AeroVironment, Inc. (AVAV) 2009 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the second-quarter 2009 fiscal AeroVironment earnings conference call. My name is Shalan, and I will be your coordinator for today. (Operator Instructions).

各位女士、先生，大家好，歡迎參加 AeroVironment 2009 會計年度第二季財報電話會議。我是 Shalan，今天將擔任會議協調人。（接線員指示）

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.

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。

At this time I would like to turn the presentation over to Mr. Gitlin. Please go ahead, sir.

現在我想把簡報交給 Gitlin 先生。先生，請開始。

Thank you, Shalan. Welcome to our second-quarter fiscal 2009 earnings call. Before I hand the call over to Tim and Steve, 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 are based on current expectations, forecasts and assumptions that involve risks and uncertainties 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; 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. Additional information regarding these risks and uncertainties is contained in the reports we file with the Securities and Exchange Commission. Copies are available from the SEC, as well as on our website.

謝謝你，Shalan。歡迎參加我們 2009 會計年度第二季財報電話會議。在我把電話交給 Tim 和 Steve 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。前瞻性陳述係基於目前的預期、預測與假設，並涉及我們無法控制的風險與不確定性，可能導致我們的業務、策略或實際結果與前瞻性陳述有重大差異。可能導致實際結果與前瞻性陳述有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；未能擴展至新市場；重大營運費用的變動；未能開發新產品；法規環境的變動；以及美國及全球其他地區的一般經濟與商業狀況。關於上述風險與不確定性的更多資訊，載於我們向美國證券交易委員會（SEC）提交的報告中。可向 SEC 取得副本，亦可於我們的網站查閱。

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, December 3, 2008. 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.

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而更新任何前瞻性陳述。本次電話會議內容包含具時效性的資訊，僅截至今日（2008 年 12 月 3 日）為準且為正確。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後發生的事件或情況。

With that, it is my pleasure to introduce Tim Conver.

接下來，我很榮幸介紹 Tim Conver。

Thank you, Steven. Welcome to our second-quarter fiscal 2009 conference call. I'm pleased to say that our team's focus across all the dimensions of our business -- operational, financial, customer service and R&D -- has enabled us to perform well in the midst of a significant economic volatility and uncertainty. Our strategy is rooted in developing innovative solutions that help our customers win in the face of two global trends. We are fortunate that our innovations have coincided with emerging market needs that have become increasingly critical to those customers. As a result, we're positioned very well.

謝謝你，Steven。歡迎參加我們 2009 會計年度第二季電話會議。我很高興地表示，我們團隊在業務各個面向——營運、財務、客戶服務與研發——的專注，使我們能在顯著的經濟波動與不確定性之中仍有良好表現。我們的策略根基在於開發創新解決方案，協助客戶在兩大全球趨勢下取得勝利。我們很幸運，我們的創新正好契合新興市場需求，而這些需求對客戶而言正變得愈來愈關鍵。因此，我們的定位非常有利。

From a financial perspective, we grew revenue by 22% over Q2 FY '08 to a record $65.8 million and delivered an operating income margin of 19%.

從財務角度來看，我們的營收較 2008 會計年度第二季成長 22%，達到創紀錄的 6,580 萬美元，並實現 19% 的營業利益率。

Our development programs are all making significant advancements. Global Observer continued to move forward, supported by key development milestones and appropriation decisions in Congress.

我們的各項開發計畫皆取得重大進展。Global Observer 持續推進，並獲得關鍵開發里程碑與國會撥款決策的支持。

Switchblade made more progress in successful flight testing. Digital Data Link moved closer to production introduction, and Architectural Wind expanded its footprint of early adopter systems.

Switchblade 在成功的飛行測試方面取得更多進展。Digital Data Link 更接近導入量產，Architectural Wind 也擴大其早期採用者系統的佈建版圖。

In our development process, we concentrate not only on the innovation that delivers new solutions but also on the ways in which our solutions make our customers as successful as possible. These programs have the potential to drive significant growth for AV.

在我們的開發流程中，我們不僅專注於能帶來新解決方案的創新，也重視我們的解決方案如何讓客戶盡可能成功。這些計畫有潛力為 AV 帶來顯著成長。

Before I discuss our Q2 performance in more detail, I would like to address the broader economic and political environment as it relates to our market position and our future prospects. Obviously we're looking hard at the macro changes in the economy, the possible priorities of the incoming administration and government spending for potential effects on our business. We're concentrating on strengthening our position in all foreseeable external changes. I think that we are performing well and that AV is in a strong position for several reasons.

在更詳細討論第二季表現之前，我想先就更廣泛的經濟與政治環境，說明其與我們的市場地位及未來前景的關聯。顯然，我們正密切關注總體經濟的變化、即將上任政府可能的施政優先順序，以及政府支出對我們業務可能造成的影響。我們正致力於在所有可預見的外部變化下強化自身地位。我認為我們表現良好，且 AV 之所以處於強勢地位，有幾個原因。

In an uncertain environment for sourcing capital, we have a strong balance sheet with over $120 million in cash and securities, no debt, and more than 85% of our business is with the federal government which pays on time.

在資本取得充滿不確定性的環境下，我們擁有強健的資產負債表：現金與有價證券超過 1.2 億美元、無負債，且超過 85% 的業務來自按時付款的聯邦政府。

It also appears that demand for our current unmanned aircraft systems is strong. Small UAS are increasingly becoming a must have ISR capability for our ground forces. Maintaining focus in this area has served us well. We have won all four US DOD programs of record for small UAS.

此外，看起來市場對我們現有的無人機系統需求強勁。小型 UAS 正日益成為地面部隊不可或缺的 ISR（情報、監視與偵察）能力。我們在此領域保持專注，已為我們帶來良好成果。我們已贏得美國國防部（DOD）所有四項小型 UAS 的正式建案（programs of record）。

The cost effective ISR and force protection provided by our UAS products have received strong support from both DOD and Congress, and President-elect Obama has indicated similar support in this area. Our UAS development programs are introducing uniquely valuable and new capabilities that have the potential to be game changes in the current and foreseeable threat environment.

我們 UAS 產品所提供的具成本效益的 ISR 與部隊防護能力，獲得國防部與國會的強力支持，而當選總統歐巴馬也表示在此領域有類似支持。我們的 UAS 開發計畫正引入獨特且高價值的新能力，具備在目前及可預見威脅環境中帶來「改變遊戲規則」效果的潛力。

On balance I think our UAS segment is very well-positioned. Outside of our UAS business we continue to believe that our efficient energy segment is currently offering and continuing to develop practical solutions to support moves towards energy independents and the improvement of our environment, initiatives that appear to maintain continued political support.

整體而言，我認為我們的 UAS 事業部門定位非常有利。除 UAS 業務之外，我們仍相信高效能源（efficient energy）事業部門目前所提供並持續開發的實用解決方案，可支持邁向能源獨立及改善環境的行動，而這些倡議似乎仍能維持政治上的持續支持。

At the same time, electric vehicle developments are high-priority programs within a number of automotive companies. However, it is in the EES segment that our exposure to current issues relating to the credit market and the economy is likely to be highest. EES constituted 14% of our Q2 revenue. Of that 14%, the majority is products sales to industrial customers, and a significant subset is sold to the automotive industry worldwide, which is facing significant challenges.

同時，電動車相關開發在多家汽車公司內屬於高優先順序計畫。然而，在 EES 事業部門中，我們對於當前與信貸市場及經濟相關議題的曝險可能最高。EES 佔我們第二季營收的 14%。在這 14% 中，多數為對工業客戶的產品銷售，其中相當一部分銷往全球汽車產業；而該產業正面臨重大挑戰。

Our electric vehicle test systems are used primarily by developers of electric vehicles and advanced energy storage systems. PosiCharge is capital equipment used by customers, including automotive OEMs and their suppliers to improve productivity. Capital spending retrenchment in general and continued pressure on the automotive industry in particular could adversely affect our EES business in the future. We're monitoring these risks closely and managing our business accordingly.

我們的電動車測試系統主要由電動車與先進儲能系統的開發者使用。PosiCharge 為客戶使用的資本設備，客戶包括汽車 OEM（原廠委託製造商）及其供應商，用以提升生產力。整體資本支出縮減，尤其是汽車產業持續承壓，未來可能對我們的 EES 業務造成不利影響。我們正密切監控這些風險並據以管理業務。

On the political front, there appears to be healthy support for the areas we are addressing in both our UAS and our EES segments. Again, President-elect Obama stated his strong support for US troops. That support includes transformational technologies for war fighters in the 21st century battle space, specifically including UAS, and proposals to increase the size of the Army and the Marine Corps ground forces. Secretary of Defense Gates has also advocated increased intelligence, surveillance and reconnaissance and UAS deployment. Since our small UAS are used by ground forces to provide cost-effective situational awareness, we think these solutions are well-positioned for continued adoption. Customers in Congress have continued to support the Global Observer development program with requests for and appropriations of additional funding. President-elect Obama has supported US-based alternative energy and electric vehicle technologies that will help us move towards energy independence while reducing our impact on the environment.

在政治面上，對於我們在 UAS 與 EES 兩個事業部門所著力的領域，似乎都存在良好的支持。再次強調，當選總統歐巴馬表達對美軍的強力支持。該支持包括在 21 世紀戰場空間中提供給作戰人員的變革性技術，特別包含 UAS，以及擴增陸軍與海軍陸戰隊地面部隊規模的提案。國防部長 Gates 也主張增加情報、監視與偵察以及 UAS 的部署。由於我們的小型 UAS 由地面部隊使用，以提供具成本效益的態勢感知，我們認為這些解決方案很適合持續被採用。國會中的客戶也持續支持 Global Observer 開發計畫，提出並核撥額外資金。當選總統歐巴馬支持以美國為基礎的替代能源與電動車技術，這將協助我們邁向能源獨立，同時降低對環境的影響。

Congress also signaled its support for small wind energy generation and EV fast charging infrastructure with the initiation of investment tax credits for these emerging technologies in the September Emergency Stabilization Act of 2008.

國會亦在 2008 年 9 月《緊急經濟穩定法案》中，透過啟動投資稅額抵免（investment tax credits），表達其對小型風力發電與電動車快速充電基礎設施等新興技術的支持。

Clearly government spending plans are in flux, but from what we know now, we believe our strategy is well aligned with political priorities.

顯然政府支出計畫仍在變動中，但就我們目前所知，我們相信公司的策略與政治優先事項高度一致。

With that as a background, let's now look at our UAS segment.

在此背景之下，接著我們來看 UAS 事業部門。

Customers continued to procure our small UAS as they proceed to fill out their acquisition objectives. From all indications, our customers remain committed to procuring their full acquisition objectives for Raven. Additional customers are now evaluating the procurement of Wasp, our smallest production UAS. Puma AE development is going well on its accelerated schedule, and there is broad interest in this new capability provided by this platform.

隨著客戶持續推進其採購目標的達成，他們也持續採購我們的小型 UAS。從各項跡象來看，我們的客戶仍致力於完成 Raven 的全部採購目標。另有更多客戶正在評估採購 Wasp——我們量產機型中最小的一款 UAS。Puma AE 的開發正依加速時程順利進行，市場對此平台所提供的新能力也有廣泛興趣。

I mentioned last quarter that our Global Observer customers exercised an option for a second aircraft with incremental funding provided in the second-half FY '08 supplemental appropriation. Congress subsequently appropriated an additional $40 million for GO in the FY '09 DOD budget signed in September. We expect that funding will flow through into the Global Observer contract within the next few months.

