AeroVironment, Inc. (AVAV) 2009 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the first quarter 2009 AeroVironment earnings conference call. My name is Teresa and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will conduct a question and answer session towards the end of the conference. As a reminder this conference is being recorded for replay purposes. With us today from the company is Chairman and Chief Executive Officer, Mr. Tim Conver, Chief Financial Officer, Mr. Steve Wright, and Director of Investor Relations, Mr. Steven Gitlin. I would now like to turn the presentation over to Mr. Gitlin, please proceed, sir.

各位女士、先生，大家好，歡迎參加 AeroVironment 2009 年第一季財報電話會議。我是 Teresa，將擔任今天的會議協調人。此刻所有與會者皆為僅收聽模式。我們將在會議接近尾聲時進行問答環節。提醒各位，本次會議將錄音以供重播。今天與會的公司代表包括：董事長兼執行長 Tim Conver 先生、財務長 Steve Wright 先生，以及投資人關係總監 Steven Gitlin 先生。現在我想把簡報交給 Gitlin 先生，先生請開始。

Thank you, Teresa. Welcome to AV's first quarter fiscal 2009 earnings call. Joining me today are AeroVironment's Chairman and Chief Executive Officer and President, 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.

謝謝你，Teresa。歡迎參加 AV 2009 會計年度第一季財報電話會議。今天與我一同出席的有 AeroVironment 董事長、執行長兼總裁 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》（Private Securities Litigation Reform Act of 1995）所定義的前瞻性陳述。

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. 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, failures 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. For a further list of such risks and uncertainties see the reports we file with the Securities and Exchange Commission.

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「相信」、「預期」、「預估」、「打算」、「推估」、「規劃」等字眼，或具有相似意義的詞語或片語。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，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、我們產品供給與／或需求與／或價格的變動、競爭對手的活動、我們所處市場未能成長、未能拓展至新市場、重大營運費用（包括零組件與原物料）變動、未能開發新產品、法規環境變動，以及美國及全球其他地區的一般經濟與商業狀況。關於此類風險與不確定性的進一步清單，請參閱我們向美國證券交易委員會（SEC）提交的報告。

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, September 9th, 2008. The Company undertakes no obligation to make any revision to the statements contained in our remarks or to update them to reflect events or circumstances occurring after this Conference Call. With that said it is my pleasure to turn the call over to Tim Conver.

我們無意且不承擔任何義務因新資訊、未來事件或其他原因更新任何前瞻性陳述。本次財報電話會議內容包含具時效性的資訊，僅在今日（2008 年 9 月 9 日）為準確。公司不承擔任何義務修訂我們發言中所包含的陳述，或更新以反映本次電話會議之後發生的事件或情況。話說至此，我很高興把電話交給 Tim Conver。

Thank you, Steven. Welcome to our first quarter fiscal 2009 conference call. Before I discuss the details of Q1 I'd like to take a few minutes to review what I believe to be an important and distinguishing aspect of our story. When we began speaking with potential investors in preparation for our IPO, we thought it was important to discuss both our solutions in production and in development. We highlighted four development programs that represented innovative new capabilities and then we went further along on the process -- that we're further along in our process, excuse me, than our others in our pipeline.

謝謝你，Steven。歡迎參加我們 2009 會計年度第一季電話會議。在我討論第一季（Q1）的細節之前，我想先花幾分鐘回顧我認為我們故事中一個重要且具區隔性的面向。當我們在籌備 IPO 期間開始與潛在投資人溝通時，我們認為同時討論已量產與研發中的解決方案很重要。我們強調了四項研發計畫，代表創新的新能力，接著我們進一步說明——抱歉，我是說——相較於我們研發管線中的其他專案，我們在流程上已更往前推進。

These four developments were Global Observer, Switchblade, Digital Data Link and Architectural Wind. Since our January 2007 IPO, we've been discussing these programs as they've progressed from internally funded R&D to customer funded development and as they have achieved key milestones that move them closer to becoming production solutions. I'll discuss some of these milestones later in the call.

這四項研發計畫分別是 Global Observer、Switchblade、Digital Data Link 與 Architectural Wind。自 2007 年 1 月 IPO 以來，我們持續討論這些計畫的進展：它們如何從公司內部自籌的研發（R&D）轉為由客戶出資的開發，以及如何達成關鍵里程碑，使其更接近成為量產解決方案。我會在稍後的會議中談到其中一些里程碑。

More recently we've been providing information on other UAS developments that are in various stages in the research and development process. The Puma AE is the third generation of our Puma small unmanned aircraft system that we began as an internally funded development just a few years ago, and that won the latest DOD competition for a program of record. The Nano air vehicle contract with DARPA is a very early stage R&D program that could lead us to the smallest class of unmanned aircraft system, an aircraft that weighs 10 grams. For the stealthy, perch and persistent stare program, also funded by DARPA, we are developing and have now demonstrated a new aircraft based on our one pound WASP that can perform vertical take off and landing, hover, perch and stare missions in a very stealthy manner.

近期我們也提供其他無人航空系統（UAS）研發專案的資訊，這些專案正處於研發流程的不同階段。Puma AE 是我們 Puma 小型無人機系統的第三代產品；我們在幾年前以內部資金啟動研發，並在最新的國防部（DOD）正式建案（program of record）競標中勝出。與 DARPA 的 Nano air vehicle 合約則是非常早期的研發專案，可能引領我們進入最小級別的無人機系統——一架重量僅 10 公克的飛行器。至於同樣由 DARPA 資助的「匿蹤、停棲與持續凝視」（stealthy, perch and persistent stare）計畫，我們正在研發並已展示一款以我們一磅重的 WASP 為基礎的新型飛行器，可進行垂直起降、懸停、停棲與凝視任務，且具高度匿蹤性。

Innovation is the life blood of this Company and these are several examples of innovations that contribute to our future growth potential. I think this is a great track record that demonstrates an effective research development and commercialization process and that positions us well for the future.

創新是本公司的命脈，而以上是幾個有助於我們未來成長潛力的創新例子。我認為這是一項很好的紀錄，展現了有效的研發與商業化流程，並使我們在未來具備良好定位。

Now, lets move on to review last quarters results. Q1 was a solid beginning to fiscal 2009 in several respects. We successfully cut in the frequency change for our DOD customers and we restarted both WASP and Raven production lines. We saw continued demand for our unmanned aircraft systems, electric vehicle fast charge systems and electric vehicle test systems. We also made great progress on our development programs. There were a number of specific highlights in the quarter. We grew revenue by 9% over Q1 fiscal '08 and we delivered an operating margin of 13%. We won the fourth consecutive DOD competition for a small unmanned aircraft system program of record with Puma AE. We ended the quarter with funded backlog of over $108 million, the highest in our history. We achieved important milestones in our Global Observer development program. We achieved operational improvements in our new Efficient Energy Systems segment and we continue to build our team to position ourselves for growing market opportunities.

現在讓我們回顧上一季的成果。第一季在多個面向上為 2009 會計年度帶來穩健的開局。我們成功為國防部客戶完成頻率變更的切換，並重新啟動 WASP 與 Raven 兩條生產線。我們看到無人航空系統、電動車快速充電系統以及電動車測試系統的需求持續。我們在研發計畫上也取得重大進展。本季有多項具體亮點：營收較 2008 會計年度第一季成長 9%，營業利益率達 13%。我們以 Puma AE 贏得第四次連續的國防部小型無人機系統正式建案競標。我們在季末的已獲資金支持之在手訂單（funded backlog）超過 1.08 億美元，創下歷史新高。我們在 Global Observer 研發計畫達成重要里程碑。我們在新的 Efficient Energy Systems（高效率能源系統）事業部門取得營運改善，並持續擴充團隊，以掌握成長中的市場機會。

Now let's take a closer look at the UAS segment first. Customer funded R&D primarily from our Global Observer development program increased during the quarter. This increase more than offset our planned production slowdown in small UAS relative to the same period last year. The Global Observer program is just about one year into its three-year timeline. We've made great progress in this development program. The system will be a breakthrough, stratospheric unmanned aircraft system that will provide satellite-like persistence with valuable payloads over any point on earth at a fraction of the cost of available alternatives. We received an important purchase order for the second GO airplane when our customer exercised a contract option in Q1. This, I believe, is the very significant indication of customer confidence in the program and customer intent for this capability.

現在先更深入看看 UAS 事業部門。由客戶出資的研發（主要來自 Global Observer 研發計畫）在本季增加。此增幅不僅抵銷了我們相較去年同期在小型 UAS 的既定生產放緩。Global Observer 計畫在其三年期時程中已進行約一年，我們在此研發計畫上取得很大進展。該系統將是一項突破性的平流層無人航空系統，能以遠低於現有替代方案的成本，在地球上任何地點提供如衛星般的長時間持續滯空能力，並搭載具價值的酬載。我們在第一季收到一筆重要採購訂單：客戶行使合約選擇權，訂購第二架 GO 飛機。我認為這是客戶對該計畫信心，以及對此能力需求意圖的非常重要指標。

Unlike most new airplane programs we are simultaneously developing the propulsion system with the aircraft system for GO. In that regard, we completed a major milestone with the successful multi-day simulated flight test, the production configuration propulsion system. As the GO program has ramped up, it's become a more significant contributor to Company revenue and to backlog. There are many challenges ahead on this program, but I'm encouraged by the great progress our team has made and by the confidence that our customers have in this very difficult but high pay-off endeavor.

