AeroVironment, Inc. (AVAV) 2009 Q3 法說會逐字稿

Welcome to the third quarter 2009 AeroVironment conference call. (Operator Instructions) 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. Stephen Gitlin. I would now like to turn the presentation over to Mr. Gitlin. Please go ahead, sir.

歡迎參加 2009 年第三季 AeroVironment 電話會議。（接線員指示）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 Stephen Gitlin 先生。現在我想把簡報交給 Gitlin 先生。先生，請開始。

Thank you. Welcome to AV's fiscal third quarter fiscal2009 earnings conference call. Before I hand the call over to management, please note that on this call, certain information 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。歡迎參加 AV 2009 財政年度第三季財報電話會議。在我把電話交給管理團隊之前，請注意，本次電話會議中的部分資訊包含《1995 年私人證券訴訟改革法》所界定的前瞻性陳述。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、我們所營運市場未能成長、未能擴展至新市場、重大營運費用的變動、未能開發新產品、法規環境的變化，以及美國及世界其他地區的一般經濟與商業狀況。關於這些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, March 9, 2009. 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. It is now my pleasure to turn the call over to Tim Conver.

我們無意且不承擔任何義務更新任何前瞻性陳述，不論係因新資訊、未來事件或其他原因。本次電話會議內容包含具時效性的資訊，僅在今日（2009 年 3 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後發生的事件或情況。現在我很高興把電話交給 Tim Conver。

Thank you, Stephen. Welcome to our third quarter 2009 conference call. The time that's passed since our Q2 earnings report and today has seen dramatic economic and political developments, unprecedented in our experience, and affecting US global and commerce. One effect of these developments is growing uncertainty regarding commercial and government funding and purchase decisions. We believe our performance has been strong relative to many other businesses struggling in this environment, but we do feel the impact.

謝謝你，Stephen。歡迎參加我們 2009 年第三季電話會議。自我們第二季財報發布至今，經濟與政治情勢出現了劇烈發展，這在我們的經驗中前所未見，並影響美國的全球地位與商業活動。這些發展的一個影響，是商業與政府資金以及採購決策的不確定性日益增加。我們相信，相較於在此環境中掙扎的許多其他企業，我們的表現仍然強勁，但我們確實感受到影響。

AV's growth is based on fundamental propositions that our innovative solutions were developed to contribute important and valuable new benefits to our customers. Given the difficulty in predicting the timing and the volume of market adoption, we have always taken a long-term view of our business and market opportunities. Our team has historically performed extremely well in delivering results that have met our guidance, even though our quarterly results tend not to be linear. However, I doubt I have ever addressed investors without pointing out the bumpy quarters that have been and we expect will be characteristic of our business.

AV 的成長建立在一個基本命題之上：我們的創新解決方案是為了向客戶提供重要且有價值的新效益而開發。鑑於難以預測市場採用的時點與規模，我們一向以長期觀點看待我們的業務與市場機會。儘管我們的季度業績往往不是線性變化，我們的團隊歷來在交付符合我們指引的成果方面表現極為出色。然而，我想我幾乎每次面對投資人都會指出，我們的業務過去有、而且我們預期仍將有起伏不平的季度表現。

Three quarters into our fiscal '09 our year to date revenue is up 13% year-over-year and our operating profit is 14%. Q3 revenue was up 8% over Q3 last year, but was lower than we expected. There were multiple contributors to relatively low Q3 revenue, and I'm going to go into more detail here than usual to provide perspective on these contributing factors and their implications.

在 2009 財政年度進行到第三季時，我們年初至今的營收年增 13%，營業利益年增 14%。第三季營收較去年第三季成長 8%，但低於我們的預期。第三季營收相對偏低有多項原因，我將比以往更詳細說明，以提供這些因素及其影響的觀點。

They can be classified into four categories. The first category is structural. As we pointed out in our last call, every year we close operations between Christmas and New Year's and this year that amounted to almost two weeks production. We also know there is a likelihood of late order flow affecting Q3 associated with the government's budget cycle, and we saw that this year with most of the Raven Army contract arriving in the last day of the quarter. The second category also amounts to deferred revenue. We had lower project revenues constrained by unfilled employee hiring. This project revenue will be recovered as we hire the employees we're seeking.

這些原因可分為四類。第一類是結構性因素。如同我們在上次電話會議指出的，我們每年在聖誕節到元旦期間會停工，而今年停工時間接近兩週的生產期。我們也知道，政府預算週期可能導致第三季訂單流入偏晚，而今年確實如此：陸軍 Raven 合約的大部分訂單在季度最後一天才到達。第二類同樣屬於遞延營收。我們的專案營收較低，受限於員工招募未補足。隨著我們招募到所需員工，這部分專案營收將會回補。

The third category is economy-driven. Our industrial PosiCharge sales are down year to date because of lower sales of electric forklifts and foreign military orders for small UAS are being deferred because of international government budgetary uncertainty. We have made significant changes to drive stronger PosiCharge sales in the midst of capital equipment market declines, which I'll talk more about later, but we currently think we'll be doing well if we can hold PosiCharge sales flat year-over-year. The foreign order delay surprised us and we believe it's been driven by a reevaluation of defense budgets and priorities around the world. We have some reason for optimism in the ultimate outcome of foreign,small UAS procurement decisions but for now we have delays.

第三類是由經濟驅動的因素。我們的工業用 PosiCharge 銷售年初至今下滑，原因是電動堆高機銷售減少；此外，外國軍方對小型無人航空系統（UAS）的訂單也因國際政府預算不確定性而延後。我們已做出重大調整，以在資本設備市場下滑之際推動更強勁的 PosiCharge 銷售，我稍後會再談；但目前我們認為，若能使 PosiCharge 銷售與去年持平，就算表現良好。外國訂單延遲出乎我們意料，我們認為其原因是全球各國對國防預算與優先順序進行重新評估。我們對外國小型 UAS 採購決策的最終結果仍有一些樂觀理由，但目前確實存在延遲。

The fourth category is DOD orders for small UAS that we expected in Q3, but have not received. We believe some customers are still arranging funding and at least one customer may be deferring orders waiting for digital DataLink production cut-in to be available. This DDL effect would be an unanticipated revenue delay associated with the compelling new product improvement that digital DataLink represents.

第四類是我們原本預期在第三季收到、但尚未收到的國防部（DOD）小型 UAS 訂單。我們相信部分客戶仍在安排資金，且至少有一位客戶可能在等待數位 DataLink 量產導入可用後才延後下單。這種 DDL 效應將是與數位 DataLink 這項具吸引力的新產品改良相關、未預期的營收延遲。

We expect strong fourth quarter revenue to bring total fiscal year '09 revenue to $240 million to $250 million. This would be an 11% to a 16% growth over fiscal year '08, but less than the growth we previously expected for the year. I believe we remain very well positioned due to the intersection of our customers' priorities and the value they perceive in our solutions, as well as our financial resources and the extraordinary effectiveness of our people. Demand for small UAS customer-funded development programs and electric vehicle test systems remains strong, supporting our long-term growth goals.

我們預期第四季營收強勁，將使 2009 財政年度全年營收達到 2.40 億至 2.50 億美元。這將較 2008 財政年度成長 11% 至 16%，但低於我們先前對全年成長的預期。我相信，憑藉客戶優先事項與其對我們解決方案價值的認知之交會點，以及我們的財務資源與員工非凡的執行力，我們仍處於非常有利的位置。小型 UAS 的客戶出資研發計畫與電動車測試系統的需求仍然強勁，支持我們的長期成長目標。

In fact, significant highlights in quarter three reinforced our general growth expectations. They include record funded backlog of $139 million, a definitive statement of demand for our solutions. A net increase in cash equivalents and investment to $131 million. Receipt of Army Raven production and CLS orders totaling $100 -- excuse me, $41.7 million, although most of it was received at the end of the quarter. Continued progress on Global Observer development and increased funding development. Delivery of initial Puma AE limited rate initial production systems and very positive customer response to initial operational testing.

事實上，第三季的重大亮點強化了我們對整體成長的預期。其中包括：創紀錄的已獲資金訂單積壓（funded backlog）1.39 億美元，明確顯示對我們解決方案的需求；現金約當物與投資淨增加至 1.31 億美元；收到陸軍 Raven 量產與 CLS 訂單合計 100——抱歉，是 4,170 萬美元，雖然其中大部分在季度末才收到；Global Observer 開發持續進展且開發資金增加；交付首批 Puma AE 低率初始量產（LRIP）系統，且客戶對初始作業測試的回饋非常正面。

Italian approval of Raven for use over populated centers, this is a key enabler to future applications inside national air spaces. Installation of PosiCharge systems at our first customer developed through our new Toyota material handling distribution partnership with clear customer appreciation of the value proposition. Installation of our electric vehicle test systems at the General Motors volt development plant. Successful transition of our digital DataLink from research and development into production, with a $16.8 million initial order in January and encouraging indications of broad future adoption. And successful demonstration of the end to end Switchblade solution, leading to multiple customers now evaluating potential applications for this entirely new capability.

義大利核准 Raven 可在有人口聚集的中心區域上空使用，這是未來在各國國家空域內應用的關鍵推動因素；透過我們與 Toyota 物料搬運（material handling）通路合作夥伴關係所開發的第一位客戶，已安裝 PosiCharge 系統，且客戶明確肯定其價值主張；在通用汽車 Volt 開發工廠安裝我們的電動車測試系統；成功將我們的數位 DataLink 自研發轉入量產，並於 1 月取得 1,680 萬美元的首筆訂單，且有令人鼓舞的跡象顯示未來將廣泛採用；以及成功展示端到端的 Switchblade 解決方案，使多位客戶目前正在評估這項全新能力的潛在應用。

These are all strong indications of growing demand and some are major milestones for key growth platforms. Before we move on to the UAS segment, I think it's helpful to revisit briefly the implications of our strategy to understand how we view the business. We have developed market leadership, competitive advantage and sustainable growth by bringing innovative technology solutions with compelling benefits to large potential markets. As a corollary, we have to deal with the unpredictable timing and rate of adoption inherent in innovation. We have successfully transitioned three solutions from R&D to production businesses through our commercialization process.

這些都是需求成長的強烈跡象，其中一些更是關鍵成長平台的重要里程碑。在我們進入 UAS 事業部門之前，我認為有必要簡要回顧我們策略的意涵，以理解我們如何看待這門生意。我們透過將具吸引力效益的創新技術解決方案帶入龐大的潛在市場，建立了市場領導地位、競爭優勢與可持續成長。相對地，我們也必須面對創新所固有的採用時點與採用速度之不可預測性。我們已透過商業化流程，成功將三項解決方案從研發轉型為量產型業務。

Small UAS is the largest, followed by PosiCharge, and then electric vehicle test systems. In each case, we have built the largest market share and we have created good opportunities, not only to maintain our leadership in these initial served markets, but to expand our solutions into much larger target markets for future growth. The challenges we face as we execute this strategy include getting the technology right, anticipating the market, surviving the inevitable dry holes and dealing with uncertainty regarding the timing of adoption and diffusion of these innovations into their target markets. I think we understand and actually thrive on the first three challenges. We deal with the fourth challenge, the timing of adoption and market uptake with persistence, agility, measured investments, and a long-term view. The rewards have been significant.

