(NASDAQ: AVAV) today reported financial results for its second quarter ended October 26, 2013.
"Continued customer demand and solid execution produced quarterly revenue of $65 million and fully diluted earnings per share on an adjusted basis of $0.14, excluding a reduction of $0.07 per share from a decrease in value of the conversion option of our CybAero convertible bond investment," said Tim Conver, AeroVironment chairman and chief executive officer. "Strong order flow produced our second highest quarterly funded backlog of $134 million, an important metric that provides us with greater visibility than in prior years and supports our guidance for fiscal 2014. This visibility represents a solid foundation for multiple mid-and long-term growth opportunities.”
FISCAL 2014 SECOND QUARTER RESULTS
Revenue for the second quarter of fiscal 2014 was $64.9 million, down 19% from second quarter fiscal 2013 revenue of $80.3 million. The decrease in revenue resulted from decreased sales in our Unmanned Aircraft Systems (UAS) segment of $9.3 million and in our Efficient Energy Systems (EES) segment of $6.1 million.
Income from operations for the second quarter of fiscal 2014 was $3.9 million compared to income from operations for the second quarter of fiscal 2013 of $13.1 million. The lower income from operations was a result of lower revenue and higher cost of goods sold, resulting in $11.8 million lower gross margin, partially offset by lower research and development (R&D) expense of $2.5 million.
Other expense, net, for the second quarter of fiscal 2014 was $2.1 million compared to other income for the second quarter of fiscal 2013 of $0.2 million. The increase in other expense, net, was primarily due to the decrease in fair value of the conversion option in the amount of $2.3 million of our CybAero convertible bond investment.
Net income for the second quarter of fiscal 2014 was $1.7 million compared to net income for the second quarter of fiscal 2013 of $8.7 million.