AeroVironment, Inc. (AVAV) 2010 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the second-quarter 2010 AeroVironment, Inc. earnings conference call. I'll be your coordinator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session after managements' remarks. As a reminder, this conference is re -- 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.

各位女士、各位先生，大家好，歡迎參加 AeroVironment, Inc. 2010 年第二季財報電話會議。我將擔任今天的會議協調人。此刻，所有與會者皆處於僅收聽模式。管理階層致詞結束後，我們將進行問答環節。提醒各位，本次會議正在重新——進行錄音，以供日後回放。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。

I would now like to turn the call over to Mr. Gitlin. Please proceed, sir.

現在我想把電話會議交給 Gitlin 先生。先生，請開始。

Thank you, Melanie. Welcome to AV's second-quarter fiscal 2010 earnings call. Before I hand the call over to Tim 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, including, but not limited to economic, competitive, governmental and technological factors outside of our control that may cause our business, strategy or actual results to differ materially from the forward-looking statements. For a list and description of such risks and uncertainties see the reports we file with the Securities and Exchange Commission.

謝謝你，Melanie。歡迎參加 AV 2010 會計年度第二季財報電話會議。在我把電話交給 Tim 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，並涉及風險與不確定性，包括但不限於我們無法控制的經濟、競爭、政府及技術因素，這些因素可能導致我們的業務、策略或實際結果與前瞻性陳述存在重大差異。關於此類風險與不確定性的清單與說明，請參閱我們向美國證券交易委員會提交的報告。

Investors are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. 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 8, 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.

提醒投資人切勿過度依賴任何前瞻性陳述；該等陳述僅截至其作成之日有效。我們無意且不承擔任何義務因新資訊、未來事件或其他原因更新任何前瞻性陳述。本次財報電話會議內容包含具時效性的資訊，僅在今天（2009 年 12 月 8 日）為準確。公司不承擔對我們致詞中所含陳述作任何修訂之義務，亦不承擔更新以反映本次電話會議後發生之事件或情況之義務。

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

接下來，我很榮幸把電話會議交給 Tim Conver。

Thank you, Steven, and welcome to our second quarter fiscal 2010 conference call. The second quarter unfolded about as we had expected,, and it was consistent with what we outlined for the balance of the fiscal tear in our Q1 call. We initiated production of our digital Raven systems at the tail end of the quarter, we made good progress on our development programs including Global Observer and Switchblade and we delivered sequential improvements in our EEF segment's performance. As we vindicated in our Q1 call, we expect the second half of our current fiscal year to account for about 70% of our full-year revenue, driven primarily by deliveries of digital Raven systems and upgrades to convert existing analog systems to digital. Our team worked hard in Q1 and Q2 to position us to deliver on this important product upgrade, and although the back-end weighted delivery plan inherently brings with it an increased execution risk, we expect to execute that plan and we maintain our guidance of 18% to 22% year-over-year revenue growth for fiscal 2010, with an operating income margin of 12% to 14%.

謝謝你，Steven，也歡迎各位參加我們 2010 會計年度第二季電話會議。第二季的進展大致如我們所預期，並與我們在第一季電話會議中對本會計年度其餘期間所概述的內容一致。我們在本季末開始啟動數位 Raven 系統的量產；在 Global Observer 與 Switchblade 等研發計畫上取得良好進展；並在 EEF 事業部的表現上實現了逐季改善。正如我們在第一季電話會議中所指出的，我們預期本會計年度下半年將貢獻約 70% 的全年營收，主要由數位 Raven 系統交付，以及將既有類比系統升級為數位系統的改裝所帶動。我們的團隊在第一季與第二季努力工作，使我們能夠交付這項重要的產品升級；雖然以後段為主的交付計畫本質上伴隨較高的執行風險，但我們預期能夠執行該計畫，並維持 2010 會計年度營收年增 18% 至 22% 的指引，以及 12% 至 14% 的營業利益率。

Beyond this year's guidance my continued belief that the long-term growth drivers of our business remain very compelling is supported by sustained demand for our current products and active customer interest in the innovative solutions represented by our advanced developments. As a result of the digital Raven transition, including associated system upgrades, Raven systems will be even more useful to US forces, including those operating in the high altitudes in the mountainous terrain of Afghanistan.

除了今年的指引之外，我仍然相信我們業務的長期成長驅動因素依然非常具吸引力；這一點可由市場對我們現有產品的持續需求，以及客戶對我們先進研發所代表之創新解決方案的積極興趣所支持。由於數位 Raven 的轉換（包含相關系統升級），Raven 系統將對美軍更具效用，包括在阿富汗山區高海拔地形中執行任務的部隊。

I'd like to spend a moment to address the production transition of digital Raven. With the start of digital Raven deliveries we've taken an important step forward with one of our most significant product upgrades today. As you will recall, customers have been waiting for the new digital Raven systems to become available. The development and transition to production of digital Raven systems was the focus of much of our teams attention during the first half of the year. The scope of this transition is significant, as is the nature of the benefits it provides to our customers. In every product transitioned to production that I'm familiar with start-up issues emerge and are addressed. The transition to digital Raven has been no exception. The engineering changes from analog to digital Ravens requires changes to most of the subsystems and it was accompanied by several other important modifications to the Raven system that resulted in an even more robust and capable solution.

我想花一點時間說明數位 Raven 的量產轉換。隨著數位 Raven 開始交付，我們在目前最重要的產品升級之一上邁出了關鍵一步。各位或許記得，客戶一直在等待新的數位 Raven 系統上市。數位 Raven 系統的研發與轉入量產，是我們團隊在上半年投入大量心力的重點。這次轉換的範圍相當重大，其為客戶帶來的效益亦同樣顯著。就我所熟悉的每一項產品轉入量產而言，啟動初期都會出現問題並加以處理；數位 Raven 的轉換也不例外。從類比 Raven 轉為數位 Raven 的工程變更需要調整大多數子系統，並伴隨對 Raven 系統的其他幾項重要修改，使其成為更強健且更具能力的解決方案。

These additional improvements include an improved motor, a reduced acoustic signature and z higher-resolution color video camera, all in addition to the frequency efficiency, the communication encryption enhancement and the beyond line-of-sight capabilities specifically associated with the Digital Data Link. Throughout the development and transition we have identified issues as they emerged, identified and determined their root causes, developed and implemented solutions, tested the integrated system to confirm its effectiveness. This spiral process is typical of our developments and was anticipated in our plan for the production ramp up. We have received strong customer support for our approach to this production start-up phase.

這些額外改良包括：改良的馬達、更低的聲學特徵（噪音特徵），以及更高解析度的彩色攝影機；此外還包含與數位資料鏈（Digital Data Link）特別相關的頻譜效率提升、通訊加密強化，以及超視距（beyond line-of-sight）能力。在整個研發與轉換過程中，我們在問題出現時即加以辨識，找出並確認其根本原因，研發並導入解決方案，並測試整合系統以確認其有效性。這種螺旋式流程是我們研發工作的典型作法，也已納入我們的量產爬坡計畫之中。我們在這個量產啟動階段的作法獲得客戶強力支持。

After initial deliveries in late October we assessed our product performance and our production yield and we decided in concert with our customer to further optimize the system. Since October we have continued to improve the performance characteristics of the system and resolve issues affecting initial yield. We continued to refine our supply C\chain, continued customer training, staged production hardware, and added production technicians to support and enable the plans. The net result is that we have a more robust high-yield production system as we ramp up production in December and January. We delivered small quantities of digital systems through November, as we continued to optimize our systems and stage hardware for the production ramp we are starting this week.

