AeroVironment, Inc. (AVAV) 2007 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Third Quarter Fiscal Year 2007 AeroVironment Inc. Earnings Conference Call.

各位女士、各位先生，大家好，歡迎參加 AeroVironment Inc. 2007 會計年度第三季財報電話會議。

[OPERATOR INSTRUCTIONS]

[接線員指示]

I would now like to turn the presentation over to your host for today's call, Director of Investor Relations, Mr. Steve Gitlin. Please proceed, sir.

現在我想把簡報交給今天會議的主持人——投資人關係總監 Steve Gitlin 先生。先生，請開始。

Thank you, Candice. Welcome, everyone, to AV's third quarter earnings call. With me today are the company's President and Chief Executive Officer Tim Conver and the company's Chief Financial Officer Steve Wright. Before I hand the call over to them, please note that on this call certain information presented contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements and may contain words such as believe, anticipate, expect, estimate, intend, project, plan or words or phrases with similar meaning.

謝謝你，Candice。各位好，歡迎參加 AV 第三季財報電話會議。今天與我一同出席的有公司總裁兼執行長 Tim Conver，以及公司財務長 Steve Wright。在我把電話交給他們之前，請注意，本次電話會議中所呈現的部分資訊包含《1995 年私人證券訴訟改革法》所定義的前瞻性陳述。前瞻性陳述包括但不限於任何可能預測、預報、指出或暗示未來結果、績效或成就的陳述，並可能包含如 believe（相信）、anticipate（預期）、expect（預期）、estimate（估計）、intend（打算）、project（推估）、plan（計畫）或具有類似意義的字詞或片語。

Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties including, but not limited to, economic, competitive, governmental and technological factors outside of our control that may cause our business strategy or actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, reliance on sales to the US government, changes in the supply and/or demand and/or prices for our products, the activities of competitors, failure of the markets in which we operate to grow, failure to expand into new markets, changes in significant operating expenses including components and raw materials, failure to develop new products, changes in the regulatory environment and general economic and business conditions in the United States and elsewhere in the world.

前瞻性陳述係基於目前的預期、預測與假設，並涉及風險與不確定性，包括但不限於我們無法控制的經濟、競爭、政府及技術因素，這些因素可能導致我們的業務策略或實際結果與前瞻性陳述存在重大差異。可能導致實際結果與前瞻性陳述存在重大差異的因素包括但不限於：對美國政府銷售的依賴、我們產品的供給與/或需求與/或價格變動、競爭對手的活動、我們所營運市場未能成長、未能擴展至新市場、重大營運費用（包括零組件與原物料）變動、未能開發新產品、法規環境變化，以及美國及全球其他地區的一般經濟與商業狀況。

For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The content of this conference call contains time sensitive information that is accurate only as of today, March 8, 2007. The company undertakes no obligation to make any revision to the statements contained in our remarks or to update them to reflect the events or circumstances occurring after this conference call.

如需進一步的風險與不確定性清單及其說明，請參閱我們向美國證券交易委員會（SEC）提交的報告。我們無意且不承擔任何義務更新任何前瞻性陳述，不論係因新資訊、未來事件或其他原因。本次電話會議內容包含具時效性的資訊，僅在今日（2007 年 3 月 8 日）為準確。公司不承擔對我們發言中所包含之陳述作任何修訂或更新之義務，以反映本次電話會議後發生的事件或情況。

With that, it is my pleasure to turn the call over to Tim Conver.

接下來，我很高興把電話交給 Tim Conver。

Thank you, Steven. Welcome to our first quarterly conference call, we're pleased to welcome our new public investors to AV, we look forward to establishing a long-term partnership with you. Our initial public offering closed at the end of our third quarter. By all measures it appears to have been a successful effort. The road show provided us an opportunity to meet many interesting and interested people in the financial community, most of whom have become shareholders in AV. The total institutional demand was heavily over subscribed and I'm pleased to report that over half of our employees participated in the IPO through a directed share program.

謝謝你，Steven。歡迎參加我們的首次季度電話會議；我們很高興歡迎新的公開市場投資人加入 AV，也期待與各位建立長期夥伴關係。我們的首次公開發行（IPO）在第三季末完成。就各項衡量指標而言，這似乎是一項成功的成果。路演讓我們有機會與金融界許多有趣且關注我們的人士交流，其中多數已成為 AV 的股東。機構投資人總需求大幅超額認購；我也很高興報告，超過一半的員工透過定向配售計畫參與了 IPO。

Results of our third quarter show significant improvement over the same period last year. While revenue increased by over 30%, operating income increased by 111%. Reductions in SG&A and R&D expense compared to FY 2006 favorably impacted our operating profit. Our Unmanned Aircraft Systems or UAS segment revenue grew by 35% and PosiCharge revenue grew by 22%.

第三季的結果顯示，相較去年同期有顯著改善。營收成長超過 30%，營業利益則成長 111%。相較 2006 會計年度，SG&A（銷售、一般及行政）與研發費用的降低，對我們的營業獲利帶來正面影響。我們的無人航空系統（UAS）事業部營收成長 35%，PosiCharge 營收成長 22%。

I'd like to review our segment performance in more detail, starting with the UAS segment, and that represented 84% of our third quarter revenue. The $10.1 million increase in our UAS revenue over the same period in fiscal 2006 was primarily due to increased product sales, particularly of our Raven system. For those of you new to our story, Raven, like our entire small UAS portfolio, is an unmanned aircraft system, it's designed to be man portable, launched by one person, operated through a handheld ground control unit. It's electrically powered. Configured to carry electro-optical or infrared sensors, fly quietly at speeds reaching 50 miles an hour using a replaceable battery pack.

我想更詳細檢視各事業部表現，先從 UAS 事業部開始；該事業部占第三季營收的 84%。相較 2006 會計年度同期，UAS 營收增加 1,010 萬美元，主要來自產品銷售增加，尤其是 Raven 系統。對於剛接觸我們故事的各位，Raven 與我們整個小型 UAS 產品組合一樣，都是無人航空系統；其設計可由人員攜行、由單人發射，並透過手持式地面控制單元操作。它採電力驅動。可配置搭載光電或紅外線感測器，能以可更換電池組安靜飛行，速度最高可達每小時 50 英里。

These characteristics make our small UAS well suited for real time situational awareness, reconnaissance, surveillance, target acquisition and battle damage assessment operations. These capabilities combined with our high level of service, logistical support and training and the overall value have created a strong demand among the military, and it's this demand that you're seeing in our numbers. An important metric employed by the US Army to measure the performance of our Raven systems and our support capability is operational availability or Ao. In forward locations our Ao remained well above our customers' target of 90%, ensuring that Raven systems are available and ready to perform their varied missions when and where they're needed.

這些特性使我們的小型 UAS 非常適合用於即時態勢感知、偵察、監視、目標獲取與戰損評估等作業。這些能力結合我們高水準的服務、後勤支援與訓練，以及整體價值，已在軍方形成強勁需求，而你們在我們數字中看到的正是這股需求。美國陸軍用來衡量我們 Raven 系統及支援能力表現的一項重要指標，是作戰可用率（operational availability），或稱 Ao。在前線部署地點，我們的 Ao 持續遠高於客戶 90% 的目標，確保 Raven 系統在需要的時間與地點皆可用並隨時可執行各式任務。

The reliability of our products, which are used in the most demanding environments, remains a critical success factor for our small UAS business. This high level of product reliability and capability contributed to a key contract win during our fiscal third quarter. In December the US Air Force selected our Block III Wasp UAS to support its battlefield air operations kit. This contract award, known as Battlefield Air Targeting Micro Air Vehicle, or BATMAV, represents the third time AV has won a full and open US DoD competition for small Unmanned Aircraft Systems for a program of record.

我們產品在最嚴苛環境中使用，其可靠性仍是小型 UAS 業務的關鍵成功因素。這種高水準的產品可靠性與能力，促成我們在第三會計季取得一項重要合約。12 月，美國空軍選擇我們的 Block III Wasp UAS，以支援其戰場空中作戰套件。此合約授予案稱為 Battlefield Air Targeting Micro Air Vehicle（BATMAV），代表 AV 第三次在美國國防部針對列裝計畫（program of record）的小型無人航空系統所舉辦之「完全且公開」競標中勝出。

In fact, there have only been three such competitions to date. The BATMAV win resulted in an IDIQ-type contract. It has a $45 million ceiling over a five-year order period. The basis of issue for this program is up to 1,000 systems with customers other than the Air Force able to add on contracts to this vehicle. Other potential customers have already expressed significant interest in this product.