我在上季提到，我們的 Global Observer 客戶已行使第二架飛機的選擇權，該選擇權的增量資金來自 2008 會計年度下半年補充撥款。其後，國會在 9 月簽署的 2009 會計年度國防部預算中，另為 GO 核撥 4,000 萬美元。我們預期該資金將在未來幾個月內流入 Global Observer 合約。

This additional appropriation will support a more robust development of demonstration of Global Observer's unique capabilities beyond the two airplane system funded in the initial contract and the '08 supplemental.

這筆額外撥款將支持更為強健的開發與示範，以展現 Global Observer 在初始合約與 2008 年補充撥款所資助的兩架機系統之外的獨特能力。

I believe it is also equally important as a demonstration of strong customer and congressional support for the valuable and the cost-effective capabilities that GO will deliver.

我認為同樣重要的是，這也展現客戶與國會對 GO 將提供之高價值且具成本效益能力的強力支持。

Switchblade is a back packable tube launched small UAS in development. It will carry an explosive payload in addition to its optics, providing a high precision, low collateral damage, force protection capability for ground troops. This development and demonstration contract is progressing well through its testing program. We still anticipate completing the current phase of testing this quarter, enabling our customers to begin to make their decisions regarding potential orders.

Switchblade 是一款正在開發中的可背負、管式發射小型 UAS。除光學載荷外，它還將搭載爆炸性載荷，為地面部隊提供高精準、低附帶損害的部隊防護能力。此開發與示範合約正順利推進其測試計畫。我們仍預期在本季完成目前階段的測試，使客戶得以開始就潛在訂單做出決策。

We expect Digital Data Link to be introduced this fiscal year as well. Among other product improvements, Digital Data Link will expand the number of our small UAS that can operate in a given geography through more efficient utilization of radiofrequency spectrum. The government recently announced its requirement for up to 60 additional Raven systems configured with the Digital Data Link and the retrofit of an additional 240 existing Raven systems. We expect this requirement to represent the initial production orders for DDL.

我們預期本會計年度也將導入數位資料鏈路（Digital Data Link）。除其他產品改良外，數位資料鏈路將透過更有效率地運用射頻頻譜，擴大我們可在特定地理區域內運作的小型無人航空系統（UAS）數量。政府近期宣布其需求：最多新增 60 套配置數位資料鏈路的 Raven 系統，並對另外 240 套既有 Raven 系統進行改裝。我們預期此需求將代表 DDL 的初始量產訂單。

During Q2 we received the initial limited rate initial production contract from the Army. During Q2 we also announced the receipt of a $4.6 million award from DARPA for the development of a stealthy persistent Perch and Stare unmanned aircraft system based on Wasp. Our team is making good progress on this development program.

在第二季期間，我們收到陸軍的初始低速率初始量產（LRIP）合約。第二季我們也宣布獲得 DARPA 4.6 百萬美元的獎助，用於開發一套以 Wasp 為基礎、具匿蹤且可長時間滯空的「Perch and Stare」無人機系統。我們團隊在此開發計畫上進展良好。

Now moving from UAS, our efficient energy systems segment continued to deliver solid performance. On the clean transportation side of EES, multiple customers pursuing on road electric vehicle development programs drove increased demand for our leading EV test systems. As development programs around the world move towards production, we anticipate business opportunities for our EV production and infrastructure solutions that will enable the practical use of electric vehicles and plug-in hybrids. We have a core competency and a particularly relevant set of technologies for this emerging market, including fast charging infrastructure, onboard and offboard battery charging, battery management systems, battery pack design, connectors, bidirectional interface with the electric grid and battery testing. We're working with a number of industry partners as we apply our set of solutions to enable the practical adoption of electric vehicles.

接著從 UAS 談起，我們的高效率能源系統（EES）事業部持續交出穩健表現。在 EES 的潔淨運輸面向，多家客戶推動道路用電動車開發計畫，帶動對我們領先的電動車（EV）測試系統需求增加。隨著全球各地的開發計畫邁向量產，我們預期在 EV 量產與基礎設施解決方案方面將出現商機，進而促成電動車與插電式油電混合車的實際使用。我們在此新興市場具備核心能力與特別相關的一系列技術，包括快速充電基礎設施、車載與非車載電池充電、電池管理系統、電池模組設計、連接器、與電網的雙向介面以及電池測試。我們正與多家產業夥伴合作，運用我們的一整套解決方案，推動電動車的實際普及。

During Q2 we established an important new distribution agreement with Toyota Material Handling USA for our industrial PosiCharge productline. We're optimistic that over time this relationship with Toyota and their market-leading US distribution network will significantly increase our access to new adopters of fast charge solutions in material handling applications.

在第二季期間，我們與 Toyota Material Handling USA 就我們的工業用 PosiCharge 產品線建立了一項重要的新經銷協議。我們樂觀認為，隨著時間推進，與 Toyota 及其在美國市場領先的經銷網路之合作，將大幅提升我們在物料搬運應用中接觸快速充電解決方案新採用者的能力。

On the clean energy side of EES, we installed three new early adopter Architectural Wind systems and gained more experience with this innovative solution. The investment tax credit Congress provided for small wind installations in October is another important step for this development program. This is a 30% credit that is capped at $4000 per system.

在 EES 的潔淨能源面向，我們安裝了三套新的早期採用者建築風力（Architectural Wind）系統，並累積了更多此創新解決方案的經驗。國會於 10 月為小型風力裝置提供的投資稅額抵免，是此開發計畫的另一項重要進展。該抵免為 30%，且每套系統上限為 4,000 美元。

With that as an overview of our business, I will now turn the call over to Steve Wright for a more detailed discussion of our financial performance.

以上為我們業務概況，接下來我將把電話會議交給 Steve Wright，請他更詳細說明我們的財務表現。

Thank you, Tim, and good afternoon. Revenue for the second quarter was $65.8 million, an increase of 22% over second quarter prior year of $53.7 million. Looking at revenue by segment, UAS revenue was $56.5 million, an increase of 21% over the prior year. The growth in UAS revenue was largely due to higher project R&D work.

謝謝你，Tim，各位下午好。第二季營收為 6,580 萬美元，較去年同期的 5,370 萬美元成長 22%。按事業部別來看，UAS 營收為 5,650 萬美元，較去年成長 21%。UAS 營收成長主要來自較高的專案研發（R&D）工作。

EES revenue was $9.3 million, an increase of 31% from Q2 last year, primarily due to higher delivers of EV test systems.

EES 營收為 930 萬美元，較去年第二季成長 31%，主要由於 EV 測試系統交付增加。

Turning to gross margin, gross margin for the second quarter was $25 million, up 32% from Q2 of last year. Gross margin as a percentage of revenue was 38% versus 35% in Q2 last year. By segment UAS gross margin was $19.9 million, up 18% from Q2 of last year, and as a percent of revenue, UAS gross margin was 35% versus 36% last year. EES gross margin was $5 million, up 150% from Q2 of last year. As a percent of revenue, EES gross margin was 54% versus 28% in Q2 last year. This increase in gross margin rate was primarily due to operating efficiencies and sales mix.

接著看毛利率，第二季毛利為 2,500 萬美元，較去年第二季成長 32%。毛利占營收比重為 38%，相較去年第二季的 35%。按事業部別，UAS 毛利為 1,990 萬美元，較去年第二季成長 18%；以營收百分比計，UAS 毛利率為 35%，相較去年為 36%。EES 毛利為 500 萬美元，較去年第二季成長 150%；以營收百分比計，EES 毛利率為 54%，相較去年第二季為 28%。毛利率提升主要來自營運效率與銷售組合。

SG&A expense for the quarter totaled $7.9 million or 12% of revenue versus $8.6 million or 16% of revenue in the prior year. SG&A expense was lower, primarily due to lower bid and proposal expense.

本季銷售、一般及行政（SG&A）費用合計 790 萬美元，占營收 12%，相較去年為 860 萬美元、占營收 16%。SG&A 費用下降主要因投標與提案費用較低。

R&D for the quarter was $4.9 million or 7% of revenue versus the prior year amount of $3.8 million, also 7% of revenue. Customer-funded research and development during the quarter totaled $16.1 million or 24% of revenue versus $5.8 million or 11% of revenue in Q2 of last year, and total R&D, internal and customer funded, was $21 million or 32% of revenue versus $9.6 million or 18% of revenue in the prior year.

本季研發（R&D）費用為 490 萬美元，占營收 7%，相較去年為 380 萬美元，同樣占營收 7%。本季客戶出資的研發合計 1,610 萬美元，占營收 24%，相較去年第二季為 580 萬美元、占營收 11%；內部與客戶出資合計之總研發為 2,100 萬美元，占營收 32%，相較去年為 960 萬美元、占營收 18%。

Operating income for the quarter totaled $12.2 million or 19% of revenue. Operating income was 87% higher than Q2 prior year amount, primarily due to higher gross margin and lower SG&A expense partially offset by higher R&D. Net income for the quarter was $9.1 million or $0.41 per fully diluted share versus $5.2 million or $0.24 per fully diluted share in the same quarter last year.

本季營業利益合計 1,220 萬美元，占營收 19%。營業利益較去年第二季增加 87%，主要由於毛利較高與 SG&A 費用較低，部分被較高的研發費用所抵銷。本季淨利為 910 萬美元，或完全稀釋後每股 0.41 美元；相較去年同季為 520 萬美元，或完全稀釋後每股 0.24 美元。

Now moving quickly through our year-to-date results, revenue for the first six months was $119.4 million, up 16% from the prior year period of $102.9 million. And by segment UAS revenue was $102.5 million, up 16% from the prior year period. EES revenue was $16.9 million, up 17% from the prior year period. Gross margin for the first half was $45.6 million compared to $35.8 million in the prior year period, and gross margin as a percent of revenue was 38%, an increase of 3 points from the prior year.

接著快速說明年初至今的結果，前六個月營收為 1.194 億美元，較去年同期的 1.029 億美元成長 16%。按事業部別，UAS 營收為 1.025 億美元，較去年同期成長 16%；EES 營收為 1,690 萬美元，較去年同期成長 17%。上半年毛利為 4,560 萬美元，相較去年同期為 3,580 萬美元；毛利占營收比重為 38%，較去年提升 3 個百分點。

By segment UAS gross margin was $36.6 million, up 18%, and EES gross margin was $9 million, up 89%. SG&A for the first six months was $16 million or 13% of revenue compared to the prior year period of $16.3 million or 16% of revenue.

按事業部別，UAS 毛利為 3,660 萬美元，成長 18%；EES 毛利為 900 萬美元，成長 89%。前六個月 SG&A 為 1,600 萬美元，占營收 13%，相較去年同期為 1,630 萬美元、占營收 16%。

R&D for the first half was $10.2 million or 9% of revenue versus $8.1 million or 8% of revenue in the prior year, and total R&D, internal plus customer funded, for the first half was $39.2 million or 33% of revenue versus $18.2 million or 18% of revenue in the prior year. Operating income for the first half was $19.5 million or 16% of revenue. Operating income increased 71% from the prior year amount.