在 10 月下旬完成初期交付後，我們評估了產品表現與生產良率，並與客戶共同決定進一步最佳化系統。自 10 月以來，我們持續改善系統的性能特性，並解決影響初期良率的問題。我們持續精進供應鏈（supply chain）、持續進行客戶訓練、預先備妥量產硬體，並增聘生產技術人員以支援並推動計畫。最終結果是：在 12 月與 1 月進行產能爬坡時，我們擁有更強健且高良率的量產系統。11 月期間我們交付了少量數位系統，同時持續最佳化系統並備妥硬體，以配合我們本週開始的量產爬坡。

Our production plan for the year is now only slightly more back-end loaded, but the improved yield and the staged hardware support our production and revenue plan for fiscal '10. We expect our production rate to build rapidly through the balance of Q3 and to peak in Q4, delivering about 1,000 digital Raven systems and upgrade kits in total this year. Considering that we have surged our small UAS production in the past to over 600 air vehicles and equivalents in a single month, this surge in production anticipated in Q4 is not unprecedented and is within our production capacity. From a customer perspective the upgraded digital Raven system will now be even better suited that operational requirements of Afghanistan, supporting the increase in troops there at a critical time.

我們今年的生產計畫目前僅略為更偏向後段，但良率改善與已備妥的硬體可支撐我們 2010 會計年度的生產與營收計畫。我們預期在第三季剩餘期間生產速率將快速提升，並在第四季達到高峰，今年合計交付約 1,000 套數位 Raven 系統與升級套件。考量到我們過去曾在單月將小型 UAS 的產量衝高至超過 600 架飛行器及其等量，本次預期於第四季出現的產量衝刺並非前所未見，且在我們的產能範圍之內。從客戶角度來看，升級後的數位 Raven 系統將更能符合阿富汗的作戰需求，在關鍵時刻支援當地增兵。

We are still awaiting passage of the fiscal 2010 defense appropriation bill, which includes approximately $121 million of funding for Army and Marine Corps Raven systems and digital upgrades, as well as the arrival of orders funded from a previously-approved $27.5 million supplemental line item. In the meantime we are working closely with our customers to negotiate the multiple proposals related to this anticipated funding. We would obviously like the appropriations bill to be signed sooner rather than later, but we believe that we can still achieve our fiscal '10 performance objectives with the expected signing of the bill by the end of this month or in early January. In summary our second quarter performance was in line with what we expected and we expect to deliver the growth reflected in our guidance.

我們仍在等待 2010 會計年度國防撥款法案通過；該法案包含約 1.21 億美元的資金，用於陸軍與海軍陸戰隊的 Raven 系統及數位升級，並包含先前已核准的 2,750 萬美元補充預算（supplemental）項目所支持之訂單到位。與此同時，我們正與客戶密切合作，協商與這些預期資金相關的多項提案。我們當然希望撥款法案能儘早簽署，但我們相信，即使法案在本月底或 1 月初才完成簽署，我們仍能達成 2010 會計年度的績效目標。總結而言，我們第二季的表現符合預期，並且我們預期能交付指引所反映的成長。

Now let's discuss our Unmanned Aircraft Systems business beyond the digital Raven transition. AB remains the leader in small UAS. We are the prime contractor for each of the four US DoD programs of record for small UAS and have delivered over 13,000 new and replacement air vehicles to customers in the United States and elsewhere. All US ground forces have adopted small UAS and are now using them regularly to enable front-line war fighters to identify threats and perform post-action recognizant, protect bases, scout ahead of convoys and provide aerial observation for elections, peacekeeping operations, recovery operations, and myriad other missions. In much the same way that PCs eliminated the bottlenecks associated with mainframe computing by putting computing power into the hands of individuals, small unmanned aircraft systems are delivering realtime information to the hands of soldiers, sailors, airmen and marines who need it when they need it. This disintermediation from larger, more costly and scarcer reconnaissance assets has given small teams the ability to make better decisions, move quickly, resulting in more effective operations and lives saved in the current threat environment.

現在讓我們在數位 Raven 轉換之外，討論我們的無人機系統（Unmanned Aircraft Systems）業務。AV 仍是小型 UAS 的領導者。我們是美國國防部（US DoD）四項小型 UAS 正式建案（programs of record）的主承包商，並已向美國及其他地區的客戶交付超過 13,000 架新造與替換用飛行器。所有美國地面部隊都已採用小型 UAS，並且如今經常使用它們，以協助前線作戰人員辨識威脅、執行事後態勢掌握、保護基地、在車隊前方偵察，並為選舉、維和行動、復原作業及其他無數任務提供空中觀測。就如同個人電腦透過將運算能力交到個人手中而消除大型主機運算的瓶頸，小型無人機系統正把即時資訊交到需要它、且在需要時就要用到它的士兵、水手、空軍人員與海軍陸戰隊員手中。這種從更大型、更昂貴且更稀缺的偵察資產中去中介化（disintermediation），使小型團隊能做出更好的決策並快速行動，進而在當前威脅環境中帶來更有效的作戰行動並挽救生命。

Within our UAS segment we have developed a full suite of small unmanned aircraft systems for intelligence, surveillance and reconnaissance, all designed around a hand-held common ground controller. We are now under contract to develop digital Puma systems and we are developing plans for the future transition of WASP, working towards a small UAS family of interoperable systems built around a common digital ground control system. We support all of our UAS customers with training, spare parts and repair services that are tailored to their needs and designed to make them more successful when they use our systems. Our outstanding small UAS team is very focused on this set of technologies and customer needs, a strategy that I believe makes it easy for our customers and hard for competitors. We also have an active research and development function within Unmanned Aircraft Systems that is creating entirely new solutions that build on decades of experience in two domains; small unmanned aircraft platforms and high-altitude, long-endurance unmanned aircraft systems.

在我們的 UAS 事業部門內，我們已開發出一整套用於情報、監視與偵察的小型無人航空系統，全部皆以手持式通用地面控制器為設計核心。我們目前已簽約開發數位 Puma 系統，並正在制定 WASP 未來轉換的計畫，朝向以共同的數位地面控制系統為基礎、可互通運作的小型 UAS 系統家族邁進。我們為所有 UAS 客戶提供符合其需求的訓練、備品與維修服務，旨在讓客戶在使用我們系統時更為成功。我們傑出的小型 UAS 團隊高度專注於這一組技術與客戶需求；我相信此一策略能讓客戶更容易採用、也讓競爭對手更難追趕。我們在無人航空系統領域亦設有積極的研發職能，正基於兩個領域數十年的經驗打造全新解決方案：小型無人機平台，以及高空、長航時無人航空系統。

Switchblade is the development initiative that adds a lethal strike component to small unmanned aircraft, creating an entirely new capability of a loitering precision munition that is moving closer to early adoption. We are seeing small quantity purchases of Switchblade and apparent growing interest in this new capability. We received nearly a dozen small orders in small -- in Switchblade systems to date, primarily for test and evaluation of this new system capability in multiple applications. In Q2 we received orders for Switchblade that I would characterize as combat prototypes, which we believe represents the next step in customer evaluation and consideration of adoption. We expect additional similar orders over the balance of the fiscal year, as multiple customers continue to express interest in this unique new capability. Volume production timing continues to be difficult to predict, but I believe the current level of interest is a positive indicator.