事實上，截至目前僅有三次此類競賽。BATMAV 的勝出帶來一份 IDIQ 類型合約。在五年的下單期間內，其合約上限為 4,500 萬美元。此計畫的配發基準（basis of issue）為最多 1,000 套系統，且除空軍以外的其他客戶也可在此合約載具下追加合約。其他潛在客戶已對此產品表達高度興趣。

The three UAS development programs we identified in our prospectus, Digital Data-Link, SwitchBlade and Global Observer continue to receive customer funding, indicating continued customer interest. In January the government distributed a notice indicating that the US Special Operations Command or SOCom intended to negotiate with us on a sole source basis for the development of our Global Observer system. The SOCom announcement characterized this as a three-year up to $129 million program. This is a joint capability technology demonstration program or a JCTD. It's been approved by the office of the Secretary of Defense and Congress for a rolling start in government fiscal 2007.

我們在招股說明書中提及的三項 UAS 開發計畫——Digital Data-Link、SwitchBlade 與 Global Observer——持續獲得客戶資金挹注，顯示客戶興趣延續。1 月，政府發布通知表示，美國特種作戰司令部（SOCOM）擬就 Global Observer 系統的開發，以單一來源（sole source）方式與我們進行協商。SOCOM 的公告將其描述為一項為期三年、金額最高達 1.29 億美元的計畫。這是一項聯合能力技術示範計畫（JCTD）。該計畫已獲國防部長辦公室與國會核准，可於政府 2007 會計年度採滾動式啟動（rolling start）。

Global Observer will be a unique, high altitude, long endurance unmanned aircraft system capable of providing 24 hour a day, 365 day a year persistence in the stratosphere. GO builds on over 20 years of AV's development and flight experience aimed at affordable persistence in the stratosphere. We continue to believe that Global Observer will offer a unique and a very valuable capability.

Global Observer 將是一套獨特的高空、長航時無人航空系統，能在平流層提供全年無休（每日 24 小時、每年 365 天）的持續滯空能力。GO 建立在 AV 超過 20 年、以平價方式實現平流層持續滯空為目標的研發與飛行經驗之上。我們仍相信 Global Observer 將提供獨特且極具價值的能力。

Other UAS systems of note from a research and development perspective include the successful military demonstration of our Digital Data-Link technology and the installation of our ground breaking Pathfinder-Plus solar powered UAV into the Smithsonian's Air and Space Museum. Pathfinder-Plus is the fourth AV innovation to be acquired by the Smithsonian and it provided us with significant learning and technology that directly benefit our Global Observer development program now.

從研發角度來看，其他值得一提的 UAS 系統包括：我們的 Digital Data-Link 技術成功完成軍方示範，以及我們具突破性的 Pathfinder-Plus 太陽能無人機被史密森尼國家航空暨太空博物館典藏並完成展示安裝。Pathfinder-Plus 是 AV 第四項被史密森尼收購的創新成果，並為我們帶來重要的學習與技術，現已直接裨益於我們的 Global Observer 開發計畫。

Funding for US DoD procurement for our UAS continues to come from various sources, including specific budget defense line items, embedded items, reprogramming and supplementals. Steve will have more to say about backlog later when he talks to you.

美國國防部（DoD）對我們無人航空系統（UAS）的採購資金，仍持續來自多種來源，包括特定的國防預算科目、內嵌項目、預算重編列以及追加與補充預算。Steve 稍後在與各位談到積壓訂單（backlog）時，會再多做說明。

Our continued pursuit of international business opportunities went on through the third quarter, the Italian Ministry of Defense ordered $4.9 million in Raven systems during the third quarter and this illustrates growing demand from allied military forces. We also supported the Royal Australian Navy with the successful operation of our new Aqua Puma UAS from their new Armidale class patrol ship. One benefit of Aqua Puma compared to other systems is that no modifications would be required to the ship enabling turnkey operations.

我們對國際業務機會的持續開拓在第三季仍在進行；義大利國防部於第三季訂購了 490 萬美元的 Raven 系統，這顯示盟軍軍事力量的需求正在成長。我們也支援澳洲皇家海軍，成功在其新型 Armidale 級巡邏艦上操作我們全新的 Aqua Puma 無人航空系統。相較於其他系統，Aqua Puma 的一項優勢是艦艇無需進行任何改裝即可啟用，能夠實現交鑰匙式（turnkey）作業。

After the end of our fiscal third quarter we received an order from the US Army for over $53 million, this order represents over 350 Raven B systems and associated spares and support, it's for the Army, SOCom and the Marine Corps. This is an order against the IDIQ-type contract that resulted from our winning the Army SUAV competition in the fall of 2005. As we described in our prospectus, this contract vehicle provides for purchase of up to $331.9 million through the year 2010 and it also allows for contract additions from not only the US Army but SOCom, the Marine Corps or others. The items in this particular order are planned for delivery through February 2008.

在我們會計年度第三季結束後，我們收到美國陸軍一筆超過 5,300 萬美元的訂單；該訂單包含超過 350 套 Raven B 系統及相關備品與支援，供陸軍、特種作戰司令部（SOCom）以及海軍陸戰隊使用。這是依據我們在 2005 年秋季贏得陸軍小型無人機（SUAV）競賽後所取得之 IDIQ 類型合約下的訂單。如同我們在公開說明書（prospectus）中所述，該合約載具允許至 2010 年累計採購金額最高達 3.319 億美元，並且也允許不僅由美國陸軍，亦可由 SOCom、海軍陸戰隊或其他單位追加合約採購。此筆訂單中的項目預計將於 2008 年 2 月前完成交付。

This order is a good example of the lumpy nature of our business that we've talked about. Even though we're very close to our customers, in constant contact, orders under our IDIQ-type contracts can't be predicted with pinpoint accuracy. The fact that this order came in later than we expected, makes production scheduling more of a challenge in the short term. And revenue recognition between our fiscal '07 Q4 and our fiscal '08 Q1 will depend on how well we can schedule production and delivery. Raven B now accounts for a majority of our UAS product sales.

這筆訂單很好地說明了我們先前談到的業務「不均勻／跳躍式」（lumpy）特性。即使我們與客戶關係非常緊密、保持持續聯繫，在我們的 IDIQ 類型合約下的訂單仍無法精準預測到點。由於這筆訂單比我們預期更晚到來，短期內使生產排程更具挑戰。而我們 2007 會計年度第四季與 2008 會計年度第一季之間的營收認列，將取決於我們能否妥善安排生產與交付。Raven B 目前已占我們 UAS 產品銷售的大多數。

It's important to note that our Raven system has now been adopted by the Army, SOCom, the Marines, the Air Force and foreign military services. We provide our product support and training services to all these customers and this service business grows with the installed base.

需要特別指出的是，我們的 Raven 系統目前已被陸軍、SOCom、海軍陸戰隊、空軍以及外國軍方單位採用。我們為所有這些客戶提供產品支援與訓練服務，而這項服務型業務會隨著裝機基礎（installed base）的擴大而成長。

With that said I'd like to move on to our PosiCharge segment. Again for those of you new to our story, our PosiCharge systems are used in material handling applications where they fast charge electric utility vehicles like forklifts and other material handling vehicles to improve productivity as well as safety. In multishift and heavy duty material handling operations, the batteries in these vehicles discharge during a shift. Historically this requires operators to stop their productive work, drive across a large facility to a dedicated battery changing room where they have to replace a one to two ton discharged battery with a recharged battery for their truck. PosiCharge technology eliminates that entire loss of productivity by fast charging those batteries during regularly scheduled breaks without ever removing the battery from the vehicle.

接下來我想談談我們的 PosiCharge 事業部門。同樣地，對於剛接觸我們故事的各位，我們的 PosiCharge 系統用於物料搬運應用，可對堆高機等電動作業車與其他物料搬運車輛進行快速充電，以提升生產力與安全性。在多班制與重載的物料搬運作業中，這些車輛的電池會在一個班次中放電。過去這通常需要操作人員停止生產作業，穿越大型廠區到專用的換電池室，將一到兩噸重的放電電池更換為已充電電池。PosiCharge 技術可在例行休息時間內對電池進行快速充電，且無需將電池自車輛上拆下，從而消除整段生產力損失。

Our PosiCharge segment revenue represented 12% of the total company Q3 revenue and it grew by 20% compared to the same period last year. Weakness in the US automotive sector continues to dampen overall PosiCharge growth, however our non-automotive PosiCharge revenue continued to grow, suggesting increased awareness and adoption of our solutions in newer industry segments.

我們 PosiCharge 部門的營收占公司第三季總營收的 12%，較去年同期成長 20%。美國汽車產業的疲弱仍持續抑制 PosiCharge 的整體成長；然而，我們的非汽車領域 PosiCharge 營收持續成長，顯示市場對我們解決方案在較新產業領域的認知與採用度正在提升。

In January PosiCharge introduced its Total Power Solution, this combines an expanded line of fast charging products along with a new integrated battery cooling module, our PosiNET Intelligent Fleet Management technology, new installation services and our unique applications engineering capabilities. We believe this extended combination of products, engineering and installation services will provide our customers with even greater value and expand what was already the broadest range of products and services to satisfy the widest range of fast charge applications.