上半年研發（R&D）費用為 1,020 萬美元，占營收 9%，相較去年為 810 萬美元、占營收 8%；上半年內部加上客戶出資的總研發為 3,920 萬美元，占營收 33%，相較去年為 1,820 萬美元、占營收 18%。上半年營業利益為 1,950 萬美元，占營收 16%。營業利益較去年增加 71%。

The effective tax rate for the first six months was 31.9%, down from the prior year of 33.2%. This tax rate reflects the federal R&D tax credit which was recently renewed. Net income for the first half was $13.9 million or $0.64 per fully diluted share compared to $9 million or $0.42 per fully diluted share last year.

前六個月有效稅率為 31.9%，低於去年的 33.2%。此稅率反映了近期續期的聯邦研發稅額抵免。上半年淨利為 1,390 萬美元，或完全稀釋後每股 0.64 美元；相較去年為 900 萬美元，或完全稀釋後每股 0.42 美元。

Looking at backlog, funded backlog at the end of the second quarter was $86.6 million, up $4.6 million or 6% from April 30, 2008.

就在手訂單（backlog）而言，第二季末的已獲資金支持之在手訂單為 8,660 萬美元，較 2008 年 4 月 30 日增加 460 萬美元或 6%。

Turning to our balance sheet, cash equivalents and investments at the end of the second quarter totaled $124.7 million, up $11.3 million from our prior quarter amount of $113.4 million. Positive cash flow was largely due to higher income and lower working capital needs, partially offset by higher CapEx.

接著看資產負債表，第二季末現金約當物與投資合計為 1.247 億美元，較上一季的 1.134 億美元增加 1,130 萬美元。正向現金流主要來自較高的獲利與較低的營運資金需求，部分被較高的資本支出（CapEx）所抵銷。

Investments at the end of the second quarter were $8.1 million down from the previous quarter amount of $8.5 million. The decrease in investments was due to net redemptions of municipal auction rate securities.

第二季末投資為 810 萬美元，低於上一季的 850 萬美元。投資下降係因市政拍賣利率證券（municipal auction rate securities）的淨贖回。

Turning to receivables, at the end of the second quarter, our accounts receivable, including unbilled receivables, totaled $56.1 million, up $5.2 million million from the prior quarter. Total days sales outstanding were approximately 77 days versus 85 days at the prior quarter-end.

接著看應收款項，第二季末我們的應收帳款（含未開立帳單之應收款）合計為 5,610 萬美元，較上一季增加 520 萬美元。應收帳款週轉天數（DSO）約為 77 天，相較上一季季末為 85 天。

Taking a look at our inventories, inventories were $19 million at the end of this quarter compared to $20.7 million at the end of the prior quarter. Days in inventory were approximately 42 days versus 56 days at the prior quarter-end.

再看存貨，本季末存貨為 1,900 萬美元，相較上一季季末為 2,070 萬美元。存貨天數約為 42 天，相較上一季季末為 56 天。

Turning to capital expenditures, in the second quarter we invested approximately $3.3 million or 5% of revenue in property improvements and capital equipment. And of this CapEx, approximately 95% was related to growth.

接著看資本支出，第二季我們在不動產改善與資本設備上投資約 330 萬美元，約占營收 5%。在此 CapEx 中，約 95% 與成長相關。

And now I would like to turn things back to Tim to discuss expectations for the full year.

現在我想把會議交回 Tim，請他討論對全年之展望。

Thanks, Steve. Q2 positions us well for achieving our objectives. In summary, our customers continue to adopt and successfully employ our small UAS and Efficient Energy Systems solutions. Our production and development programs are on track. We believe that we will receive production funding to proceed with the introduction of Digital Data Link this fiscal year. We anticipate the successful completion of Switchblade development testing this quarter. We believe we are well-positioned to continue to execute our plan given the changes we have seen to date in the credit markets and the economy and in the next administration's priorities. We see significant growth opportunities in both of our segments that timely investments can position us to take advantage of. We are aggressively pursuing those opportunities.

謝謝你，Steve。第二季讓我們在達成目標方面處於有利位置。總結來說，我們的客戶持續採用並成功運用我們的小型無人航空系統（UAS）與高效能源系統（Efficient Energy Systems）解決方案。我們的生產與研發計畫均按進度推進。我們相信本會計年度將取得生產經費，以推動數位資料鏈（Digital Data Link）的導入。我們預期本季可順利完成 Switchblade 的研發測試。鑑於迄今我們在信貸市場、經濟情勢以及下一屆政府施政優先順序所見到的變化，我們相信自己具備持續執行計畫的良好條件。我們在兩個事業部門都看到顯著的成長機會，及時的投資可使我們把握這些機會。我們正積極追求這些機會。

To that end we plan to increase investments in IR&D, SG&A and infrastructure throughout the second half. These investments should bring our expenditure levels and our operating margin in line with our original targets for the year.

為此，我們計畫在下半年提高對 IR&D、SG&A 與基礎設施的投資。這些投資應可使我們的支出水準與營業利益率回到年初設定的原始目標。

I have mentioned in prior calls that our quarterly performance has historically been bumpy. Looking at the last two years of our financial performance, we have also identified what may be a seasonal pattern. This pattern is partially due to the government contracting cycle whereby we often receive our most significant Unmanned Aircraft Systems orders either at the end of our third quarter or at the beginning of our fourth quarter. Additionally every year the Company closes for a week between -- actually many times over a week between Christmas and New Year's, reducing production during our third quarter. The result in the past two years has been that our third quarters have been flat or down from our second quarters, and our fourth quarters have produced the highest revenue of the year. This apparent seasonality may help to explain some of the bumpiness that has characterized our past performance.

我在先前的電話會議中提過，我們的季度表現歷來較為起伏。回顧過去兩年的財務表現，我們也辨識出可能存在季節性模式。此模式部分源於政府採購合約週期，我們往往在第三季末或第四季初收到最重要的無人航空系統訂單。此外，公司每年在聖誕節與新年之間會停工一週——其實很多時候超過一週——使得第三季的產量降低。過去兩年的結果是，我們第三季營收相較第二季持平或下滑，而第四季則創下全年最高營收。這種表面上的季節性，或可解釋我們過去表現所呈現的部分起伏。

We recognize that the current economic environment introduces additional risk externally to all businesses and that our business is not immune. We are managing the business based on this reality by paying even closer attention to the financial condition of our customers and our supply chain partners by being even more rigorous in evaluating future order flow and by examining internal investment decisions to improve our competitive position and our ability to execute our plan.

我們認知到目前的經濟環境對所有企業都帶來額外的外部風險，我們的業務也無法置身事外。基於此現實，我們以更審慎的方式管理業務：更密切關注客戶與供應鏈夥伴的財務狀況、更嚴格評估未來訂單流量，並檢視內部投資決策，以提升我們的競爭地位與執行計畫的能力。

Based on our results to date and our outlook for the balance of the year, we still expect revenue growth of 20% to 25% with a 12% to 14% operating margin for the fiscal year.

根據目前為止的業績以及對今年剩餘期間的展望，我們仍預期本會計年度營收成長 20% 至 25%，營業利益率為 12% 至 14%。

We appreciate the support of our customers, our team members, our suppliers and our investors in our collective success. Thank you all for your attention and your interest, and Steve and I will now open the call to questions.

我們感謝客戶、團隊成員、供應商與投資人對我們共同成功的支持。感謝各位的關注與興趣，接下來 Steve 和我將開放提問。

(Operator Instructions). Michael Lewis, BB&T Capital Markets.

（接線員指示）。Michael Lewis，BB&T Capital Markets。

Tim, just real briefly on GO, can you talk about the specific milestones that hit in the second quarter? And did you also say that you're expecting the $40 million to hit sometime in the third quarter to be a part of the backlog?

Tim，關於 GO 我簡短問一下：你能談談第二季達成了哪些具體里程碑嗎？另外你是否也提到，你預期那 4,000 萬美元會在第三季某個時間點入帳並納入在手訂單（backlog）？

Mike, the programmatically, we -- the JCTD or Joint Technology Development Demonstration contract is moving along well. I think the single most significant milestone of the quarter in the development of that program was the full-scale test of the propulsion system. In that case we simulated an entire flight from take off through cruise and back to landing at simulated altitude and temperature conditions hitting performance expectations for that propulsion system, which we felt was a very significant milestone.

Mike，就計畫推進而言，我們——JCTD（Joint Technology Development Demonstration，聯合技術研發示範）合約進展順利。我認為本季在該計畫研發上最重要的單一里程碑，是推進系統的全尺寸測試。在那次測試中，我們模擬了從起飛、巡航到返回降落的完整飛行流程，並在模擬高度與溫度條件下達到該推進系統的性能預期，我們認為這是非常重要的里程碑。

I think the second part of your question was on the most recent funding appropriation of $40 million in the FY '09 defense budget, and I think I said in the next few months. So we obviously cannot predict exactly when our customers process funding through to contracts, but every indication is that that will happen in the next few months. And whether or not it all happens in the third quarter is something we will have to wait and see.

我想你問題的第二部分是關於 2009 會計年度國防預算中最近核撥的 4,000 萬美元經費，我記得我說的是在接下來幾個月內。因此我們當然無法精準預測客戶何時會把資金流程轉入合約，但各項跡象顯示會在未來幾個月內發生。至於是否會全部在第三季發生，我們只能拭目以待。

Okay. That is fair. When is the actual first flight anticipated for GO?

了解，這樣很合理。GO 預計何時進行首次飛行？

There is not a published flight date, but in general that is, if you will recall, a three-year program that includes development, flight testing, integration of payloads and then military utility demonstration.

目前沒有公布的首飛日期，但整體而言——如果你還記得——這是一個為期三年的計畫，包含研發、飛行測試、載荷整合，然後是軍事效用示範。

So the first two years of the three-year program are development, and then we will begin flight testing. We are little more than a year into the program, so that should put us in the front end of flight testing in about a year.

因此三年計畫中的前兩年是研發，之後我們將開始飛行測試。我們目前進入該計畫已略超過一年，所以大約再過一年就會進入飛行測試的前期階段。

Okay. And then just one more question for Steve, and then I will get out of the way here. With regard to the EES business, did you have any one time plus ops or other benefits in that business that caused the pretty significant uptick in that business in the quarter on a margin basis?

好的。再問 Steve 一個問題我就不佔用時間了。關於 EES 業務，該業務本季在毛利率上有相當明顯的提升，是否有任何一次性（one time）的加成、營運或其他利益所致？

No, the margins are good. They are actually a little bit lower -- actually, excuse me, they are only slightly higher than they were in Q1. They are 54% in Q2 and 52% in Q1, and I would say there is nothing -- no significant accruals or adjustments in there.

沒有，毛利率表現良好。其實它比——抱歉——它只比第一季略高一些。第二季是 54%，第一季是 52%，我會說其中沒有任何——沒有重大的應計（accrual）或調整。

Tyler Hojo, Sidoti & Co.

Tyler Hojo，Sidoti & Co.。

The first question just on customer-funded R&D, I know you gave that, but I missed the exact number. Would you mind providing that again?

第一個問題是關於客戶出資的研發（customer-funded R&D）。我知道你有提到，但我漏聽了確切數字。可以麻煩你再提供一次嗎？

Yes, just a second. Customer funded R&D for the quarter was $16.1 million.

