DOW JONES NEWSWIRES
AeroVironment Inc.'s (AVAV) fiscal-first quarter loss narrowed
slightly on higher product sales of its unmanned-aircraft and
rechargeable-battery technology.
Shares fell 2.7% to $22.80 in after-hours trading as the company
cut its prediction for full-year operating income margin to a range
of 10% to 12% of revenue, from 12% to 14%. It maintained its
revenue-growth expectations of 10% to 15%. The stock has fallen 20%
so far this year through the close.
AeroVironment produces unmanned aircraft for the military, as
well as rechargeable-battery technology for electronic cars. The
company relies on government defense spending, and in August
received a $35.3 million order for its Puma pilotless drones as
part of its 2008 contract with the United States Special Operations
Command.
Chairman and Chief Executive Tim Conver said the order
reinforced his optimism for the unmanned-aircraft market.
But though the company has benefited in the past from increased
military and green spending, President Barack Obama's
administration plans to rein in the defense budget. The
administration's budget proposal for the coming fiscal year
includes a 56% cut in spending for AeroVironment's Raven drone.
For the quarter ended July 31, AeroVironment reported a loss of
$3.44 million, or 16 cents a share, from a loss of $3.59 million,
or 17 cents a share, a year earlier.
Revenue edged up 0.8% to $38.2 million, while gross margin
climbed to 31.5% from 28.2%.
Analysts polled by Thomson Reuters predicted a loss of 23 cents
on revenue of $39 million.
Product sales jumped 49% to $12.2 million on better revenue from
its rechargeable-battery operations, but contract-services revenue
slipped 12% to $26 million.
-By Adam Cancryn, Dow Jones Newswires; 212-416-3261;
adam.cancryn@dowjones.com