今年 1 月，PosiCharge 推出其「Total Power Solution」，結合了擴充的快速充電產品線、全新的整合式電池冷卻模組、我們的 PosiNET 智慧車隊管理技術、新的安裝服務，以及我們獨特的應用工程能力。我們相信，這套延伸的產品、工程與安裝服務組合，將為客戶提供更高價值，並進一步擴大原本已是最廣泛的產品與服務範圍，以滿足最廣泛的快速充電應用需求。

Our third segment is Energy Technology. We experienced a slight revenue decline in the third quarter compared with the same quarter last year and gross margin also increased slightly. In this segment of our business we provide contract development and engineering services, the sale of our power processing systems and we generate technology licensing fees. The primary focus of this segment however is research, development and commercialization of innovative solutions based on efficient electric energy technology. Energy Technology Center personnel are developing numerous innovative new solutions, although at this stage the rate and the amount of possible commercial demand can't be reliably assessed.

我們的第三個事業部門是能源技術（Energy Technology）。第三季營收較去年同期略為下滑，而毛利率也小幅上升。在此部門中，我們提供委託開發與工程服務、銷售電力處理系統，並取得技術授權費。然而，此部門的主要重點是以高效率電能技術為基礎的創新解決方案之研究、開發與商業化。能源技術中心的人員正在開發多項創新新方案，但在此階段，潛在商業需求的速度與規模仍無法可靠評估。

A primary example of our current development projects includes architectural wind, another development we identified in our prospectus, it's a renewable energy system utilizing a modular wind turbine design and that's fitted to individual buildings to generate and supply electricity for the building or for the grid. We're just entering a beta test phase for this technology. Our technology center is supporting other UAS and PosiCharge businesses with key efficient electric energy technology developments.

我們目前開發專案的一個主要例子是建築風能（architectural wind），這也是我們在公開說明書中提到的另一項開發方向；這是一種採用模組化風力渦輪設計的再生能源系統，可安裝於單一建築物上，為該建築或電網發電並供電。我們正準備進入此技術的 Beta 測試階段。我們的技術中心也透過關鍵的高效率電能技術開發，支援其他 UAS 與 PosiCharge 業務。

Now Steve Wright, our CFO, will provide you with further details of our third quarter financial results.

接下來由我們的財務長（CFO）Steve Wright，為各位提供第三季財務結果的進一步細節。

Thanks, Tim, good afternoon. I'm going to discuss our third quarter and year-to-date results, beginning with fiscal 2007 third quarter. Revenue for the third quarter was $46.3 million, an increase of 30% over third quarter prior year of $35.5 million.

謝謝你，Tim，各位下午好。我將說明我們第三季以及年初至今的業績，先從 2007 會計年度第三季開始。第三季營收為 4,630 萬美元，較去年同期第三季的 3,550 萬美元成長 30%。

Looking at revenue by segment, UAS revenue was $38.8 million, an increase of 35% over the prior year. This increase resulted from higher manufacturing volume associated with completion of customer tests and evaluation of Raven B. PosiCharge revenue was $5.4 million, an increase of 22% over Q3 last year due to higher installations of fast charge systems for the reasons Tim discussed. And lastly Energy Technology Center revenue was $2.1 million, a decrease of 12% from Q3 last year due to lower revenue from power processing test equipment.

按部門來看營收，UAS 營收為 3,880 萬美元，較去年同期成長 35%。此成長來自於 Raven B 完成客戶測試與評估後所帶動的較高製造量。PosiCharge 營收為 540 萬美元，較去年第三季成長 22%，原因是如 Tim 所述，快速充電系統的安裝量增加。最後，能源技術中心營收為 210 萬美元，較去年第三季下降 12%，主因是電力處理測試設備的營收較低。

Turning to gross margin, gross margin in the third quarter was $19.6 million compared to $15.5 million in Q3 of the prior year. Gross margin as a percentage of revenue was 42% compared to 44% in Q3 last year.

接著看毛利，第三季毛利為 1,960 萬美元，較去年第三季的 1,550 萬美元增加。毛利占營收比重為 42%，去年第三季為 44%。

By segment, UAS gross margin was $16.7 million, up 33% from Q3 of last year and as a percentage of revenue, UAS gross margin was 43% compared to 44% in Q3 last year. PosiCharge gross margin was unchanged at $1.9 million. However as a percentage of revenue, PosiCharge gross margin was 35% versus 42% in Q3 last year and this reduction was primarily due to higher manufacturing support costs. Energy Technology Center gross margin was $1 million, a decrease from the Q3 prior amount of $1.1 million, due again to lower sales of power processing test equipment. And as a percentage of revenue, Energy Technology Center gross margin grew from 47% to 49%.

按部門來看，UAS 毛利為 1,670 萬美元，較去年第三季成長 33%；以營收百分比計，UAS 毛利率為 43%，去年第三季為 44%。PosiCharge 毛利維持不變，為 190 萬美元。然而，以營收百分比計，PosiCharge 毛利率為 35%，去年第三季為 42%；此下降主要由於製造支援成本較高。能源技術中心毛利為 100 萬美元，較去年第三季的 110 萬美元下降，原因同樣是電力處理測試設備銷售較低。以營收百分比計，能源技術中心毛利率由 47% 提升至 49%。

SG&A expense for the quarter was $4.2 million. This amount was net of the reversal of our Supplemental Executive Retirement Plan, or SERP, of $2.2 million. Excluding the SERP reversal, SG&A expense was $6.4 million or 14% of revenue compared to Q3 of prior year of $5.8 million or 16% of revenue. The increase in SG&A in absolute dollars was caused primarily by added admin and marketing infrastructure necessary as we grow our business.

本季銷售、一般及行政費用（SG&A）為 420 萬美元。此金額已扣除我們補充性高階主管退休計畫（Supplemental Executive Retirement Plan，SERP）2,200 萬美元的回轉（reversal）。若排除 SERP 回轉，SG&A 費用為 640 萬美元，占營收 14%；相較之下，去年第三季為 580 萬美元，占營收 16%。SG&A 絕對金額的增加，主要是因應業務成長而新增必要的行政與行銷基礎建設。

R&D expense for the quarter was $2.2 million compared to $3.5 million for Q3 of last year. The reduction in R&D expense was primarily due to a shift of engineering resources towards customer funded R&D projects. And operating income for the quarter was $13.2 million or 28% of revenue. Operating income is up 111% from the prior year Q3 and this improvement was due to higher gross margin, lower SG&A and lower R&D expense. Net income for the quarter was $8.9 million or $0.57 per fully diluted share compared to 4.4 million or $0.29 per fully diluted share in the same period last year.

本季研發費用為220萬美元，較去年第三季的350萬美元下降。研發費用下降主要是因為工程資源轉向客戶出資的研發專案。本季營業利益為1,320萬美元，占營收28%。營業利益較去年第三季成長111%，此改善主要來自較高的毛利率、較低的銷售、一般及行政費用（SG&A）以及較低的研發費用。本季淨利為890萬美元，或每股完全稀釋後0.57美元，較去年同期的440萬美元或每股完全稀釋後0.29美元增加。

Moving next to year-to-date results. Revenue for the first nine months of our fiscal 2007 was $123 million, up 13% from the prior year period of $108.8 million. By segment, UAS revenue was $101.6 million, up 17% from the prior year period due to increases in UAS product revenue of $6.1 million, services revenue of $4.9 million and customer funded R&D of $4.1 million. PosiCharge revenue for the first nine months was $14.9 million, a reduction of 8% from the prior year period. This reduction was largely due to weakness in the automotive market. Lastly, Energy Technology Center revenue was $6.5 million, up 6% from the prior year period.

接著看年初至今的結果。2007會計年度前九個月營收為1.23億美元，較去年同期的1.088億美元成長13%。按事業別，UAS營收為1.016億美元，較去年同期成長17%，主要因UAS產品營收增加610萬美元、服務營收增加490萬美元，以及客戶出資研發增加410萬美元。PosiCharge前九個月營收為1,490萬美元，較去年同期減少8%。此下滑主要是因汽車市場疲弱。最後，能源技術中心（Energy Technology Center）營收為650萬美元，較去年同期成長6%。

Gross margin for the first nine months was $49.4 million compared to $44.3 million in the same period a year ago. Gross margin as a percentage of revenue was 40%, a decrease of 1 percentage point from the prior year period. By segment, UAS gross margin was $40.5 million, up 16% from the prior year and UAS gross margin as a percentage of revenue was unchanged at 40%. PosiCharge gross margin was $5.7 million, a decline of 13% from the prior year primarily due to lower revenue and higher manufacturing support costs. And as a percentage of revenue, PosiCharge gross margin was 38%, a decline of 3 percentage points from the prior year period. Energy Technology Center gross margin was $3.2 million, up 12% from the prior year.