可以，稍等一下。本季客戶出資的研發為 1,610 萬美元。

Okay. I know you directionally I think last quarter said that the bulk of your customer-funded R&D was for Global Observer. Does the same hold true this quarter?

好的。我記得你上季在方向上提到，客戶出資研發的大部分是用於 Global Observer。本季也是同樣情況嗎？

Oh, yes. Yes, customer-funded R&D in the quarter is 24% of sales, and we have always had pretty robust amount of customer-funded R&D. But clearly it is way above what we have seen in the last couple of years, and that growth is Global Observer.

喔，是的，是的。本季客戶出資研發占銷售額的 24%，而我們一向都有相當可觀的客戶出資研發。但很明顯，這遠高於我們過去幾年所見，而這個成長來自 Global Observer。

Okay, very good. Just a follow-on to the last EES question, I know you guys were little bit hesitant last quarter when you had the nice margin performance there to say it was kind of a thing to expect going forward. But now with the two quarters here with 50% plus margins, is your thinking that maybe that's a little bit more sustainable, or how should we think about that?

好的，很好。延續上一個 EES 的問題：我知道你們上季在毛利率表現不錯時，對於是否能視為未來可預期的水準還有些保留。但現在連續兩季都有 50% 以上的毛利率，你們是否認為這可能更具可持續性？我們應該如何看待？

I think the higher margins than we had a year ago are probably sustainable, but I don't think we want to commit to these 50% margins. Again, part of it is efficiency, part of it is sales mix, and that sales mix could change and result in lower margins.

我認為相較一年前更高的毛利率大概是可持續的，但我不認為我們想承諾維持在 50% 的毛利率。再說一次，其中一部分來自效率提升，一部分來自銷售組合，而銷售組合可能改變並導致毛利率下降。

So I would go back to from our perspective looking at operating margins at the 12% to 14% range.

因此從我們的角度，我會回到以 12% 到 14% 的營業利益率作為觀察重點。

Okay. That is fair. Just two kind of quick ones here. What was the ID/IQ backlog in the quarter?

好的，合理。再兩個比較快的問題。本季 ID/IQ 的在手訂單（backlog）是多少？

Okay. That is right. Hold on, I have got it. $581 million.

好的，沒錯。等一下，我找到了。5.81 億美元。

Okay. As a percent of sales, how much was international?

好的。以銷售額百分比來看，國際市場占多少？

3% of revenue for the quarter.

本季營收的 3%。

Tim Quillin, Stephens Inc.

Tim Quillin，Stephens Inc.。

Nice results. I think you have answered this a couple of different ways, but I will ask again. In terms of your margin expectations for the year, 12% to 14%, I think to get down to that level, you're going to have to have an operating margin of around 12% in 3Q and 4Q. Is that -- explain to me is that a function of just ramping up IRAD and SG&A? How much of that is related to potential economic sensitivity especially in PosiCharge that might impact gross margin there?

業績不錯。我想你已用幾種不同方式回答過，但我再問一次。就你們今年 12% 到 14% 的營業利益率預期而言，我認為要回到那個水準，你們在第三季與第四季的營業利益率大概得在 12% 左右。這——請你解釋一下，這主要是因為提高 IRAD 與 SG&A 的投入嗎？其中有多少與潛在的經濟敏感度有關，特別是 PosiCharge 可能影響那邊的毛利率？

I will start off. I think it is primarily attributable to the reasons that Tim touched on in his opening remarks. We have had -- we have 16% year-to-date operating margins. Some of that has just been good performance, but a piece of it was lower spending on infrastructure in our overheads and SG&A and R&D, and we plan to continue to invest and get back to what we had planned to do really for the full year, which brings us back to our 12% to 14% for the year.

我先說。我認為主要原因在於 Tim 在開場談到的幾點。我們今年迄今的營業利益率是 16%。其中一部分是表現良好，但也有一部分是因為在間接費用、SG&A 與研發方面對基礎設施的支出較低；我們計畫持續投資，回到我們原本規劃的——其實是全年度——投入水準，這會使全年回到 12% 到 14% 的區間。

Also, in Q3 Tim mentioned looking at our history. If history repeats, we would expect to see lower Q3s relative to Q2s, and that will result in lower operating margins as well.

另外，Tim 在第三季也提到回顧我們的歷史。如果歷史重演，我們預期第三季相對第二季會較低，這也會導致營業利益率較低。

And how about in terms of EES, do you feel like the momentum you have on the EV test equipment side can offset what you would assume is going to be weakness in your industrial customer base at PosiCharge?

那在 EES 方面呢？你們是否覺得在電動車（EV）測試設備端的動能，能夠抵消你們認為 PosiCharge 工業客戶基礎可能走弱的影響？

Well, we have seen growth in the EV test equipment in the first half. As I mentioned in my earlier comments, that is associated with multiple electric vehicle development programs going on around the world. I have not seen any abatement in the organizations that are running those programs as to their emphasis on those programs. But overall the auto industry is getting hit pretty hard and Detroit in particular. So it is hard for us to predict what happens to the EV development programs if the overall automotive enterprise continues to see the kind of financial stress that they have been seeing. So I don't have much more of a more explicit answer for you than that.

嗯，我們在上半年已看到電動車（EV）測試設備的成長。如我先前的評論所提到的，這與全球各地同時進行的多項電動車開發計畫有關。我沒有看到負責執行這些計畫的組織在對這些計畫的重視程度上有任何減弱。但整體而言，汽車產業正遭受相當嚴重的衝擊，尤其是底特律。因此，如果整體汽車產業持續承受他們目前所面臨的那種財務壓力，我們很難預測電動車開發計畫會如何發展。所以除了這些之外，我沒有更明確的答案可以提供給你。

Okay. And how about just at PosiCharge, though, are you seeing a drop off in sales and margins there yet or do you expect to?

好的。那就 PosiCharge 而言，你們是否已經看到那邊的銷售與毛利開始下滑，或你們預期會下滑嗎？

Well, I think we have seen some softness in PosiCharge sales in the auto segment. We've got about four different verticals that we address with PosiCharge, and we are aware that capital spending in general could come under pressure based on the stressed economy. But to date we have not seen that much of a change in actual order flow. So we are watching it closely.

嗯，我想我們確實在汽車領域看到 PosiCharge 銷售有些疲軟。PosiCharge 我們大約服務四個不同的垂直市場，而我們也知道，在經濟承壓的情況下，整體資本支出可能會受到壓力。但截至目前，我們在實際訂單流入方面還沒有看到太大的變化。所以我們正在密切觀察。

Great. And then just one quick question for Steve. I think you said on the last call if the R&D tax credit is renewed, that the tax rate would be 35% for the year. Is that still accurate?

很好。接著給 Steve 一個快速問題。我記得你在上次電話會議提到，如果研發（R&D）稅額抵減獲得延長，全年稅率會是 35%。這仍然正確嗎？

That is the ballpark. I would probably throw out 34% for the year on this call. Because we have looked at the total amount of R&D tax credit our advisors have, and that estimated credit is a bit higher than we were thinking in the past.

大致上是那個範圍。不過這次電話會議我可能會提出全年 34%。因為我們已經檢視了顧問估算的研發稅額抵減總額，而那個估計的抵減額比我們過去想的要高一些。

Great. Congratulations, guys.

很好。恭喜各位。

Patrick McCarthy, FBR Capital Markets.

Patrick McCarthy，FBR Capital Markets。

Congratulations on the quarter. My first question is, Tim, you had mentioned that was a broad level of interest in Puma AE. And I was wondering if maybe you could just put a little bit more granularity behind that. Is that big Army and where also that might go?

恭喜本季表現。我的第一個問題是，Tim，你提到市場對 Puma AE 有廣泛的興趣。我想請你再更具體一點說明。這主要是陸軍的大案子嗎？以及它可能會往哪個方向發展？

And then just secondary to that, is there a sense as to how quickly people are looking to make decisions on Puma AE?

其次，大家對於 Puma AE 做決策的速度，有沒有一個大概的感覺？

I think in general the interest is broad across most of our existing customer base. Puma AE has a number of new capabilities or at least different capabilities than our smaller platforms that all operate, as you know, off the same ground control system. So Puma AE has the ability to land in water and/or on land. It is a relatively quiet platform. It has extended duration relative to the smaller platforms. That is it fliers for a longer period of time, and it has a dramatically improved set of optics that are derived from a larger and much more capable mechanical pan, tilt, zoom ball that is incorporated on this platform. So the combination of those characteristics, or in some cases just one of those characteristics, provide potential advantage in different applications for almost all of our customers. So it appears to have generated that interest and perhaps could augment the capability of existing customers in the future.

我認為整體而言，興趣是遍及我們現有客戶群的大多數。Puma AE 具備一些新能力，或至少是與我們較小平台不同的能力；而如你所知，這些平台都使用相同的地面控制系統。Puma AE 具備可在水面及／或陸地降落的能力。它是一個相對安靜的平台。相較於較小的平台，它的續航時間更長，也就是能飛行更久；此外，它的光學系統大幅提升，源自於在此平台上整合的一個更大、能力更強的機械式雲台（pan、tilt、zoom）球形光電載具。因此，這些特性組合起來——或在某些情況下僅其中一項特性——在不同應用上，幾乎對我們所有客戶都可能帶來優勢。所以看起來它已經引發了這樣的興趣，未來也可能強化既有客戶的能力。

In terms of timing, this is a very rapid development program that was scheduled at the time the original contract was let. A team has been working extraordinary hours with just huge success on this program, and we expect to deliver those initial LRIP units for customer evaluation in Q3.

就時程而言，這是一個非常快速的開發計畫，在最初合約簽訂時就已排定。一個團隊以非常長的工時投入，並在此計畫上取得巨大成功；我們預期在第三季交付首批 LRIP（低率初期生產）單位供客戶評估。

I think most customers that are looking at this will continue to look as it goes through that initial evaluation and be in a position to make some decisions after that.

我想多數正在評估這項產品的客戶，會在初期評估過程中持續觀察，並在那之後具備做出一些決策的條件。

Okay. Thank you. Is there any recent movement from the FAA potentially on domestic airspace and using small UAVs?

好的，謝謝。FAA 最近在國內空域以及小型無人機使用方面，有沒有任何新的動向？

Yes, actually there is. Just this morning I saw some news on that. So I think the FAA is about ready to begin talking publicly on the status of their work on writing the rules and drafting the rules for small unmanned aircraft access to the national air space. It looks like as soon as this month they will be beginning to talk about that.

是的，確實有。今天早上我剛看到一些相關新聞。所以我認為 FAA 差不多準備要開始對外公開談論他們在制定規則、起草規則方面的工作進度，內容是讓小型無人航空器進入國家空域。看起來最快這個月他們就會開始談這件事。

Okay, great. And just my final question. When you look at your topline guidance of 20% to 25%, are there key programs that would keep you at the 20%, or are there key programs that would have to come through to get to that 25%? It sounds like maybe the Digital Data Link waiting on the contract or at least to put into production in GO. Is there anything else?

好的，很好。最後一個問題。你們對營收成長的指引是 20% 到 25%。是否有一些關鍵專案會讓你們落在 20%，或是必須有一些關鍵專案到位才能達到 25%？聽起來可能是數位資料鏈（Digital Data Link）還在等合約，或至少等著在 GO 進入量產。還有其他因素嗎？

I think it is kind of hard to bend the low end and the high end of our guidance based on an individual program or programs, Patrick. That is just a range that we can manage into. It is not based on any particular win or something not happening.