不同於多數新飛機計畫，我們在 GO 計畫中同時開發推進系統與機體系統。在這方面，我們完成了一項重大里程碑：成功進行為期多日的模擬飛行測試，測試對象為量產構型的推進系統。隨著 GO 計畫加速推進，它已成為公司營收與在手訂單更重要的貢獻來源。此計畫前方仍有許多挑戰，但我對團隊所取得的重大進展，以及客戶對這項極具難度但高回報任務的信心，感到備受鼓舞。

If you recall from our Q1 earnings call in June, I mentioned that we expected a reduction in UAS product revenue during Q1 due to a customer-funded engineering change. To recap our DOD customers asked us to change the frequencies that WASP and Raven systems transmit and receive on. This change necessitated development of new components in software for our aircraft and our ground control systems. We agreed with our customer on a plan to pause new production, focus initially on retrofits and then proceed with both new production and retrofits in parallel. We successfully executed that plan during Q1 and we anticipate catching up with our planned production before the end of fiscal '09, while continuing to process retrofits.

如果各位還記得我們在 6 月的第一季財報電話會議中，我提到由於一項客戶出資的工程變更，我們預期第一季 UAS 產品營收會下降。簡要回顧：我們的國防部客戶要求我們變更 WASP 與 Raven 系統的發射與接收頻率。此變更需要為飛行器與地面控制系統開發新的軟體元件。我們與客戶就一項計畫達成一致：暫停新的量產，先專注於改裝（retrofits），之後再同時並行進行新量產與改裝。我們在第一季成功執行該計畫，並預期在 2009 會計年度結束前追上原定的量產計畫，同時持續處理改裝作業。

One month into our Q1, we received the good news that we had won the fourth DOD competition for small UAS. The US special operations command selected our Puma AE for their all-environment capable variant program. The Puma AE will be operated with the same handheld ground control system used for WASP and Raven. It will feature long endurance, quiet operation, continuous stare cameras and amphibious landing capability. We believe Puma AE will provide an important capability to so-com, and that its unique capabilities and features may be attractive to many other customers. By adding a third production airplane at the upper end of our family of small UAS, all using our common, joint and in operable ground control unit I believe we have significantly improved our competitive position.

在第一季開始後一個月，我們收到好消息：我們贏得第四次國防部小型 UAS 競標。美國特種作戰司令部選定我們的 Puma AE 作為其「全環境能力」變體計畫。Puma AE 將使用與 WASP 與 Raven 相同的手持式地面控制系統操作。其特點包括長續航、低噪音運作、可持續凝視的攝影機，以及兩棲著陸能力。我們相信 Puma AE 將為 SOCOM 提供重要能力，而其獨特能力與特性也可能吸引許多其他客戶。透過新增第三款量產機型、位於我們小型 UAS 產品家族的高階端，且皆採用我們共通、聯合且可互通操作的地面控制單元，我相信我們已顯著提升競爭地位。

Development programs for Digital Data Link and Switchblade continued to make good progress demonstrating their valuable new capabilities. Both programs are attracting growing customer interest. On the other side of our business this is the first quarter that we reported Efficient Energy Systems as one segment. After combining our PosiCharge and our Energy Technology Center segments at the end of FY '08. We made this structural change to enable the people of this group to be more effective and efficient in addressing the largest market opportunities that we've targeted in clean transportation and clean energy. Concerns about environmental footprint, energy security, and high fuel prices have increased interest around the world in these two important areas. Consolidating our electric vehicle product lines and our development programs will leverage common technologies, resources and business relationships. It will also strengthen Management's focus in our initiatives in both areas.

數位資料鏈（Digital Data Link）與 Switchblade 的開發計畫持續取得良好進展，展現其具價值的新能力。兩項計畫均吸引日益增加的客戶興趣。在我們業務的另一端，這是我們首次將高效能源系統（Efficient Energy Systems，EES）作為單一事業部門進行報告，係於 2008 財年末將 PosiCharge 與能源技術中心（Energy Technology Center）兩個部門合併後所做的調整。我們進行此結構性變更，是為了讓該團隊的人員在我們鎖定的潔淨運輸與潔淨能源兩大市場機會上，能更有效率且更具效能地推進工作。對環境足跡、能源安全以及高燃料價格的憂慮，已在全球提升了對這兩個重要領域的關注。整合我們的電動車產品線與開發計畫，將可運用共同技術、資源與商業關係，並將強化管理階層對兩大領域相關倡議的聚焦。

Quarterly revenue for the combined EES segment is up slightly year-over-year with good margin improvement. In clean transportation we market our PosiCharge, electric vehicle, fast charge systems as a productivity enhancer where industrial EV fleet operators. We also market our EV test systems to developers of next generation of EV systems around the world. In the clean energy space we are continuing to develop our architectural wind energy generation system for installation on buildings. We continue to move forward carefully and deliberately working closely with early adapter customers and maintaining our focus on insuring that all customers will be successful when we determine that this innovative system and its target markets are ready for broad adoption.

合併後的 EES 事業部門之季度營收較去年同期小幅成長，且毛利率改善良好。在潔淨運輸方面，我們將 PosiCharge 電動車快速充電系統定位為提升生產力的工具，提供給工業電動車（EV）車隊營運商。我們也向全球開發下一代 EV 系統的業者銷售 EV 測試系統。在潔淨能源領域，我們持續開發可安裝於建築物上的建築型風力發電系統。我們仍以審慎且有計畫的方式推進，與早期採用者客戶密切合作，並持續聚焦於確保當我們判定此創新系統及其目標市場已準備好廣泛採用時，所有客戶都能成功導入。

We're continuing to secure new customers for PosiCharge and believe that we maintain the largest share in the industrial EV fast charge at market. However, we have not yet broken through the adoption barriers that have prevented a rapid increase in growth in this area. We're exploring a number of initiatives from new system solutions to innovative channel strategies designed to increase the penetration of PosiCharge systems into the hundreds of thousands of industrial EVs operated in North America and beyond. Outside of the industrial EV market we are seeing increased interest in our EV test systems from OEMs that are working to develop new battery electric and plug-in hybrid vehicles. As a result, we believe that opportunities exist for increased volume for our EV test systems. With that as an overview of our business, I'll turn the call over to Steve for a more detailed discussion of our financial performance.

我們持續為 PosiCharge 爭取新客戶，並相信我們在工業 EV 快速充電市場仍維持最大市占。然而，我們尚未突破阻礙此領域快速成長的採用門檻。我們正探索多項倡議，從新的系統解決方案到創新的通路策略，旨在提升 PosiCharge 系統在北美及其他地區數十萬輛工業 EV 中的滲透率。在工業 EV 市場之外，我們看到來自 OEM 的 EV 測試系統需求增加，這些 OEM 正致力於開發新的純電池電動車與插電式混合動力車。因此，我們相信 EV 測試系統存在增加出貨量的機會。以上為我們業務概況，接下來我將把電話交給 Steve，請他更詳細說明我們的財務表現。

Thanks, Tim, and good afternoon. Revenue for the first quarter was $53.6 million an increase of 9% over first quarter prior year of $49.2 million. Looking at revenue by segment, UAS revenue was $46.1 million, an increase of 10% over prior year. The growth in UAS revenue was due to higher project R&D partially offset by lower product deliveries, EES revenue was $7.5 million an increase of 3% from Q1 of last year.

謝謝你，Tim，大家下午好。第一季營收為 5,360 萬美元，較去年同期第一季的 4,920 萬美元成長 9%。按事業部門來看，UAS 營收為 4,610 萬美元，較去年同期成長 10%。UAS 營收成長主要來自較高的專案研發（R&D）收入，但部分被較低的產品交付所抵銷；EES 營收為 750 萬美元，較去年第一季成長 3%。

Turning to gross margin, gross margin in the first quarter was $20.6 million up 22% from Q1 of last year. Gross margin as a percentage of revenue was 38% versus 34% in Q1 last year. By segment, UAS gross margin was $16.6 million, up 18% from Q1 of last year. As a percentage of revenue, UAS gross margin was 36% compared to 34% in Q1 of last year. This increase in gross margin rate was primarily due to lower program costs. EES gross margin was $3.9 million up 43% from Q1 of last year and as a percent of revenue EES gross margin was 52% compared to 37% in Q1 last year. This increase in gross margin rate was primarily due to operating efficiencies and sales mix.