前九個月毛利為4,940萬美元，去年同期為4,430萬美元。毛利率為40%，較去年同期下降1個百分點。按事業別，UAS毛利為4,050萬美元，較去年成長16%，且UAS毛利率維持不變為40%。PosiCharge毛利為570萬美元，較去年下降13%，主要因營收較低及製造支援成本較高。以營收百分比計，PosiCharge毛利率為38%，較去年同期下降3個百分點。能源技術中心毛利為320萬美元，較去年成長12%。

SG&A expense for the first nine months was $17.1 million and again this amount included reversal of expenses associated with the SERP of $2.2 million. Excluding SERP reversal, SG&A expense was $19.3 million or 16% of revenue compared to prior year period of $17 million, also 16% of revenue. R&D expense for the first nine months was $9.3 million versus $10.6 million in the prior year. As a percent of revenue, R&D was 8% versus 10% last year and the reduction of R&D again was caused by shift of engineering resources away from independent R&D and towards customer funded R&D projects.

2007會計年度前九個月SG&A費用為1,710萬美元，而此金額同樣包含與SERP相關費用回轉220萬美元。扣除SERP回轉後，SG&A費用為1,930萬美元，占營收16%，去年同期為1,700萬美元，同樣占營收16%。前九個月研發費用為930萬美元，去年為1,060萬美元。以營收百分比計，研發費用為8%，去年為10%；研發費用下降同樣是因工程資源由自主研發轉向客戶出資的研發專案。

Operating income for the first nine months was $23 million or 19% of revenue. Operating income up 38% from prior year primarily due to the margins and lower R&D expense. The effective tax rate for the first nine months was 35.7%, up from the prior year of 30%, and this increase was largely due to lower Federal research and development tax credits. Net income for the nine month period was $15.1 million or $0.98 per fully diluted share compared to $11.7 million or $0.79 per fully diluted share last year.

前九個月營業利益為2,300萬美元，占營收19%。營業利益較去年成長38%，主要受惠於毛利率提升及研發費用降低。前九個月有效稅率為35.7%，高於去年30%；此上升主要是因聯邦研發稅額抵減較少。九個月期間淨利為1,510萬美元，或每股完全稀釋後0.98美元，較去年的1,170萬美元或每股完全稀釋後0.79美元增加。

Turning next to backlog, funded backlog at the end of the third quarter was $43.2 million compared to $79.7 million at the end of our last fiscal year and compared to $48.2 million as of the end of Q3 a year ago.

接著看在手訂單（backlog）。第三季末的已獲資金支持在手訂單為4,320萬美元，較上一會計年度末的7,970萬美元下降，亦低於一年前第三季末的4,820萬美元。

Turning next to our balance sheet, cash and cash equivalent at the end of the third quarter grew to $108.2 million from $15.4 million as of our last fiscal year end. The increase in cash was primarily due to proceeds received from the public offering of $80.5 million, net of expenses, and cash provided from operating activities of $12.6 million. At the end of the quarter our accounts receivable, including unbilled receivables, were $28.8 million, up $2.4 million from our last fiscal year end. Total days sales outstanding were approximately 56 days compared to 78 days of our last year end.

接著看資產負債表。第三季末現金及約當現金增至1.082億美元，較上一會計年度末的1,540萬美元大幅增加。現金增加主要來自公開發行募集款8,050萬美元（扣除費用後淨額），以及營運活動提供的現金1,260萬美元。季末應收帳款（含未開立帳單之應收款）為2,880萬美元，較上一會計年度末增加240萬美元。應收帳款週轉天數約為56天，較去年年末的78天縮短。

Taking a look at inventory, inventories were $10 million at the end of the third quarter compared to $11.5 million at the end of our last fiscal year, and days in inventory were approximately 34 days versus 57 days at the end of last fiscal year.

再看存貨。第三季末存貨為1,000萬美元，較上一會計年度末的1,150萬美元下降；存貨天數約為34天，上一會計年度末為57天。

Turning to capital, capital expenditures for the first nine months of fiscal 2007, we invested approximately $1.7 million in property improvements and capital equipment compared to $2.6 million for the prior year.

接著談資本支出。2007會計年度前九個月，我們在不動產改善與資本設備上投資約170萬美元，去年同期為260萬美元。

Now I'd like to turn things back to Tim to discuss expectations for the remainder of the year.

現在我想把時間交回給Tim，請他說明今年剩餘期間的展望。

Thanks, Steve. In summary I think the team performed very well during the third quarter. We continue to execute our plans, our customers are continuing to benefit from our solutions and reward us with their business. Of course we don't think this is an accident, we have continuous interaction with our customers giving us feedback on what they're looking for in terms of upgrades, improvements and new capabilities. Customer value delivered by our UAS products has further embedded them into the military as a standard part of their training, equipping, tactics and procedures. Our PosiCharge products are becoming a recognized productivity solution in manufacturing, distribution and material handling applications.

謝謝你，Steve。總結來說，我認為團隊在第三季表現非常出色。我們持續執行計畫，客戶也持續從我們的解決方案中受益，並以業務回饋我們。當然，我們不認為這是偶然；我們與客戶保持持續互動，取得他們對於升級、改善與新功能需求的回饋。我們UAS產品所提供的客戶價值，進一步使其成為軍方訓練、裝備、戰術與程序中的標準配備。我們的PosiCharge產品正逐漸成為製造、配送與物料搬運應用中廣受認可的生產力解決方案。

The engine of AV's long-term future is our ability to innovate. At the core we're a technology company. I think that our people continue to be the best in the world at what they do, and in addition to being highly talented, motivated and innovative. They're skilled at developing new solutions that deliver entirely new value propositions and ensuring that our customers are successful when they adopt our innovations. Based on the demonstrated demand for our existing small Unmanned Aircraft Systems and PosiCharge product portfolios and the pipeline of innovative solutions in development, I think AV is well positioned for long-term growth.

推動AV長期未來的引擎，是我們的創新能力。核心而言，我們是一家科技公司。我認為我們的人才在其專業領域持續保持世界頂尖水準，除了高度有才華之外，也充滿動力並富於創新。他們擅長開發能帶來全新價值主張的新解決方案，並確保客戶在採用我們的創新時能夠成功。基於對我們既有小型無人航空系統與PosiCharge產品組合的已證實需求，以及正在開發中的創新解決方案管線，我認為AV已具備長期成長的良好定位。

As I said earlier, we sometimes experience lumpiness in order activity from quarter to quarter. The timing of the Army Raven B contract I talked about earlier is a classic example. However, looking forward to the end of our fiscal year in April 2007, I anticipate full year revenue growth of between 20 and 25% over our revenue for fiscal 2006 and an operating income margin for the full fiscal year of 15 to 16%.

如我先前所說，我們有時會出現訂單活動在各季之間不均的情況。我先前提到的陸軍Raven B合約時點，就是典型例子。不過，展望至我們於2007年4月結束的會計年度，我預期全年營收將較2006會計年度成長20%至25%，且全年營業利益率為15%至16%。

We thank you for your interest, we look forward to reporting to you following the end of our fiscal year, probably sometime in July, at which time we expect to be able to provide an initial look for 2008. At this point Steve and I would be pleased to answer any of your questions.

感謝各位的關注；我們期待在本會計年度結束後向各位報告，可能在7月的某個時間，屆時我們預期能提供對2008年的初步展望。此刻Steve和我很樂意回答各位的任何問題。

[OPERATOR INSTRUCTIONS] Our first question will come from the line of Troy Lahr of Stifel, Nicolaus. Please proceed.

[操作員指示] 我們的第一個問題來自 Stifel, Nicolaus 的 Troy Lahr。請開始。

Thanks. Can you talk a little bit about the contract for Raven that you got in the quarter? I guess you said it was a little late and you thought you were going to have to work pretty hard to get that in the fourth quarter to get that through to revenues, can you kind of elaborate on that a little bit?

謝謝。能否談談你們本季拿到的 Raven 合約？我想你們提到它有點延後，你們原本以為第四季要很努力才能把它推進到營收認列，能否再多說明一下？

Well we did expect it earlier and it, for various reasons, just continued to slide and we have I think done a good job of anticipating the supply chain requirements. In any event, the team is focused on playing catch up so that we can report our customer requirements, even though the order came in later than we thought. But it did come in quite a bit later and it just means that it's going to be more of a challenge than normal in getting those first delivers out when we expected them.