其中小型 UAS 規模最大，其次是 PosiCharge，再來是電動車測試系統。在每一個案例中，我們都建立了最大的市占率，並創造了良好機會，不僅能維持在這些初始服務市場的領導地位，也能將我們的解決方案擴展到更大的目標市場，以推動未來成長。我們在執行此策略時面臨的挑戰包括：把技術做對、預判市場、挺過不可避免的「乾井」（dry holes），以及因這些創新導入目標市場的採用與擴散時點不確定而帶來的挑戰。我認為我們理解並且實際上在前三項挑戰中如魚得水。對於第四項挑戰——採用時點與市場吸收速度——我們以堅持、敏捷、審慎投資與長期觀點來因應。回報相當可觀。

When small UAS and PosiCharge were adopted by large customers, initial revenue growth exceeded 100% per year and we established early and sustained market leadership. We believe innovation still in development may have even greater potential and larger rewards than those already commercialized. Although the difficulty in predicting timing emphasizes the importance of viewing and managing our business for the long-term.

當小型 UAS 與 PosiCharge 被大型客戶採用時，初期營收成長每年超過 100%，我們也建立了早期且持續的市場領導地位。我們相信，仍在開發中的創新可能具有比已商業化產品更大的潛力與更高的回報。儘管難以預測時點，更凸顯以長期觀點來看待並管理我們業務的重要性。

Now let's look at the Q3 results for our UAS segment. Demand for our UAS solutions continued in Q3 and is reflected in record backlog this quarter. Key contributors to the growing backlog were receiving options exercised for our Global Observer development contract, as more of the funds appropriated for Global Observer in calendar year '08 were put on contract. We expect this process will continue with Global Observer contract funding additions in Q4.

現在讓我們來看我們 UAS 事業部門的第三季（Q3）業績。我們的 UAS 解決方案需求在 Q3 持續，並反映在本季創紀錄的在手訂單（backlog）。在手訂單成長的主要貢獻因素，是我們的 Global Observer 開發合約收到被行使的選擇權，因為 2008 曆年（'08）為 Global Observer 核撥的更多資金已納入合約。我們預期此流程將持續，並在 Q4 透過 Global Observer 合約增額資金的加入而延續。

UAS production and CLS orders from the Army were received at the end of the quarter and we received a contract for digital DataLink, low rate initial production and Raven B retro fits during the quarter. Most of this initial digital DataLink contract will ship in Q3 and Q2 of our fiscal year '10. We believe this is a very important milestone in our small UAS business and represents significant growth potential. It's also a major production transition from one of the key internally funded R&D initiatives we announced over two years ago. We believe the Army intends to convert all future production, small unmanned aircraft systems to digital DataLink and to retro fit much, if not all, of their entire fleet of Raven Bs. We believe most of the other small UAS customers will eventually do the same. Digital DataLink will multiply the number of small unmanned aircraft that can be used without requiring additional scarce frequency spectrum, a key enabler to broader adoption of small UAS beyond the current basis of issue. It will also significantly enhance communications security.

陸軍的 UAS 生產與 CLS 訂單在季末收到，且我們在本季收到數位 DataLink（資料鏈路）、低率初期生產（LRIP）以及 Raven B 改裝（retrofits）的合約。這份初期的數位 DataLink 合約大部分將於我們 2010 會計年度（'10）的 Q3 與 Q2 出貨。我們認為這是我們小型 UAS 業務非常重要的里程碑，並代表顯著的成長潛力。這同時也是從我們兩年多前宣布的關鍵內部自籌研發（R&D）計畫之一，邁向重大量產轉換。我們相信陸軍打算將未來所有小型無人航空系統的生產轉為數位 DataLink，並改裝其 Raven B 全機隊的大部分（若非全部）。我們相信其他小型 UAS 客戶最終也會採取相同作法。數位 DataLink 將在不需要額外稀缺頻譜資源的情況下，倍增可使用的小型無人機數量，這是小型 UAS 超越目前配發基準（basis of issue）而更廣泛採用的關鍵推動因素；同時也將大幅提升通訊安全性。

Beyond these initial benefits of DDL, we expect the thousands of our small unmanned aircraft systems available throughout DOD will take on much more value with the potential of each becoming an airborne network access node enabling a beyond line of sight digital network. An unforeseen consequence of our successful introduction of DDL is that at least one customer appears to have deferred expected small unmanned aircraft system contracts to wait for DDL production availability.

除了 DDL 的這些初期效益之外，我們預期國防部（DOD）各處可用的數千套小型無人航空系統，將因每一套都有可能成為空中網路存取節點、進而啟用超視距（beyond line of sight）的數位網路，而具備更高價值。我們成功導入 DDL 的一項未預見後果是，至少有一位客戶似乎已延後原本預期的小型無人航空系統合約，以等待 DDL 量產供應。

Beyond our Q3 backlog gains, we made important progress in several other areas of UAS. We're pleased with reports of successful initial operational testing of Puma AE. Successful completion of the full testing and evaluation is a necessary phase in military acquisition before authorities can authorize full rate production. This first step for Puma AE is encouraging for future production procurements. By next quarter, early in the quarter, we expect to be able to begin demonstrating for the first time the significant performance capabilities of Puma AE to other potential customers. Like Raven, we believe the potential adoption of Puma AE can extend well beyond its initial customer base.

除了 Q3 在手訂單的成長之外，我們在 UAS 的其他幾個領域也取得重要進展。我們對 Puma AE 初期作戰測試成功的回報感到滿意。在軍事採購流程中，完整測試與評估成功完成是主管機關核准全速率量產（full rate production）之前的必要階段。Puma AE 的這第一步，對未來量產採購而言是令人鼓舞的。到下個季度、在季度初期，我們預期將能首次向其他潛在客戶展示 Puma AE 顯著的性能能力。如同 Raven，我們相信 Puma AE 的潛在採用可遠超其初始客戶群。

We made good progress on our other UAS development programs during the quarter and as I mentioned, we achieved major milestones in some. The Global Observer program continues to go well. Air frame fabrication has started and propulsion, pay load and control system development and testing continues successfully. We are continuing to work with our customer, as they exercise contract options with funding. A major milestone was achieved in Q3 with Switchblade's successful end to end customer demonstrations during the quarter.

本季我們在其他 UAS 開發計畫上也取得良好進展，且如我所提，我們在其中一些計畫達成重大里程碑。Global Observer 計畫持續進展順利。機體（airframe）製造已開始，推進系統、酬載（payload）與控制系統的開發與測試也持續成功進行。我們持續與客戶合作，隨著其行使合約選擇權並投入資金。本季 Q3 的一項重大里程碑，是 Switchblade 在本季期間成功完成端到端（end-to-end）的客戶展示。

These tests demonstrated Switchblade's unique set of capabilities, high mission value, and effects capabilities that do not currently exist in any other system. We believe these unique capabilities will be attractive to a number of defense customers. We have seen active interest from a growing number of customers developed from this demonstration of our initial ground launch configuration of Switchblade. Two new customers have already funded demonstrations for their own somewhat different applications of Switchblade and we are in similar discussions with other customers. We're optimistic about the significant potential of this development, but we do not yet know when, what customers will make what decisions on Switchblade acquisition. A case in point of the unpredictability of the timing of innovation adoption.

這些測試展示了 Switchblade 獨特的一組能力、高任務價值，以及目前任何其他系統都不存在的效應能力。我們相信這些獨特能力將對多家國防客戶具有吸引力。透過我們對 Switchblade 初始地面發射構型的展示，我們看到來自愈來愈多客戶的積極興趣。已有兩位新客戶為其各自略有不同的 Switchblade 應用提供資金進行展示，我們也正與其他客戶進行類似討論。我們對此開發的重大潛力感到樂觀，但我們尚不清楚何時、哪些客戶會就 Switchblade 採購做出哪些決策。這正是創新採用時點不可預測性的例證。

We also made good progress on our stealthy purch and persistence air UAS and our Nano air vehicle development programs for DARPA. Active interest in our small unmanned aircraft systems continues internationally, but the economy is stretched out non-US acquisition decisions. At these -- as these international defense budgets are addressed over the coming months, we believe one view that customers will consider is that small UAS can provide an 80% solution to ISR requirements, often at less than 10% of the cost.

我們在 DARPA 的匿蹤 perch 與 persistence air UAS，以及 Nano 空中載具開發計畫上也取得良好進展。國際市場對我們小型無人航空系統的興趣仍在延續，但經濟情勢使非美國的採購決策被拉長。在未來數月這些國際國防預算陸續被檢視之際，我們相信客戶會考量的一個觀點是：小型 UAS 往往能以不到 10% 的成本，提供對 ISR（情報、監視與偵察）需求的 80% 解決方案。

Before we move on to discuss our environmental systems business, there continues to be a great deal of speculation regarding how the Obama Administration's defense and spending priorities may affect defense contractors. I would like to take a moment to address these concerns, as they might affect AV. Targets have been set for drawing down troops in Iraq and commitments have been made to increase troops in Afghanistan. We believe that the underlying customer demand for our small UAS is driven by plans to equip all US ground forces with this capability at a certain organizational level of use. Our customers do not view small UAS as a tool that's useful only in Iraq or Afghanistan, but rather as a tool that our ground forces require wherever and wherever they operate and train. As a result, we do not believe that the Iraq drawdown will reduce planned procurement quantities for our small UAS.

在我們繼續討論環境系統業務之前，外界對歐巴馬政府的國防與支出優先順序將如何影響國防承包商，仍有大量揣測。我想花點時間回應這些疑慮，因為它們可能影響 AV。政府已設定自伊拉克撤軍的目標，並承諾增加在阿富汗的兵力。我們相信，客戶對我們小型 UAS 的根本需求，來自於在特定組織層級上為所有美國地面部隊配備此能力的計畫。我們的客戶並不將小型 UAS 視為僅在伊拉克或阿富汗才有用的工具，而是視為我們地面部隊無論在何處執行任務與訓練都需要的工具。因此，我們不認為伊拉克撤軍會降低我們小型 UAS 的既定採購數量。

Moreover, given that the initial demand for small UAS began in early 2002 in Afghanistan, where US forces were successfully employing our Porter system to provide situational awareness to isolated teams in rugged terrain, we see compelling benefits for the continued or expanded use of small UAS, as operations increase in that country. A part of our UAS business that is more sensitive to ops tempo is the repairs and spare parts services that we sell to our customers in support of the systems they use. If the total number of Raven flight hours increases, for example, we would expect more spare parts and repairs. If total flight hours decrease, we would expect a reduction in spare parts and repairs. Since our forces train when they are not fighting and the total number of systems acquired continues to grow, we do not expect spare parts and repair services to go away.