接著看毛利，第一季毛利為 2,060 萬美元，較去年第一季成長 22%。毛利率為 38%，相較去年第一季的 34%。按事業部門來看，UAS 毛利為 1,660 萬美元，較去年第一季成長 18%；UAS 毛利率為 36%，相較去年第一季的 34%。毛利率提升主要由於計畫成本較低。EES 毛利為 390 萬美元，較去年第一季成長 43%；EES 毛利率為 52%，相較去年第一季的 37%。毛利率提升主要由於營運效率改善與銷售組合變化。

SG&A for the quarter was $8.1 million or 15% of revenue compared to $7.7 million or 16% of revenue in the prior year. SG&A growth is primarily due to higher selling and marketing expense. R&D expense for the quarter was $5.3 million or 10% of revenue compared to the prior year amount of $4.3 million or 9% of revenue. Customer-funded R&D during the quarter was $13 million or 24% of revenue compared to $4.3 million or 9% of revenue in Q1 of the prior year, and total R&D, internal and external, was $18.3 million or 34% of revenue versus $8.6 million or 17% of revenue in the prior year. Operating income for the quarter was $7.2 million or 13% of revenue. Operating income was 50% higher than Q1 of the prior year primarily due to the higher gross margin partially offset by R&D and SG&A expense. Net income for Q1 was $4.8 million or $0.22 per fully diluted share compared to $3.8 million or $0.18 per fully diluted share in the same period a year ago. Looking at backlog, funded backlog at the end of the first quarter was $108.9 million up $26.9 million or 33% from April 30, 2008.

本季 SG&A（銷售、一般及行政費用）為 810 萬美元，占營收 15%，相較去年同期為 770 萬美元，占營收 16%。SG&A 的增加主要由於較高的銷售與行銷費用。本季研發費用為 530 萬美元，占營收 10%，相較去年同期為 430 萬美元，占營收 9%。本季客戶出資研發（Customer-funded R&D）為 1,300 萬美元，占營收 24%，相較去年第一季為 430 萬美元，占營收 9%；內部與外部合計的總研發為 1,830 萬美元，占營收 34%，相較去年同期為 860 萬美元，占營收 17%。本季營業利益為 720 萬美元，占營收 13%。營業利益較去年第一季高出 50%，主要因毛利增加，部分被研發與 SG&A 費用所抵銷。第一季淨利為 480 萬美元，完全稀釋後每股盈餘為 0.22 美元，相較一年前同期間為 380 萬美元、完全稀釋後每股盈餘 0.18 美元。就在手訂單（backlog）而言，第一季末已獲資金支持的在手訂單為 1.089 億美元，較 2008 年 4 月 30 日增加 2,690 萬美元或 33%。

Turning to our balance sheet, cash equivalents and short-term investments at the end of the first quarter totaled $113.4 million, down $5 million from our prior quarter amount of $118.4 million. The negative cash flow was largely due to working capital and capital expenditures partially offset by income. Investments at the end of the first quarter were $8.5 million down from the previous quarter amount of $13.4 million. The decrease in investments was due to net redemptions of municipal auction rate securities. Turning to receivables, at the end of the first quarter our accounts receivable including unbilled receivables totaled $50.9 million up $500,000 from the prior quarter. Total day sales outstanding were approximately 85 days compared to 71 days at the prior quarter end.

接著看資產負債表，第一季末的約當現金與短期投資合計為 1.134 億美元，較前一季的 1.184 億美元減少 500 萬美元。負現金流主要由營運資金與資本支出所致，部分由獲利抵銷。第一季末投資為 850 萬美元，較前一季的 1,340 萬美元下降。投資下降係因市政拍賣利率證券（municipal auction rate securities）的淨贖回。再看應收款項，第一季末我們的應收帳款（含未開立帳單的應收款）合計為 5,090 萬美元，較前一季增加 50 萬美元。應收帳款週轉天數（DSO）約為 85 天，較前一季末的 71 天增加。

Taking a look at our inventory, inventories were $20.7 million at the end of the first quarter compared to $15.9 million at the end of the prior quarter. Days in inventory were 56 days versus 35 days at the end of the prior quarter. Turning to capital expenditures in the first quarter we invested approximately $2.3 million or 4% of revenue in property improvements and capital equipment. Of the CapEx approximately 90% was related to growth. And now I'd like to turn things back to Tim, to discuss expectations for the full year.

再看存貨，第一季末存貨為 2,070 萬美元，較前一季末的 1,590 萬美元增加。存貨天數為 56 天，相較前一季末為 35 天。至於第一季資本支出，我們在不動產改善與資本設備上投資約 230 萬美元，約占營收 4%。其中約 90% 的 CapEx 與成長相關。接下來我想把時間交還給 Tim，請他談談對全年預期。

Thanks, Steve. As I said earlier Q1 was a good start to our fiscal 2009 and positions us well for achieving our full year targets. In summary, the frequency change was executed successful it. Our production in development programs are on track. The Puma AE win was an important success and fortifies our position in small UAS. Our receipt of an order for a second Global Observer was a key milestone in that program. We believe that we may receive commitments for proceeding with the introduction of Digital Data Link this year. Based on our solid performance in Q1, I'm comfortable reiterating the annual guidance we provided during our last call, which is fiscal 2009 revenue growth of 20% to 25%, and a 12% to 14% operating income margin. Of course, none of this would be possible without the skill, committment, and effective efforts of our team members. The committment to success of our customers, the support of our suppliers and the trust of our stockholders. Thank you all for your attention and your interest. And with that, Steve and I will open the call to questions.

謝謝你，Steve。如我先前所說，第一季為我們 2009 財年帶來良好開局，並使我們在達成全年目標方面具備良好定位。總結而言，頻率變更已成功執行。我們的生產與開發計畫均按進度推進。Puma AE 的得標是一項重要成果，並鞏固我們在小型 UAS 的地位。我們取得第二套 Global Observer 的訂單，是該計畫的重要里程碑。我們相信今年可能會取得推進導入數位資料鏈（Digital Data Link）的承諾。基於第一季的穩健表現，我有信心重申我們在上次電話會議提供的年度指引：2009 財年營收成長 20% 至 25%，以及 12% 至 14% 的營業利益率。當然，若沒有我們團隊成員的專業、承諾與有效努力，這一切都不可能達成；也要感謝客戶對成功的承諾、供應商的支持以及股東的信任。感謝各位的關注與興趣。接下來，Steve 和我將開放提問。

Thank you. The question and answer session will be conducted electronically. (OPERATOR INSTRUCTIONS) And we'll pause for just a moment to give everyone a opportunity to signal. We'll go first to Michael Lewis with BB&T Capital Markets.

謝謝。問答環節將以電子方式進行。（操作員指示）我們將稍作停頓，讓各位有機會發出提問訊號。我們先請 BB&T Capital Markets 的 Michael Lewis 提問。

Hi, Tim, hi, Steve, how are you?

嗨，Tim，嗨，Steve，你們好嗎？

Hi, Michael, how are you?

嗨，Michael，你好嗎？

Doing fine. Okay, so it was a really nice quarter, strong margin and very much a surprise on my side, but my question is you talked a little bit about the customer funded R&D in the quarter. What exactly was that number and did any of that revenue come in earlier than you had anticipated on your own internal plan?

我很好。好的，這是一個非常出色的季度，毛利強勁，對我而言也相當意外。不過我的問題是，你們稍微提到本季的客戶出資研發（customer funded R&D）。那個數字到底是多少？另外，其中是否有任何營收比你們內部原先規劃預期更早入帳？

Mike, we don't break down individual programs, but for the quarter project R&D in total is 24% of total Company revenue, Global Observer would be the lion's share of that. In terms of the timing, I think the timing is consistent with our expectations. It's Global Observer is a large project and it's building up over time and I think it's proceeding more or less according to plan.

Mike，我們不會把個別專案拆開來說明，但就本季而言，研發（R&D）專案合計約占公司總營收的 24%，其中 Global Observer 會占最大比重。就時程來看，我認為與我們的預期一致。Global Observer 是一個大型專案，會隨時間逐步拉升，我認為其進展大致按計畫進行。

Okay. Also, just one more question and I'll get out of the way here. If we look at your total UAS revenue, what proportion is [PBL] at performance-based logistics and can you tell us what level of year-over-year growth that you're seeing in that area of the line item at this time?

好的。另外再問一個問題我就不占用時間了。若看你們的 UAS 總營收，[PBL]（以績效為基礎的後勤支援，performance-based logistics）占比是多少？以及就目前這個科目而言，你們看到該領域的年對年成長幅度大概是多少？

Well, Mike, this is Tim. It's not performance-based logistics. The logistics aspect of that service line is spare parts, repairs, training and I guess upgrades. Yes, Steve is pointing out upgrades as well. So the spare parts and repairs or the maintenance is typically on a cost-plus basis and it's not associated with the performance-based contract.

Mike，我是 Tim。那不是以績效為基礎的後勤支援。該服務線的後勤面向包括備品、維修、訓練，以及我想還有升級。是的，Steve 也指出還有升級。所以備品與維修或維護通常是以成本加成（cost-plus）計價，並不與績效型合約相關。

Okay, but what I'm trying to gather here is this part of the UAS revenue stream growing at a higher clip versus the production side of the revenue stream?

好的，但我想了解的是：這一塊 UAS 的營收來源，相較於生產端的營收來源，是否以更快的速度成長？

Well, I think the only way that I can answer that is to point out where it's been and where it is in Q1, because we're not guiding on that element going forward. In fiscal '08, services companywide, and it's primarily UAS, services were 30% of total company sales, and in Q1, continues to be around that at 28% of revenue.

我想我能回答的方式只有指出過去的情況以及 Q1 的現況，因為我們不會對未來這個項目提供指引。2008 財年，全公司服務收入（主要來自 UAS）占公司總銷售的 30%；而在 Q1，仍大約維持在這個水準，約占營收的 28%。

Okay, that's very helpful. Thank you, Tim.