Patrick，要用單一專案或少數幾個專案來拉動我們指引區間的低端或高端，其實有點難。那就是我們可以管理達成的一個區間，並不是建立在某個特定得標或某件事沒有發生之上。

Okay. Fair enough. And then maybe just one other question if I could. In all the discussions you mentioned earlier, the auto bailout packages and all that type of stuff, is there anything in the discussions that have been going on that you think could actually be positive longer-term for the energy business, or what's your thoughts there?

好的，可以理解。那我再問一個問題。在你先前提到的各種討論中，像是汽車業紓困方案等等，這些正在進行的討論裡，有沒有任何你認為可能對能源業務長期而言是正面的？你怎麼看？

Well, yes. If you look at the original congressional action on the first $25 billion that was earmarked for auto industry loans, that was tied to clean transportation investments. And as these most recent discussions have taken place as I watched that just in the public press, there appears to be continued congressional interest in pushing forward clean vehicle development, and that goes to the issue of electric vehicles and various hybrid configurations in many cases.

嗯，有的。如果你看國會最初針對第一筆 250 億美元、用於汽車產業貸款的行動，那筆資金是與潔淨運輸投資掛鉤的。而在最近這些討論中——我從公開媒體報導所看到的——國會似乎仍持續有興趣推動潔淨車輛的開發，這也涉及電動車以及在許多情況下的各種混合動力配置。

You also -- I mentioned in my comments, Patrick, earlier that in the October legislation, there was an -- for the first time, an investment tax credit allocated to fast charging infrastructure, which clearly is intended to support electric vehicle deployment. So I think there is quite a bit of potential support for the development and deployment of these systems. And if that comes to be, I think we're very well-positioned to participate.

另外——Patrick，我在先前評論中也提到，在 10 月的立法中，首次配置了一項投資稅額抵減，用於快速充電基礎設施，這顯然是為了支持電動車的部署。因此我認為，對這些系統的開發與部署有相當大的潛在支持。如果這些支持真的落實，我想我們非常有利於參與其中。

Chris Donaghey, SunTrust Robinson-Humphrey.

Chris Donaghey，SunTrust Robinson-Humphrey。

Good quarter, guys. Can you maybe compare for us the pending upgrade cycle from analog to the Digital Data Link version and how that may compare to the Raven A to Raven B conversion and the timing? Would you expect this to also be funded through an O&M type of funding line versus a procurement line?

各位本季表現不錯。你們能否幫我們比較一下，從類比升級到數位資料鏈版本的這一波待升級週期，與 Raven A 升級到 Raven B 的轉換以及時程相比如何？你們是否預期這也會透過類似 O&M（營運與維護）型的預算科目來支應，而不是透過採購（procurement）科目？

Well, to the extent that this is essentially a product improvement to Raven and ultimately to Wasp, I think it is certainly comparable. And, as you know, when most of the Raven As were ultimately converted to Raven Bs, we expect that the most likely scenario with Digital Data Link will be the same. That most of our -- the Legacy installed base of both Raven and ultimately Wasp would -- our customers would want to see a homogenous fleet.

嗯，就其本質而言，這基本上是對 Raven、最終也對 Wasp 的產品改良，我認為確實具有可比性。而且如你所知，當時多數 Raven A 最終都被轉換為 Raven B；我們預期數位資料鏈（Digital Data Link）最可能的情境也會相同。也就是說，我們的——Raven 以及最終 Wasp 的既有裝機基礎（Legacy installed base）——客戶會希望機隊是同質化的。

In addition to the Digital Data Link, there are at least one and maybe other product improvements that can be packaged up there. So I think that is how we're looking at it, and I think that is a reasonable expectation.

除了數位資料鏈之外，至少還有一項、也可能有其他產品改良可以一起打包。因此我們是這樣看待的，我也認為這是合理的預期。

I will just add in terms of where the funding come from, we don't know, but I think our guess is it will come from the investment part of the budget.

我再補充一下，至於資金會從哪裡來，我們還不確定，但我們的猜測是會來自預算中的投資部分。

Okay. And from a process standpoint, is this something that is done in the field, or does every aircraft have to come back to the factory to be retrofitted with DDL? How do you expect the actual mechanics of the conversion to take place?

好的。從流程角度來看，這是在現地就能完成的作業嗎？還是每一架飛機都必須送回工廠加裝 DDL 進行改裝？你們預期實際的轉換作業會如何進行？

Well, (multiple speakers) that will get defined explicitly when our customers implement that change. But I would guess it is more likely to be a factory depot retrofit as opposed to a field retrofit.

嗯，（多位講者）這會在客戶實施該變更時被明確定義。但我猜更可能是工廠／維修基地（depot）的改裝，而不是現地改裝。

Okay. And as you talk about the investment plan in the back half of the year, can you talk a little bit about what your CapEx expectations are? And is this getting ready for Switchblade to go into full rate production? Is this increasing production floor space maybe for Global Observer? Can you kind of break out what the investment plan entails?

好的。當你們談到下半年投資計畫時，能否談談你們對資本支出（CapEx）的預期？這是否是在為 Switchblade 進入全速量產做準備？是否是為 Global Observer 增加生產場地空間？你能否拆解一下這個投資計畫包含哪些內容？

I will start. I will just say that a lot of the investments that we're talking about or expense are not CapEx. But CapEx in Q2 5% of revenue, and that is probably the level that we will continue to spend at through the balance of the year. Then in terms of the investment that Tim was discussing, it would be an overhead, infrastructure, SG&A, business development and R&D activities, and these are really things that get us back to the plan levels that we have had all along. I don't know if you --

我先說。我只想說，我們談到的許多投資或費用其實不是資本支出。不過第二季的 CapEx 約為營收的 5%，而這大概會是我們在今年剩餘期間持續投入的水準。至於 Tim 所談的投資，會是管理費用、基礎設施、SG&A（銷售、一般及行政費用）、業務開發與研發活動；這些其實是讓我們回到我們一直以來的計畫水準。我不知道你是否——

Yes, I guess I would go just a little bit further, Chris, to say that from an infrastructure perspective, we would be looking at production, supply chain, inventory areas where we can increase our agility and our ability to respond effectively both competitively and to customer demand.

是的，Chris，我想我再多補充一點：從基礎設施的角度，我們會著眼於生產、供應鏈、庫存等領域，以提升我們的敏捷性，以及在競爭與客戶需求兩方面更有效地回應。

In the area of IR&D, we would be looking at positioning ourselves with developments that we have been working on previously so that they are in a position to move quickly when customers make adoption decisions. And we also see a number of other opportunities that we think we can position ourselves for now that could be very significant growth opportunities in the future. And in SG&A it is probably biased towards business development capacity and capability.

在 IR&D 領域，我們會著眼於把先前一直在推進的研發成果定位到位，讓我們在客戶做出採用決策時能夠迅速行動。我們也看到其他一些機會，我們認為現在就可以先行布局，而這些在未來可能會是非常重大的成長機會。至於 SG&A，投入方向可能會較偏向業務開發的產能與能力。

Okay, great. So just to kind of finish up this topic, can you talk a little bit about what will be needed to put Switchblade into production? Do you need a new facility? Do you have to section off a piece of an existing facility since it is ammunition essentially?

好的，很好。那為了把這個話題做個收尾，你能不能談談要讓 Switchblade 進入量產需要哪些條件？你們需要新的廠房嗎？還是必須在既有廠房中劃出一個區域，因為它本質上算是彈藥？

I think that the biggest variable there would be production rate. So we would not know that until we see more indication of what our potential customers want to do and when. But if it were relatively low rate, I think we can accommodate a lot of that with existing facilities, and if it is relatively high rate, then that is a different story.

我認為最大的變數會是生產速率。所以在看到我們潛在客戶想做什麼、以及何時要做之前，我們不會知道。如果是相對低的產量，我想我們可以用既有設施來承接相當一部分；但如果是相對高的產量，那就另當別論了。

Clearly there are some changes associated with the implementation and the final assembly with ammunition, and we're looking at a few different options on how we might execute that.

很明顯，在彈藥的導入與最終組裝方面會牽涉到一些變更，我們正在評估幾種不同的執行方案。

Okay, great. Thanks. And one last question for you, Steve. Did you put out an operating cash flow number? I don't remember. I may have missed that.

好的，很好。謝謝。最後一個問題，Steve。你有公布營運現金流的數字嗎？我不記得了，可能我漏聽了。

No, but I will give you one now. Cash flow from operations in Q2 of $14.4 million and again, CapEx was cash out of $3.3 million. So free cash flow was $11 million positive.

沒有，但我現在可以給你。第二季（Q2）營運活動現金流為 1,440 萬美元；另外，資本支出（CapEx）現金流出為 330 萬美元。所以自由現金流為正 1,100 萬美元。

Okay, great. Thanks, guys, and good job on the quarter.

好的，很好。謝謝各位，這一季做得很好。

Howard Rubel, Jefferies & Co.

Howard Rubel，Jefferies & Co.。

We will go beat the dead horse one more time Tim, sorry. To go from the levels of R&D and SG&A that you are talking about means that you have to hire a lot of people or put them on airplanes or something. Is your headcount -- I mean can you give us a sense of where your headcount is today and where you're going to take it?

Tim，我們再把這個老問題問一次，抱歉。要達到你所談的 R&D 與 SG&A 水準，代表你得雇用很多人，或讓他們搭飛機到處跑之類的。你們的人力編制——我是說，你能不能讓我們了解一下你們目前的人數，以及接下來打算增加到什麼程度？

I can give you a statistical headcount. As of Q2, we are at 594 heads, up about 10% from year-end.

我可以提供統計上的人數。截至第二季（Q2），我們有 594 名員工，較去年年底增加約 10%。

And I think we are continuing to hire, Howard. We have been for a number of years, and that has not really abated. I think during the first half we were still ramping up aggressively to get Global Observer on fully staffed and executing, and I think we're pretty well they are now. We had similar surges on some of our other development programs that are now beginning to come to a successful conclusion. So that we think is going to free up some existing staff. We do intend to continue to hire, and a lot of that investments that we're talking about can be associated with procurement in addition to direct labor. So we think we are reasonably well equipped to execute this plan in the second half.

Howard，我想我們仍在持續招募。我們已經招募了好幾年，並沒有真正放緩。我認為在上半年，我們仍在積極擴編，以便讓 Global Observer 具備完整人力並開始執行，我想現在大致已經到位。我們在其他一些研發計畫上也曾有類似的擴編高峰，而這些計畫現在正開始走向成功收尾，因此我們認為會釋放出部分既有人力。我們確實打算繼續招募，而我們所談的許多投資，除了直接人力之外，也可能與採購相關。因此我們認為，在下半年執行這個計畫方面，我們的準備相當充分。

And another way of saying it is that rather than cream skimming, you see you just have these multiple opportunities, and it is better to invest for today for the promise of tomorrow as opposed to just harvesting so quickly?

換個說法，你不是在做「撈奶油」式的挑最容易的部分，而是看到多個機會；與其很快就收割，不如為了明天的承諾在今天就投入，對嗎？

That is absolutely right, Howard. I think we -- as I mentioned we are -- sorry, I got distracted there.