Switchblade 是一項開發計畫，為小型無人機加入致命打擊能力，創造出一種全新的「滯空型精準彈藥」能力，並正逐步接近早期採用。我們已看到 Switchblade 的小量採購，以及對此新能力顯然日益增加的興趣。迄今為止，我們已收到近十筆 Switchblade 系統的小額訂單，主要用於在多種應用情境下對此新系統能力進行測試與評估。在第二季，我們收到的 Switchblade 訂單可被我形容為作戰原型機（combat prototypes）；我們相信這代表客戶評估與考量採用的下一步。我們預期在本會計年度剩餘期間還會有更多類似訂單，因為多個客戶持續表達對這項獨特新能力的興趣。量產時程仍難以預測，但我認為目前的關注程度是一項正面指標。

Global Observer is a development initiative focused on creating and exploiting the ability to fly in the stratosphere for up to a week at a time in order to provide affordable satellite-like persistence for remote sensing and communications relay. We believe this will be a highly-desirable and a high-value capability that does not exist today. Now over two years into a three-and-a-half year development program the Global Observer joint capability technology demonstration is making great progress towards our goal of initiating flight testing during the second half of the current fiscal year. This is a revolutionary aircraft that employs technologies never before used in such a manner. In our last call I said we were planning to ship the first Global Observer air force -- aircraft to Edwards Air Force Base during Q2 for ground testing prior to flight testing during our second half of this fiscal year.

Global Observer 是一項開發計畫，聚焦於建立並運用在平流層一次可連續飛行長達一週的能力，以提供可負擔、類衛星等級的長時間持續性，用於遙測與通訊中繼。我們相信這將是一項目前尚不存在、但極具吸引力且高價值的能力。如今在為期三年半的開發計畫中已進行超過兩年，Global Observer 聯合能力技術展示正朝著我們的目標取得重大進展：在本會計年度下半年啟動飛行測試。這是一款革命性的飛機，採用了前所未有、以此種方式運用的技術。在我們上次的電話會議中，我提到我們計畫於第二季將第一架 Global Observer 空軍——飛機運送至愛德華空軍基地（Edwards Air Force Base），以在本會計年度下半年進行飛行測試前先完成地面測試。

We kept airplane number one in our development facility two months longer than planned to continue integrated system testing in a location optimally equipped to resolve problems and to validate the airplane and ground control station system hardware and software. The team has now completed a continuous 12-hour fully-powered run on airplane number one and has systematically stressed the software and simulated multiple faults to provide additional confidence in the aircraft's new control and power systems. We have successfully completed all of these tests and airplane number one is currently being disassembled for shipments to Edwards where it will undergo integrated system tests, mission simulation and flight crew training prior to the initial flight test series. The move to Edwards should be completed this month and will support our plans to be in flight testing in the second half of fiscal 2010. Airplane number two is moving to the second of three assembly stations within our development facility as airplane number one moves to Edwards.

我們將第一架飛機在開發設施中保留的時間比原計畫多了兩個月，以便在最適合解決問題的環境中持續進行整合系統測試，並驗證飛機與地面控制站系統的硬體與軟體。團隊現已在第一架飛機上完成連續 12 小時的全功率運轉測試，並系統性地對軟體施加壓力、模擬多種故障，以對飛機的新控制與電力系統建立更高信心。我們已成功完成所有這些測試，目前第一架飛機正被拆解以運往愛德華基地；在初始飛行測試系列之前，該機將於當地進行整合系統測試、任務模擬與飛行機組訓練。移往愛德華基地的作業應可於本月完成，並將支持我們在 2010 會計年度下半年進入飛行測試的計畫。隨著第一架飛機移往愛德華基地，第二架飛機正移至我們開發設施內三個組裝工位中的第二個。

In the international small UAS market, we have seen signs of reengagement in a number of countries, suggesting that that market is improving. We remain well situated to generate growth through each of the five growth drivers of our business; that is selling more of our existing products to existing customers, supporting the growing installed base of products, developing and introducing product upgrades, entering new markets for existing products, and successfully introducing entirely new solutions that are currently in development. At this point I'd like to turn to our other operating segment.

在國際小型 UAS 市場方面，我們在多個國家看到重新投入的跡象，顯示該市場正在改善。我們仍處於有利位置，可透過我們業務的五大成長驅動因素來帶動成長；亦即：向既有客戶銷售更多既有產品、支援日益擴大的產品裝機基礎、開發並推出產品升級、為既有產品進入新市場，以及成功導入目前仍在開發中的全新解決方案。接下來我想轉到我們的另一個營運部門。

Revenue in Efficient Energy Systems, or EES, increased sequentially despite continued pressure in the industrial markets for capital equipment served by our industrial electric vehicle charging systems. As a business segment, EES develops and supplies test systems, production systems and charging infrastructure to support the development, the production and the safe and reliable use of electric vehicles. Our EV test systems remain industry leaders in North America and we see opportunities for growth, both domestically and abroad. A growing global interest in electric vehicles has helped to drive sales of this test equipment, with all major automotive manufacturers now planning to introduce plug-in vehicles over the next three years. Additionally there is an increased awareness regarding the importance of the infrastructure that will be required to support electric vehicle adoption and broad use. We have been very active working with a large number of automakers, battery manufacturers, utilities and government agencies to generate awareness of the critical role charging infrastructure will play in the adoption and the practical use of electric vehicles. Our EV infrastructure solutions position us as a potential supplier of these solutions as EVs appear in the market.

高效率能源系統（Efficient Energy Systems，或 EES）的營收較前一季增加，儘管我們工業電動車充電系統所服務的資本設備工業市場仍持續承受壓力。作為一個事業部門，EES 開發並供應測試系統、生產系統與充電基礎設施，以支援電動車的開發、生產，以及安全可靠的使用。我們的電動車（EV）測試系統在北美仍為業界領導者，我們也看到國內與海外的成長機會。全球對電動車日益增加的興趣推動了此測試設備的銷售，目前所有主要汽車製造商都計畫在未來三年內推出插電式車款。此外，市場對於支援電動車採用與廣泛使用所需之基礎設施重要性的認知也在提升。我們一直非常積極地與大量汽車製造商、電池製造商、公用事業公司與政府機構合作，以提升對充電基礎設施在電動車採用與實際使用中所扮演關鍵角色的認知。隨著電動車進入市場，我們的 EV 基礎設施解決方案使我們成為這些解決方案的潛在供應商。

We have also helped to create public organizations focused on promoting a rational, practical approach to transportation electrification. The Battery Electric Vehicle Coalition and the Electrification Coalition consist of industry leaders committed to the successful introduction and adoption of electric vehicles in the United States. We look forward to working with our partners in these groups to move toward a cleaner environment, energy independence, and clean technology job creation. As I look at what our team at AV is accomplishing, I believe that we remain in a uniquely good position to generate long-term growth through the practical application of our innovative technology solutions and capabilities to critical market needs.