好的，這非常有幫助。謝謝你，Tim。

We'll go next to Chris Donaghey, SunTrust.

接下來請 SunTrust 的 Chris Donaghey。

Hi, good evening, guys, and congratulations on the quarter.

嗨，各位晚安，恭喜本季表現。

Thanks Chris.

謝謝你，Chris。

Tim, on the Global Observer, with the option exercise for the second aircraft does that mean that the $35 million that was included in the fiscal 2008 supplemental has been released?

Tim，關於 Global Observer，第二架飛機的選擇權被行使，是否表示 2008 財年追加預算（supplemental）中包含的 3,500 萬美元已經釋出？

Well, I don't think it means that it's all been released, but I believe that the portions that have been exercised, the options that have been exercised under the contract to date were funded through that line item. We actually expect there will be some more later on.

我不認為那代表已全部釋出，但我相信截至目前在合約下已被行使的部分（已行使的選擇權）是透過該科目獲得資金。我們其實預期之後還會有一些。

Well that's where I was going next. In the house appropriation's subcommittee on defense, their markup of the fiscal '09 defense bill, they included a plus up of $40 million for Global Observer development, so if you took the first contract you received, the $57 million plus the $35 million that is in the 2008 supplemental, plus what's coming now more than likely in the fiscal '09 bill, that puts you at $132 million versus the original contract value of $108 million. So can you just talk a little bit about what's going on, what is the customer seeing? Are they trying to significantly accelerate development? Are they allowing you to add scope to the work and what would be causing the size of the program to go up -- be going up this early in the development cycle?

這正是我接下來要問的。在眾議院撥款委員會國防小組委員會對 2009 財年國防法案的審議版本中，他們為 Global Observer 的研發增加了 4,000 萬美元。如果把你們拿到的第一份合約 5,700 萬美元，加上 2008 年追加預算中的 3,500 萬美元，再加上現在很可能會在 2009 財年法案中到位的金額，合計就是 1.32 億美元，對比原始合約價值 1.08 億美元。你能否談談目前發生了什麼、客戶看到了什麼？他們是否試圖大幅加速研發？是否允許你們擴大工作範圍？在研發週期這麼早的階段，會是什麼原因導致專案規模上升？

Well, Chris, let me say first that as far as the '09 defense budget is concerned, to my knowledge, that's still in process and -- so I haven't really got any comments there, but in general, I think as we've been saying the program is going I think very well. I think the customers are very satisfied with the progress we've had completed the first half of our critical design review last month. I think that went very well. I mentioned some very significant test results that we've had in the program, so I think there's generally a good appreciation of program performance and a very high level of interest in the kinds of capability that this breakthrough technology will provide. So having said that, it's not surprising to me that there's some opportunity to fund more of the initial development than was anticipated in the base contract, but until we get to that point, I'll just keep myself focused on the existing contract and working with our customers to exercise options up to that level.

Chris，我先說，至於 2009 年國防預算，就我所知仍在流程中——所以我目前沒有太多評論。不過整體而言，我認為如同我們一直在說的，這個專案進展得非常好。客戶對我們的進度非常滿意；上個月我們完成了關鍵設計審查（critical design review）的前半段，我認為進行得很順利。我也提到過我們在專案中取得了一些非常重要的測試結果，因此我認為大家普遍對專案表現有很高的肯定，並且對這項突破性技術將提供的能力有非常高的興趣。基於此，我並不意外會有機會為初期研發投入比基礎合約原先預期更多的資金；但在走到那一步之前，我會把重點放在既有合約上，並與客戶合作，在該水準內行使選擇權。

Fair enough. Thanks again, Tim, and good job in the quarter.

可以理解。再次謝謝你，Tim，本季做得很好。

Thanks, Chris.

謝謝你，Chris。

And we'll go next to Tyler Hojo with Sidoti & Company.

接下來請 Sidoti & Company 的 Tyler Hojo。

Hey. Good evening, guys. One question for me, just on the EES gross margin. That looked incredibly strong and I know you mentioned it a little bit, but I was hoping you could talk a little bit more about kind of what drove that strengthen the quarter and if that's sustainable going forward.

嘿，各位晚安。我只有一個問題，關於 EES 的毛利率。看起來非常強勁，我知道你們稍微提到了一點，但我希望你們能再多談一些，本季毛利率走強的主要驅動因素是什麼，以及未來是否可持續。

I'll start off. I think we combined those -- previously the energy and PosiCharge segments so that we would see some efficiencies and improvement going forward. However, we continue to look at that business as a entry into a number of very favorable markets and we're really mostly focused on top line growth. We did achieve efficiencies during the quarter. To some extent we'll see that in the future, but we don't want you to think it's going to come rolling in at that level of gross margin going forward.

我先回答。我們先前把能源（energy）與 PosiCharge 事業部合併，目的是希望未來能看到一些效率提升與改善。不過，我們仍把這項業務視為進入多個非常有利市場的切入點，因此我們主要聚焦在營收（top line）成長。本季我們確實達成了一些效率提升，未來某種程度上也會看到，但我們不希望你們認為未來毛利率會一直維持在這個水準。

Okay, that's helpful. And then I guess just a clarification on the production and restart for Raven and WASP. I mean it looked like it pretty much went according to your plan as of Q4. Was that the case, or was it maybe a little bit faster or a little bit slower than you previously expected?

好的，這很有幫助。接著我想釐清一下 Raven 和 WASP 的生產與復工（restart）。看起來截至 Q4 幾乎都按你們的計畫進行。實際情況是如此嗎？還是比你們先前預期稍快或稍慢？

No, Tyler, I think it was pretty much on plan. From the outside, I think a good metaphor is a duck swimming in the water. It looks calm but there's a lot of activity going on under the water, so it took a significant concentration and collaboration with our customers to get that done, but in fact it was executed well and pretty much on schedule as planned.

不，Tyler，我認為基本上就是按計畫進行。從外部看，一個很好的比喻是鴨子在水面游泳：看起來很平靜，但水下其實有很多動作。所以這需要我們高度專注並與客戶密切協作才能完成；但確實執行得很好，且大致按原定時程完成。

Okay, great. And just one more maintenance question. Provided a firm backlog number for us, but would you mind providing the IDIQ backlog?

好的，很棒。再問一個關於維護的問題：你們提供了確定（firm）的在手訂單（backlog）數字，但能否也提供 IDIQ 的在手訂單？

Yes. The unfunded backlog was at the end of the quarter was $598 million.

可以。本季末未撥款（unfunded）的在手訂單為 5.98 億美元。

Thanks very much.

非常感謝。

And we'll go next to Brian Gesuale, Raymond James.

接下來請 Raymond James 的 Brian Gesuale。

Hi, guys. Great job on the quarter.

嗨，各位。本季表現很出色。

Thanks, Brian.

謝謝你，Brian。

Wanted to kind of dig into backlog a little bit more on the funded side. It was a really nice increase sequentially. Wondered if you could give us a little bit of color in terms of you won obviously the big IDIQ contract, maybe how much of that fits in backlog in the funded portion. And then obviously Global Observer coming online, but just maybe help us connect the dots on that massive increase.

我想再深入了解一下在手訂單，特別是已撥款（funded）的部分。它的季對季增幅很漂亮。想請你們多提供一些背景：你們顯然拿下了大型 IDIQ 合約，那其中大概有多少會反映在已撥款在手訂單？另外 Global Observer 也開始上線，能否幫我們把這個大幅增加的原因串起來？

Well, Brian, did you mean unfunded backlog or funded backlog?

Brian，你指的是未撥款在手訂單，還是已撥款在手訂單？

The funded backlog, Steve.

已撥款在手訂單，Steve。

Well the funded backlog, the Puma AE contractor or AECV contract came in with a, if I recall, a $6 million order, and that went into unfunded, excuse me, went into funded backlog and we're currently working on that contract. The total contract or IDIQ value was $200 million, so the difference between that $200 million and the $6 million exercised would be in unfunded and would be the major driver for the growth in the unfunded backlog that I just referred to.

已撥款在手訂單方面，Puma AE 承包商（contractor）或 AECV 合約，我記得下了一筆 600 萬美元的訂單，這筆就計入——抱歉——計入已撥款在手訂單，我們目前正在執行該合約。整體合約或 IDIQ 的總價值是 2 億美元，因此 2 億美元與已行使的 600 萬美元之間的差額會列在未撥款部分，並且會是我剛提到未撥款在手訂單成長的主要驅動因素。

Okay, and then maybe Global Observer, how that rolled into the funded backlog?

好的，那 Global Observer 呢？它是如何反映到已撥款在手訂單的？

I'm sorry can you repeat?

抱歉，你可以再說一次嗎？

Yes, I'm sorry, the funded backlog portion maybe contribution from Global Observer since the activity was so heavy there?

好的，不好意思。我是說已撥款在手訂單的部分，Global Observer 可能的貢獻是多少？因為那邊的活動量很大。

Yes. We cannot disclose that amount. It was one airplane plus some additional items that were funded during the quarter, but were precluded by, we don't have permission from our customer to disclose amounts. It's clearly -- it was a good chunk added to the funded backlog, even without that the funded backlog would have been very healthy, I guess I can say that.