完全正確，Howard。我想我們——如我提到的，我們——抱歉，我剛剛分心了。

I did not mean to do that to you; I apologize.

我不是故意讓你分心的；抱歉。

No, it was not you. It is my friendly troop here with insights on timing. So at any rate, I think we see the very significant growth opportunities that -- and I think simultaneously we see the ability to execute our initial guidance this year. So I think we're in a relatively strong position, and we see it as a unique opportunity to aggressively pursue those opportunities in what is otherwise a pretty nasty economic environment.

不，不是你。是我這邊友軍在提供時間點的提醒。總之，我認為我們看到非常顯著的成長機會；同時，我們也看到今年有能力達成我們最初的指引。因此我認為我們處於相對強勢的位置，而且我們把這視為一個獨特的機會：在整體經濟環境相當惡劣的情況下，仍能積極追逐這些機會。

So if I can just follow that, an equal amount of this is going to be in the energy efficiency area as opposed to just being all UASs? Is that --?

那我再追問一下：這其中有相當一部分會投入在能源效率領域，而不只是全部都在 UAS 上，對嗎——？

Yes, we are looking at opportunities in both areas, and we're investing heavily in both areas. Now we still have kind of a 15%, 85% split in the business. And so you would expect to see considerably more on the UAS size, but that is relative to the existing split in the business. So I guess I do not want to go into any more -- well (multiple speakers) how that is split up.

是的，我們同時在兩個領域尋找機會，也在兩個領域大力投資。不過我們的業務目前仍大致是 15%、85% 的分布。因此你會預期在 UAS 這一塊的金額會明顯更多，但那是相對於目前既有的業務占比而言。所以我想我不想再更深入——嗯（多位講者同時發言）——談它是如何拆分的。

No, that is fair, but does that mean that we could see some customer announcements in the near-term as a result of these initiatives?

了解，這樣說很合理。但這是否意味著，因為這些舉措，我們在近期可能會看到一些客戶公告？

I think any near-term results would accrue from the work we're doing on the infrastructure side where we are really, in addition to positioning ourselves to be more competitively effective in the future, we are also positioning ourselves to be more agile and responsive in the near-term, and I think that goes to protecting our ability to execute the plan.

我認為任何近期成果，會更多來自我們在基礎建設端所做的工作；在那裡，除了為未來提升競爭力做定位之外，我們也在讓自己在短期內更敏捷、更能快速回應，而我認為這有助於保護我們執行計畫的能力。

In terms of IR&D or business development investments, I would expect those to be a little longer term before you would see fruit on those trees.

至於 IR&D 或業務開發方面的投資，我預期會偏長期一些，可能要更久才會看到成果。

I just have two more questions. One is that if we look at the incremental revenues, the gross margins actually were down. Is that because Global Observer is such a larger part of the business?

我還有兩個問題。第一個是，如果我們看增量營收，毛利率其實是下降的。這是因為 Global Observer 在業務中的占比變得更大嗎？

When you say incremental revenues, do you mean quarter-over-quarter?

你說的增量營收，是指季對季嗎？

Sequentially, yes, you are up.

是的，按季序列來看，你們是增加的。

Well, we are flat in total. UAS is down a point, and EES is up a point. Howard, I would say that this is why we really don't guide on gross margin. That number is just really going to move around based on the contracts we're working on. I would not attribute it to any one program, including Global Observer.

嗯，我們總體是持平。UAS 下降 1 個百分點，EES 上升 1 個百分點。Howard，我會說這就是為什麼我們真的不對毛利率做指引。那個數字會因為我們正在執行的合約而大幅波動。我不會把它歸因於任何單一計畫，包括 Global Observer。

Okay. And then the last thing is that while you improved on DSO, given the amount of business that you have with Uncle Sam, I'm still a little surprised it cannot be inside of 60 days, Steve.

好的。最後一點是，雖然你們的 DSO 有改善，但考量你們與「山姆大叔」（美國政府）的業務量，我還是有點驚訝它不能低於 60 天，Steve。

Well, I wish it were, but we have never been inside of 60 days, even with Uncle Sam, and a lot of that has to do with the order flow and how the sales accrue during the quarter. Many times a lot of our revenues occur towards the end of the quarter. So when I calculate the metric for the quarter, we do end up with a higher DSO amount. But the good news there is there is really no credit risk with respect to the AV receivables.

嗯，我也希望可以，但即使有「山姆大叔」，我們從來沒有低於 60 天。這很大一部分與訂單流以及本季銷售入帳的節奏有關。很多時候，我們相當多的營收會在季末發生。因此當我計算該季的指標時，DSO 就會偏高。不過好消息是，就 AV 的應收帳款而言，基本上沒有信用風險。

Thank you very much. Very nice numbers.

非常感謝。數字很漂亮。

Michael Ciarmoli, Boenning & Scattergood.

Michael Ciarmoli，Boenning & Scattergood。

Nice quarter. Quickly, in terms of your Army contract, the 1900 unit contract, what was the percent you've delivered on that to date?

這一季表現不錯。快速問一下，關於你們的陸軍合約，那個 1,900 套的合約，截至目前你們已交付的比例是多少？

Through Q2 we are 45% delivered against the 1900 systems. Now you may recall at the last earnings call, I announced we were 48% delivered. And so what has changed is we have been informed that we were accounting some of the early Raven A deliveries against that 1900, and our customer has told us that is not the case, and we're not as far into it -- therefore, we're not as far into it as we thought.

截至第二季（Q2），相對於 1,900 套系統，我們已交付 45%。你可能還記得在上一次財報電話會議上，我宣布我們已交付 48%。之所以有變化，是因為我們被告知，我們把一些早期的 Raven A 交付量計入了那 1,900 套之中，但客戶告訴我們並非如此，因此我們實際進度——也就是我們實際進度沒有我們原先以為的那麼前面。

Okay.

好的。

As of Q2, the reset accounting is 45%.

截至第二季（Q2），重置後的會計口徑是 45%。

Okay. So that suggests a little bit longer runway on that program. I guess that is good news.

好的。那表示這個計畫的跑道會稍微更長一些。我想這算是好消息。

Yes.

是的。

And then I don't know if I'm looking into this, looking at your -- bookings were down in the quarter significantly. The backlog is lower. You have talked about the seasonal weakness in the third quarter. And looking at past trends, it looks like bookings and backlog have trended lower. Is that the expectation for the third quarter, and does that concern you, this kind of lumpiness about the business?

接著我不確定是不是我想太多：看你們——本季的接單（bookings）大幅下滑，在手訂單（backlog）也更低。你們談到第三季的季節性疲弱。再看過去趨勢，接單與在手訂單似乎呈現走低。這是第三季的預期嗎？你會擔心這種業務的「忽高忽低」嗎？

I think we have been talking about the lumpiness of the business for two years. So this is just part of our business. We do not have multi-year backlog. The funded backlog is up from year-end. From Q1 it is lower, and that is because we had a large injection of backlog from the Global Observer program in Q1. That kind of lumpiness is what you can expect with us go forward.

我想我們談業務的「忽高忽低」已經談了兩年了，所以這就是我們業務的一部分。我們沒有多年期的在手訂單。已獲資金支持的在手訂單（funded backlog）較去年年底是增加的；相較第一季（Q1）則較低，原因是第一季我們從 Global Observer 計畫獲得了一筆大幅的在手訂單挹注。這種波動性就是你未來可以預期會在我們身上看到的。

Okay. So even when you were talking about SG&A being lower for lower bid activity, just kind of the normal lumpiness, nothing to read into?

好的。所以即使你們提到因投標活動較少而使 SG&A 較低，也只是正常的波動，沒有什麼特別含意？

It is, but your point on Q3 is good. I point you back to the remarks that Tim made. A lot of our order flow which drives lumpiness in the business is lumpy itself. That the big GFY tranche of funding, when does that come in? Does it come in in Q3, or does it come in in Q4? It will have a material effect on backlog and results based on when it arrives. It is not just one program. It is a number of programs that fall into that category.

是的，但你對第三季（Q3）的觀察是對的。我請你回頭看 Tim 的發言。我們許多驅動業務波動的訂單流，本身也很不均勻。那一大筆 GFY 的資金撥款，什麼時候進來？是第三季進來，還是第四季進來？它在到達時間不同時，會對在手訂單與業績造成實質影響。而且不只是一個計畫，是有好幾個計畫都屬於這一類。

Okay. That is fair. And then just if I can, back on the upgrades to be DDL, with obviously operations persisting in Iraq and it certainly looks like there's going to be a surge of activity in Afghanistan, does that make it more difficult for the customer to proceed with these upgrades? If you can give me a sense of timing, how long it takes one of these upgrades, how long will the customer be without their product?

好的。這很公平。然後如果可以的話，我想回到升級到 DDL 的部分，顯然伊拉克的作戰仍在持續，而且看起來阿富汗的活動可能會激增，這會不會讓客戶更難推進這些升級？如果你能給我一些時間上的概念，這類升級需要多久？客戶會有多久無法使用他們的產品？

The time without the product is an interesting question, and I don't have a great answer for it right now. It is not a multiweek process. So we will stage this based -- once we see what the schedule of our customers want to proceed on, we will plan that from an inventory and an implementation perspective. I would expect the same kind of good execution that we saw when we did -- when we began the frequency update, which was not dissimilar in Q1.

無法使用產品的時間是個有趣的問題，而我目前沒有很好的答案。這不是一個需要好幾週的流程。所以我們會依此來分階段進行——一旦我們看到客戶希望推進的時程，我們就會從庫存與導入執行的角度來規劃。我預期會有和我們在做——在第一季開始頻率更新時所看到的同樣良好執行力，那次其實也不太不同。

So I think the time customers would be out of pocket with their systems for this retrofit will not be a long period of time. As to how soon or how they would be -- how their retrofit decisions would be affected as a result of operations tempo, I guess I cannot predict what their decisions would be based on some future change in their ops tempo. So we will just as usual response to what they need and do our best to mitigate the impact.

所以我認為，客戶為了這次改裝而必須讓系統停用的時間不會很長。至於會多快、或他們——他們的改裝決策會如何因作戰節奏而受到影響，我想我無法根據未來作戰節奏的變化來預測他們的決策。因此我們會一如往常回應他們的需求，並盡力降低影響。

Okay. And I guess would the same be true for sort of service levels or replacement as troops are withdrawn from Iraq and potentially transferred to Afghanistan? Do you think there would be mandatory service required for some of the aircraft out there, or is it too early to tell what those demands might be in terms of service requirements?

好的。我想同樣的情況是否也適用於服務水準或更換？也就是當部隊自伊拉克撤出並可能轉移到阿富汗時。你認為那邊的一些飛機會需要強制性的服務維護嗎？還是現在要判斷那些服務需求可能會是什麼還太早？

It is definitely too early to tell what customers might want to do. But in terms of mandatory maintenance or service, I think the answer is no. These systems are really on condition repairs. So they operate with a certain amount of spares in the field. We have a certain amount of spares remotely supported with our servicepeople, and then the primary repair and replacement work is done at a deeper level in our factory. And that is all a function of what the specific condition of any given system is at any given time. So it would not lead to a schedule maintenance in and of itself.