我們也協助成立了致力於推動交通運輸電氣化之理性、務實方法的公共組織。電池電動車聯盟（Battery Electric Vehicle Coalition）與電氣化聯盟（Electrification Coalition）由產業領袖組成，致力於在美國成功導入並推廣電動車。我們期待與這些團體中的合作夥伴共同努力，邁向更潔淨的環境、能源獨立，以及創造潔淨科技就業機會。就我觀察 AV 團隊正在達成的成果而言，我相信我們仍處於獨特且有利的位置，能透過將創新技術解決方案與能力務實地應用於關鍵市場需求，來帶動長期成長。

At this point, Steve Wright will discuss our financial performance in the second quarter. Steve?

接下來，Steve Wright 將說明我們第二季的財務表現。Steve？

Thanks, Tim. Good afternoon, everyone. Revenue for the second quarter was $51.4 million, a decrease of 22% from second-quarter prior year of $65.8 million. By segment, UAS revenue was $43.7 million, a decline of 23% from the prior year. The decrease in UAS revenue was primarily due to lower product deliveries of $16.1 million and lower service revenue of $3.4 million, partially offset by an increase in customer-funded R&D of $6.7 million. The decrease in UAS product deliveries, and service revenue was primarily due to the reduction of our analog Raven B production and services, as we began production in retrofit of Raven B systems with our DDL technology. The increase in customer-funded R&D was primarily due to increased activity on the Global Observer contract. EES revenue totaled $7.7 million, a decrease of 18% from Q2 of last year. The decrease in EES was primarily due to lower deliveries of our EV test and industrial charging systems.

謝謝你，Tim。各位下午好。第二季營收為 5,140 萬美元，較去年同期第二季的 6,580 萬美元減少 22%。按部門別，UAS 營收為 4,370 萬美元，較去年同期下降 23%。UAS 營收下降主要是因產品交付減少 1,610 萬美元以及服務營收減少 340 萬美元，部分被客戶出資研發（R&D）增加 670 萬美元所抵銷。UAS 產品交付與服務營收的下降，主要是因我們降低類比 Raven B 的生產與服務，因為我們開始以 DDL 技術對 Raven B 系統進行改裝並投入生產。客戶出資研發的增加主要來自 Global Observer 合約活動增加。EES 營收合計 770 萬美元，較去年第二季（Q2）下降 18%。EES 的下降主要是因 EV 測試與工業充電系統交付量降低。

Turning to gross margin, gross margin in the second quarter was $19.6 million, down 21% from Q2 of last year. Gross margin as a percent of revenue was 38%, unchanged from last year. By segment, UAS gross margin was $15.8 million, down 21% from last year, and as a percentage of revenue, UAS gross margin was 36% compared to 35% last year. EES gross margin was $3.8 million down 24% from Q2 of last year. As a percentage of revenue, EES gross margin was 50% compared to 54% last year. This decrease in gross margin rate was primarily due to product mix.

接著談毛利，第二季毛利為 1,960 萬美元，較去年第二季下降 21%。毛利率為 38%，與去年持平。按部門別，UAS 毛利為 1,580 萬美元，較去年下降 21%；以營收百分比計，UAS 毛利率為 36%，去年為 35%。EES 毛利為 380 萬美元，較去年第二季下降 24%。以營收百分比計，EES 毛利率為 50%，去年為 54%。毛利率下降主要是由於產品組合所致。

SG&A expense for the quarter totaled $10.5 million, or 20% of revenue, compared to $7.9 million, or 12% of revenue in the prior year. SG&A growth is primarily due to higher selling and business development expense, increased bid and proposal activity and higher admin costs. R&D for the quarter totaled $5.8 million, or 11% of revenue, compared to the prior year of $4.9 million, or 7% of revenue. The majority of our R&D investments were for various UAS development initiatives. Operating income for the quarter was $3.4 million, or 7% of revenue. Operating income was 72% lower than the prior year, primarily due to lower sales volume resulting in lower gross margins, and higher SG&A and R&D expenses. Net income for the quarter was $2.2 million, or $0.10 per fully-diluted share, compared to a net income of $9.1 million, or $0.41 per fully0diluted share in the same quarter last year.

本季銷售、一般及行政（SG&A）費用合計 1,050 萬美元，占營收 20%；去年同期為 790 萬美元，占營收 12%。SG&A 的成長主要來自較高的銷售與業務開發費用、投標與提案活動增加，以及較高的行政成本。本季研發（R&D）費用合計 580 萬美元，占營收 11%；去年同期為 490 萬美元，占營收 7%。我們的研發投資大多用於各項 UAS 開發計畫。本季營業利益為 340 萬美元，占營收 7%。營業利益較去年下降 72%，主要因銷售量降低導致毛利下降，以及 SG&A 與研發費用增加。本季淨利為 220 萬美元，或完全稀釋後每股 0.10 美元；相較之下，去年同季淨利為 910 萬美元，或完全稀釋後每股 0.41 美元（fully0diluted）。

Now moving quickly through our year-to-date results, revenue for the first six months was $89.3 million, down 25% from the prior-year period of $119.4 million. UAS revenue was $77 million ,down 25% from the prior year, and EES revenue was $12.3 million, down 27% from the prior year. Gross margin for the first half was $30.4 million versus $45.6 million in the same period a year ago. Gross margin as a percent of revenue was 34%, a decline of four percentage points from the prior year. UAS gross margin was $24.8 million, down 32%, and EES gross margin was $5.6, million down 38%.

現在快速回顧我們年初至今的業績，前六個月營收為8,930萬美元，較去年同期的1億1,940萬美元下降25%。UAS營收為7,700萬美元，較去年下降25%；EES營收為1,230萬美元，較去年下降27%。上半年毛利為3,040萬美元，去年同期為4,560萬美元。毛利率為34%，較去年下降4個百分點。UAS毛利為2,480萬美元，下降32%；EES毛利為560萬美元，下降38%。

SG&A for the first half totaled $21 million, or 24% of revenue, versus the prior year of $16 million, or 13% of revenue. R&D for the first six months was $11.4 million, or 13% of revenue, versus $10.2 million, or 9% of revenue in the prior year. The operating loss for the first half was $2.1 million, or 2% of revenue versus, an operating income of $19.5 million, or 16% of revenue in the prior year. The effective tax rate for the first half was 30.4% versus 31.9% in the prior year, and the net loss for the first half was $1.4 million, or a loss of $0.06 per share, compared to a net income of $13.9 million, or $0.64 per fully-diluted share last year.

上半年SG&A合計2,100萬美元，占營收24%，去年為1,600萬美元，占營收13%。前六個月研發（R&D）費用為1,140萬美元，占營收13%，去年為1,020萬美元，占營收9%。上半年營業虧損為210萬美元，占營收2%；去年同期為營業利益1,950萬美元，占營收16%。上半年有效稅率為30.4%，去年為31.9%；上半年淨虧損為140萬美元，即每股虧損0.06美元；相較之下，去年淨利為1,390萬美元，即每股完全稀釋後盈餘0.64美元。

Looking at backlog, funded backlog at the end of the second quarter was $107.1 million down $7.7 million, or 7% from April 30, 2009. Unfunded backlog at the end of the second quarter was $303.5 million versus $510.6 million at April 30, 2009. This decline was primarily due to the expiration of a five-year IEIQ contract with the NATEC Army Center. The IEIQ was established prior to the Raven program-of-record competition and was used slightly after we awarded the Army SUAV contract.