是的。我們不能揭露那個金額。內容是一架飛機加上一些在本季獲得撥款的額外項目，但因為我們沒有客戶授權，不能披露金額。很明顯——它確實為已撥款在手訂單增加了相當可觀的一部分；即使不算它，已撥款在手訂單也會非常健康，我想我只能這麼說。

Okay, terrific. And then the one final, Tim maybe can you give us an update on timing and expectations for Switchblade?

好的，很好。最後一個問題，Tim，你能否更新一下 Switchblade 的時程與預期？

Yes, Brian. As you know, we're in a Phase II program on that development -- funded program on the development and demonstration of Switchblade. We have been successfully flying the new airplane under that program and we expect to complete the full scale demonstration expectations with our customer yet this calendar year, let me say within Q3. So I think at that point, we will have completed the expectations for the Phase II program. I think our customers will have the performance information that they need to make decisions on what they want to do going forward.

可以，Brian。如你所知，我們目前在該項研發——也就是 Switchblade 的研發與展示——正處於第二階段（Phase II）的受資助計畫。我們已在該計畫下成功試飛新飛機，並預期在今年曆年內、我應該說在第三季（Q3）之內，完成與客戶約定的全尺寸展示（full scale demonstration）要求。因此我認為到那時，我們將完成 Phase II 計畫的預期目標。我想客戶也將取得他們所需的性能資訊，以便決定後續要如何推進。

Okay, terrific. That's helpful and you guys make this quarterly reporting stuff look pretty easy. Congratulations.

好的，太棒了。這很有幫助，而且你們讓這些季度申報的事情看起來相當容易。恭喜。

Thanks Brian.

謝謝你，Brian。

We'll go next to Richard Safran, Goldman Sachs.

接下來請 Goldman Sachs 的 Richard Safran。

Hi, good afternoon.

嗨，下午好。

Hi Rich.

嗨，Rich。

Just first just a quick housekeeping question. Just on your tax rate just seemed a bit high. I Just want to know if you can comment or not if there's any change in what you're thinking about for the full year for that?

先問一個簡單的例行問題。你們的稅率看起來有點偏高。我想知道你能否評論一下，對於全年稅率的看法是否有任何變化？

Not really. If you'll recall on the last call I talked about the tax rate being in the high 30%s, at 38% is probably a little higher than I thought it would close at. The main difference between where we are now and where we were last year, and we were at 34% last year is, we don't have a lot of tax free municipal interest income and we don't have the federal R&D tax credit. If the federal R&D tax credit is renewed, that will probably bring down this tax rate two to three points and at the time it happens it's will be a cumulative to date catch up.

沒有太大變化。如果你還記得，上次電話會議我提到稅率會在 30% 後段，大約 38% 可能比我原先預期的期末水準略高。與去年相比（去年是 34%）的主要差異在於：我們沒有太多免稅的市政債利息收入，而且也沒有聯邦研發（R&D）稅額抵免。如果聯邦研發稅額抵免獲得延長，稅率可能會下降 2 到 3 個百分點，而且在發生的當期會以年初至今的累計方式一次性追溯調整。

Okay, and then I want to just follow-up a little bit more on Switchblade. Got your comments on status. So when should we start to expect to look for a production decision? What are you guys thinking about, or what are you getting from the government as far as, if at things going well, when they would start notifying you about anything that they would want to do with production?

好的，接著我想再追問一下 Switchblade。你剛剛談到目前狀態。那麼我們應該何時開始期待你們做出量產決策？你們怎麼看，或是政府那邊給你們的訊息是什麼——如果進展順利，他們大概什麼時候會開始通知你們他們想要推動量產的任何事項？

Well, I don't have any firm data to give you on that Rich. I can tell you that our initial customer continues to be extremely interested in this capability in the form that we initially envisioned it and that we are currently demonstrating it, which is a backpackable system that's then launched vertically off the ground out of its self-contained package launching capability. There are other customers that have now become increasingly interested in variance of this capability and I think all of them are waiting to see the results of the current Phase II program. And as you know, with the new capability like this, it requires not only the development but then customers are presumably in the process of anticipating their own requirements and their own funding needs and then their own funding lines to support those needs and I really don't have good insight into the timing of those decisions. Having said all of that, I think in the next few months we're going to conclude this demonstration with -- this demonstration contract with full scale demonstration and after that we'll see how fast they decide they can move with the funding and the programmatic issues.

Rich，我沒有任何確切數據可以提供。我可以告訴你，我們的初始客戶仍然對這項能力非常有興趣，形式就是我們最初構想、且目前正在展示的樣子：一套可背負的系統，從自成一體的封裝中在地面垂直發射。現在也有其他客戶對這項能力的不同變體愈來愈感興趣，我認為他們都在等待目前第二階段（Phase II）計畫的結果。你也知道，像這樣的新能力不僅需要研發，客戶也可能正在預先規劃他們自身的需求、資金需求，以及支持這些需求的預算科目，因此我對這些決策的時間點沒有很好的掌握。儘管如此，我認為在接下來幾個月內，我們會以全尺寸展示來完成這份展示合約；之後就要看他們在資金與計畫推進等議題上能多快做出決定。

I guess just the last thing on that is, as a result of the demos and program that you're in right now, do you foresee, has the government for seen any need for any substantive changes to the system, or have these demos just pretty much proved proof-of-concept as is?

我想最後一點是，基於你們目前這些展示與計畫的成果，你是否預期政府會認為系統需要任何實質性的變更？還是這些展示基本上已經證明了現有設計的概念可行性？

I think it's more the latter. In terms of changes, it would -- I would anticipate as different customers to the degree that they get serious about their interest, they will probably all tend to have slightly different concepts of operation and those might lead to slight modifications of the implementation, but for the most part, we're moving along as planned.

我認為比較偏向後者。至於變更，我預期當不同客戶在興趣上更為認真時，他們可能都會有略為不同的作戰概念（CONOPS），這可能導致在實作上做一些小幅調整；但大致上，我們仍按計畫推進。

Okay. Appreciate it. Thank you.

好的。感謝。謝謝你。

Thanks Rich.

謝謝你，Rich。

We'll go next to Troy Lahr, Stifel Nicolaus.

接下來請 Stifel Nicolaus 的 Troy Lahr。

Just wanted to drill down a little bit, did you say in the beginning that Global Observer was most of the external R&D?

我想再深入一點確認一下，你一開始是說 Global Observer 佔了大部分的外部研發（R&D）嗎？

Well, I think it's clearly our largest externally funded R&D program, and so I think it's probably the largest source is probably a good summary of it.

我認為它顯然是我們最大的外部資助研發計畫，所以說它是最大的來源，這樣的總結應該沒問題。

Okay, and then if I use that to kind of back into the UAS segment, is it safe to say that Global Observer is maybe 20% of the business at UAS now and then maybe Raven is 60% to 70%? How should I think about this business mix now at UAS with some of these other programs starting to ramp up?

好的，那如果我用這個來回推 UAS 事業部的組成，是否可以說 Global Observer 目前大概佔 UAS 業務的 20%，而 Raven 可能佔 60% 到 70%？隨著其他計畫開始放量，我應該如何看待 UAS 目前的業務組合？

Well, I think the global -- I don't know, I guess we don't want to start breaking it down that way. I would look at the project R&D and say that the lion's share of that is Global Observer. If you look at the productline, again we're not going to break it down by product, but Raven is still the largest product followed by WASP and BATMAV and followed by the products on the EES side.

嗯，我想——我不確定。我想我們不想用那種方式去拆分。我會看專案研發（project R&D）那一行，並說其中絕大部分是 Global Observer。若看產品線（product line），同樣我們不會按產品拆分，但 Raven 仍是最大的產品，其次是 WASP 和 BATMAV，再其次是 EES 端的產品。

Okay, so I mean, is Global Observer bigger than kind of WASP and BATMAV?

好的，所以我的意思是，Global Observer 會比 WASP 和 BATMAV 還大嗎？

I probably don't want to add anything more to that. If you look at the project R&D line, Global Observer is the major contributor there.

我可能不想再補充更多。如果你看專案研發那一行，Global Observer 是主要貢獻來源。

Right.

了解。

And then if you look at the productline, major contributor, continues to be Raven, Raven and is probably rough order of magnitude 50% of our product sales, total company product sales, going to a growing number of different customers.

然後如果你看產品線，主要貢獻者仍然是 Raven；Raven 大概約略占我們產品銷售（全公司產品銷售總額）的 50%，而且銷往越來越多不同的客戶。

Right. And then on the service side is that also majority of that is Raven? How should I think about the service work that you're doing relative to Raven versus the other systems?

了解。那在服務（service）端，是否也主要是 Raven？我應該如何看待你們的服務工作，相對於 Raven 與其他系統的占比？

Well it follows the products so the services would be related --

嗯，它會跟著產品走，所以服務會是相關——

About 50%?

大約 50%？

Well I don't even know if I could say that. I don't know if that is true, Troy. I think services, it's sort of lagging but it probably -- we have the most Raven systems fielded so the services are probably related mostly to Raven.