此外，鑑於小型 UAS 的初期需求始於 2002 年初的阿富汗，當時美軍成功運用我們的 Porter 系統，為崎嶇地形中孤立的小隊提供態勢感知；隨著該國行動增加，我們看到小型 UAS 持續或擴大使用的顯著效益。我們 UAS 業務中對作戰節奏（ops tempo）較敏感的一部分，是我們為客戶提供、用以支援其使用系統的維修與備品服務。例如，若 Raven 的總飛行時數增加，我們預期備品與維修需求會增加；若總飛行時數下降，我們預期備品與維修會減少。由於部隊在不作戰時仍會訓練，且已採購的系統總量持續成長，我們不預期備品與維修服務會消失。

We have heard and read statements from the Obama Administration, including from Secretary Gates that reflect the recognition of the importance of unmanned aircraft systems in the current threat environment. We also take note of President Obama's stated intent to increase competition for defense programs and to move more towards fixed price contracts. As a reminder, each of the four US DOD programs of record for small unmanned aircraft systems that we have won have been through full and open competition with other major defense contractors competing. In addition, our small unmanned aircraft system procurement contracts are fixed price so we're experienced and comfortable operating in this type of contracting environment. In fact, we typically show higher margins on fixed price contracts than on cost plus contracts. Time will tell how the Administration's policies effect our UAS business, but I continue to believe that we are very well-positioned with relevant, high performance, reliable and cost effective, unmanned aircraft systems solutions that are continuing in high demand.

我們已聽到並讀到歐巴馬政府的相關聲明（包括國防部長 Gates 的說法），反映其認知到在當前威脅環境下無人航空系統的重要性。我們也注意到歐巴馬總統表達的意圖：提高國防計畫的競爭程度，並更傾向採用固定價格合約。提醒一下，我們贏得的四項美國國防部（DOD）小型無人航空系統正式計畫（programs of record），皆是在與其他主要國防承包商進行完整且公開競爭下取得。此外，我們的小型無人航空系統採購合約為固定價格，因此我們在此類合約環境中具備經驗且運作自如。事實上，我們在固定價格合約上的毛利率通常高於成本加成（cost plus）合約。政府政策將如何影響我們的 UAS 業務仍有待時間驗證，但我仍相信，我們以具相關性、高性能、可靠且具成本效益的無人航空系統解決方案，處於非常有利的位置，且需求仍然強勁。

Now shifting to our efficient energy systems business, we believe we are maintaining our leading percentage of fast charging market share. We have also moved to address broader market opportunities in an effort to increase PosiCharge revenue, which has the potential to offset some of the effect of the electric lift truck capital market decline. We introduced two new PosiCharge product line extensions in January that will expand our addressable market. These new opportunity chargers will increase the productivity of customers that have lower duty cycles and don't need full capabilities of fast charging.

現在轉向我們的高效率能源系統業務，我們相信我們仍維持在快速充電市場的領先市占率（以百分比計）。我們也已著手開拓更廣泛的市場機會，以提升 PosiCharge 營收；其有潛力抵消電動堆高機資本市場下滑的部分影響。我們在 1 月推出兩項新的 PosiCharge 產品線延伸，將擴大我們可觸及的市場。這些新的機會型充電器將提升那些工作循環較低、且不需要完整快速充電功能之客戶的生產力。

Preliminary results from our new Toyota material handling distribution relationship launched in September are encouraging. This partnership addresses a much larger share of North American market opportunity than we previously had access to. We installed PosiCharge systems in the first customer facilities sold through the Toyota channel this quarter and it reinforces our belief that this partnership will deliver significant benefits for our customers, for Toyota and their distributors, and for AV. Electric vehicle test systems demand is strong, driven by over two dozen battery electric vehicle and plug-in hybrid electric vehicle development programs globally and we continue to expand our customer base and our product offering.

我們於 9 月啟動的 Toyota 物料搬運（material handling）通路合作關係，其初步成果令人鼓舞。此合作使我們得以觸及先前無法取得的、更大比例北美市場機會。本季我們在透過 Toyota 通路售出的首批客戶據點安裝了 PosiCharge 系統，這也強化了我們的信念：此合作夥伴關係將為客戶、Toyota 及其經銷商，以及 AV 帶來顯著效益。電動車測試系統需求強勁，驅動因素包括全球超過二十多項電池電動車與插電式混合動力電動車的開發計畫；我們也持續擴大客戶基礎與產品供應。

Demand also appears to be growing for our other electric vehicle solutions and customer-funded developments. This interest in our technology solutions is being driven by the many vehicle development programs active around the world and by the new US government emphasis on supporting the development of electric vehicles and the recharge infrastructure to support EV adoption. The recent federal stimulus bill accelerates numerous opportunities for our electric vehicle and clean energy solutions and we're engaged at multiple levels to determine where our solutions can best provide the greatest impact. We believe we have unique capabilities to provide fast charging infrastructure that can enable adoption and practical use of electric vehicles, but the long-term implications will ultimately be determined by consumer decisions on the adoption of electric vehicles.

我們其他電動車解決方案與客戶出資開發案的需求似乎也在成長。對我們技術解決方案的興趣，來自全球各地眾多正在進行的車輛開發計畫，以及美國政府近期更強調支持電動車發展與充電基礎設施建置，以促進 EV 採用。近期的聯邦刺激法案加速了我們在電動車與潔淨能源解決方案上的多項機會，我們正以多個層級投入，以判斷我們的解決方案在哪些方面能提供最大影響力。我們相信我們具備獨特能力，可提供能促進電動車採用與實際使用的快速充電基礎設施，但長期影響最終仍將取決於消費者對電動車採用的決策。

With that as an overview of our business, Steve Wright, our CFO, will now review the financial results.

以上為我們業務的概述，接下來由我們的財務長 Steve Wright 來回顧財務結果。

Thanks, Tim, and good afternoon, everyone. Revenue for the third quarter was $52.2 million, an increase of 8% over third quarter prior year of $48.5 million. By segment, UAS revenue was $43.4 million, an increase of 3% over the prior year. Growth in UAS revenue was largely due to higher customer-funded R&D and higher product deliveries offset by lower services. The increases in customer-funded R&D and product revenues were largely due to increased activity on the Global Observer contract and product deliveries to international customers respectively. The decrease in services revenue was primarily due to higher revenue in the prior years for the retro fit of Raven A to Raven B.

謝謝你，Tim，各位下午好。第三季營收為 5,220 萬美元，較去年第三季的 4,850 萬美元成長 8%。按事業部別，UAS 營收為 4,340 萬美元，較去年成長 3%。UAS 營收成長主要來自客戶出資研發（R&D）增加以及產品交付增加，但部分被服務收入下降所抵銷。客戶出資研發與產品收入的增加，分別主要源於 Global Observer 合約活動增加，以及對國際客戶的產品交付增加。服務收入下降主要是因為前幾年 Raven A 升級改裝為 Raven B 的改裝（retro fit）帶來較高收入。

EES revenue was $8.8 million, an increase of 39% from Q3 of last year, primarily due to higher deliveries of EV test systems. Turning to gross margin, gross margin in the third quarter was $16.7 million, down 16% from Q3 of last year. Gross margin as a percent of revenue was 32% versus 41% in Q3 last year. By segment, UAS gross margin was $13.5 million, down 23% from Q3 of last year. As a percent of revenue, UAS gross margin was 31% versus 41% in Q3 last year. The decrease in gross margin rate was largely due to lower revenue on cost side contracts due to reduced indirect rate application and higher program costs.

EES 營收為 880 萬美元，較去年第三季成長 39%，主要因電動車（EV）測試系統交付量增加。接著看毛利，第三季毛利為 1,670 萬美元，較去年第三季下降 16%。毛利率為 32%，去年第三季為 41%。按事業部別，UAS 毛利為 1,350 萬美元，較去年第三季下降 23%。以營收百分比計，UAS 毛利率為 31%，去年第三季為 41%。毛利率下降主要是因成本加成（cost side）合約的收入較低（由於間接費率適用減少），以及專案成本較高。

EES gross margin was $3.2 million, up 37% from Q3 of last year and as a percent of revenue, EES gross margin was 36% versus 37% in Q3 last year. SG&A for the quarter totaled $8 million, or 15% of revenue versus $8.2 million, or 17% of revenue in the prior year. SG&A expense was lower, primarily due to lower selling costs.

EES 毛利為 320 萬美元，較去年第三季增加 37%；以營收百分比計，EES 毛利率為 36%，去年第三季為 37%。本季銷售、一般及行政費用（SG&A）合計 800 萬美元，占營收 15%，去年同期為 820 萬美元，占營收 17%。SG&A 費用下降主要是因銷售成本較低。

R&D for the quarter was $4.6 million, or 9% of revenue compared to the prior year amount of $3.7 million, or 8% of revenue. Operating income for the quarter was $4.1 million, or 8% of revenue. Operating income was 48% below Q3 prior year, primarily due to lower gross margin and higher R&D, partially offset by lower SG&A. Net income for the quarter was $4.5 million, or $0.21 per fully diluted share compared to $6 million or $0.28 per fully diluted share in the same quarter last year.

本季研發（R&D）費用為 460 萬美元，占營收 9%，去年同期為 370 萬美元，占營收 8%。本季營業利益為 410 萬美元，占營收 8%。營業利益較去年第三季下降 48%，主要因毛利較低與研發費用較高，部分被 SG&A 較低所抵銷。本季淨利為 450 萬美元，完全稀釋後每股盈餘 0.21 美元；去年同季為 600 萬美元，完全稀釋後每股盈餘 0.28 美元。

Now moving quickly through our year to date results, revenue for the first nine months was $171.6 million, up 13% from the prior year period of $151.4 million. UAS revenue was $145.9 million, up 12% from the prior year period, and EES revenue was $25.7 million, up 24% from the prior year period. Gross margin for the first nine months was $62.2 million compared to $55.6 million in the same period a year ago. Gross margin as a percentage of revenue was 36%, a decrease of 1 percentage point from the prior year. By segment, UAS gross margin was $50.1 million, up 3%, and EES gross margin was $12.2 million, up 72%. SG&A for the first nine months totaled $23.9 million or 14% of revenue versus the prior year period of $24.5 million, or 16% of revenue.

接著快速說明年初至今的結果，前九個月營收為 1.716 億美元，較去年同期的 1.514 億美元成長 13%。UAS 營收為 1.459 億美元，較去年同期成長 12%；EES 營收為 2,570 萬美元，較去年同期成長 24%。前九個月毛利為 6,220 萬美元，去年同期為 5,560 萬美元。毛利率為 36%，較去年下降 1 個百分點。按事業部別，UAS 毛利為 5,010 萬美元，成長 3%；EES 毛利為 1,220 萬美元，成長 72%。前九個月 SG&A 合計 2,390 萬美元，占營收 14%；去年同期為 2,450 萬美元，占營收 16%。

R&D for the first nine months was $14.8 million or 9% of revenue versus $11.8 million, or 8% of revenue in the prior year. Operating income for the first nine months was $23.6 million, or 14% of revenue. Operating income increased 22% from the prior year. The effective tax rate for the first nine months was 25.4%, down from the prior year of 33.3%. This tax rate reflects release of FIN 48 tax reserves set up in prior years for the R&D tax credits. Net income for the first nine months was $18.4 million, or $0.84 cents for fully diluted share versus $15 million, or $0.70 cents per fully diluted share last year. Looking at backlog, funded backlog at the end of the third quarter was $139 million, up $57 million or 70% from April 30, 2008.