確實現在要判斷客戶可能想怎麼做還太早。但就強制性維修或服務而言，我想答案是否定的。這些系統基本上是依狀況維修（on-condition repairs）。所以它們在前線會配備一定數量的備品。我們也透過我們的服務人員在遠端支援一定數量的備品，而主要的維修與更換工作則是在我們工廠更深層級完成。這一切都取決於任何特定系統在任何特定時間點的具體狀況。因此它本身不會導致排程式的定期維護。

Okay, that is perfect. And then just a last question, on the Puma AE, you talked about the accelerated schedule. Is there a chance that you could move into one of those larger kind of options beyond the $4 million contract, or was that accelerated schedule kind of built in to your initial award?

好的，這非常清楚。最後一個問題，關於 Puma AE，你提到加速的時程。是否有機會你們能進入那種超過 400 萬美元合約的較大型選項之一？還是說那個加速時程其實已經包含在你們最初的得標內容裡？

Yes, the schedule was part of the initial award. So we just got an aggressive customer, and we are running fast to keep up with them.

是的，時程是最初得標的一部分。所以我們只是遇到一個很積極的客戶，而我們正快速運作以跟上他們。

Fair enough. Thanks a lot, guys. Good quarter.

了解。非常感謝各位。這一季表現不錯。

Josephine Millward, Stanford Group.

Josephine Millward，Stanford Group。

Can you tell us what the initial Digital Data Link order that you have received, what it is from the Army, the size of that order?

你能告訴我們你們收到的第一筆 Digital Data Link 訂單是什麼嗎？是來自陸軍的嗎？那筆訂單的規模是多少？

I believe it is about $6 million or $7 million.

我相信大約是 600 萬或 700 萬美元。

Yes, I think it is right around $6 million, and that is non-recurring and an initial set of systems for limited rate initial production.

是的，我想大約就在 600 萬美元左右，而且那是一次性（non-recurring）的，並且是一組用於低速率初始生產（LRIP）的初始系統。

Okay. So this is really just to deliver maybe like 20 -- put it at attached units to the Army for evaluation, is that right?

好的。所以這其實只是交付大概 20 套——把它配發到陸軍的附屬單位進行評估，對嗎？

Correct.

正確。

And when do you -- you mentioned that you expect -- when do you expect to receive the rest of the production order from the Army?

那你們什麼時候——你提到你們預期——你們預期什麼時候會收到陸軍其餘的量產訂單？

Well, we know that the government announced a requirement for about 50 or 60 retrofits and something north of 200 -- or 50 or 60 new systems and something north of 200 retrofits, and we expect that they are in the process of addressing that requirement that they have announced. So presumably that will happen in our second half.

嗯，我們知道政府已宣布需求，大約 50 或 60 套改裝，以及 200 套以上——或者說 50 或 60 套新系統與 200 套以上的改裝，而我們預期他們正在處理他們已宣布的這項需求。所以推測會在我們下半年發生。

What has to happen after the initial testing for them to move forward with production?

在初始測試之後，他們要往量產推進還需要發生什麼？

This would go through an evaluation. They would then need to presumably make a determination that the systems meet their performance expectations, and then they would approve that production. That would then go back to what is funded and how does that schedule -- how do they decide to flow that schedule into their existing fleet.

這會進入評估流程。然後他們需要推測會做出判定，確認系統符合他們的性能預期，接著他們才會核准量產。之後就會回到資金到位的情況，以及那個時程——他們如何決定把這個時程導入到他們既有機隊中。

So I believe that our customers are in the process of making those decisions now, and as soon as they tell us what they want to do, we expect to be prepared to execute.

所以我相信我們的客戶目前正在做這些決策，而一旦他們告訴我們他們想怎麼做，我們預期會準備好執行。

Great. That is very helpful. You also mentioned additional customers for evaluating the Wasp. Can you expand on that a little bit on when we might have a decision?

很好，這非常有幫助。你也提到有其他客戶在評估 Wasp。你能再多談一點嗎？我們大概什麼時候可能會有決定？

It is hard for me to predict a) what their decision would be, or b) when they would make it. I do know that there are multiple customers that see significant potential advantage to that system in their concept of operations, and they are considering whether or not they want to adopt some of those systems in their use.

我很難預測 a) 他們會做出什麼決定，或 b) 他們何時會做出決定。我知道有多個客戶在其作戰概念中看到該系統具有顯著的潛在優勢，他們正在考慮是否要在其使用中採用其中一些系統。

So I think it is possible that that happens in the next six to 12 months, but I cannot really predict what our customers are going to do in the future.

所以我認為有可能在未來 6 到 12 個月內發生，但我無法真正預測我們的客戶未來會怎麼做。

Sure. Just one last question. Your R&D win from DARPA on this sales purchase there to small UAS, it sounds a lot like the requirements for the small UAS for the future combat system. Is that to develop a competing offering?

當然。最後一個問題。你們從 DARPA 拿到的這個研發案勝利，針對小型 UAS 的銷售採購，聽起來很像未來作戰系統（FCS）對小型 UAS 的需求。這是要開發一個競爭性的方案嗎？

I don't think this is (multiple speakers) I do not think that DARPA is thinking in those terms. I think this is a -- I think DARPA sees this as a very attractive features set, and as you know, there is a term called DARPA-hard that defines the kinds of R&D programs that they fund, which are usually significant stretches beyond existing capabilities. So putting -- where -- the fact that the FCS Class 1 program originally had a Hover and Stare requirement and a Perch and Stare objective as part of its performance spec, to that extent it, in fact, is similar, but this is a much smaller system, and it adds the characteristic of stealthiness that I think DARPA sees some potential around the basic WASP platform to achieve.

我不認為這是（多位講者）我不認為 DARPA 是用那樣的角度在思考。我認為這是——我認為 DARPA 覺得這是一組非常有吸引力的功能特性，而如你所知，有個術語叫做「DARPA-hard」，用來界定他們資助的研發計畫類型，通常是大幅超越既有能力的重大延伸。因此，把——在——FCS Class 1 計畫最初在性能規格中包含「Hover and Stare」需求與「Perch and Stare」目標這件事，就這個程度而言，確實相似，但這是一個更小的系統，並且增加了匿蹤特性；我想 DARPA 認為在基本 WASP 平台上有一些潛力可以達成。

Alex Hamilton, Jesup & Lamont.

Alex Hamilton，Jesup & Lamont。

Actually most of my questions have been answered. I might have missed your comments in regards to SG&A and R&D. I guess should I -- going forward in the model, should SG&A and R&D look closer to what was achieved in the second quarter or first quarter?

其實我大部分的問題都已經被回答了。我可能漏聽了你們關於 SG&A 和 R&D 的評論。我想問——往後在模型裡，SG&A 和 R&D 應該更接近第二季的水準，還是第一季的水準？

Well, I think our expectation is to accelerate our investment in the second half in both of those categories over and above what we -- what our spending was in the first half.

嗯，我想我們的預期是在下半年加速在這兩個類別的投資，會高於——高於我們上半年支出的水準。

Okay. Thank you.

好的，謝謝。

And I think the net result would be operating margins in the 12% to 14% range.

而我想淨結果會是營業利益率落在 12% 到 14% 的區間。

If you take a look at our SG&A as a percent of sales last year and maybe use that as a guide, we really cannot guide on individual line items. But you will notice as a percent of sales, clearly they are very low in Q2.

如果你看看我們去年 SG&A 佔銷售額的百分比，也許可以把它當作參考，我們確實無法針對個別科目提供指引。但你會注意到，以銷售額百分比來看，第二季顯然非常低。

Jeff Evanson, Dougherty & Co.

Jeff Evanson，Dougherty & Co.。

Tim, would you be willing to share what you have remaining in funded Global Observer backlog at this point?

Tim，你願意分享一下你們目前在已獲資金支持的 Global Observer 訂單積壓（backlog）還剩多少嗎？

Let me jump in. We do not break out our backlog by program. It was a fairly good chunk in Q1, and it is less now. But I don't think we want to start unpacking the backlog or the sales by contract.

我來補充一下。我們不會按計畫別拆分揭露 backlog。第一季時占比相當大，現在少了。但我想我們不希望開始把 backlog 或銷售按合約逐一拆開。

Okay. And Steve, could you talk about the increase in unbilled receivables and retentions of 23% sequentially? I guess I am thinking there is a correlation here, correct?

好的。Steve，你能談談未開立帳單應收款（unbilled receivables）與保留款（retentions）連續季增 23% 的原因嗎？我想這裡應該有關聯，對嗎？

No, the unbilled, again it is going to depend on -- it is mainly unbilled, it is not retentions, by the way. And the value is going to depend on a) the volume level of cost plus work we have -- that is the main driver -- and b) the timing of that cost-plus work. At the end of the month, whatever we -- or at the end of the quarter, the entire month's worth of cost-plus work will be in unbilled, for example, because we will bill it out in the following month the first week of the quarter. So there's nothing really going on there. It is just a function of the way our sales come in and our cost-plus mix.

不，未開立帳單的部分，還是要看——主要是未開立帳單，順帶一提，不是保留款。而金額會取決於 a) 我們有多少成本加成（cost-plus）工作的量——這是主要驅動因素——以及 b) 這些成本加成工作的時點。比如在月底或季末，當月全部的成本加成工作都會反映在未開立帳單裡，因為我們會在下一個月、也就是下一季的第一週開立帳單。所以其實沒有什麼特別的狀況。這只是我們銷售進來的方式以及成本加成組合（mix）所造成的結果。

Okay. That is helpful. Maybe this is almost along the same lines then. If I see funded and unfunded backlog down sequentially and you told me you saved money in the quarter by doing lower bid and proposal work, why -- how should I think about that? Should I not be concerned about that?

好的，這很有幫助。那也許這幾乎是同一個脈絡。如果我看到已獲資金與未獲資金的 backlog 連續下滑，而你又告訴我你們這一季因為做了較少的投標與提案（bid and proposal）工作而省了錢，那我——我應該怎麼看待這件事？我是不是不需要擔心？

No, I mean well -- I mean that is for you to determine. But when I was talking about the lower bid and proposal work, I was talking about not sequentially but compared to the prior year. In the first half of last year, we had a lot of bid and proposal activities associated with the Global Observer program. (multiple speakers)

不，我的意思是——我的意思是那要由你來判斷。不過我在談到較低的投標與提案（bid and proposal）工作時，我指的不是按季連續比較，而是相較於前一年。去年上半年，我們有大量與 Global Observer 計畫相關的投標與提案活動。（多位發言者）

Well, we also had a significant effort associated with Puma AE, which we subsequently won. So right now there are no small UAS programs of record in competition. If there were, we would probably be heavily spending in bid and proposal.

嗯，我們也投入了與 Puma AE 相關的重大努力，而我們後來也贏得了該案。所以目前沒有任何小型 UAS 的正式列裝計畫（programs of record）正在競標中。如果有的話，我們可能會在投標與提案上投入大量支出。

Makes sense.

有道理。

Let me, Jeff, go back on your Global Observer question. As Steve pointed out, we have never broken out backlog by program. But a way to think about Global Observer might be what has already been publicly announced.

Jeff，讓我回到你關於 Global Observer 的問題。如 Steve 所指出，我們從未按計畫拆分揭露在手訂單（backlog）。但思考 Global Observer 的一種方式，可能是看已經公開宣布的內容。

The original contract was $57 million. Now that was over for a three-year program execution, and it was not fully funded at contract time when the expectation was that would be funded over the three-year period. Additionally there was an additional -- there was another $37 million or $38 million that was appropriated in the FY '08 second supplemental. And then there was a further $40 million appropriated in the FY '09 VOD budget.

