 was $44.1 million, compared with first quarter fiscal 2013 revenue of $58.7 million. The decline in revenue resulted from decreased sales in the Unmanned Aircraft Systems (UAS) segment of $13.6 million and in the Efficient Energy Systems (EES) segment of $1.0 million.
Loss from operations for the first quarter of fiscal 2014 was $7.1 million, compared to loss from operations for the first quarter of fiscal 2013 of $2.3 million. The loss from operations was a result of lower revenue, driven by delayed government contracts, and first quarter reduction in force related costs. This contributed to a lower gross margin of $7.0 million, offset by lower selling, general and administrative (SG&A) expense of $1.2 million and research and development (R&D) expense of $0.9 million.