前九個月研發（R&D）費用為 1,480 萬美元，占營收 9%；去年同期為 1,180 萬美元，占營收 8%。前九個月營業利益為 2,360 萬美元，占營收 14%。營業利益較去年成長 22%。前九個月有效稅率為 25.4%，低於去年同期的 33.3%。此稅率反映了針對研發稅額抵減（R&D tax credits）在前幾年依 FIN 48 設立之稅務準備的回轉。前九個月淨利為 1,840 萬美元，完全稀釋後每股盈餘 0.84 美元；去年為 1,500 萬美元，完全稀釋後每股盈餘 0.70 美元。再看在手訂單（backlog），截至第三季末，已獲資金支持的在手訂單為 1.39 億美元，較 2008 年 4 月 30 日增加 5,700 萬美元或 70%。

Turning to our balance sheet, cash equivalents and investments at the end of the third quarter totaled $130.6 million, up $5.9 million from our prior quarter amount of $124.7 million. The positive cash flow is largely due to income and working capital, partially offset by capital expenditures. Investments at the end of the third quarter were $28.6 million, an increase of $20.6 million from the prior quarter primarily due to increased purchases of T bills with maturities greater than 90 days. Our holdings of auction rate municipal securities, which totaled $8 million at par have remain unchanged from the previous quarter. We have, however, recorded a temporary impairment charge for these securities of $0.9 million based on fair value accounting using discounted cash flow.

接著看資產負債表，第三季末現金約當物與投資合計 1.306 億美元，較上一季的 1.247 億美元增加 590 萬美元。正向現金流主要來自獲利與營運資金，部分被資本支出所抵銷。第三季末投資為 2,860 萬美元，較上一季增加 2,060 萬美元，主要因增加購買到期日超過 90 天的國庫券（T bills）。我們持有的拍賣利率市政證券（auction rate municipal securities）按面值合計 800 萬美元，較上一季維持不變。不過，我們已依公允價值會計、以折現現金流法評估，對這些證券認列 90 萬美元的暫時性減損費用。

Turning to receivables, at the end of the third quarter our accounts receivable including unbilled receivables totaled $53.2 million, down $2.9 million from the prior quarter. Total day sales outstanding were approximately 92 days compared to 77 days at the end of the prior quarter. The increase in DSOs caused by the timing of our revenues, which were concentrated towards the end of the quarter.

再看應收款項，第三季末我們的應收帳款（含未開立帳單之應收款）合計 5,320 萬美元，較上一季減少 290 萬美元。應收帳款週轉天數（DSO）約為 92 天，上一季末為 77 天。DSO 上升是由於營收認列時點所致，本季營收較集中於季末。

Taking a look at our inventory, inventories were $20.4 million at the end of the quarter compared to 19 million at the end of the prior quarter. Days in inventory were approximately 52 days versus 42 days at the prior quarter end.

再看存貨，季末存貨為 2,040 萬美元，上一季末為 1,900 萬美元。存貨天數約為 52 天，上一季末為 42 天。

Turning to capital expenditures, in the third quarter, we invested approximately $3.2 million, or 6% of revenue in property improvements and capital equipment. And now I would like to turn things back to Tim to discuss expectations for the balance of the year.

接著看資本支出，第三季我們在廠房改善與資本設備方面投資約 320 萬美元，約占營收 6%。接下來我想把時間交還給 Tim，討論今年剩餘期間的展望。

Thank you, Steve. As I indicated earlier, we anticipate another strong fourth quarter this year. However, a number of factors have built up over the last three months that limit our ability to catch up to prior growth expectations for fiscal year '09. Pressure on capital spending is depressing posse charge sales and delays of some small UAS buys and international contracts preclude some revenue we had planned in Q3 and Q4. Global economic conditions represent an overhang that may yet effect our business in ways we do not currently anticipate.

謝謝你，Steve。如我先前所提，我們預期今年第四季仍將強勁。然而，過去三個月累積了若干因素，限制了我們追趕 2009 會計年度（'09）先前成長預期的能力。資本支出壓力正在壓抑 Posee Charge 的銷售，且部分小型 UAS 採購與國際合約的延遲，使我們原本規劃在第三季與第四季認列的部分營收無法實現。全球經濟情勢形成一項不利因素，未來仍可能以我們目前尚未預期的方式影響業務。

As a result, we're revising our revenue guidance to reflect anticipated full year revenue between $240 million and $250 million or a growth rate between 11% and 16% over fiscal year 2008. This is down from the 20% to 25% growth we had communicated at the beginning of the fiscal year. We still expect to achieve our previous operating margin guidance of 12% to 14%. I'm disappointed that we must revise our guidance for the year, which is inconsistent with our history. I balance that against evidence supporting attractive long-term growth prospects and our not insignificant year-over-year growth expectations in an otherwise challenging environment. We provide solutions that really matter to our customers and we are developing entirely new solutions that promise to develop even more valuable capabilities. We have a strong financial foundation and the best team anywhere to man the rigging as we navigate through this economic storm.

因此，我們修正營收指引，預期全年營收介於 2.40 億至 2.50 億美元，較 2008 會計年度成長率介於 11% 至 16%。這低於我們在會計年度開始時所溝通的 20% 至 25% 成長。我們仍預期可達成先前的營業利益率指引 12% 至 14%。我對於必須修正今年指引感到失望，這與我們過往的紀錄不一致。但我也同時衡量支持長期成長前景的證據，以及在充滿挑戰的環境下，我們仍具相當可觀的年增成長預期。我們提供對客戶真正重要的解決方案，並正在開發全新的解決方案，預期可帶來更有價值的能力。我們擁有穩健的財務基礎，以及最優秀的團隊，在我們穿越這場經濟風暴時掌舵前行。

Our Q3 '09 produced a record backlog of orders and significant development milestones that have been very well received by our customers. I have never been more optimistic about our long-term growth prospects, tempered only by the overhang of economic unknowns. I believe Global Observer and Switchblade represent significant potential to catalyze future growth and the probability that electric vehicle solutions could also drive significant growth is increasing. My thanks to our team members, customers, suppliers, and investors for your ongoing commitment to our mutual success. Steve and I will now open the call to questions.

我們 2009 會計年度第三季（Q3 '09）創下訂單在手量新高，並達成多項重要的研發里程碑，且獲得客戶非常正面的回饋。我對我們的長期成長前景從未如此樂觀，唯一的保留是經濟不確定性所帶來的陰影。我相信 Global Observer 與 Switchblade 具有顯著潛力，可成為推動未來成長的催化劑；而電動車解決方案也可能帶動顯著成長的機率正在提高。感謝我們的團隊成員、客戶、供應商與投資人持續投入，共同追求彼此的成功。接下來 Steve 和我將開放提問。

(Operator Instructions) We'll have our first question from Michael Lewis with BB&T Capital Markets.

（接線員指示）我們的第一個問題來自 BB&T Capital Markets 的 Michael Lewis。

Thanks, Tim and Steve for taking my call. First question, this is the first major deferral I've seen in a program of record in UAS since I've been tracking the -- that segment for the last four or five years. What are the customers saying? What steps have they taken to get the procurements back in motion? And then just a final question, if we didn't see this deferral come into play, where would you have posted revenue, setting that aside?

謝謝 Tim 和 Steve 接聽我的電話。第一個問題，這是我在過去四、五年追蹤 UAS 這個部門以來，第一次在既定採購計畫（program of record）中看到如此重大的延後。客戶怎麼說？他們採取了哪些步驟讓採購重新啟動？最後再問一個問題，如果我們沒有看到這次延後發生，撇開這點不談，你們原本會把營收記在哪裡？

Well, let me start, Mike. I suspect you're referring to the orders that we had, we indicated we expected in Q3 that were deferred. we indicated we expected in Q3 that were deferred. A couple of reasons, I think. In the first place, it's not a -- I wouldn't characterize it as a deferral of a program of record so much as in one case, we believe one of our customers is just holding off the procurement because they want to wait for Digital DataLink to be available in production rather than buy current analog systems that they would -- they then would intend to retro fit. So I think it's a balancing there. And in a few other cases, I think it's a matter of customers that are very attracted to and want to acquire some systems that are not under a program of record and as a result, they are still in the process of getting their financing together.

好，我先開始回答，Mike。我猜你指的是我們先前表示預期在第三季（Q3）取得、但後來延後的那些訂單。我想有幾個原因。首先，這不算是——我不會把它描述為既定採購計畫的延後；比較像是其中一個案例，我們相信某位客戶只是暫緩採購，因為他們想等 Digital DataLink 能夠量產供貨後再買，而不是先買目前的類比系統，然後——他們原本會打算再進行改裝（retro fit）。所以我認為這是在做取捨平衡。另外幾個案例，我想是一些客戶非常看好、也想採購一些不屬於既定採購計畫的系統，因此他們仍在籌措資金的過程中。

Again, I would add to that, in the quarter, the normal ebb and flow of our orders, some of that was expected. No programs of record were deferred, just a number of smaller opportunities, along with lower PosiCharge, international SUAV was lower than we expected, and as Tim mentioned, we have had some reduced project revenue because of lower hiring. We didn't guide Q3, but I will say we were probably expecting a Q3 someplace in the mid-$60 millions.

再補充一下，本季訂單的正常起伏（ebb and flow）中，有一部分是原本就預期會發生的。沒有任何既定採購計畫被延後，只是一些較小的機會案延後；此外 PosiCharge 較低、國際 SUAV 也比我們預期低；而且如 Tim 提到的，由於招募人數較少，我們的專案營收也有所下降。我們沒有對 Q3 提供指引，但我可以說，我們原本可能預期 Q3 大約在 6,000 多萬美元的中段水準。

Okay. That's helpful. Okay. Then just another quick follow-up here. When we start to see the progression of DDL upgrades moving into the next year, will this be considered a production upgrade with regard to the P&L, or is this a servicing upgrade? And then the reason why I'm asking this is I'm trying to reconcile what the margin implication will be from the variance or the differences of production to servicing. Can you help me out here in understanding how that will work?

好的，這很有幫助。那再快速追問一下。當我們開始看到 DDL 升級在明年逐步推進時，這在損益表（P&L）上會被視為生產（production）升級，還是維修/服務（servicing）升級？我之所以這樣問，是因為我想釐清生產與服務之間差異對毛利率的影響。你能幫我理解這會如何運作嗎？

We've yet to define that, but my thinking is that DDL contract that was -- includes new systems and retro fits, and both are fixed price, or the majority of that contract is fixed price. I suspect the retro fits, the way they look like they will be done, will be classified as services, just like the Raven A to B was services last year. And the new systems would be product.

我們還沒完全定義，但我的想法是，那份 DDL 合約——包含新系統與改裝（retro fits），兩者都是固定價格（fixed price），或至少該合約的大部分是固定價格。我猜改裝部分，依照目前看起來的執行方式，會被歸類為服務（services），就像去年 Raven A 升級到 B 被歸類為服務一樣；而新系統則會是產品（product）。

Okay, thank you. And then just one more question about the tax. I noticed a negative tax. If we back -- I was assuming a 35% rate in the quarter. That's a variance of $1.7 million. Is that all tax R&D credits in the quarter, or is there something else going on there?