原始合約為 5,700 萬美元。那是涵蓋三年的計畫執行期，而且在簽約時並未全額到位，當時的預期是會在三年期間內逐步撥款。此外，還有一筆額外——還有另外 3,700 萬或 3,800 萬美元是在 2008 會計年度（FY '08）第二次補充預算中撥付的。然後在 2009 會計年度（FY '09）VOD 預算中又進一步撥付了 4,000 萬美元。

Now those last two appropriations tend to get some amount allocated to government overhead between appropriation and the time it shows up in contracts to us for Global Observer. But at a very top line, that I think gives you a sense of programmatic funding here.

而最後這兩筆撥款，通常在撥款與最終以 Global Observer 合約形式反映到我們這邊之間，會有一部分被分配到政府間接費用（overhead）。但就最高層級來看，我想這能讓你對此計畫的資金規模有個概念。

And the $40 million, none of that is in funded backlog, correct?

那 4,000 萬美元目前都不在已撥款在手訂單（funded backlog）裡，對嗎？

That is correct. It is neither funded nor unfunded. It is not here, yes.

沒錯。它既不在已撥款也不在未撥款（unfunded）之列。它不在這裡，是的。

It is on the East Coast?

是在東岸嗎？

Yes.

是。

Okay. And then my last question. I know you have been pestered to death about service revenues, so I will ask it here. I guess if my calculation is right, this is the lowest level of service revenue in six or seven quarters if I count this quarter. How should I think about that in relation to operational tempo, or is this just --?

好。那我最後一個問題。我知道你們被關於服務營收（service revenues）問到煩了，所以我也在這裡問一下。我想如果我算得沒錯，若把本季也算進去，這是六或七個季度以來最低的服務營收水準。就作戰節奏（operational tempo）來看，我該如何理解？還是這只是——？

I will start and then Tim can talk about longer-term. I think for the quarter there is no message there other than we had more product work to work off than service revenue. If you go back to Q1, we had a lot more service work and lower product work because of the ECP change.

我先說，然後 Tim 可以談長期。我認為就本季而言，沒有其他訊息，除了我們有更多產品工作（product work）可做，相對於服務營收。若回看 Q1，因為 ECP 變更，我們有更多服務工作而產品工作較少。

Longer-term the impact of service revenue on ops tempo, I guess I would let Tim talk to that.

長期而言，服務營收對作戰節奏的影響，我想讓 Tim 來談。

Yes, well, I can certainly talk to it, Jeff, but I'm not sure I will add much more clarity. I think what is going on to some degree is our customers, and we are learning what the spares and repairs and service support training requirements for these systems are as we go.

是的，我當然可以談，Jeff，但我不確定能否更清楚。我想某種程度上正在發生的是，我們的客戶以及我們自己，都在邊做邊學這些系統的備品（spares）、維修（repairs）與服務支援訓練（service support training）的需求是什麼。

Five years ago these systems were not part of programs of record. They were not, and they have just been now in these last five years introduced to our various customer systems, integrated into their tactics and procedures and their supply and training methodologies. And so they clearly have to anticipate ahead what the performance requirements will be or the service requirements and what the spare parts and repairs demands from future operations will be, and by definition, they cannot get that exactly right.

五年前，這些系統還不是正式列裝計畫（programs of record）的一部分。它們不是，而且是在過去五年才被導入我們各類客戶的體系中，並整合進他們的戰術與程序，以及補給與訓練的方法論。因此他們顯然必須提前預估性能需求或服務需求，以及未來作業對備品與維修的需求；而按定義，他們不可能把這些預估做得完全精準。

So I think we have seen and we probably will see some ups and downs as experience with the systems begins to stabilize and our customers are able to predict and fund their spending in that area.

所以我認為我們已經看到、而且可能還會看到一些起伏，直到對系統的使用經驗開始穩定下來，客戶也能更好地預測並為該領域的支出編列預算。

Okay, that is helpful. My last question is, I guess, Tim, related to EES, I think it was you that made the comment, are you essentially telling us that we probably should expect that number to be down sequentially in Q3?

好，這很有幫助。我最後一個問題，我想是 Tim，與 EES 有關。我記得是你提到的評論——你們是否基本上是在告訴我們，Q3 那個數字可能會按季下降？

Are you saying EES sales?

你是指 EES 銷售嗎？

Correct.

對。

No, I do not think we were intending to provide any specific direction on EES or UAS. I think the comment, the point was that what we have seen in the last two years is a pattern in the second half that where our Q3 is low and our Q4 is high, and we think that a major contributing factor to that is the significant fiscal year order flow in our unmanned aircraft. Was that the question, or am I answering the wrong question?

不，我不認為我們打算就 EES 或 UAS 提供任何具體指引。我想那段話的重點是：過去兩年我們看到下半年有一種模式，也就是 Q3 較低、Q4 較高；而我們認為其中一個主要因素，是我們無人機業務在會計年度末的訂單流入（order flow）相當顯著。這是你問的問題嗎？還是我答錯了？

Actually you anticipated the Part b to the question.

其實你已經預先回答了問題的第二部分。

Okay.

好。

I think there are two separate messages. We recognize the risk in the commercial environment, and then we are pointing out on a macrolevel what kind of trends we have seen.

我認為有兩個不同的訊息。我們認知到商業環境中的風險，然後我們也在宏觀層面指出我們看到的趨勢類型。

Understood. Okay. Thank you very much.

了解。好。非常感謝。

Michael Lewis, BB&T Capital Markets.

Michael Lewis，BB&T Capital Markets。

Year-to-date depreciation and amortization, please.

請問年初至今的折舊與攤銷（depreciation and amortization）是多少？

$1.1 million. Sorry, that is Q2. Sorry, Mike. $1.1 million in Q1 also.

110 萬美元。抱歉，那是 Q2。抱歉，Mike。Q1 也是 110 萬美元。

Tim Quillin, Stephens Inc.

Tim Quillin，Stephens Inc.。

All my questions have been answered.

我所有問題都已經被回答了。

Tyler Hojo, Sidoti & Co.

Tyler Hojo，Sidoti & Co.。

A quick follow-up here for me. Would you be able to tell us how many airframes were manufactured in the quarter in total, including the service side?

我這邊快速追問一下。你們能否告訴我們本季總共製造了多少架機體（airframes），包含服務端的部分？

Yes, I can do that. It was over -- at a pace of over -- a bit over 300 a month.

可以。我可以回答。速度是——每月超過——略高於每月 300 架。

A bit over, okay. And is that -- so that is definitely up sequentially, correct?

略高於，好。那這——所以按季肯定是增加的，對嗎？

I believe so, but I'm not certain.

我想是，但我不確定。

Okay. And just (multiple speakers) I'm sorry, go ahead.

好。然後（多位發言者）抱歉，你先請。

I just wanted to add, the other metric we typically give out, we are now over 11,000 air vehicles new and reworked delivered.

我只是想補充一下，我們通常也會提供的另一個指標是：目前我們已交付超過 11,000 架新造與翻修（reworked）的飛行載具（air vehicles）。

Great. Thank you. Just a follow-on, you gave us how the percentage of the planned Raven buy, the 1900 systems for Q2, but what was the correct number for Q1?

太好了，謝謝。再追問一下，你告訴我們 Q2 計畫採購 Raven 的比例，也就是 1,900 套系統，但 Q1 的正確數字是多少？

Let me just -- I don't have that number, but let me tell you what the adjustment is. There were 170 original Raven As that we took out of the equation.

我先——我手上沒有那個數字，但我可以告訴你調整的內容。有 170 套原本的 Raven A 被我們從計算中剔除了。

Okay. We can figure it out then. All right. Great. Thank you.

好，那我們就能算出來了。好。太好了，謝謝。

Corey Amon, Rice Voelker.

Corey Amon，Rice Voelker。

You stated that the R&D revenue was I think $16 million versus about $6 million last year. You may or may not be able to answer this, but can you give us a sense for how the profit margins for customer-funded R&D compare to the rest of the business?

你提到研發營收（R&D revenue）我想是 1,600 萬美元，相較去年約 600 萬美元。你可能不一定能回答，但你能否讓我們了解一下，客戶出資的研發（customer-funded R&D）的利潤率與其他業務相比如何？

Yes, well typically our project R&D is contracted on a cost-plus basis, and so those margins are lower than our fixed work. It is profitable, but the margins are typically lower.

可以。一般而言，我們的專案研發是以成本加成（cost-plus）方式簽約，因此毛利率會低於我們的固定價格工作（fixed work）。它是有利潤的，但利潤率通常較低。

Okay. We also know how much of the UAS revenues related to R&D, but it sounds like the previous caller knows how to figure this out. I'm new to the Company, but can you tell us how much of the UAS revenue is related to product and how much is related to service?

好。我們也知道 UAS 營收中有多少與研發相關，但聽起來前一位來電者知道怎麼算。我是新加入這家公司，但你能否告訴我們 UAS 營收中有多少是產品、多少是服務？

We do not break that out by segment, but in total I will tell you Q2 product revenue was 57% of sales and service is 19%, project R&D 24%, and to help you out further, on the EES side, it is almost all product work.

我們不按部門（segment）拆分揭露，但就整體而言，我可以告訴你：Q2 產品營收占銷售額 57%，服務占 19%，專案研發占 24%。另外再補充一點，在 EES 端幾乎全部都是產品工作。

Okay. That is good. Okay, great. And also I guess my last question is, can you give us a sense for how much of the UAS product revenue is from Raven versus the other UAS product? (multiple speakers) -- Raven pretty much all of the UAS product at this point?

好，這很好。好，太好了。還有我想最後一個問題是，你能否讓我們了解一下 UAS 產品營收中有多少來自 Raven、多少來自其他 UAS 產品？（多位發言者）——目前 Raven 幾乎就是全部的 UAS 產品嗎？

No, no, but having said that, we do not break it out by product line. Raven is the largest seller followed by Wasp in our products, and then moving from there, we move into the EES products and then Puma and some of the other things.

不，不是。不過話雖如此，我們不按產品線拆分揭露。Raven 是我們銷量最大的產品，其次是 Wasp；再往下則是 EES 產品，然後是 Puma 以及其他一些項目。

Okay, great. All right. Thank you very much.

好，太好了。好。非常感謝。

With that as our final question, we thank you all for your continued attention and interest in AeroVironment. May I remind you that an archived version of this call, as well as all SEC filings, can be found on our website, www.avinc.com. Relevant Company and industry news can also be found there.

既然這是我們最後一個問題，感謝各位持續關注並對 AeroVironment 保持興趣。提醒各位，本次電話會議的存檔版本以及所有 SEC 申報文件，都可在我們的網站 www.avinc.com 找到。相關的公司與產業新聞也可在該處查閱。

We look forward to speaking with you again following next quarter's results. In the meantime, please receive our best wishes for the holiday season and a healthy and prosperous new year.

我們期待在下個季度業績公布後再次與各位交流。在此期間，敬祝各位佳節愉快，並祝新的一年健康與繁榮。

That concludes today's conference. You may disconnect at this time. We do appreciate your participation.

今天的電話會議到此結束。您現在可以掛線。我們非常感謝您的參與。