我們確實原本預期會更早拿到，但因為各種原因就一直往後延；我認為我們在預先因應供應鏈需求方面做得不錯。無論如何，團隊正專注於追趕進度，好讓我們即使在訂單比預期更晚進來的情況下，仍能滿足客戶需求並進行交付。但它確實晚了不少，這也意味著要在我們原本預期的時間點把第一批交付出貨，將比平常更具挑戰。

Okay. And on R&D you talked about how it's a little lower because the customers are picking up some of that now. Is that going to be going forward also? Is this kind of a new level we would look at, the 5% of sales?

了解。另外在研發方面，你們提到因為客戶現在承擔了一部分，所以研發費用稍微低一些。這種情況未來也會持續嗎？這是否算是一個新的水準，例如占營收 5%？

No I don't think so, Troy. I think it's just the natural ebb and flow of the combination of internally funded and customer funded R&D and I don't think it changes our long-term expectation of where those percentages shake out.

不，我不這麼認為，Troy。我覺得這只是內部自籌研發與客戶出資研發之間自然的起伏變化，我不認為這會改變我們對長期研發占比落點的預期。

Okay. And last question, can you just break out how have you charged, maybe how much is auto versus non-auto or maybe just help us understand the mix there?

好的。最後一個問題，你能否拆分一下你們的收費/出貨結構，例如汽車相關與非汽車相關各占多少，或幫助我們理解那個組合？

I can do that. Yes PosiCharge year-to-date is about 28% auto. For the same period last year it was about 70% auto.

我可以。是的，PosiCharge 年初至今約有 28% 來自汽車相關。去年同期大約是 70% 來自汽車相關。

Great thanks.

太好了，謝謝。

Our next question will come from the line of Brian Gesuale of Raymond James. Please proceed.

下一個問題來自 Raymond James 的 Brian Gesuale。請開始。

This is Matt for Brian, good quarter, guys. First question, could you give a full backlog number please?

我是 Matt，代 Brian 提問，本季表現不錯，各位。第一個問題，可以提供完整的在手訂單（backlog）數字嗎？

Including unfunded backlog?

包含未撥款的在手訂單（unfunded backlog）嗎？

Yes.

是的。

Yes. $531 million is the unfunded backlog piece that would be additive to the funded.

是的。未撥款在手訂單部分為 5.31 億美元，這會加計到已撥款的在手訂單之上。

Okay. And I guess my next question is about an update on SwitchBlade, if you could give us detail on the development and if and when you would see production, or just in general who is interested and a little color on that?

好的。下一個問題是關於 SwitchBlade 的最新進展，能否提供開發細節，以及是否、何時會看到量產？或更一般地說，哪些單位有興趣、能否給一些背景說明？

Well SwitchBlade, as you probably recall, the majority of the funding on SwitchBlade has converted from internally funded R&D to customer funding. We're very pleased on the development progress. We're moving ahead hitting all of our accelerated internal milestones. We haven't announced who the customer is that's funding it and there's not any announced final delivery schedule, but we're very pleased and I think our customer is as well.

SwitchBlade 如你可能記得的，相關資金大多已從公司內部自籌研發轉為客戶出資。我們對開發進度非常滿意。我們正持續推進，並達成所有加速的內部里程碑。我們尚未公布是哪一家客戶在出資，也沒有對外宣布最終交付時程，但我們非常滿意，我想客戶也是。

Okay the last one, going with the Aqua Puma with Australia with the release that you guys completed trials in Australia, I was wondering if any feedback that they gave that could key us in on what we could expect with that product in the future?

好的，最後一個問題，關於 Aqua Puma 在澳洲的部分，你們的新聞稿提到已在澳洲完成測試，我想知道他們是否有任何回饋，能讓我們了解未來對這個產品的期待？

Well I'm trying to think, Matt, what the customer said publicly and I'm having trouble recalling that. I know that all of our direct feedback was extremely positive and I believe that they have decided they need a small UAS capability on that class of ship, or at least it appears that they're reaching that conclusion as they do this evaluation process.

嗯，我在想，Matt，客戶公開說過什麼，但一時想不起來。我知道我們收到的直接回饋都非常正面；而且我相信他們已經認為在那個級別的艦艇上需要小型無人航空系統（UAS）能力，或者至少在評估過程中看起來他們正朝這個結論前進。

Okay. Well thank you very much.

好的。非常感謝。

Thank you.

謝謝。

Our next question will come from the line of David Gremmels of Thomas, Weisel. Please proceed.

下一個問題來自 Thomas, Weisel 的 David Gremmels。請開始。

Actually this is [inaudible] in for David. The first question I had was, within UAS, do you have a mix of production versus support revenues for the quarter?

其實我是代 David 提問的[聽不清]。我的第一個問題是，在 UAS 業務內，本季生產收入與支援收入的組合大概如何？

Within UAS the mix of product and support revenue is very similar to total company levels, which run approximately 70% product 20% support services and then approximately 10% for project R&D.

在 UAS 內，產品收入與支援收入的組合與公司整體水準非常相近：大約 70% 產品、20% 支援服務，另外約 10% 為專案研發（project R&D）。

Okay great. And just drilling down a little further on R&D, while you said your long-term goals aren't affected in the shift in resources this quarter, do you expect it to at least carry over to next quarter at the same levels?

好的，很好。再深入一點談研發，雖然你說本季資源移轉不影響長期目標，但你預期至少會以相同水準延續到下季嗎？

Well we're not guiding in individual line items within the P&L, although I think the guidance that we did provide we would expect some additional investment in R&D in the balance of the year.

我們不會針對損益表（P&L）中的個別科目提供指引；不過就我們已提供的指引而言，我們預期在今年剩餘期間研發會有一些額外投資。

Okay great. And on the longer-term picture, were there any surprises in the budget with all the supplemental detail that's come out with the submittal? I know there was a line item for Global Observer in the fiscal '08 supplemental, is there anything else that's kind of caught you by surprise?

好的，很好。再看更長期的面向，隨著預算送審後釋出的補充細節，有沒有任何讓你意外的地方？我知道在 2008 會計年度的補充預算中有 Global Observer 的一個科目，還有其他任何讓你感到意外的嗎？

I think we're happily surprised that we're seeing our products in the budge line up. In the past our products have been hidden within other line items or we get our funding through reprogramming and supplementals, and now we're starting to see our products as programs of record and line items in the budget so we're pleased by that.

我想我們是「驚喜地高興」，因為我們看到我們的產品出現在預算科目中。過去我們的產品常被藏在其他科目裡，或是透過預算重編（reprogramming）與補充預算取得資金；而現在我們開始看到我們的產品成為正式建案（programs of record）並以預算科目列示，所以我們對此感到高興。

Okay great. And there was a call recently, I guess they were talking about increasing Army and Marine Corps strength by 92,000 soldiers over the next five years, does that create more of an opportunity for AeroVironment?

好的，很好。另外，最近有一通電話會議提到，未來五年陸軍與海軍陸戰隊兵力將增加 92,000 名士兵，這是否會為 AeroVironment 帶來更多機會？

Well I think the small UAS are primarily used by ground forces, and the more feet or boots on the ground I think implies more demand for the small UAS tools that they use.

我想小型 UAS 主要由地面部隊使用；地面上「靴子越多」（兵力越多），我認為就意味著對他們所使用的小型 UAS 工具會有更高的需求。

Okay great. Thank you so much.

好的，很好。非常感謝。

You bet, thank you.

不客氣，謝謝。

Our next question will come from the line of Howard Rubel of Jefferies & Company. Please proceed.

下一個問題來自 Jefferies & Company 的 Howard Rubel。請開始。

Thank you very much, just a couple things. First Tim, could you bring us up to date where you are with respect to the negotiations of Global Observer?

非常感謝，幾個問題。首先 Tim，你能否更新一下 Global Observer 的談判目前進展到哪裡？

Well Howard, you know we have that announcement from SOCom, there's a 40-day waiting period that they have by regulation once they've made a public announcement and so we expect they'll begin to do what they said they were going to do. And we don't have anything to announce now other than that as soon as something newsworthy happens definitively, we'll be up letting you and others know exactly when that happens. There's nothing that makes us believe that they intend to do anything other than what they said.

Howard，你知道我們已收到 SOCom 的公告；依規定他們在公開宣布後有 40 天的等待期，因此我們預期他們會開始做他們所說要做的事。目前除了這些之外沒有其他可宣布的；一旦有任何具新聞價值且明確的進展，我們會立即通知你和其他人確切發生的時間點。沒有任何跡象讓我們認為他們會做出與其所說不同的事。

All right. So I'm just going to go one step further until you tell me otherwise, the way this could play out is we could see some work start at some point late in this current quarter? Or would it begin, if in fact you do get the award, would we have to wait until the first quarter of fiscal '08?