我甚至不確定我能不能這麼說。我不確定那是否為真，Troy。我認為服務有點落後於產品，但我們部署在外的 Raven 系統最多，所以服務可能主要與 Raven 有關。

Okay.

好的。

And then over time we'll start to see more and more of services related to other new products as they're cut in.

然後隨著時間推進，當其他新產品逐步導入後，我們會看到越來越多與其他新產品相關的服務。

Okay. Yes. That frames it's a little bit. That's helpful. And you said you still have some retrofit to go on the Raven system regarding these frequency changes. Could you maybe ballpark how far you are along in that? Is this kind of like a 7th inning or are you still a lot more room to go on just the retrofit work?

好的。是的，這樣比較有概念了，很有幫助。你提到 Raven 系統在這些頻率變更方面仍有一些改裝（retrofit）要做。你能否大概估一下目前進度？這算是已經到第七局了，還是改裝工作其實還有很大空間要做？

Yes, I think that retrofit work will continue out beyond next year, Troy, and that's just primarily, it's not really a capacity constraint. I think it's mostly what's convenient for our customers to address.

是的，我認為這些改裝工作會持續到明年之後，Troy。這主要不是產能限制，我想更多是取決於客戶何時方便處理。

Okay. And then how quickly should Puma AE start to ramp up? Is that relatively quickly or certain milestones are going to drive that again also.

好的。那 Puma AE 的放量速度會有多快？會相對很快嗎？還是也會由某些里程碑來驅動？

Yes, I think we should look at that as very early so this first $6 million-ish installment on that buy will get the [LRIP] done. We'll move I think to full rate production review and approval and then after that, we would expect to see greater volumes move in. So --

是的，我認為目前仍非常早期。這筆約 600 萬美元的第一期採購款將完成 [LRIP]（低率初期生產）。接著我們會進入全速率生產的審查與核准，之後我們預期會看到更大的出貨量進來。所以——

It's an IDIQ, and it's going to be -- it's probably going to look a little bit, it's going to resemble our first SUAV Raven contract. It's going to come in in a matter of steps over time.

這是一份 IDIQ（不定量/不定交付）合約，而且它大概會——會有點像我們第一份 SUAV Raven 合約：會隨時間以一連串步驟逐步進來。

Okay. And now lastly, can you kind of walk us through the cash flow, what was cash flow from Operations in the quarter? I thought you said it was negative but I didn't get the actual number.

好的。最後，能否請你帶我們走一下現金流？本季營運活動現金流是多少？我以為你說是負的，但我沒有聽到實際數字。

Yes. Let's see. Cash from operating activities was approximately $3 million negative was in property capital --

是的。我看看。營運活動現金流約為負 300 萬美元；固定資產資本——

CapEx?

資本支出（CapEx）？

-- $2.3 million, so we had a negative free cash flow calculation of $5.3 million.

——為 230 萬美元，所以我們計算的自由現金流為負 530 萬美元。

Okay. But you expect that to recover, or how do you expect that to progress throughout the year?

好的。但你預期會回升嗎？或你預期全年會如何演變？

Well, probably recover to some extent. The CapEx is obviously going to continue. In fact, it will probably creep up as we go through the year. CapEx was 4% of revenue for the quarter and I expect 5% to 6% for the year. The day sales were a little bit worse than normal perbated by this cut in of volume -- or cut in of the RF frequency change of Raven. That caused a lot of the volume to bunch up towards the second half, in the second half of the quarter which increased receivables and similar reasons increased inventory. Working capital could get a little bit better as we go through the balance of the year.

嗯，可能會在某種程度上回升。資本支出顯然會持續；事實上，隨著年度推進可能還會略為上升。本季資本支出占營收 4%，我預期全年會是 5% 到 6%。應收帳款週轉天數（DSO）比正常稍差，部分原因是 Raven 的射頻（RF）頻率變更導入，導致許多出貨量集中在本季後半段，進而增加應收帳款；同樣原因也增加了存貨。隨著今年剩餘期間推進，營運資金可能會有所改善。

Okay. Thanks guys.

好的。謝謝各位。

Thanks Troy.

謝謝你，Troy。

We'll go next to Michael Ciarmoli with Boenning & [Scatter].

接下來請 Boenning & [Scatter] 的 Michael Ciarmoli。

Hi guys. Thanks for taking my call. Most of my questions have been answered. Wanted to just follow-up on the last callers questioning. On the CapEx, where are you, where is a lot of the funding going? What specific resources do you guys find yourselves needing as you're starting to get into the ramp phase with some of the programs here?

嗨，各位。謝謝接我電話。我的大部分問題都已經得到解答了。我想就上一位來電者的提問再追問一下。關於資本支出（CapEx），你們目前的情況如何？大部分資金都投向哪裡？當你們開始進入這裡某些專案的爬坡階段時，你們發現自己具體需要哪些資源？

It's growth capital. It's primarily UAS, and further it really relates mostly to our new engineering facility independent Simi Valley built out of that facility in tooling test equipment.

那是成長資本。主要是用在UAS（無人航空系統），更進一步說，主要與我們在西米谷（Simi Valley）新建的獨立工程設施有關，包括該設施的工裝治具與測試設備。

Yes, and I think there's also in the cap issue to date and probably as we go forward a significant amount going into the Global Observer capability.

是的，而且我認為在迄今為止的資本支出問題上，以及可能在未來，也有相當大一部分會投入到Global Observer能力上。

Okay, that's helpful. And then if you can, on the Raven penetration here, your 1,400 order. Can you tell us how far along you are into that order right now?

好的，這很有幫助。然後如果可以的話，關於Raven在這裡的滲透率，你們的1,400套訂單。你能告訴我們目前這筆訂單進行到哪個階段了嗎？

I think you're talking about the Army acquisition objective that we've talked about before, which is a 1,900 acquisition objective. We're 48% delivered against that acquisition objective as of Q1.

我想你指的是我們之前談過的陸軍採購目標，也就是1,900套的採購目標。截至第一季（Q1），我們已經完成該採購目標的48%交付。

Great. And then just I know you guys don't like to give sort of the guidance quarter to quarter, but with the production halt that happened in Q1 do you have any sort of expectation as to how product revenues ramp in the next quarter, or how should we be looking at the product-related revenue? Is it pretty back to those maybe $30 million levels? If you can give us any guidance that would be helpful.

很好。然後我知道你們不太喜歡逐季提供指引，但由於第一季發生了停產，你們對下一季產品營收的爬坡是否有任何預期？或者我們應該如何看待與產品相關的營收？是否大致回到可能約3,000萬美元的水準？如果你們能提供任何指引會很有幫助。

Well I think that we'd like to stay with annual guidance. On the last call we did talk a little bit about Q1 because that was a pretty significant change and we talked about how we would catch up over the balance of our fiscal year and that catch up would be spread pro rata, or like peanut butter throughout the balance of the year and I think we would probably just stick with that. That continues to be our view.

我想我們希望仍以年度指引為主。在上一次電話會議中，我們確實稍微談到第一季，因為那是一個相當重大的變化；我們也談到會在本財年剩餘期間把進度補回來，而這個補回會按比例分攤，或像把花生醬一樣均勻抹在全年剩餘期間。我想我們大概就維持這個說法。這仍然是我們的看法。

Yes, I think by far the best way to look at the balance of the year is back to our guidance for the year of 20% to 25% top line growth.

是的，我認為看待今年剩餘期間最好的方式，仍是回到我們對全年20%到25%營收成長的指引。

Okay, fair enough. All right, that's all I have, guys. Thanks.

好的，合理。好吧，各位，我就這些問題。謝謝。

Thanks.

謝謝。

We'll go next know Howard Rubel with Jefferies.

接下來我們請Jefferies的Howard Rubel。

Thank you very much. Just to follow-up on some things that you said, Tim. First you talked about gross margins in ES, kind of being a little bit larger than normal. Could you help us a little bit to understand what normal might be, or what is it that caused you to get to these good numbers and why can't you keep them?

非常感謝。想就你剛才提到的一些事情追問一下，Tim。首先你談到ES的毛利率似乎比正常水準高一些。你能否幫我們理解一下「正常」大概是什麼樣子？或者是什麼原因讓你們達到這些不錯的數字，以及為什麼無法維持？

Good question, Howard. So I think primarily those operating numbers were driven by higher gross margins and the higher gross margin was a combination of operating effectiveness improvements and some product mix that shifted around in the quarter relative to history. And as to why wouldn't we keep those going forward, I think some of the issues regarding mix probably balance outgoing forward and then we get back to Steve's point that the real opportunity in that Efficient Energy Systems business is the figuring out how we accelerate adoption of PosiCharge into what we think is a much larger potential market and figuring out how we develop and launch new products into clean energy and clean technology potential markets, all of which require significant investment both in R&D and in Business Development and the commercialization process. So we think the upside in the long term is very large and we'll be focused on maintaining share in PosiCharge and accelerating adoption and commercializing other new products, all of which will lead us to focus on the top line and the market entry as opposed to trying to maximize quarterly earnings.