就積壓訂單（backlog）而言，第二季末已獲資金支持的積壓訂單為1億710萬美元，較2009年4月30日減少770萬美元，或下降7%。第二季末未獲資金支持的積壓訂單為3億350萬美元，而2009年4月30日為5億1,060萬美元。此下降主要係因與NATEC陸軍中心簽訂的一份為期五年的IEIQ合約到期。IEIQ是在Raven列裝計畫（program-of-record）競標之前建立，並在我們獲得陸軍SUAV合約後仍短暫使用。

Turning to our balance sheet, cash equivalents and investments at the end of the second quarter totaled $131.5 million, down $16.2 million from our prior-quarter amount of $147.7 million. Free cash flow for the quarter was -$16.3 million and was comprised of cash from operations of -$12.9 million and capital expenditures of $3.4 million. The negative operating cash flow was primarily caused by growth in inventories and receivables, partially offset by income, depreciation and payables.

再看資產負債表，第二季末現金等價物及投資合計1億3,150萬美元，較前一季的1億4,770萬美元減少1,620萬美元。本季自由現金流為-1,630萬美元，其中營運活動現金流為-1,290萬美元，資本支出為340萬美元。營運現金流為負主要由存貨與應收款項增加所致，部分被收益、折舊與應付款項所抵銷。

Turning to receivables, at the end of the second quarter our accounts receivable, including unbilled receivables, totaled $52.2 million, up $20.3 million from the prior quarter. Total day sales outstanding were 91 days compared to 76 days at the prior-quarter end. Receivable growth for the quarter was caused by higher sales volume generated towards the end of the quarter. Taking a look at our inventory, inventories were $25.1 million at the end of the quarter compared to $19.2 million at the end of the prior quarter. Days in inventory were approximately 71 days compared to 64 days at the end of the prior quarter. Inventory growth for the quarter was largely to build for the anticipated high volumes of deliveries we expect in the balance of the year. Turning to capital Expenditures, in the second quarter we invested approximately $3.4 million, or 7% of revenue in property improvements and capital equipment.

就應收款項而言，第二季末我們的應收帳款（含未開立帳單的應收款）合計5,220萬美元，較前一季增加2,030萬美元。應收帳款週轉天數（DSO）為91天，前一季末為76天。本季應收款增加係因季末帶動的較高銷售量所致。再看存貨，季末存貨為2,510萬美元，前一季末為1,920萬美元。存貨天數約為71天，前一季末為64天。本季存貨增加主要是為了因應我們預期今年剩餘期間的高交付量而提前備貨。至於資本支出，第二季我們在廠房改善與資本設備上投資約340萬美元，約占營收7%。

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

現在我想把時間交還給Tim，請他說明對全年業績的預期。

Thanks, Steve. Looking forward, our digital Raven system will reinforce our leading position in the small UAS market and along with WASP and Puma will support the administrations planned force increase in Afghanistan and wherever else US ground troops train and operate. Our development programs continue to generate positive progress and move towards addressing important high-value market needs. We remain in a great position to produce long-term growth. As I stated earlier, our fiscal 2010 is unfolding within the schedule window that we anticipated. With approximately 65% of our second-half revenue expected to be generated in Q4, we clearly have our work cut out for us to execute the second half ramp up in digital Raven production and the government fiscal year '10 defense bill needs to be signed in a timely manner.

謝謝你，Steve。展望未來，我們的數位化Raven系統將鞏固我們在小型UAS市場的領先地位，並與WASP及Puma一起，支援政府規劃在阿富汗的兵力增加，以及美國地面部隊訓練與執行任務的其他地區。我們的開發計畫持續取得正面進展，並朝向滿足重要且高價值的市場需求邁進。我們仍處於能夠實現長期成長的有利位置。如我先前所述，我們的2010會計年度正依照我們預期的時程窗口推進。由於我們預期下半年約65%的營收將在第四季（Q4）實現，我們顯然必須全力以赴，執行下半年數位化Raven產能爬坡；同時，政府2010財政年度的國防法案也需要及時完成簽署。

Nevertheless, we still expect revenue growth of 18% to 22% over fiscal 2009, which would be $292 million to $302 million in revenue with an operating margin between 12% and 14%. This view is supported by funding in our backlog, in the previously approved supplemental bill and in the current defense appropriations bill, along with our view of the demand for our solutions and feedback we receive on a regular basis from our customers. And I believe that we are doing important work, helping our customers succeed and serving the long-term interest of our associates and our stockholders.

儘管如此，我們仍預期相較2009會計年度營收成長18%至22%，亦即營收2億9,200萬美元至3億200萬美元，營業利益率介於12%至14%。此觀點係基於我們積壓訂單中的已獲資金支持部分、先前已核准的追加預算法案，以及目前的國防撥款法案所提供的資金，再加上我們對解決方案需求的判斷，以及我們定期從客戶收到的回饋。我也相信我們正在做重要的工作，協助客戶成功，並符合我們同仁與股東的長期利益。

Thank you once again for your attention and your interest in our Company. Steve Wright and I will now take questions.

再次感謝各位的關注以及對本公司的興趣。接下來Steve Wright和我將開始回答問題。

(Operator Instructions). We'll take our first question from Howard Rubel from Jefferies.

（接線員指示）。我們的第一個問題來自Jefferies的Howard Rubel。

Thank you very much. I want to try to just do two, Tim. First, the Global Observer was a couple of months late but sometimes you make that up by keeping it in place. How do you stand on your estimate to complete for the program?

非常感謝。我想先問兩個問題，Tim。Global Observer晚了幾個月，但有時你們可以透過延長部署時間把進度補回來。就你們對該計畫的完工成本估計而言，目前情況如何？

Well, we still expect to complete the JCTD objectives of ultimately demonstrating military utility effectiveness with an integrated airplane and payload system later next calendar year, Howard, and within the existing funding.

Howard，我們仍預期在明年稍晚的下一個曆年內，最終以整合的飛機與載荷系統完成JCTD目標，也就是展示軍事效用與有效性，而且會在既有資金範圍內完成。

So the difference -- so this incremental cost, because time is always money, is really irrelevant to how we should think about your bottom line over the next 12 months or so?

所以差異在於——這個增量成本，因為時間總是金錢——其實與我們在未來12個月左右該如何看待你們的獲利並沒有太大關係，對嗎？

Well, I think we believe that the additional costs associated with the additional time -- and that is a reality -- are being accommodated within the existing contract structure by our customer, without additional funding. Steve, have you got any comments on the --?

嗯，我想我們認為，因時間延長所帶來的額外成本——這確實是現實——在不增加額外資金的情況下，已由客戶在既有合約架構內予以吸收。Steve，你對這個——有什麼補充嗎？

Well, other than it shouldn't affect the financials over the next 12 months because it's a cost-plus program, Howard.