好的，謝謝。再問一個關於稅的問題。我注意到有負的稅額。如果我們回推——我原本假設本季稅率是 35%。那會有 170 萬美元的差異。這全部都是本季的研發稅額抵減（R&D credits）嗎？還是還有其他因素？

That's the major effect there is the release of the FIN 48 reserves. We did actually define them at the time of the 10-K. They relate to the expiration of the statute of limitations for the years that those reserves were established. The statute of limitations ticked off in January, so we released those reserves, about $1.3 million. And that's virtually all of the variance that takes us down to about a 25% year to date rate. The current period is just what gets us to that year -to-date rate.

主要影響是釋放 FIN 48 準備（reserves）。我們其實在 10-K 當時就已經說明過。這些準備與設立當年所適用的追溯時效（statute of limitations）到期有關。追溯時效在一月到期，因此我們釋放了那些準備，約 130 萬美元。這幾乎就是造成差異、使我們年初至今（year to date）稅率降到約 25% 的全部原因。本期的稅額只是為了讓年初至今稅率達到那個水準。

Got ya. Thank you very much. Thank you.

了解了。非常感謝。謝謝。

We'll go next to Brian Gesuale with Raymond James.

接下來是 Raymond James 的 Brian Gesuale。

Yes, hi, guys. Thanks for taking my question. Wanted to dig into contract services. Wondering if you can give us a little bit of help on the expected run rate going forward. Is it in the $22 million, $28 million range, or somewhere in between? Also talked about the margins, Steve, if you have a little color on what being the margins and how one-time in nature they go forward.

是的，嗨，各位。謝謝讓我提問。我想深入了解合約服務（contract services）。想請你們協助說明一下未來的預期運行水準（run rate）。會是在 2,200 萬到 2,800 萬美元區間，還是介於兩者之間？另外也談到毛利率，Steve，如果你能補充一些背景，毛利率大概是什麼樣子，以及其中一次性因素在未來會如何影響。

In terms of guiding on the elements of the P&L, we typically don't do that. I mean Tim may talk a little bit about services going forward. I can say the services were low in the quarter certainly compared to the prior year end, compared to the prior year on a year-to-date basis because we had the Raven A to B upgrades in last year's services number and those were large. In terms of the, the margins, for the quarter we're at 32%, down 6 points sequentially. In UAS, they are down from 35% to 31%. 3 points of that, or the majority of it is due to an indirect rate change that we had that reduced the margins on our cost plus business, about $1.4 million. And the balances in EES, you can see that going down from $54 million to $36 million, which is something that's going to change over time, as we've indicated in previous calls because it really depends on the mix of orders that we fill in the quarter.

就損益表（P&L）各項目提供指引而言，我們通常不會那樣做。Tim 可能會談一些未來服務的走向。我可以說，本季服務收入偏低，無論是相較於去年年底，或是以年初至今來看相較去年同期，因為去年服務收入包含 Raven A 升級到 B，而那是很大的案子。至於毛利率，本季為 32%，較前一季下降 6 個百分點。在 UAS 方面，從 35% 降到 31%。其中 3 個百分點（或大部分）是因為我們的間接費率（indirect rate）變動，降低了我們成本加成（cost plus）業務的毛利率，影響約 140 萬美元。至於 EES 的餘額，你可以看到從 5,400 萬美元降到 3,600 萬美元；這會隨時間變動，正如我們在先前電話會議中所說，因為它實際上取決於我們在該季交付的訂單組合（mix）。

Okay. That's helpful. Tim, maybe if -- longer term, obviously you've reigned in guidance this year based on some, what seemed to be some short-term phenomena. You have record backlog in several new products that you expect to hit over the next 12 to 18 months. Is AeroVironment still a 20% to 25% growth story going forward, or is this something that you've -- this bump in the road make you reconsider what that, the growth targets are?

好的，這很有幫助。Tim，也許——從較長期來看，你們今年因為一些看起來是短期現象的因素而下修指引。你們在多項新產品上有創紀錄的在手訂單（backlog），預期在未來 12 到 18 個月內開始貢獻。AeroVironment 未來仍然是 20% 到 25% 成長的故事嗎？還是說這次路上的小波折讓你們重新思考成長目標？

Thanks, Brian. No, I don't see any change in our long-term view of the growth prospects for the Company. We're -- we have -- you know, our planning process first looks, relooks at a three to five-year lookout and then we refine the first year of that plan in our annual operating plan and we are in that process now. We would expect to provide guidance for FY '10 in our fourth quarter call. But the -- if anything, I am more -- I think there's stronger reasons to support our long-term growth pieces from my perspective than there ever have been based on things like Digital DataLink transitioning to production, the real successful demonstration of Switchblade and the ongoing support and success of the Global Observer program. So in that aspect, elements of the quarter were very supportive of our long-term growth expectations.

謝謝，Brian。不，我看不出我們對公司長期成長前景的看法有任何改變。我們——我們的規劃流程會先從三到五年的展望重新檢視，然後在年度營運計畫中把第一年的計畫細化，而我們現在正處於這個流程中。我們預期會在第四季電話會議提供 FY '10 的指引。不過——如果有什麼不同的話，從我的角度看，我反而覺得支持我們長期成長論點的理由比以往更強，例如 Digital DataLink 正在轉入量產、Switchblade 的示範非常成功，以及 Global Observer 計畫持續獲得支持並取得成果。因此在這方面，本季的一些要素其實非常支持我們對長期成長的預期。

Okay, great. And maybe just one final question. On Switchblade, can you give us -- sounds like there is the activity in the opportunity is perhaps larger than what you anticipated, but is this pushing to the right a little bit? And what should we expect in terms of an (inaudible) or full production decision time frames?

好的。那也許最後一個問題。關於 Switchblade，你能否跟我們說明一下——聽起來這個機會的活動與規模可能比你們原先預期更大，但這是否也讓時程稍微往後推？另外，就（聽不清楚）或全面量產（full production）決策的時間框架而言，我們應該期待什麼？

Well, I think the Switchblade and the ambiguity around timing is a poster child for the adoption of new technology and innovation. It's -- as I mentioned before, this is really an entirely new capability. It's -- and it's been very positively received, both by the initial customers that funded the current demonstration and by a growing array of additional customers that have now become aware of this and are getting increasingly interested. But two years ago, even one year ago, this was on virtually -- two years ago, it was on no one's radar screen and one year ago, it was on virtually no one's radar screen. So when the current DOD budgets were put into place, nobody in DOD anticipated the availability of this capability.

我認為 Switchblade 以及其時程上的不確定性，是新技術與創新被採用的典型案例。正如我之前提到的，這其實是一種全新的能力——而且它獲得非常正面的回饋，不僅來自資助目前示範的初始客戶，也來自越來越多現在已經知道這項能力、並且愈發感興趣的其他客戶。但兩年前，甚至一年前，這幾乎——兩年前它完全不在任何人的雷達上；一年前它也幾乎不在任何人的雷達上。因此在目前的國防部（DOD）預算編列時，DOD 沒有人預期這項能力會可用。

So now with a large number of customers looking at it as a very attractive capability, they have to then decide how to fund it and what that process would be. So that's, that's what the timing ambiguity is about and a little more explicit, I think once the first customer enters into a full rate production intent, we will be in the same kind of a process that we have been in all of our programs of record for small UAS. Typically that has been a, I think 11 months in the case of WASP and about 14 months for Raven from order -- initial contract to full rate authorization. Probably a little bit longer for Switchblade because of the addition of ammunition, maybe 18 months. That doesn't preclude earlier orders of hardware prior to full rate production configuration. We have seen that in most of our other programs in the past.

所以現在有大量客戶把它視為非常有吸引力的能力，他們接著必須決定要如何編列資金，以及流程會是什麼。這就是時程不確定性的來源。再更明確一點，我認為一旦第一位客戶進入全速率量產（full rate production）意向，我們就會進入與我們所有小型 UAS 既定採購計畫相同類型的流程。通常在 WASP 的案例中，我想是 11 個月；Raven 則大約 14 個月，從下單——初始合約到全速率核准。Switchblade 可能會更久一些，因為增加了彈藥（ammunition），也許 18 個月。但這不排除在達到全速率量產構型之前，就先行下硬體訂單。我們過去在多數其他計畫中都看過這種情況。

Okay, great. Thanks for taking my questions.

好的，很好。謝謝你回答我的問題。

Thank you.

謝謝。

Thanks, Brian.

謝謝你，Brian。

We'll go next to Chris Donaghy with SunTrust Robinson Humphrey.

接下來我們請 SunTrust Robinson Humphrey 的 Chris Donaghy。

Hi, Tim. Just to follow up on the quarter, I mean just with the orders that you saw slip and the timing issues, can you give us a relative feel for how much -- I mean would you have been much closer to the 20 to 25% if you hadn't seen some of the slippage this quarter? Is this really just a timing issue? Or has there been a segment of the customer especially on the foreign side that you think is just going to be in a perpetual deferral until the economy turns around?

嗨，Tim。我想就本季再追問一下：就你們看到的訂單遞延以及時程問題而言，你能不能讓我們大概感受一下影響有多大——我的意思是，如果本季沒有出現一些遞延，你們是否會更接近 20% 到 25% 的水準？這真的只是時點問題嗎？還是說你認為有一部分客戶，特別是海外客戶，會在經濟回溫之前持續延後採購？

Well, let me go back to those four categories, Chris, and see if I can't break those down a little more. So one is the, the economy -- what we're seeing as an economy-driven effect. In the case of PosiCharge sales, I think that's -- that's just literally a dramatic reduction in the capital acquisition of forklifts and a relatively smaller, but still an effective reduction in our PosiCharge sales. And I think that's happened and that's the way that is. The other -- the other economy effect from our perspective is this precipitous slowdown in procurement from international military customers and I believe that is directly an effect of just a lot of uncertainty in many other countries on their military budgets. In some cases, they have already been cut. And in other cases, there's, they are going through a reevaluation. And once they settle down on what their real budget is, then presumably they will be reallocating what their procurement intents are.

好，Chris，讓我回到那四個類別，看看能不能再多拆解一點。第一個是經濟——也就是我們看到的由經濟驅動的影響。以 PosiCharge 的銷售來說，我認為那就是——就是堆高機資本採購大幅縮減，進而使我們的 PosiCharge 銷售也出現相對較小、但仍然明顯的下滑。我認為這已經發生了，情況就是如此。另一個——從我們的角度來看，另一個經濟面的影響，是國際軍方客戶採購出現斷崖式放緩；我相信這直接反映了許多國家對其軍事預算存在高度不確定性。在某些情況下，預算已經被削減；在其他情況下，他們正在重新評估。一旦他們對實際預算定案，理論上就會重新分配其採購意向。

Having said that, I think we're still in a good position there. We -- I know that there is strong interest in many countries in this capability and when the issue is a constrained budget, we do provide ISR the classic 80% solution at 10% of the cost, and I think that could turn out to be good for us relatively in the longer term. But we won't know that till we see it. Changes in the timing of US government procurements I think are all just timing related. I don't think anything went away. I think some of them are delayed.