好問題，Howard。我認為主要是這些營運數字是由較高的毛利率所帶動，而較高的毛利率是營運效率改善與本季相較於過往的產品組合變化兩者的結合。至於為什麼未來不一定能維持，我想產品組合的因素可能在往後會趨於平衡；然後回到Steve的觀點，Efficient Energy Systems這個業務真正的機會在於：我們如何加速PosiCharge的採用，進入我們認為更大的潛在市場；以及我們如何在潔淨能源與潔淨科技的潛在市場中開發並推出新產品。這些都需要在研發、商務開發以及商業化流程上投入大量資金。因此我們認為長期上行空間非常大，我們會專注於維持PosiCharge的市占、加速採用並將其他新產品商業化；這些都會使我們更聚焦於營收成長與市場切入，而不是試圖把季度盈餘最大化。

I know, I understand that. I mean a lot of that makes, that's the right strategic approach and I appreciate that, but I'm still a little bit of -- you said this was unusually large. Can you give me a range or a bound of what kind of variability you might be able to expect?

我知道，我理解。很多內容都很合理，這也是正確的策略方向，我也很感謝。不過我還是有點——你說這次是異常偏高。你能給我一個區間或界線，讓我了解你們可能會看到的波動範圍嗎？

Maybe I'll just say that we're one quarter into this reorganization and we're happy with these results, but we feel it would be premature to start planning on these margin levels. I mean we're obviously pleased with them and we're going to be trying to manage the business to sustain much of this improvement, but it's a little early for us to start talking about what this business is going to do from a long-term perspective.

也許我只能說，我們這次重組才進行了一季，我們對這些結果很滿意，但我們覺得現在就開始以這些毛利率水準來做規劃還為時過早。當然我們對此很高興，也會努力管理業務以維持這些改善中的很大一部分，但現在談這個業務長期會如何表現，對我們來說還太早。

I think that's fair. If anything I think you did extraordinarily well given the volume was what would appear to me to be a little bit light, given the opportunity, so I'm just sort of impressed to say the least on this, but was hopeful for some sense of bound. But to follow further on this you talked about some new customers, Tim, in this market. Can you talk in either industry terms of who they were and why they showed up and took the product or bought the product?

我覺得這很公平。若有什麼的話，我認為在這樣的出貨量下你們做得非常出色；以機會來看，這個量在我看來似乎有點偏輕，所以我至少可以說我相當印象深刻，但我原本希望能有一些界線的概念。再進一步追問，你提到在這個市場有一些新客戶，Tim。你能否用產業類別來談談他們是誰，以及他們為什麼會出現並採用或購買你們的產品？

Well I think in the area of our ongoing PosiCharge business, Howard, it's -- that's -- we are continuing to find new customers primarily in areas outside in terms of new customers outside the automotive segment, food and beverage and retail distribution. In the EV Fast Charging productline, that's been -- customer base there have been vehicle OEMs and battery manufacturers and fuel cell systems manufacturers and some primarily some R&D facilities and other industries secondarily. In that area, I think it's these -- some new entrants into those markets that are building up their needs for development testing as well as prior customers that are accelerating their efforts in this area.

我想在我們持續進行的PosiCharge業務方面，Howard，我們仍在持續找到新客戶，主要是汽車領域以外的新客戶，例如食品飲料與零售配送。在EV快速充電產品線方面，那裡的客戶群包括車輛OEM、電池製造商、燃料電池系統製造商，以及一些以研發設施為主、其他產業為輔的客戶。在那個領域，我認為是一些新進入者正在建立其開發測試需求，同時也有既有客戶正在加速他們在這方面的投入。

You're still down playing architectural wind. You now have, what, about 13 sites, is that correct?

你們仍然在淡化建築風電（architectural wind）。你們現在大概有13個站點了，對嗎？

I think it's a little closer to 10, but pretty close double digit numbers.

我想更接近10個，但確實差不多是兩位數。

And there's still some additional -- I mean, okay, just two other things. One, on Digital Data Link, again, you said very close to receiving an order. Could you add a little more color to that, please?

而且還有一些額外的——我的意思是，好吧，另外兩件事。第一，關於Digital Data Link，你再次提到非常接近收到一筆訂單。你能否再多補充一些細節？

Well, I wouldn't necessarily characterize it as very close, but in our discussions with our customers, I believe that they're serious about rounding up the funding and launching the first production or pre-production orders for that. Probably I would expect to see that be a limited initial program designed to field a limited set for evaluation, and with the expectation that they would then move on to much broader adoption. So I believe that their intent is to do that yet this year, so I guess that was the point I was trying to make.

嗯，我不一定會把它形容為「非常接近」，但在我們與客戶的討論中，我相信他們確實認真在籌措資金，並啟動第一批量產或試量產訂單。我預期那可能會是一個有限的初始專案，目的是先部署一小部分用於評估，並期望之後再推進到更廣泛的採用。因此我相信他們的意圖是在今年內完成，我想這就是我想表達的重點。

That's fair. And then the final thing is that some of these projects you have, perch and stare and some of the other developments, does that give you some indication that you have some opportunity to break into FCS, or are we still on the outside looking in there?

這很公平。最後一點，你們有一些專案，例如perch and stare以及其他一些開發，這是否讓你們覺得有機會打入FCS，還是我們仍然是在外圍觀望？

Well, this program is a DARPA-funded program, Howard, and it's not an FCS --

嗯，Howard，這個專案是DARPA資助的專案，它不是FCS——

I understand the difference of DARPA hard.

我理解DARPA的差異。

Yes, but now that we're in Phase II of this and we have actually demonstrated many of the objective performance characteristics, we're pretty excited about the potential for all of our existing customers and I think our DARPA customers are pleased with the performance here. I think you're referring to the class one FCS program that does have a, I think, a hover and stare initial requirement and a perch and stare objective requirement, but we're not involved with this program in FCS at this point.

是的，但現在我們已經進入第二階段（Phase II），而且我們實際上已經展示了許多目標性能特徵，我們對於它對所有既有客戶的潛力感到非常興奮；我想我們的DARPA客戶也對這裡的表現感到滿意。我想你指的是FCS的一級（class one）專案，它確實有一個我認為是hover and stare的初始需求，以及perch and stare的目標需求，但目前我們並未參與FCS的這個專案。

Thank you very much, Tim.

非常感謝你，Tim。

Howard, there's also as you were poking around in the original question at the development programs and particularly the kind of conservative approach we're taking with rolling out architectural wind. Just to answer where I think you might have been going, our concern there is with very innovative new technology, it's been our experience that going slower, working closely with early adopter customers and understanding how they use it, how their expectations adapt, what happens in various installations over time in various environments is really essential to ultimately getting it right. And if we go back to one of our mantras, we're committed to the success of any customer that adopts our innovations, and that -- just our experiences, it takes longer than one might expect to sort all that out to make sure that we don't disappoint when we actually move to full rate production.

Howard，另外你在最初的問題中也提到開發專案，特別是我們在推出建築風電時採取的較保守做法。為了回答我認為你可能想問的方向：我們的顧慮是，對於非常創新的新技術，依我們的經驗，走慢一點、與早期採用者客戶密切合作、了解他們如何使用、他們的期望如何調整、以及在不同環境下各種安裝隨時間推移會發生什麼，對於最終把事情做對是非常關鍵的。如果回到我們的一句口號，我們致力於任何採用我們創新的客戶都能成功；而就我們的經驗而言，要把這些事情釐清並確保在真正進入全速量產時不讓客戶失望，所需時間往往比人們預期的更長。

Another way of saying this is zero warranty cost.

換句話說，就是零保固成本。

Well, it's surprising how many unexpected things come along with really innovative technology. I think pool players have a metaphor for long shots: even though it looks like it's straight, there's a lot of green in between.

嗯，令人驚訝的是，真正具創新性的技術往往會伴隨許多意想不到的事情。我想撞球選手對「長台」有個比喻：即使看起來是一條直線，中間其實還隔著一大片綠呢。

Thank you. I appreciate your point on this, Tim, a lot.

謝謝你。我非常感謝你在這點上的看法，Tim。

Thanks, Howard.

謝謝，Howard。

We'll go next to Josephine Millworth, Stanford Group.

接下來請 Josephine Millworth，Stanford Group。

Good afternoon.

下午好。

Hello, Josephine, how are you?

你好，Josephine，你好嗎？

Doing well, thank you. Congratulations on winning this special operations contract. Can you talk a little bit about your outlook for the Puma? Since this is a program of record have you had any indication from the military in terms of the requirement going forward?

我很好，謝謝。恭喜你們拿下這份特種作戰合約。你能談談你們對 Puma 的展望嗎？既然這是一個正式列案（program of record）的計畫，軍方對於後續需求是否有給你們任何指示？

Well, as you know, the customer for this that has this initial requirement and placed this initial order is US Special Operations Command. The contract has an IDIQ value of about $200 million or I think it is $200 million, so that's some vague implication of long-term intent. The initial contract was about $6 million and that will take us through the evaluation leading to a full rate production decision. After that we would expect that our first customer would then begin to increase their production requirements. If we look back at our last program of record win, which was the BATMAV program and our WASP III system, that was I believe about 11 months from the initial contract win to the full rate production approval, so that's -- about a year is maybe a reasonable expectation in that first phase of the program.