好的。所以除非你告訴我不是這樣，讓我再往前推一步：這件事可能的發展是，我們可能會在本季接近尾聲的某個時間點看到一些工作開始？還是說，如果你們確實拿到該項目授標，我們得等到2008財年第一季才會開始？

Well timing of when the customer would actually definitize a contract is, as you know, up to them and it's hard for us to predict. We do have ongoing funding supporting the risk reduction and testing and some elements of development associated with that program. So it's not like we go from a zero to a one with the new JCTD start.

嗯，客戶實際上何時會把合約定案（definitize），如你所知，是由他們決定，我們也很難預測。我們確實有持續的資金在支持風險降低與測試，以及與該計畫相關的一些開發要素。所以並不是說新的JCTD啟動時，我們會從零一下子跳到一。

But it also here is a case where you would be able to go possibly from some spending on your own money to all of a sudden have engineers be spending on what would be part of customer funded R&D going forward?

但這裡也有一種情況是，你們可能可以從用自有資金支出，突然轉為工程師把時間花在未來由客戶出資的研發上？

Well that's actually largely happened already, Howard, that was one of the major transitions over the last number of months in terms of switch from early when we first put out our S1 and identified Global Observers as a development program. At that time it was predominantly funded by IR&D and for some period of time now it's been predominantly funded by customers.

嗯，其實這在很大程度上已經發生了，Howard。這是過去幾個月裡的一個主要轉變之一：從我們最早提交S1並把Global Observer定位為開發計畫的早期階段。當時主要是由IR&D（內部研發）資金支持，而在一段時間以來，主要已由客戶資金支持。

Okay I appreciate that. And then to go back to this issue, you're sort of telling us there's some risk with respect to we'll call it Raven being in production between Q3 and Q4. And I wonder if you could just flush it out a little bit more in terms of it came in later and while it might have to do with stuff that we may not care about, why given the continual rate in which you're building the aircraft that there will be I will call it a disruption?

好的，我理解，謝謝。然後回到這個議題，你們某種程度上是在告訴我們，關於我們姑且稱之為Raven在第三季到第四季之間進入量產這件事存在一些風險。我想請你再多說一點：它來得比較晚，雖然可能跟一些我們不太在意的事情有關，但在你們持續以一定速率製造飛機的情況下，為什麼會出現我所謂的「中斷」？

Well our normal lead time from order to initial delivery is X number of months. So if we have X minus a couple of months, that just makes it more difficult to get the supply chain completely spooled up and everything on line in time for the initial deliveries that we would like to make for our customer needs.

嗯，我們從接單到首次交付的正常前置時間是X個月。所以如果只剩下X減去幾個月，供應鏈要完全拉升、讓所有環節及時上線，以符合我們希望達成的首次交付時點與客戶需求，就會更困難。

Yes and I think we are just trying to recognize the factory throughput in terms of the range on the guidance, which is not a large range, but we're trying to get some recognition to that throughput issue.

是的，我想我們只是試著在指引區間中反映工廠產能吞吐量的因素；區間其實不大，但我們希望能把這個吞吐量議題納入考量。

Right. And so the variability is you could be flat sequentially to up nicely, if we were to look at the UAS numbers?

了解。所以如果看UAS的數字，變動性可能是季比持平到明顯成長？

Well quarter-to-quarter, but again that's why we've been saying that we're variable quarter-to-quarter and we feel better about giving annual guidance and achieving annual growth. So 20 to 25% annual growth is where we feel comfortable.

嗯，是以季度對季度來看；但也正因如此，我們一直說我們的季度表現會有波動，而我們更有把握提供年度指引並達成年度成長。所以我們覺得舒適的區間是年成長20%到25%。

I have just two final items very quickly, one is have you started to deliver BATMAV, is that correct? Or did I not hear that right?

我最後很快兩個問題：第一個是你們已經開始交付BATMAV了，對嗎？還是我聽錯了？

We have the BATMAV contract that started out with a cost plus contract, a smaller cost plus contract, and the production task orders against that IDIQ are yet to be let, much the same way that the Raven B contract started out. So no production deliveries yet.

我們的BATMAV合約一開始是一個成本加成（cost plus）的合約，是較小的成本加成合約；而針對該IDIQ之下的量產任務訂單（task orders）尚未下達，情況很像Raven B合約一開始的模式。所以目前還沒有量產交付。

So it's be prototype development and testing on that initial order and then we'll move on after that is our expectation.

所以目前是依照最初那筆訂單進行原型開發與測試，之後我們預期再往下一階段推進。

We'll get something in '08 then for first deliveries?

那麼2008年會有首批交付嗎？

That's our expectation, yes.

是的，這是我們的預期。

And then the last thing is on taxes, if I'm not mistaken, if I did the math, it was a 33% number in the quarter?

最後一個是稅率，如果我沒弄錯、我算的話，本季大概是33%？

Yes. We had an adjustment for a Section 199 tax item, 35.7 year-to-date, and we're still thinking 36 to 37% for the year.

是的。我們針對第199條（Section 199）的稅務項目做了調整，年初至今是35.7%，而我們仍然預期全年會是36%到37%。

Okay thank you very much, gentlemen, very nice numbers.

好的，非常感謝，各位先生，數字很漂亮。

Thank you.

謝謝。

Thanks, Howard.

謝謝你，Howard。

Our next question will come from the line of [Richard Dufferin] of Goldman Sachs. Please proceed.

下一個問題來自高盛（Goldman Sachs）的[Richard Dufferin]。請開始。

Hi, good afternoon.

嗨，下午好。

Hi, Richard.

嗨，Richard。

Just generally speaking, I'm understanding where you're at right now with SwitchBlade, I just wanted to know if you could tell us notionally how does it take generally to ramp up on a program like that, assuming you got the contract et cetera?

一般來說，我理解你們目前在SwitchBlade的進度；我想請教的是，概念上如果你們拿到合約等等，像那樣的計畫通常需要多久才能拉升（ramp up）？

Well, I guess in terms of development maybe a typical small UAS development program for us you might think in terms of a year. And then ramping and production is, I don't know that there's any hard rule of thumb, but we have within a less than a year period have gone more than an order of magnitude in terms of volume development historically.

嗯，我想就開發而言，對我們來說一個典型的小型UAS開發計畫，你可以用大約一年來思考。至於拉升與量產，我不確定是否有硬性的經驗法則，但歷史上我們曾在不到一年的期間內，把產量提升到超過一個數量級（order of magnitude）。

Okay. I hear an ambulance in the background or something, I hope that's not --.

好的。我好像聽到背景有救護車之類的聲音，希望不是——。

That's another risk factor.

那是另一個風險因素。

Yes just hoped everything was okay. The gross margin seemed quite a bit higher than I had thought and I was just wondering if there was anything going on in Unmanned Air Systems that was driving your costs our anything there?

是的，只是希望一切都沒事。毛利率看起來比我原先想的高不少，我想問一下，是否在無人航空系統（Unmanned Air Systems）那邊有什麼因素在推動成本或其他變化？

No. Well gross margins are good, down a little bit from last year but more or less sequentially flat. I think the fixed price content is a little bit higher than we might have been expecting earlier on, and then we've had some good performance on some of our fixed price line item contracts.

沒有。嗯，毛利率表現不錯，比去年略低一些，但大致上季比持平。我想固定價格（fixed price）的比重比我們先前預期的稍高一些，而且我們在一些固定價格的分項合約（line item contracts）上表現也不錯。

Okay. So it is a bit better contract. Okay the last thing is could you give me an idea of what you think share count's going to be next quarter?

好的。所以是合約條件比較好一些。好的，最後一個問題：你能否給我一個你們預期下季股數（share count）會是多少的概念？

We have 18.2 million shares issued and outstanding and when you add the dilution of course you know we have 3.5 million options, but when you go through the calculation of dilution that equates to roughly 2 million, 2.1 million of options on top of that.

我們已發行且流通在外股數是1,820萬股；若加計稀釋，當然你知道我們有350萬份選擇權，但按稀釋計算後，大約相當於再增加200萬到210萬股的選擇權稀釋。

Okay thanks very much.

好的，非常感謝。

Thank you.

謝謝。

Thanks, Richard.

謝謝你，Richard。

[OPERATOR INSTRUCTIONS] Our next question will come from the line of Randy Gwirtzman of Baron Capital. Please proceed.

[接線員指示] 下一個問題來自Baron Capital的Randy Gwirtzman。請開始。

Hi good afternoon, guys.

嗨，下午好，各位。

Hi, Randy, good to hear from you.

嗨，Randy，很高興聽到你的聲音。

Thanks, good to be on the call. On Global Observer, I don't know if I can just probe a little bit more just based on what's out there, but obviously you guys are waiting, I guess you said there's a 40 day period from the January notice date on the Global Observer, is that correct?

謝謝，很高興參與這通電話。關於Global Observer，我不知道能不能根據外界已知資訊再多追問一點；但顯然你們正在等待，我想你剛才說從1月通知日期起算，Global Observer有一個40天的期間，是這樣嗎？

Yes. And I think that's either up or nearly up now.