話雖如此，我認為我們在那方面仍處於有利位置。我們——我知道許多國家對這項能力有強烈興趣；而當問題在於預算受限時，我們提供的 ISR 是典型的「以 10% 的成本提供 80% 的解決方案」，我認為從較長期來看，這對我們相對可能是有利的。但在看到實際情況之前，我們也無法確定。至於美國政府採購時程的變動，我認為都只是時點問題。我不認為有任何案子消失了；我認為只是有些被延後。

Okay, and so then as we look forward, can you just walk us -- can you walk us through what the timelines look like in terms of Digital DataLink going into full rate production, Puma AE going into full rate production, acceleration of Global Observer, and I think Switchblade may be a little bit further out. But those three in particular, as we go into 2010.

好的，那麼往前看，你能不能帶我們——帶我們走一遍時程：Digital DataLink 何時進入全速量產、Puma AE 何時進入全速量產、Global Observer 的加速進度，以及我想 Switchblade 可能還要更久一些。但特別是前面這三項，進入 2010 年後的時程會是如何？

Yes, let me started with Digital DataLink because that's the most definitive. We already now have the [LREP] contracts that will take us into full rate production. So we -- I think that's going to -- we'll start delivering those in the second half of '10, probably when the Q2 and Q3 when we'll realize the most of the revenue from those initial contracts. And I think in the latter part of Q '10, we will begin to deliver production, Digital DataLink retro fits. Now, of course that's ultimately going to be gated by full rate production approval by our customers. This is a class 1 change, so it gets treated much like a new procurement. But barring any unforeseen hiccups there, that's the timing we expect. If -- so that risk on the downside is something happens with the schedule of the testing or something that might push that out a little, on the other hand, there could be a desire on our customers part to accelerate the changeover, in which case we, of course, will do everything we can to pull those in.

可以。我先從 Digital DataLink 開始，因為那是最明確的。我們現在已經有了可讓我們進入全速量產的 [LREP] 合約。所以我們——我認為我們會在 2010 年下半年開始交付，可能在 Q2 和 Q3 會認列這些初始合約的大部分營收。而在 2010 年較後段的 Q，我們將開始交付量產的 Digital DataLink 改裝（retrofit）。當然，最終仍取決於客戶對全速量產的核准。這是一項 Class 1 變更，因此其處理方式很像一個新的採購案。但若沒有任何不可預見的卡關，這就是我們預期的時程。若——因此下行風險在於測試排程等若出現狀況，可能會把時程往後推；另一方面，客戶也可能希望加速切換，在那種情況下，我們當然會盡一切努力把時程往前拉。

Moving to Puma AE, that was the second program you questioned. To our knowledge, the initial evaluation of the initial testing of that system has been very positive. I think we not unusually have a couple of things that have popped up in our customers testing that we need to modify for them. But we don't see any, any problems in doing that. So I think we are very optimistic about the, the excitement and the customer community for adopting this and I would expect we would see additional orders early in the year for Puma AE.

再談到 Puma AE，也就是你問的第二個專案。就我們所知，該系統的初步評估與初期測試結果非常正面。我想我們一如往常在客戶測試中遇到幾個需要為他們修改的事項，但我們不認為完成這些修改會有任何問題。因此我認為我們對於客戶社群採用它的熱度與興奮程度非常樂觀，並預期在年初就會看到 Puma AE 的追加訂單。

Global Observer, that's, as you know, a three-year program. It started in September of 2007. We are well into It started in September of 2007. We are well into that, going extremely well from my perspective. I expect we will be in flight testing in the second half of our fiscal year upcoming. I don't expect to see major new order decisions on that before we are well into our testing and military utility demonstration. Our customer base has a propensity to fly before buy. And I guess did I cover that?

Global Observer，如你所知，是一個三年期專案。它在 2007 年 9 月啟動。我們已經深入進行中——它在 2007 年 9 月啟動，我們已經深入進行中；就我看來進展非常順利。我預期在我們即將到來的會計年度下半年進入飛行測試。我不預期在我們深入測試與軍事效益展示之前，會看到重大的新訂單決策。我們的客戶群傾向於「先飛再買」。我想我有回答到嗎？

I guess you also wanted to talk a little bit about Switchblade and I think the -- there's more uncertainty on timing there, just because of the points I made talking to Brian. So I would, I would not be surprised to see strong customer interest turning into more orders in FY '10. It's just really hard to determine how -- what -- there's a number of different customers and a number of different procurement approaches that they could take. And I know they are actively making those decisions as we speak. So I'm optimistic, but I don't want to lay down any specific timeframe because I just don't have enough data.

我想你也希望談一下 Switchblade。我認為那邊的時程不確定性更高，原因就是我在跟 Brian 談時提到的那些點。所以我不會意外在 FY '10 看到強烈的客戶興趣轉化為更多訂單；只是很難判斷會是怎樣——有多個不同客戶，也有多種不同的採購方式可供他們選擇。而我知道他們此刻正在積極做出這些決策。所以我很樂觀，但我不想給出任何具體時間表，因為我手上資料還不夠。

Okay, because I'm just trying to figure out, then, over the next couple of quarters should we anticipate based on what you're seeing with DDL in particular lower than would be average revenue growth for a couple of quarters before things start to accelerate when DDL goes into full rate production? Can you help us with the visibility that you're seeing on a, at least a qualitative basis for the next couple of quarters?

好的，因為我只是想釐清：那麼在接下來幾個季度，我們是否應該預期——基於你們目前看到的情況，尤其是 DDL——在 DDL 進入全速量產、開始加速之前，未來幾季的營收成長會低於平均？你能不能就你們對未來幾季的能見度，至少用定性方式幫我們說明一下？

I think we really have to punt and say we've talked about the balance of the year, so you've got Q4 and we've got to wait till we give our next guidance on the Q4 call.

我想我們真的只能先保留，並表示我們已經談過今年剩餘期間，所以你們還有 Q4；我們得等到 Q4 電話會議時再提供下一次指引。

Okay.

好的。

Thanks, Chris.

謝謝你，Chris。

We'll go next to Tim Quinlin with Stevens, Inc.

接下來我們請 Stevens, Inc. 的 Tim Quinlin。

Good afternoon.

午安。

Hi, Tim.

嗨，Tim。

I have a series of easy questions, first of all, call this the lightning round. But number one, what was government funded R&D in the quarter?

我有一連串簡單的問題。首先，就把這當作快問快答。第一個，本季政府資助的研發是多少？

Customer funded R&D, 32% of our revenue.

客戶資助的研發，占我們營收的 32%。

32% of revenue. Okay. So about flat quarter to quarter in dollar terms?

營收的 32%。好的。所以以金額來看，與上一季相比大致持平？

Yeah, okay. I'm sorry. $16.8 million, up from $16.1 million in the previous quarter. And it's hard to get into this number, but it looks like if you exclude that out of your service line, the other UAS service has declined a lot. Oh, yes, and I tried to answer that earlier. The pure services was about $5.2 million for the quarter, about $33 million year to date. And that is down from the prior year. A couple of programs in there, but by far, the largest effect is Raven A to B, which ran through services last year.

是的。好的，抱歉，是 1,680 萬美元，高於上一季的 1,610 萬美元。這個數字不太容易拆解，但看起來如果你把它從你的服務線中排除，其他 UAS 服務下滑很多。喔對，我之前也試著回答過。純服務本季約 520 萬美元，年初至今約 3,300 萬美元。這比前一年低。裡面有幾個專案，但影響最大、遠遠最大的是 Raven A 轉 B，去年是走服務項下認列的。

Right, yes. I was just looking at it quarter to quarter. I think that was a drop-off--

對，是的。我只是用季度對季度來看。我想那是一次下滑——

Quarter-to-quarter, I think you have to take it a little bit with a grain of salt. Quarter-to-quarter, a lot of it depends on how much backlog we have at the time and what makes sense for the factory to work on.

就季度對季度而言，我認為要稍微保留看待。季度對季度，很多取決於當時我們有多少積壓訂單，以及工廠做哪些工作最合理。

Okay. So that number could bounce back up in the fourth quarter?

了解。所以那個數字在第四季可能會反彈？

Oh, it very well could. I'm not going to predict that, but it very well could. I think year to date, looking at that, that's a little more relevant and there, it's, again, the same explanation, the A to B conversion is making '08 much higher.

喔，很有可能。我不會預測一定會，但確實很有可能。我認為年初至今來看更有參考性；而那裡同樣是相同的解釋：A 轉 B 的轉換使得 '08 年高很多。

And I just got a little off-track on my easy questions there, but second question is the Army progress towards their 1900 Raven goal.

我剛剛在那些簡單問題上有點偏題了，但第二個問題是：陸軍朝著他們 1,900 套 Raven 目標的進度如何？

Yes, okay. So first of all, I want to update that goal. We've been told the goal is not 1900 systems. It's now 2182 systems. It's grown by 134, which is administrative. They are now including (inaudible) in their number and then the progress against that is we're 49% delivered against that. We delivered 79 systems to the Army in the quarter.

好的。首先我想更新一下那個目標。我們被告知目標不是 1,900 套系統；現在是 2,182 套系統。增加了 134 套，屬於行政性調整。他們現在把（聽不清）也納入他們的數字中。至於達成進度，我們已交付達到該目標的 49%。本季我們向陸軍交付了 79 套系統。

Great, super. Tax rate for 4Q, should we be looking for 34%?

很好，太棒了。第四季的稅率，我們是否應該預期 34%？

No, I, I, I think, let's see, I think somewhere around 30% for the full year and then let's you back into it based on our year to date.

不，我，我，我想，讓我想想，我想全年大約在 30% 左右，然後你可以根據我們年初至今的數字倒推回去。

Okay, and how about for fiscal '10, then?

好的，那 2010 財年呢？

At this time, I would like to wait until we do our next, our next guidance.

就目前而言，我想等到我們下一次、下一次發布指引時再說。

Okay. And the indirect rate variance on the cost plus contract that you referred to, is that -- was that just a one-quarter variance and you'll get costs in line now?

好的。那你提到的成本加成合約（cost plus contract）上的間接費率差異，是不是——那只是單一季度的差異，現在你們會把成本拉回一致嗎？

Well, yes. I mean these -- I guess I would say as a government contractor, we use indirect rates based on full year estimates to bill and recognize sales on cost plus programs. We have these rate changes periodically. We've had them in the past. It's part of doing business. This period because of the low volume and the amount of the rate change, $1.4 million, it just -- it ends up being a variance explanation, but it's not an unusual transaction by itself.

嗯，是的。我的意思是，這些——我想我會這麼說：作為政府承包商，我們在成本加成專案上，會用基於全年預估的間接費率來開立帳單並認列銷售。我們會定期出現這些費率變動，過去也發生過。這是做生意的一部分。這一期因為量比較低，加上費率變動的金額是 140 萬美元，所以——最後就變成一個差異的解釋，但就交易本身而言並不罕見。

Okay, and my only other question was, I think we covered a lot of your products, but on WASP, and what is happening there in the Marine Corps, what the Air Force is doing, and what you think the Army might do on WASP and when that might happen? Thank you.