除了它不應該影響未來12個月的財務表現之外，因為這是一個成本加成（cost-plus）計畫，Howard。

Yes, but you do get -- your revenues would be a little higher, right, and either the fee might be a little lower,or the fee is unchanged here? Isn't there a performance element to the fee?

是，但你們的營收會稍微高一些，對吧？然後要嘛費用（fee）可能稍微低一些，或是費用在這裡不變？費用不是有績效（performance）要素嗎？

It's a CPFF, and right now I don't think we have a forecast of any change in the total funding or how that funding rolls out. Notwithstanding the two months of testing here at our plant I think a lot of that testing would have gone on at Edwards anyways.

這是CPFF（成本加固定費用），而目前我不認為我們預測到總資金會有任何變動，或資金撥付節奏會如何展開。儘管在我們工廠多了兩個月的測試，我想其中很多測試原本也會在Edwards進行。

It's one bucket or another bucket is a way of saying it, is that fair?

換句話說，就是從一個籃子移到另一個籃子，這樣說公平嗎？

Yes.

是的。

And then just staying on R&D for a moment, it was flat sequentially, so are you -- I know you have some other ideas for doing some additional things, Tim, but is this a fair run rate for a while, or can you do some other things to help on the cost side?

另外，稍微談一下研發（R&D），它在連續季度間持平。所以你們——我知道你還有一些其他想法要做額外的事情，Tim——但這會是接下來一段時間合理的支出水準嗎？或者你們能做些其他事情在成本端提供幫助？

I'll just start. I think the run rate really just reflects the programs that we're working on at the current time. Going forward even in the balance of the year we might see some growth in the R&D line.

我先說。我認為目前的支出水準其實只是反映我們現階段正在進行的各項計畫。往後看，即使在今年剩餘期間，我們也可能會看到研發費用這一項有所成長。

Thank you, gentlemen.

謝謝兩位。

Thanks, Howard.

謝謝你，Howard。

Our next question comes from Michael Lewis with BB&T Capital Markets.

下一個問題來自BB&T Capital Markets的Michael Lewis。

Thanks very much for taking my call. Tim, with regard to the [MOT] that was released in the 8-K this afternoon there's some cautionary language, it addresses that there's no assurance that any of these options will be exercised, the standard language, it just stood out to me, but with regard to that, how confident are you that timely tasks will progress on this program over the next three to five months?

非常感謝接聽我的提問。Tim，關於今天下午在8-K中發布的[MOT]，其中有一些警示性措辭，提到無法保證這些選項會被行使——這是標準措辭，但我特別注意到了。就此而言，你對於未來三到五個月內，該計畫的各項及時任務能夠推進到位，有多大信心？

Well, that announcement, Mike, was on the increase in the IDIQ level of the Army contract. I believe that's associated with the negotiation around the digital Raven funding tied to line items in the '09 supplemental. I think our customer wanted to negotiate values in excess of the actual amount of the line items that were included in the supplemental and we expect some of that tied to the line items that you saw in the '09 supplemental to flow through in a timely manner.

嗯，Mike，那項公告是關於陸軍合約 IDIQ 上限水準的提高。我相信那與圍繞著與『09 補充預算』中各項目（line items）綁定的數位 Raven 經費之協商有關。我認為我們的客戶希望協商的金額高於補充預算中所列各項目的實際金額，而我們預期其中一部分、也就是你在『09 補充預算』中看到與那些項目相關的內容，將會及時反映並流入。

Okay, and also re -- okay, that's very helpful, but also if we look at the ramifications of the appropriations bill still being in conference, and we talked about this that there could cause some pressure if it's not passed by the end of the fis -- of the calendar year, so where do you stand? Let's say it passes by mid to late January, what does that mean to this current guidance that we have in front of us now?

好的，另外再問——好的，這很有幫助。不過如果我們看撥款法案仍在協商委員會（conference）中的影響，我們之前也談到，如果它在財——在曆年年底前未通過，可能會造成一些壓力。那你們目前怎麼看？假設它在一月中下旬通過，這對我們眼前這份現行指引（guidance）意味著什麼？

Well, let me start by pointing out, I think, another comment that I made in my previous statements that we have been working diligently with our customers negotiating the terms of the contracts that would be anticipated to execute the funding that's identified in the current 2010 appropriations bill. We're -- my comments assumed a signing of that bill by the end of this month or early January. Of course, we don't control that and we're just guessing but we have historically often seen the budget get approved in that timeframe, which tends to translate into contracts hitting our Company maybe the end of Q1 and the early part of Q -- or excuse me, the end of Q3 and the early part of Q4, and in those cases in the past, we have always been able to anticipate those and flow that work through the -- into our Q4 revenues. Steve, you may be able to (inaudible) on that?

嗯，我先指出我在先前發言中提到的另一點：我們一直在與客戶勤勉合作，協商那些預期用來執行目前 2010 年撥款法案中所辨識資金的合約條款。我們——我的評論是假設該法案會在本月底或一月初簽署。當然，我們無法控制那個時點，只能推測；但歷史上我們常看到預算在那個時間範圍內獲得核准，通常會轉化為合約在我們公司端大約於第一季末、以及——或抱歉，是第三季末與第四季初到位；而在過去那些情況下，我們一向能夠預先掌握，並將該工作量反映到我們第四季營收中。Steve，你也許可以（聽不清）補充一下？

Well, I guess I would just add that it's not sequential. We are working on the contract and going through that process in parallel while we wait for the formal budget to get approved and I would just reiterate, in the past, these large bookings happen the very tail end of Q3, very beginning of Q4, and if that's when it happens this year our production plans should be able to accommodate the guidance that Tim gave.

嗯，我想我只想補充，這不是按序（sequential）發生的。我們在等待正式預算核准的同時，也會並行推進合約並走完流程。我再重申一次，過去這些大型訂單（bookings）通常發生在第三季的尾端、第四季的最初；如果今年也是在那個時點發生，我們的生產計畫應該能夠配合 Tim 所給的指引。

Okay, that's very helpful, and just one final question here. With regard to the DDL integration, has there been any issues -- let's just say, for example, software glitches in the integration, that would cause any pressure to the current weighting of the guidance now for the third and fourth quarter?

好的，這很有幫助。最後一個問題：關於 DDL 整合，有沒有任何問題——比方說，整合過程中的軟體瑕疵（software glitches）——會對目前第三季與第四季指引的權重分配造成任何壓力？

Well, we -- I pointed out there is really -- in my other remarks, Mike, there were really -- I can think of the digital data link ECP in three chunks. One is the digital data link itself, all of the changes in the hardware and software that were required for other parts of the airplane system to accommodate that transition from analog to digital. For example, the camera output and many other changes like that. And then a third category of changes where we either upgraded or improved other parts of the system like the motor and cameras. The data link itself has been really robust from an early stage and to the degree that we have seen challenges in the performance in the corners of the envelope and in the production yield when we put it all together, they were mostly associated with the integrated effect of these myriad other changes throughout the system, so that affects both hardware and software. We've continued to optimize that and we are confident that we've got a solid robust system at this point.