是的。而且我想那個期限現在不是已經到了，就是快到了。

Right, okay. And then so if you guys are theoretically awarded the contracts, what's the timing of the revenues? How does that tie into the $75 million request in the fiscal '08 budget that SOCom has made? And where do the revenues flow through? Is it R&D or is it product? And what kind of margins would be expected on that kind of work?

好的，明白。那麼如果你們理論上獲得這些合約，營收的時點會是什麼？這與特種作戰司令部（SOCom）在2008會計年度預算中提出的7,500萬美元申請有何關聯？而這些營收會流向哪裡？是研發（R&D）還是產品？這類工作預期會有什麼樣的毛利率？

I'll take the last part of that. The revenues, this will start out as a development program, design development test and delivery of some initial number of systems and it would, as a result, start out as project R&D. The contract type is TBD and so we're not in a position to really talk about the kind of margins that we would get. But they would probably be at the gross margin level in the mid 30s somewhere.

我來回答最後一部分。營收方面，這會先以開發計畫開始，包含設計、開發、測試，以及交付一開始的若干套系統，因此一開始會歸類為專案研發（project R&D）。合約類型尚待決定（TBD），所以我們目前不便談論我們能取得的毛利率水準。但大概會在毛利率中段30%上下。

Okay understood. And in terms of the timing of revenues, obviously a three-year program for development and I think if I understood the tale behind the fiscal '08 request, within the next year or two there's going to be a prototype developed, at least one, as part of that program. Do the revenues under the test and development contract accelerate kind of [nearby] to get the program rolling with that $75 million line up?

好的，了解。就營收時點而言，顯然這是一個為期三年的開發計畫；而且如果我理解2008會計年度申請背後的說法，在未來一到兩年內，作為該計畫的一部分，將會開發出至少一個原型。在測試與開發合約之下的營收，是否會在前期加速，以配合那筆7,500萬美元的預算項目來推動計畫啟動？

As Tim mentioned earlier, we're taking revenues now, because we do have some project R&D contracts in place for this. Snd the timing of revenues, when we get started the revenues would happen almost immediately because this is not a product delivery, we don't take revenues at the end, we'd be taking revenues percent complete as we go.

如同Tim先前提到的，我們現在就已經在認列營收，因為我們確實已經有一些針對此案的專案研發合約在執行。至於營收時點，一旦開始，營收幾乎會立刻發生，因為這不是產品交付型，我們不會等到最後才認列，而是會依完工百分比（percent complete）在過程中認列。

Okay understood. But they should accelerate materially I would think, given the size of the contract, in the fiscal year. I've seen articles that talk about current funding, I don't know whether they're right or not, but it talks about 6 million-ish for this year. I don't know if that's all or part correct.

好的，了解。但我想在會計年度內，考量合約規模，營收應該會顯著加速。我看過一些文章談到目前的資金，我不確定是否正確，但提到今年大概是600萬美元左右。我不確定那是全部還是部分正確。

Yes I think you generally have it right, Randy, the current level of funding is lower than the level of funding we would expect if this JCTD contract were awarded and funded. And then I think we think there's some variability in how much gets funded when on that JCTD program, but we expect it to be about a three-year program, as the SOCom announcement indicated. And in any event, if it is funded, it probably even at the lowest probable level would increase the current level of R&D funding that we've had supporting that program.

是的，Randy，我想你的理解大致正確；目前的資金水準低於我們在JCTD合約若獲授予並獲得撥款時所預期的資金水準。另外，我們認為在JCTD計畫中，資金在何時、以多少金額撥付會有一些變動性，但我們預期它大約會是一個三年期計畫，正如SOCom公告所指出的。無論如何，如果獲得撥款，即使在最可能的最低水準，也很可能會提高目前支持該計畫的研發資金水準。

Got it. Okay that's what I was kind of driving at, thanks very much for that help. In terms of, I'm going to ask a question nobody's talked about too much, architectural wind?

了解。好的，這正是我想確認的，謝謝你們的說明。接下來我想問一個大家比較少談到的問題：建築風能（architectural wind）？

Yes.

是的。

It seems like a neat project, could you just tell me a little bit about what the beta site testing that you've done entails and how close you are to maybe commercializing the product?

看起來是個很不錯的專案，你能否簡單說明一下你們做過的beta場址測試包含哪些內容，以及距離產品可能商業化還有多近？

Well it's clearly still a development program, I wouldn't characterize it as being particularly close to commercialization. We have had the first generation of that technology up and installed on a customer facility where we and they have been evaluating how it works. We have the second generation up and installed on facilities where we're evaluating it, and I think we are well along the way of getting a third generation of the architectural wind product in a position to get installed and evaluated. We have a couple of funded programs with customers where we will be installing either second or third generation architectural wind units on their facilities for what I'm referring to as beta testing. The technology seems to be working well, customers seem to be very interested in it, but it's a completely new technology, there's still a lot to be evaluated from a business perspective. But we continue to think a lot of it.

嗯，這顯然仍是一個開發計畫，我不會形容它已經特別接近商業化。我們已經把第一代技術建置並安裝在某個客戶的設施上，由我們與客戶共同評估其運作情況。我們也已將第二代安裝在一些設施上進行評估；而且我認為我們在推進第三代建築風能產品方面進展良好，正朝向可安裝並評估的狀態前進。我們與客戶有幾個已獲資金支持的計畫，將在其設施上安裝第二代或第三代建築風能機組，進行我所稱的beta測試。這項技術看起來運作良好，客戶似乎也非常有興趣，但它是一項全新的技術，從商業角度仍有很多需要評估。不過我們仍然對它抱持很高的期待。

So the reliability has shown to be very good and the power generation is kind of up to spec?

所以可靠度已證明非常好，而發電量也大致符合規格？

Yes. With the caveat that we're very early and we haven't got a lot of time under our belt in multiple installations, but having said that we don't see any major problems popping up in terms of reliability.

是的。但要補充的是，我們還在非常早期階段，尚未在多個安裝點累積很長的運行時間；即便如此，就可靠度而言，我們沒有看到任何重大問題浮現。

Well that's very neat. I'm looking forward to hearing more about that product. I just had a couple quick housekeeping questions, the tax rate going forward, I know there was kind of a strange R&D tax credit issue with Congress where the legislation was delayed. But going forward your normalized tax rate would be what?

那很棒。我很期待聽到更多關於那個產品的消息。我還有幾個簡單的例行問題：未來的稅率方面，我知道之前國會在研發稅額抵減（R&D tax credit）上有點特殊狀況，立法被延後。但往後你們的常態化稅率會是多少？

37 we think, 36 to 37.

我們認為是37%，大概36%到37%。

Okay so that's normalized.

好的，所以那是常態化水準。

Yes that reflects the reinstatement of the Federal R&D credit.

是的，那反映了聯邦研發抵減（Federal R&D credit）的恢復。

Okay. And the SG&A line, which is normalized at $6.2 million, did I understand the discussion correctly?

好的。另外，SG&A那一行，常態化是620萬美元，我對剛才的討論理解正確嗎？

Well what you have in the press release is the accounting numbers. During the period we reversed the Supplemental Executive Retirement Plan funding, since the terms of that agreement called for it to go away at the IPO. And so to get more of a normalized number you would add $2.2 million to the SG&A.

嗯，你在新聞稿中看到的是會計數字。在該期間，我們沖回了補充高階主管退休計畫（Supplemental Executive Retirement Plan, SERP）的提撥，因為該協議條款規定在IPO時就會終止。因此若要得到較常態化的數字，你需要在SG&A上加回220萬美元。

Okay. But go forward the actual dollar amount of SG&A is more in the $4 million range because that accounting item is no longer included?

好的。但往後SG&A的實際金額會比較接近400萬美元區間，因為那個會計項目不再包含在內？

SG&A in Q3 was 4.2, so $6.4 million would have been what we would have obtained in Q3 without the SERP. And we're not really predicting what SG&A will be period-by-period, we are keeping guidance just at the operating income level.

第三季的SG&A是420萬美元，所以如果沒有SERP，第三季本來會是640萬美元。而我們並不會逐期預測SG&A會是多少；我們的指引只維持在營業利益（operating income）層級。

Okay, understood. But I guess you are ramping up, I know you're hiring because your website has a hiring line, so usually there's more personnel costs. But --.

好的，了解。但我想你們正在擴張，我知道你們在招募，因為你們網站上有徵才資訊，所以通常人事成本會增加。但是——。

Yes that will hit cost of goods sold as well as R&D and SG&A. You know we continue to build infrastructure coincident with the growth of the company, so we would expect growth in many of the areas including SG&A.