好的，我唯一的其他問題是，我想我們已經涵蓋了你們很多產品，但關於 WASP，以及海軍陸戰隊那邊發生了什麼、空軍在做什麼、以及你認為陸軍可能會對 WASP 做什麼、以及可能何時發生？謝謝。

Tim, the WASP, as you know, was a product that we won the Air Force program of record competition with, with almost two years ago. So that -- the Air Force has continued to buy, according to their initial plan on that contract and then shortly after we won that, the Marine Corps acquired a number of WASP systems on an urgent need statement that they deployed down at the platoon level. And a number of other customers are evaluating the adoption of WASP and I think those customers you mentioned all see a significant benefit to them in adopting that and want to do that. I think for the most part, those customers fall into the category of intended purchasers that don't have a current program of record that covers this and therefore they are still putting funding together and procurement mechanisms that would enable them to buy. So that, that's part of what's been going on recently in some delays in orders we had expected. I still think they intend to do that. They are just putting the funding mechanisms together.

Tim，WASP 如你所知，是我們在將近兩年前贏得空軍正式計畫（program of record）競標的一項產品。所以——空軍一直依照該合約的原始計畫持續採購。然後在我們贏得那個案子不久之後，海軍陸戰隊基於緊急需求聲明（urgent need statement）採購了若干套 WASP 系統，並在排級（platoon）層級部署。還有一些其他客戶正在評估採用 WASP，我認為你提到的那些客戶都看到了採用它的重大效益，也想這麼做。我想大多數這些客戶屬於「有意採購者」的類別，但目前沒有涵蓋此類裝備的既有正式計畫，因此他們仍在整合資金與採購機制，以便能夠採購。所以，這就是最近發生的情況，也造成我們原本預期的一些訂單延遲。我仍然認為他們有意採購，只是正在把資金機制建立起來。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Thank you, Tim.

謝謝你，Tim。

Our next question comes from Michael Ciarmoli with Boenning and Scattergood.

我們下一個問題來自 Boenning and Scattergood 的 Michael Ciarmoli。

Hi, guys. Thanks for taking my call. Tim got a lot of the easy ones out of the way. On the contract service -- or the service revenues in general, $5 million. Last quarter was weak, the weakest you've had in about six quarters. This quarter, even weaker. Is there anything to read into this? We're going to have an obvious winddown in Iraq, when you would think with the most usage out there, you should be driving substantial levels of services. Do you guys see any structural change from your ongoing services of the various systems that are deployed in the field and could this line item trend lower as Iraq winds down and maybe Afghanistan, or is that transitionary phase before a full ramp occurs?

嗨，各位。謝謝接我的電話。Tim 已經把很多簡單的問題先問完了。關於合約服務——或者一般的服務營收，500 萬美元。上一季很弱，是你們大約六季以來最弱的一季。這一季更弱。這裡面有什麼需要解讀的嗎？伊拉克顯然會逐步撤出（winddown），照理說那邊使用量最大，你們應該能帶動相當可觀的服務水準。你們是否看到已部署在前線的各種系統，其持續性服務出現任何結構性變化？隨著伊拉克撤出、以及可能是阿富汗，這個科目是否可能走低？或者這只是全面放量前的過渡期？

Well, Mike, I don't think there's a -- I wouldn't characterize it as anything as a structural change. I talk kind of qualitatively here. Back to the biggest effect in the relative difference overall is the factors Steve was talking about, where a year ago we had very high revenues in that services category that were associated with the Raven A to B product improvement upgrade that was run through the services contract. So -- and so if we, if the Digital DataLink retro fits that we anticipate next year go through that same process, which, as Steve indicates, is currently our best guess, then you would see another -- the same kind of surge in revenues under the services area. So -- and that's -- that product improvement cycle has always been a, one of the five revenue drivers we have anticipated in our UAS business.

嗯，Mike，我不認為——我不會把它描述為任何結構性變化。我先用比較定性的方式說明。回到整體相對差異最大的影響，其實是 Steve 剛才提到的因素：一年前我們在服務類別有非常高的營收，主要與 Raven A 到 B 的產品改良升級有關，而那個升級是透過服務合約來執行的。所以——如果我們預期明年的 Digital DataLink 改裝（retrofit）也走同樣的流程（如 Steve 所說，目前這是我們最好的推測），那你就會在服務領域看到另一波——同樣類型的營收激增。所以——而且那個產品改良循環一直都是我們在 UAS 業務中預期的五大營收驅動因素之一。

Can you talk about just general service for planes exceeding their, I guess average hours, or their hours flown requirement? I mean do you have the visibility into that line item into how those revenues are performing, or are you just looking at more of the product improvement service revenues?

你能談談一般性的服務，例如飛機超出其——我想是平均時數，或其飛行時數要求的情況嗎？我的意思是，你們對那個科目是否有可視性，能看到那些營收表現如何？還是你們主要只是在看產品改良相關的服務營收？

Yes, we do have some visibility. I'll give you some color at least and then I'll turn it over to Steve, who will talk more about real numbers.

是的，我們確實有一些可視性。我至少先補充一些背景，然後我會交給 Steve，他會談更多實際數字。

Okay.

好的。

A couple of things to be aware of. One is, when our customers buy spare parts, they do that on a forward-looking basis, so they are anticipating what their future needs are going to be and then they are putting orders in and then months later, we're delivering against those orders and then since we operate as the repair depot, we hold that inventory and then we use that when they send systems back that need repair. So there's -- by definition, an un-- the timing of the actual requirement for repairs is unlinked from the date that they are ordered and actually the date that we sell the spares initially. So that's one factor that might distort how you see that in a temporal basis.

有幾點需要注意。第一，當客戶購買備品時，他們是以前瞻性的方式採購，也就是預估未來需求，先下訂單，然後幾個月後我們依訂單交付；而且因為我們是維修中心（repair depot），我們會持有那批庫存，之後當他們把需要維修的系統送回來時，我們再使用這些備品。所以——按定義來說，實際維修需求發生的時間點，與下單時間、以及我們最初銷售備品的時間點，是不連動的。因此這是一個可能在時間序列上扭曲你觀察結果的因素。

There's another factor that we think might be at play here and that's with the high level of Raven A to B upgrades last year and then the--the retro fit that we did to put the new frequencies in place early this year. We ended up putting a lot of new hardware improvements or replacements into hardware from the field, which probably had the effect of reducing the operational life of systems that are being used and helping out the near term operational availability. So that's all qualitative things that are going on, none of which indicate any underlying structural change.

另外一個我們認為可能也在發生的因素是：去年 Raven A 到 B 升級量很高，然後今年初我們又做了——做了改裝以導入新的頻率。我們最後把很多新的硬體改良或替換件裝回到來自前線的硬體上，這可能降低了正在使用中的系統的故障率，並有助於短期的作戰可用率。這些都是定性的現象，沒有任何一項顯示存在潛在的結構性變化。

Okay. That's very helpful. And then just on -- you mentioned also that some of your project-related revenues were down because of a lack of employees. Can you point us to specific projects that you're working on, or how quickly you anticipate filling these vacancies? Is there any shortage of talent out your way?

好的。這很有幫助。接著關於——你也提到你們某些專案相關營收下滑是因為缺人。你能指出你們正在進行的具體專案嗎？或你們預期多快能補齊這些職缺？你們那邊是否有人才短缺？

Well, the requirement for more great people has been a hallmark of our history for the last five or six years with the sustained growth in the business, that drives the sustained growth in employees, and the only way we keep the extraordinary level of team performance that we have is to keep hiring extraordinary people. So we've been really successful at that over time and right now we just have -- we've got a large number of outstanding requisitions. We had a very successful job fair last month addressing open requirements in the Monrovia operation primarily for our EES segment and that was so successful, we're going to use the same process soon to -- out in Simi Valley with our UAS business. So what happens is-- a number of those requirements are in engineering and engineering skills address both the operational business, our internally funded R&D operations and our customer-funded development programs. So it's-- and the same teams that work on IR& D tend to be the same skill sets of people that work on customer-funded development. So when we are trading off scarce resources against those two requirements, that ends up doing less work than we had planned.

嗯，對更多優秀人才的需求，一直是我們過去五、六年歷史中的一個特徵：業務持續成長帶動員工持續成長，而我們維持卓越團隊績效的唯一方式，就是持續招募卓越的人才。長期以來我們在這方面非常成功，而目前我們只是——我們有大量尚未補齊的職缺。上個月我們辦了一場非常成功的徵才活動，主要是為 Monrovia 的營運單位補人，主要針對我們的 EES 部門；那場活動非常成功，所以我們很快也會用同樣的流程——在 Simi Valley 針對我們的 UAS 業務再辦一次。實際上——其中不少需求是在工程領域，而工程技能同時支援營運業務、我們內部自籌資金的研發（R&D）運作，以及客戶出資的開發計畫。所以——而且從事 IR&D 的團隊，往往也是具備同樣技能、能做客戶出資開發的人才。當我們在這兩類需求之間分配稀缺資源時，最後就會導致我們完成的工作量低於原先規劃。

So we talked last quarter in the call, for example, about accelerating our internally funded R&D and our G&A investments that we thought were great opportunities to support our future growth and improve our competitive position and you'll see in the numbers that we were pretty flat in those areas mainly because of we're reallocating those skill sets to meet customer development programs and even with that, we fell behind on some of that revenue on customer development programs. Biggest one is Global Observer, but we have a number of other development programs in the UAS business, as well as a number of customer-funded development programs around primarily electric vehicle solutions. So broad, broad number of programs that all add up to maybe 10% of the revenue miss that we are anticipating for the year.

例如，我們在上一季的電話會議中談到，要加速我們內部自籌資金的研發（R&D）以及 G&A 投資，我們認為那是支持未來成長並提升競爭地位的好機會；但你會在數字上看到，我們在那些領域其實相當持平，主要是因為我們把那些技能人力重新分配去滿足客戶開發計畫。即便如此，我們在某些客戶開發計畫的營收上仍然落後。最大的一個是 Global Observer，但我們在 UAS 業務還有多個其他開發計畫，另外也有多個客戶出資的開發計畫，主要圍繞電動車解決方案。所以，這是一個很廣、很廣的專案組合，合計起來大概占我們預期全年營收缺口的 10%。

Okay. That's, that's extremely helpful. Then I just had one last question. The other day on the federal business opportunities website, it looks like there was a presolicitation posted by the Naval Surface Warfare Center citing that AeroVironment was going to deliver I guess one air vehicle communications model. It mentions Raven B, WASP, Switchblade. Can you elaborate on what that might be used for-- I'm just reading into it maybe a little further, the first reference of Switchblade out there. Can you just -- I think it references it is for maybe 36 months. Is there anything you could say about that?