嗯，我們——我先前也提到，Mike，確實——我把數位資料鏈（digital data link）的 ECP 想成三個部分。第一是數位資料鏈本身；第二是為了讓飛機系統其他部分能夠配合從類比轉為數位所需的所有硬體與軟體變更，例如相機輸出以及許多其他類似的變更；第三類則是我們對系統其他部分進行升級或改善，例如馬達與相機。資料鏈本身從很早期開始就非常穩健；而我們在性能包線邊角（corners of the envelope）以及整體組裝後的量產良率（production yield）上所看到的挑戰，多半與系統中這些大量其他變更的整合效應有關，因此同時影響硬體與軟體。我們持續在最佳化，並且有信心目前已經有一個扎實、穩健的系統。

Yes, okay. Well that's very helpful, thank you very much.

是的，好的。這很有幫助，非常感謝。

Thanks, Mike.

謝謝你，Mike。

We'll take our next question from Brian Ruttenbur with Morgan Keegan.

我們接下來的問題來自 Morgan Keegan 的 Brian Ruttenbur。

Thank you very much. Just going to talk about weighting of revenue. This year you said it's going to be weighted more heavily towards the fourth quarter; is that correct?

非常感謝。我想談一下營收權重分配。今年你們說會更偏向第四季；是這樣嗎？

Yes. Yes, I think we said approximately 65% of the remaining revenue in Q4?

是的。是的，我想我們說的是剩餘營收大約有 65% 會在第四季？

Okay. And then just going forward beyond Q4, how long do you expect revenue acceleration to be in the 18% to 22% range when we're looking at fiscal '11 and beyond. Do you expect it to settle down more at 15% longer term, or do you think the 18% to 22% is sustainable for a period of time?

好的。那再往後看、超過第四季之後，當我們看 11 財年及以後，你們預期營收加速維持在 18% 到 22% 的區間會持續多久？你們預期長期會回落到 15% 左右，還是你們認為 18% 到 22% 可以在一段時間內維持？

I'll just start and I would say we would have to punt there. We would plan to give our guidance for the next year on our Q4 call.

我先說，我會說這題我們得先保留。我們計畫在第四季電話會議時提供下一年度的指引。

Yes, Brian, we have historically provided annual revenue guidance, although I continue to be very optimistic about our long term-growth potential, as I said earlier, driven both by the continued demand for our existing products and the sustained level of interest in the kinds of solutions that we currently have in development and the size of the market opportunities that are addressed by both of those categories.

是的，Brian，我們歷來都會提供年度營收指引。雖然如此，我對我們長期成長潛力仍然非常樂觀，正如我先前所說，這同時來自於市場對我們既有產品的持續需求，以及對我們目前正在開發之解決方案類型的持續關注程度，還有這兩大類所對應的市場機會規模。

Okay, thank you. Gross margin was 38.3%. Is that sustainable, or does it go higher with the ramp up in the fourth quarter, or what do you think about gross?

好的，謝謝。毛利率是 38.3%。這能維持嗎？或者第四季放量後會更高？你們對毛利怎麼看？

I think we -- what we want to focus on is operating income 12% to 14% so we don't want to guide on gross margins. What I would point back to is last two years on average we've closed the year on a consolidated basis at 36%, so somewhere between there and where we were in Q2 is probably not a bad way to think about it, but really focusing on the operating income is where we would point to it at 12T to 14%.

我想我們——我們希望聚焦在 12% 到 14% 的營業利益率（operating income），所以我們不想對毛利率提供指引。我會回到一點：過去兩年我們在合併基礎上年終平均約 36%，所以介於那個水準與我們第二季的水準之間，大概是個不錯的思考方式；但我們真正要強調的是營業利益率，也就是 12% 到 14%。

Last question, cash burn. Do you expect to have a lot of cash generation? You've had a cash burn, obviously, in the first half of the year, do you expect a cash generation the second half of the year?

最後一個問題，現金消耗（cash burn）。你們預期會有很多現金產生嗎？你們在上半年顯然有現金消耗；下半年你們預期會轉為現金產生嗎？

No, I would expect continued cash burn in the second half based on the kind of profile for revenues in the balance of the year. We have the prospect of continued inventory growth as we look to tee up the operations throughput to achieve our top line and also because the revenue will be heavily back-end loaded you will -- I would expect to see some revenue receivable growth, as well.

不，我預期下半年仍會持續現金消耗，原因在於今年剩餘期間的營收型態。我們有可能持續增加庫存，因為我們要把營運產能（throughput）準備好以達成營收規模；同時由於營收將高度集中在後段，你也——我也預期應收帳款會有所成長。

Okay, thank you very much.

好的，非常感謝。

Thank you.

謝謝。

We'll take our next question from Tim Quillin with Stephens, Inc.

我們接下來的問題來自 Stephens, Inc. 的 Tim Quillin。

Good afternoon.

下午好。

Hi, Tim, how are you?

嗨，Tim，你好嗎？

Good, congratulations on getting started with digital Ravens. I'm trying to -- maybe if you could summarize your -- the anticipated orders, but it sounds like you expect a $27.5 million or so order with supplemental monies sooner rather than later and then expect maybe a series of orders, or a couple different orders totaling as much as $120 million in January or February some time to support your guidance. Is that about right?

很好，恭喜你們開始推動數位 Raven。我想——也許你可以總結一下你們預期的訂單：聽起來你們預期會有一筆約 2,750 萬美元左右、來自補充預算資金的訂單會較早到位；然後你們預期在一月或二月左右，可能會有一連串訂單，或幾筆不同訂單合計最高可達 1.2 億美元，以支撐你們的指引。大致是這樣嗎？

Yes, Tim, the 8-K announcement that came out today is a regulatory matter, but it really represents the GFY '09 supplemental out of that would come the $27.5 million and typically we wouldn't see the whole $27.5 million, it would be taxed before it got here. In addition to that you have the GFY '10 base and OCO for both Marines and Army and I think you have the right number there at about $120+ million.

是的，Tim，今天發布的 8-K 公告屬於監管要求，但它實際上代表的是 GFY『09 補充預算』，其中會產生那 2,750 萬美元；而通常我們不會看到完整的 2,750 萬美元，因為在到我們這裡之前通常會被扣減（taxed）。除此之外，還有 GFY『10 的基本預算（base）與 OCO，涵蓋海軍陸戰隊與陸軍，我想你提到的數字大約 1.2 億美元以上是對的。

Right. So -- but an order in December and then one later in -- or a couple later in January or February?

了解。所以——十二月一筆訂單，然後在——或一月或二月再來一筆或幾筆？

Yes, the GFY '10, as we said earlier, we typically see the government fiscal year funding coming in either at the tail end of our Q3 or the very beginning of our Q4 and if it behaves the same way our plans will accommodate that. If it slips much beyond that then we have to regroup and look at our production plans and what we can do.

是的，正如我們先前所說，GFY『10 的情況，我們通常會在我們第三季尾端或第四季一開始看到政府財政年度資金到位；如果今年也同樣運作，我們的計畫將能配合。如果延遲超過那個時間很多，我們就必須重新整隊，檢視我們的生產計畫以及我們能做什麼。

Right. And I know you don't want to comment too much about future gross margins, but gross margins in UAS were strong, I guess over 36% in your Q2 and relatively low production levels and I was just wondering what the key to that margin was and should we expect margins to improve as you ramp up production of digital Raven?