是的，那也會反映在銷貨成本（cost of goods sold）、研發（R&D）以及SG&A上。你知道，我們會隨著公司成長同步建置基礎設施，因此我們預期包含SG&A在內的許多領域都會成長。

Got it. But the baseline now, the $4.2 million plus hiring and presumably the $4.2 million also includes some FAS 123 expense?

了解。但目前的基準是420萬美元，再加上招募擴編；而且我推測這420萬美元也包含一些FAS 123費用？

Very little, $32,000 of FAS 123 expense year-to-date. Only the option grant that we made last September is generating FAS 123 expense and it's maybe $10,000 a month. It's de minimus.

非常少，今年截至目前FAS 123費用是32,000美元。只有我們去年9月發放的期權（option）授予會產生FAS 123費用，大概每月10,000美元左右。金額非常小（de minimus）。

And that's on a go-forward basis?

那這是以未來持續的基礎來看嗎？

Yes. And that is a little bit, probably the majority is in SG&A, but there is some in cost of goods sold as well.

是的。而且這部分大概多數是在SG&A（銷售、一般及行政費用）裡，但在銷貨成本裡也有一些。

Thank you very much, guys.

非常感謝，各位。

Thank you.

謝謝。

Thanks, Randy.

謝了，Randy。

Our next question will come from the line of Brian Gesuale of Raymond James. Please proceed.

下一個問題來自Raymond James的Brian Gesuale。請開始。

Just a couple of quick questions, sorry about this, but the BATMAV contract that you guys won, was that a big surprise? Or what kind of contract was that and what kind of margins, in the rough range, would you expect on that?

我只有幾個很快的問題，抱歉。你們拿下的BATMAV合約，是不是一個很大的意外？或者那是什麼類型的合約？以及你們對那個合約的毛利率，大概會落在什麼區間？

That's an IDIQ and we're typically not going to be talking about margins program by program. Today we've only seen the starter or cost plus contract let against that. We would expect that, go forward, when the production task orders get let that those would be fixed price.

那是一個IDIQ（不定期交付／不定量）合約，我們通常不會逐一專案談毛利率。目前我們只看到在該合約之下釋出的起始合約（starter），或成本加成（cost plus）合約。我們預期未來當生產的任務訂單（task orders）釋出時，會是固定價格（fixed price）。

Okay. And could you, I'm sorry I missed this part, but talking about the share count again, so with the 2.1 you said like the 3.5 million in options and then that equals about 2.1 million in the shares. So just help me do the math on this, you get like a year share count roughly?

了解。另外，不好意思我剛剛漏聽了一段，但再談一次股數：你提到2.1，然後說大概有350萬股的選擇權，然後那相當於大約210萬股的股份。所以請幫我算一下，這樣大概可以推到一個年度的平均股數嗎？

Why don't we talk next year about share count, because share count this year is pervaded by the fact that the IPO happened on the last day of the last quarter and it pervades the averages. You know you can look for something like 21.3 million shares fully diluted on average in fiscal year '08. And if you want some guidance on how to calculate the average for fiscal '07, we can do that offline.

我們明年再談股數會比較好，因為今年的股數受到IPO在上一季最後一天才發生的影響，會影響到平均數的計算。你可以預期在2008會計年度，完全稀釋後的平均股數大約是2,130萬股。如果你想要一些指引來計算2007會計年度的平均數，我們可以會後再私下討論。

Okay. All right, thanks very much, that's it for me.

好的。好，謝謝你們，這就是我全部的問題。

Our next question will come from the line of Howard Rubel of Jefferies, please proceed.

下一個問題來自Jefferies的Howard Rubel，請開始。

Sorry to do this, just two quick ones. One is you have $108 million in cash, sort of two things, one is what kind of rate are you getting on it as you invest it? And then second, are there any plans to spend any of it for either acquisition or anything else strategic in the intermediate term?

抱歉再問一下，就兩個很快的問題。第一個是你們有1.08億美元現金，兩點：第一，你們投資運用這筆資金時，大概拿到什麼樣的利率？第二，中期來看，有沒有計畫把其中一部分用在併購或其他策略性用途？

I'll take the first part, since the IPO we established a new relationship with Credit Suisse to manage our funds long term. We're continuing our relationship with California Bank & Trust to manage our disbursements and short-term funding needs. Today we're getting about 3.6% after tax, it's all invested in short-term high grade municipals in fact today.

我先回答第一部分：自IPO以來，我們與瑞士信貸（Credit Suisse）建立了新的合作關係，由他們長期管理我們的資金。我們也持續與California Bank & Trust合作，管理我們的付款支出與短期資金需求。目前稅後大約是3.6%，而且今天實際上全部投資在短期高評等的市政債（municipals）。

And Howard, as to what we might be using the cash for, we don't have any current acquisition plans. As we've talked in the past, we think we'll have some working capital needs, we've got a number of organic growth opportunities out in front of us and we think this flexibility in financing, the ability to take advantage of those growth opportunities will be beneficial. We haven't got a specific plan to give you any particular guidance on.

Howard，至於我們可能如何使用現金，我們目前沒有任何併購計畫。如同過去談過的，我們認為會有一些營運資金需求；我們面前也有不少內生成長機會，我們認為在融資上的彈性、能夠把握這些成長機會，會帶來好處。我們沒有一個具體計畫可以提供你任何特定的指引。

No I appreciate that, that's great because all of a sudden you don't want it to burn a hole in your pocket.

了解，我很感謝，這很好，因為你們也不希望它突然變成口袋裡燙手的錢。

Right.

對。

The last thing is, strategically you've got some very interesting energy technology, whether it be with solar cells on Global Observer or whether it be what you're doing with PosiCharge or architectural wind. What other interests are you finding from customers out there that are saying, "Gee I can put this together for a system," or whether it's batteries or energy management or something else.

最後一點是，從策略面來看，你們有一些非常有趣的能源技術，不管是Global Observer上的太陽能電池，或是你們在PosiCharge或建築風能（architectural wind）上做的事情。你們還看到客戶端有哪些其他興趣？例如他們會說：「我可以把這些整合成一個系統」，不管是電池、能源管理或其他。

Yes, let me say first that the Global Observer currently has no solar energy capability. We had two different recent programs where we were flying solar aircraft or aircraft at the end that was Pathfinder-Plus and then Helios. And in the latter stages of the Helios program that we did with NASA we had incorporated fuel cell engine capability with hydrogen on board to augment the solar energy generation from the wing. Global Observer is designed, at this point, to operate without any solar cells, so it's all hydrogen and oxygen fuel systems. We're compressing the air and we're carrying hydrogen up.

是的，我先說明：Global Observer目前沒有任何太陽能能力。我們最近有兩個不同的專案是在飛行太陽能飛機，或最後階段的飛機，分別是Pathfinder-Plus以及Helios。在我們與NASA合作的Helios專案後期，我們加入了燃料電池引擎能力，機上攜帶氫氣，用來補充機翼太陽能發電。Global Observer在目前的設計是無需任何太陽能電池即可運作，因此完全是氫氣與氧氣的燃料系統。我們會壓縮空氣並攜帶氫氣上去。

But beyond that there are, as you suggest, a lot of areas where efficient electric energy technology is of interest both to us and a number of other potential customers or partners, and we're doing quite a bit work with funded programs as well as internally funded programs in different applications. But we've only identified architectural wind out of all of the development work that's going on in that efficient technology sector, primarily because it's relatively early in the development or commercialization stage and we just think it's better to keep our powder dry in those areas.

但除此之外，正如你所說，高效率電能技術在許多領域都引起我們以及其他潛在客戶或合作夥伴的興趣；我們在不同應用上做了不少由資助計畫支持的工作，也有一些內部自籌資金的專案。不過，在所有這些高效率技術領域的研發工作中，我們目前只對建築風能做了明確揭露，主要是因為它仍相對處於較早的開發或商業化階段，我們認為在那些領域保持彈藥、先按兵不動會更好。

All right .Thank you for the help on the first and I appreciate the effort on the second, Tim.

好的。謝謝你在第一個問題上的協助；第二個問題也謝謝你的努力，Tim。

Great.

很好。

Ladies and gentlemen, this concludes the question-and-answer portion of today's conference. I will turn it back to management for any closing remarks.

各位女士先生，今天會議的問答部分到此結束。我將把時間交回管理層做結語。

Well I think we've exhausted our remarks. We really do appreciate the interest and the questions and the opportunity to develop what we look forward to as a long partnership with public shareholders. So with that I think AV will exit the conference and thanks again.

我想我們的說明已經講得差不多了。我們非常感謝各位的關注、提問，以及讓我們有機會建立我們所期待與公開市場股東之間的長期合作關係。因此，我想AV將退出本次會議，再次感謝。

Thank you for your participation, ladies and gentlemen. You may now disconnect. Have a wonderful day.

感謝各位女士先生的參與。您現在可以掛線。祝您有美好的一天。