好的。這、這非常有幫助。那我最後還有一個問題。前幾天在聯邦商機網站（federal business opportunities）上，看起來海軍水面作戰中心（Naval Surface Warfare Center）發布了一則預先招標（presolicitation），提到 AeroVironment 將交付我想是一套空中載具通訊模型。裡面提到 Raven B、WASP、Switchblade。你能說明那可能用於什麼——我可能有點過度解讀，但這似乎是我第一次在那裡看到 Switchblade 的提及。你能不能——我想它提到期限可能是 36 個月。你能對此說些什麼嗎？

Yeah, I'll tell you what I know, which may not be, may not be a lot, but I think that's the Marine Corps looking to develop a common ground control system that would enable their ground robots to communicate and work in conjunction with small unmanned aircraft systems. So I think that's the basis of that program that they are pursuing and I think in the process, they have -- they are recognizing that we already have established a de facto common ground control system for, for a multitude of small UAS that they use and that other services use. And that the DataLink in that ground control system is probably the right solution for a broader common ground control solution. So I think that's the under -- the essence of that and beyond that, the fact that they are referencing Raven and WASP and Switchblade, I think is an indication of where a number of our customers are beginning to change the way they think about small UAS where we -- in my perspective on the early stage of adoption. Where we initially -- that was replaced at the Marine Corps by Dragon Eye, which was then replaced at the Marine Corps by Raven, kind of a linear progression of platforms -- we now have a situation where there's a common ground control system with common DataLink and user interface and three production small UAS airplanes, WASP, Raven, now Puma AE.

是的，我會告訴你我所知道的，可能不多，但我認為那是海軍陸戰隊正在尋求開發一套通用地面控制系統，使其地面機器人能夠與小型無人航空系統進行通訊並協同運作。所以我認為那就是他們正在推動的那個計畫的基礎；而且我認為在這個過程中，他們已經——他們正在認知到，我們其實已經為他們使用、以及其他軍種使用的多種小型UAS，建立了一套事實上的通用地面控制系統。而該地面控制系統中的DataLink（資料鏈路）很可能就是更廣泛通用地面控制解決方案的正確方案。所以我認為這就是其核心——其本質。此外，他們提到Raven、WASP和Switchblade，我認為這顯示出我們的一些客戶開始改變他們對小型UAS的思考方式；在我看來，我們仍處於採用的早期階段。最初——在海軍陸戰隊那邊先由Dragon Eye取代，之後又由Raven取代，算是一種線性的平臺演進——而現在我們的情況是：有一套通用地面控制系統，具備通用的DataLink與使用者介面，以及三款量產的小型UAS飛機：WASP、Raven，以及現在的Puma AE。

Okay.

好的。

Each one of those platforms has a different set of capabilities and as they begin to anticipate Switchblade in the future that will also operate off that same ground control system and DataLink, it's -- some customers are starting to look at this more as a family of systems with common infrastructure and different platforms that are applicable to different mission sets.

這些平臺各自具備不同的一組能力；而當他們開始預期未來會有Switchblade也在同一套地面控制系統與DataLink上運作時——有些客戶開始把這更視為一個「系統家族」：擁有共同的基礎設施，但有不同的平臺，分別適用於不同的任務組合。

Okay. That's extremely helpful. Thanks a lot, guys.

好的。這非常有幫助。非常感謝，各位。

Thanks, Mike.

謝謝你，Mike。

And we have time for one last question and that will come from Troy Lahr with Stifel Nicolaus.

我們還有時間再問最後一個問題，接下來是Stifel Nicolaus的Troy Lahr。

Thanks. Given the surge in Afghanistan, what are you hearing from the customer? Are they telling you that they are going to need to ramp up here or that you guys need to ramp up? I would assume that you're starting to have discussions regarding the surge?

謝謝。鑑於阿富汗的增兵，你們從客戶那邊聽到什麼？他們有告訴你們他們將需要在這裡加速擴增，或是你們需要擴產嗎？我想你們應該已經開始就增兵進行一些討論了？

Well, I don't -- there's not a lot of active dialogue right now, Troy. I think our customers are making their internal trade-offs and their, I think their keeping their powder dry relative to discussion with contractors, at least from our perspective. We -- as I mentioned in the comments earlier, Afghanistan was where the initial huge success of small UAS was recognized and the acceleration of adoption throughout DOD was initiated and we would expect that that terrain and that very highly distributed operations strategy will be conducive to continued use and high value there, but whether that's accelerates or not, I think will be a function of how our customers decide they are going to operate and that's still in the planning process.

嗯，Troy，目前並沒有太多積極的對話。我認為我們的客戶正在做他們內部的取捨；而且我想他們在與承包商討論方面，至少從我們的角度看，是在按兵不動。我們——如我先前評論中提到的，阿富汗是小型UAS最初巨大成功被認可的地方，也是在那裡啟動了整個國防部（DOD）加速採用的進程；我們預期那樣的地形以及高度分散的作戰策略，將有利於持續使用並在那裡創造高價值。但是否會加速，我認為將取決於客戶決定如何運作，而那仍在規劃過程中。

Okay, thanks. And then of the service sales, you had about $22 million. How much of that -- I think you guys account for Global Observer in that service since it's R&D, if I'm not correct. So can you break out how much of that ballpark is Raven service related to Iraq and Afghanistan?

好的，謝謝。接著關於服務（service）銷售，你們大約有2,200萬美元。其中有多少——我想你們把Global Observer算在那個服務裡，因為它是研發（R&D），如果我沒弄錯的話。那你能不能拆分一下，其中大概有多少是與伊拉克和阿富汗的Raven服務相關？

Troy, the, the project revenue, which is embedded in the services and when you get the Q you'll see the project revenue in a footnote, is $16.8 million, which leaves the pure services at $5.2 million and I don't have tracking below that to say how much is due to Raven in Iraq.

Troy，專案收入（project revenue）是包含在服務之中的；等你拿到10-Q時，你會在註腳看到專案收入。專案收入是1,680萬美元，這樣純服務（pure services）就是520萬美元；而我沒有再往下追蹤到能說明其中有多少是因伊拉克的Raven所致。

Yes, our customers literally do not keep track on that level in the field, Troy. You're probably used to a lot more specificity in maintenance and repair, documents for larger aircraft systems, but these systems uniquely are used by ground troops who are literally in the fight and they just aren't filling out a lot of paperwork.

是的，Troy，我們的客戶在前線確實不會追蹤到那個層級。你可能更習慣於大型航空器系統在維護與修理文件上的高度明確性，但這些系統的特殊之處在於，它們是由真正投入戰鬥的地面部隊使用，他們確實不會填寫太多文書。

Okay. Okay. Fair enough. And then can you help me understand, I just want to kind of circle back on the margins a little bit. Looks like, I guess if you want to go year-over-year, that's fine. But it looks like you had a lot more product sales this year compared to last year. That's higher margin work. I would have thought your margins would have benefited a little bit from a favorable mix this quarter. Can you help me understand that? I mean isn't products mostly the higher margin work and service is generally lower margin cost plus-type work? No?

好的。好的。可以理解。那你能幫我再理解一下，我想稍微回到毛利率（margins）這部分。看起來——如果你想用年對年（year-over-year）來談也可以——但看起來你們今年的產品銷售比去年多很多。那是毛利較高的業務。我原本以為本季毛利率應該會因為有利的產品組合而受益一些。你能幫我理解一下嗎？我的意思是，產品不就是大多屬於較高毛利，而服務通常是較低毛利、成本加成（cost plus）類型的工作嗎？不是嗎？

Yes, it can be. I think the easiest way, if you want me to go year-over-year, the easiest way for me to talk to it is by segment. The large drop in UAS from $41million to $31million, I would point to first of all the $41million last year was sort of outsized. That was the peak of the year and UAS came in at around 36% or 37%, which is more typical. So I would say the mix of work last year just tilted very heavily towards the high side and then we had this maybe 3 points of rate adjustment in the current period that I talked about. EES, generally flat with last year. Sequentially as I indicated earlier, EES is below where the kind of margins we've enjoyed in the last two quarters and that's literally going to bounce around every quarter based on the mix of products that we're shipping, that are all POs, all fixed price.

是的，確實可能如此。我想最簡單的方式——如果你希望我用年對年來談——我最容易用分部（segment）來說明。UAS從4,100萬美元大幅降到3,100萬美元，我首先要指出，去年4,100萬美元其實有點偏高，那是全年高峰；而UAS通常大約在36%或37%，那更具代表性。所以我會說，去年工作的組合確實非常偏向高端；然後在本期我們有我提到的、可能約3個百分點的費率調整（rate adjustment）。EES大致與去年持平。若以季對季（sequentially）來看，如我先前所說，EES低於我們過去兩季享有的那種毛利水準；而這每一季都會因我們出貨的產品組合而上下波動，這些都是採購訂單（PO），也都是固定價格（fixed price）。

Okay, and then if you look at this, the growth this quarter year-over-year at UAS, plus 3%, looks like I guess just taking the midpoint of your range, it might be calling for back -- you're back to double-digit growth, a stronger recovery in the fourth quarter at UAS. I guess what gives you confidence that these deferrals and the revenue stream starts picking back up and we see more meaningful growth at UAS so soon in the fourth quarter?

好的。那如果你看這個，UAS本季年對年成長約3%；看起來如果取你們指引區間的中位數，可能意味著——你們在第四季UAS會回到雙位數成長，出現更強的復甦。我想問的是，你們憑什麼有信心這些遞延（deferrals）以及營收流會這麼快在第四季開始回升，並且在UAS看到更有意義的成長？

I think the -- I'll start, our greatest confidence is the funded backlog of $139 million, which is pretty much all UAS. Not to say that we'll work off all that backlog in the quarter. That backlog comes with delivery dates and it's staged, but that's really where we'll get most of our deliveries for the quarter.

我認為——我先說，我們最大的信心來自於1.39億美元的已獲資金支持的在手訂單（funded backlog），幾乎全部都是UAS。並不是說我們會在單一季度把所有在手訂單都消化完；這些在手訂單都有交付日期，是分階段安排的，但那確實是我們本季大部分交付的來源。

Okay. Fair enough. And then just last question, on cash flow, can you -- what was catch from ops this quarter? I don't know if you already said that.

好的。可以理解。最後一個問題，關於現金流，你能——本季營運現金流（cash from ops）是多少？我不確定你是否已經說過。

No, I didn't. Cash flow from operations, $9.6 million, and capital expenditures, $3.2 million, for a free cash flow of $6.4 million.

沒有，我還沒說。本季營運活動現金流（cash flow from operations）為960萬美元，資本支出（capital expenditures）為320萬美元，因此自由現金流（free cash flow）為640萬美元。

Okay. Okay. Thanks, guys.

好的。好的。謝謝，各位。

With that as our final question, we thank you all for your continued attention and interest in AeroVironment. We remind you that an archived version of this call, all SEC filings and relevant Company and industry news can be found on our website, www.AVinc.com. We look forward to speaking with you again following next quarter's results.

既然這是我們最後一個問題，我們感謝各位持續關注並對AeroVironment保持興趣。我們提醒各位，本次電話會議的存檔版本、所有SEC申報文件，以及相關的公司與產業新聞，都可在我們的網站www.AVinc.com上找到。我們期待在下季財報公布後再次與各位交流。

That conclude's 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。