嗯，如你所知，提出這項初始需求並下了這筆初始訂單的客戶是美國特種作戰司令部（US Special Operations Command）。該合約的 IDIQ 總值約為 2 億美元，或我想是 2 億美元，因此這在某種程度上隱含了長期意圖。初始合約約為 600 萬美元，這將讓我們完成評估並推進到全速量產（full rate production）決策。在那之後，我們預期第一個客戶會開始提高其生產需求。回顧我們上一個正式列案計畫的得標，也就是 BATMAV 計畫與我們的 WASP III 系統，從初始合約得標到全速量產核准，我記得大約是 11 個月，所以——在該計畫第一階段，大約一年可能是合理的預期。

So you're not really expecting a lot of revenue contribution until next year?

所以你們其實不太預期要到明年才會有很大的營收貢獻？

Correct.

正確。

Okay. And you had a very strong quarter for new bookings, looks like it was over $70 million. Other than the Global Observer can you talk and what areas your bookings came from and if you expect this trend to continue?

好的。另外，你們本季新接訂單非常強勁，看起來超過 7,000 萬美元。除了 Global Observer 之外，你能談談你們的訂單主要來自哪些領域，以及你是否預期這個趨勢會持續？

Well, I'll try. It's really all of the above.

嗯，我試著回答。基本上是各方面都有。

Right.

對。

It's Raven. I mean clearly, the Puma was a press release, so it's -- and we talked about Global Observer on the call, but in addition, there's just more Raven, more services, etc.

是 Raven。我的意思是，很明顯 Puma 是一則新聞稿，所以它——而且我們在電話會議中也談了 Global Observer，但除此之外，就是更多的 Raven、更多的服務等等。

Okay, so other than the Global Observer, the Raven was really the key driver behind your strong bookings?

好的，所以除了 Global Observer 之外，Raven 真的是你們強勁接單的主要驅動因素？

Yes, and it typically is.

是的，而且通常都是。

Right, right.

對，對。

And I think to answer your question on expectations, I would go back, I would go back to our guidance at the 20% to 25% top line growth for the year.

至於你問到的預期，我會回到我們對全年營收（top line）成長 20% 到 25% 的指引。

Great. Thank you very much.

很好。非常感謝。

Thanks Josephine.

謝謝你，Josephine。

(OPERATOR INSTRUCTIONS) And we have a follow-up question from Michael Lewis, BB&T Capital Markets.

（接線員指示）我們有來自 Michael Lewis（BB&T Capital Markets）的追問。

Steve or Tim, can you help me with some math here? With regard to -- you had stated you're around 48% done with the Army 's expectation of 1,900 systems. I look back last quarter you came in around 43% completed. This quarter you came in at 48%, so that's a five percentage point shift, but we were working with one less month in production. So are you saying that we should anticipate to see 300 to 400 units being produced per quarter going forward, or is this just an extremely strong production quarter for AeroVironment in Q1? I'm just a little bit confused how this is working through, since there's a step up in production deliveries, it looks like in the quarter.

Steve 或 Tim，你們能幫我算一下嗎？關於——你們提到目前大約完成了陸軍預期 1,900 套系統的 48%。我回頭看上一季你們大約是完成 43%。這一季是 48%，所以提升了 5 個百分點，但我們少了一個月的生產時間。所以你們是說，接下來每季應該會生產 300 到 400 套嗎？還是這只是 AeroVironment 在第一季（Q1）特別強勁的一個生產季度？我有點搞不清楚這是怎麼運作的，因為看起來本季交付量有一個上升。

I'm not completely following. We had a 5% increase in Raven deliveries during the quarter, and that should be consistent with the product deliveries that we're reporting on. In fact, if anything, the product deliveries were a little bit lower than usual. When we talk about the Army acquisition objective, we're really talking about the deliveries that we're making to the Army customer in any particular period, and we're not talking about all of the production deliveries that we're doing. So we're not -- in any particular quarter we may make more or less deliveries, to the Army itself.

我沒有完全跟上。我們本季 Raven 交付增加了 5%，這應該與我們所揭露的產品交付一致。事實上，如果有什麼不同的話，產品交付量還比平常略低。當我們談到陸軍的採購目標（Army acquisition objective）時，我們指的是在特定期間內我們交付給陸軍客戶的數量，而不是我們所有的生產交付量。所以——在任何特定季度，我們對陸軍本身的交付可能會多或少。

Mike, this is Tim. I see the point you're making there, but I suspect that this is more just an anomaly. I don't think you should -- I don't think this implies any material increase in our base rate, if that's what you were thinking the implication might be.

Mike，我是 Tim。我理解你提出的觀點，但我猜這比較像是一個異常值。我不認為你應該——我不認為這代表我們的基礎產能/基準交付速率（base rate）有任何實質性的提高，如果你原本是這樣解讀的話。

Okay. I'll take that off-line with you, but just two more quick questions and I'll get out of your way here. Did you imbed the entire unfunded portion of AECV into your unfunded backlog in that IDIQ?

好的。我會私下再跟你確認，不過我再問兩個快問就不耽誤你們了。你們是否把 AECV 未獲資金的全部部分都納入那個 IDIQ 的未獲資金待執行訂單（unfunded backlog）裡？

Yes, except for the $6 million that had been ordered.

是的，除了已經下單的 600 萬美元之外。

So your expectation is that will be fully procured over the next few years?

所以你們的預期是，未來幾年會全部採購完畢？

No. We never say unfunded is that we expect it to be converted into orders. We just note that this is the total value of the IDIQ.

不是。我們從不表示未獲資金部分就代表我們預期它會轉換成訂單。我們只是指出這是該 IDIQ 的總價值。

Okay. But you don't put any discount factor into unfunded portions?

了解。但你們不會對未獲資金部分做任何折扣因子（discount factor）嗎？

No. We never have. We just include -- that's why we really report and focus on funded backlog.

不會。我們從來沒有。我們只是把——這也是為什麼我們真正報告並聚焦的是已獲資金待執行訂單（funded backlog）。

Okay, that's fair, and then just one more question. I know you won't give us the level of revenue from WASP in the quarter, but what is your expectation with regard to the Army stepping up and announcing its intent to field more WASPs or procurement contract from the Army in that area?

好的，這樣合理。最後再一個問題。我知道你們不會提供本季 WASP 的營收水準，但你們對於陸軍是否會加碼、並宣布其部署更多 WASP 的意圖，或在該領域與陸軍簽訂採購合約，有什麼預期？

Army expectations to field and procure more WASPs?

陸軍對部署與採購更多 WASP 的預期？

I guess the question is, what's your expectation on whether the Army will purchase addition WASPs for the --

我想問題是，你們預期陸軍是否會為——再購買額外的 WASP？

Okay, Mike, let me take that. Let me just start by going back. The initial production contract on WASP III was a Air Force program of record, and subsequent to that win the Marine Corps bought the WASP III for their own use, and that was significant not only because it was about a $19 million order, but the Marine Corps then issued those at the Company level, which we believe validated a trend towards lower issue. The Army has not procured production WASP airplanes to date. Now, I think that there's some interest in multiple customers looking at WASP going forward and how that might fit into their small unmanned aircraft system requirements, but there's no current contract relationship with the Army on that product.

好的，Mike，我來回答。先回到一開始：WASP III 的初始量產合約是空軍的一個正式列案（program of record）計畫；在那次得標之後，海軍陸戰隊也為其自身用途採購了 WASP III，這不僅因為那是一筆約 1,900 萬美元的訂單而重要，還因為海軍陸戰隊隨後在連（Company）層級配發，我們認為這驗證了朝向更低層級配發的趨勢。迄今為止，陸軍尚未採購量產型 WASP 飛機。現在，我認為未來有多個客戶對 WASP 有興趣，並在評估它如何符合其小型無人機系統需求，但目前在該產品上，我們與陸軍之間沒有任何現行的合約關係。

Is the Army working with DARPA on that initiative though?

不過陸軍是否正與 DARPA 在那個倡議上合作？

Well, I think DARPA was our initial customer that funded much of the development of the original WASP through configurations one, two, and three has worked with a number of different services, and I guess now that you bring it up, probably enabled multiple services to get demonstration units for in-field valuation, and it is possible in that context that some units of some WASP units did go to the Army, but they didn't go there through a contract directly with us.

嗯，我想 DARPA 是我們最初的客戶，資助了原始 WASP 的大部分研發，涵蓋第一、第二與第三種構型（configurations one, two, and three），並與多個不同軍種合作。我想既然你提到這點，DARPA 可能讓多個軍種取得示範機，用於野外評估（in-field valuation）；在那樣的脈絡下，確實有可能有一些 WASP 單位/機體到了陸軍手上，但並不是透過與我們直接簽約的方式交付。

Got you. Thank you very much.

了解。非常感謝。

You bet. Thanks.

不客氣。謝謝。

It appears there are no further questions at this time. Mr. Conver, I'd like to turn the conference back to you for closing remarks.

看起來目前沒有其他問題。Conver 先生，我想把電話會議交回給您做結語。

Well, thank you all very much for your interest. We continue to be excited about our future growth prospects, and we look forward to talking with you on our next call.

好的，非常感謝各位的關注。我們對未來的成長前景仍然感到振奮，也期待在下一次電話會議再與各位交流。

That does conclude today's conference. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。