了解。我知道你們不想對未來毛利率評論太多，但 UAS 的毛利率很強，我想你們第二季在相對較低的產量下毛利率仍超過 36%。我想請問那個毛利率的關鍵是什麼？以及當你們提升數位 Raven 的產量時，我們是否應該預期毛利率會改善？

Well, 36%, yes, way high compared to last quarter,but last quarter was way low. as you know. Looking in the past, UAS is in the 34% to 3% range so I don't think the 36% is off the chart high, really reflects a mix of the programs that we're working on. Another thing to keep in mind is, included in our services revenue is the DDL retrofit kits, which are product like in nature but the accounting puts them in the services line.

嗯，36%，是的，和上一季相比確實高很多，但上一季又非常低，如你所知。回頭看過去，UAS 的毛利率大約在 34% 到 3% 的區間，所以我不認為 36% 是高得離譜；這其實反映了我們目前在執行的專案組合。另一點要記住的是，我們的服務營收中包含 DDL 改裝套件，這在性質上更像產品，但會計處理把它們列在服務項下。

Okay, and just one more question, if I may. The EES business, do you expect that to grow overall in fiscal '10?

好的，如果可以的話我再問一個問題。EES 業務方面，你們預期在 2010 會計年度整體會成長嗎？

I don't think we can comment. We try to restrict our guidance to the total Company. We continue to feel very, very positive about the business, but probably need to restrict ourselves to total Company guidance.

我想我們不便評論。我們盡量把指引限制在公司整體層面。我們對業務仍然感到非常、非常正面，但可能需要把範圍限制在公司整體的指引。

Yes, I think if you dissect what I said earlier, Tim, if you look at the three pieces, the industrial electric vehicle charging business remains sub par and that's really reflected by the economy and the capital equipment market -- or the spending in capital equipment. The test equipment that we sell primarily for electric vehicle development work is still a growing part of the business and it seems to be tied with this global demand for electric vehicle development and the emerging opportunity for on-road electric vehicles I think is still out there. It's billions of dollars being invested by governments around the world over the next few years and all automotive companies investing there, so I think that continues to present an opportunity for us to participate potentially in the future.

是的，Tim，我想如果你拆解我先前說的話，看看這三個部分：工業用電動車充電業務仍然表現不佳，這確實反映了經濟狀況以及資本設備市場——或者說資本設備支出。至於我們主要用於電動車開發工作的測試設備，仍是業務中持續成長的一部分，而且似乎與全球對電動車開發的需求，以及道路用電動車的新興機會相關。我認為那個機會仍然存在。未來幾年全球各國政府將投入數十億美元，所有汽車公司也都在投入，因此我認為這仍持續為我們提供未來可能參與的機會。

Great, thank you.

很好，謝謝你。

Thank you.

謝謝。

We'll take our next question from Troy Lahr with Stifel Nicolaus.

我們接下來的問題來自 Stifel Nicolaus 的 Troy Lahr。

Thanks. I just want to circle back to, I think it was Brian's question, a little bit. The ramp up that you're really going to see in the fourth quarter, is that sustainable, or are you guys planning for that to be a one-quarter phenomenon and then it returns -- gradually returns back to normal levels?

謝謝。我想稍微回到我記得是 Brian 的問題。你們在第四季會看到的那個大幅拉升，是可持續的嗎？還是你們是把它當作單季現象來規劃，之後再——逐步回到正常水準？

I think this is a -- at least for the time being a one-quarter high point and then we get back to more traditional levels of throughput.

我認為這——至少就目前而言——是一個單季的高點，之後我們會回到較傳統的產出水準。

Troy, I think this is a function of the pent-up demand for Ravens while as customers waited for the digital systems to be available and they and we are now playing catch up and I think we will have largely caught up through fourth quarter. There clearly is an ongoing demand, not only for digital Raven systems but it appears that our customers will want to continue to retrofit their installed base, but I would expect, as Steve said, that we will peak in Q4.

Troy，我認為這是 Raven 的累積需求所致，因為客戶一直在等數位系統可供使用，而現在他們和我們都在追趕進度。我想我們在第四季大致就能追上。顯然不僅對數位 Raven 系統有持續需求，而且看起來客戶也會希望持續對既有裝機基礎進行改裝，但我預期如 Steve 所說，我們會在第四季達到高峰。

And I would just add that this is really -- this is largely the way the year was planned and we probably don't set out to plan the year with -- while we typically are back -- have more at the back end than the front end, it's accentuated this year and we wouldn't expect to plan it this way when we start doing our plans for subsequent years.

我再補充一點：這其實——這大致上就是我們原本對今年的規劃方式。我們可能不會在年度規劃時就刻意把年度安排成——雖然通常我們確實是後段比前段多，但今年這個特徵更明顯；而在我們開始規劃後續年度時，也不預期會用同樣方式來規劃。

Okay. And you said you were going to be more back-end weighted -- I think you were saying more back-end weighted than you previously expected, is that just again the timing on budgets, or is that actually your production ramp up, kind of getting your supply chain in line?

好的。你說會更偏向後段——我想你是說比你們先前預期的更偏向後段，這同樣只是預算時點的問題嗎？還是其實是你們的產能爬坡、讓供應鏈到位的問題？

Yes, I think it's more the latter, Troy. In an ideal world we would have -- when we started production deliveries at the very end of October we would have continued to ramp from that point. In fact what we did was assess the production yields we had in that first tranch of deliveries and the system performance at the corners of the envelope and we decided to do some more optimization before we really ramped up production (inaudible) so we slid that out maybe a month. In the meantime, though, I think the fact that we have continued to build the supply chain, we've staged hardware, we've trained customers and we have significantly improved the factors that will affect yield. I think the net result is a slight increase in the back-end load but a significant increase in the ability to execute it.

是的，Troy，我想比較偏向後者。在理想情況下，我們在 10 月底開始量產交付後，就會從那個時間點持續爬坡。實際上，我們評估了第一批交付的生產良率，以及系統在性能包線邊界的表現，於是決定在真正拉升產量之前再做一些最佳化（聽不清楚），所以我們把時程往後推了大概一個月。不過同時，我想我們持續建置供應鏈、備妥硬體、訓練客戶，並且大幅改善了會影響良率的因素。最終結果是後段負荷略有增加，但執行能力顯著提升。

And so I'm clear, you finished the optimization and you're now building digital systems and these have the effective yields, or you're hoping to get the effective yields?

那我確認一下：你們已經完成最佳化，現在正在生產數位系統，而且這些已經達到有效良率了？還是你們希望能達到有效良率？

Yes, we are just beginning to launch the production ramp this week, so I guess I would say we're confident that we've addressed those issues and we'll know, in fact, after a few weeks of being in production.

是的，我們本週才剛開始啟動量產爬坡，所以我想我會說，我們有信心已經解決那些問題；而實際情況我們會在進入量產後幾週內知道。

Okay, and then lastly, Puma AE, when should we start seeing a meaningful ramp up in that, or is that just going to be a slow gradual build up?

好的，最後一個問題，Puma AE 方面，我們什麼時候會開始看到有意義的爬坡？還是那會只是緩慢、逐步的增加？

I'm not quite sure how that's going to roll out. It's -- we have -- we've just for the last couple of months been in a position to be able to begin demonstrating Puma AE to new customers and we've done quite a bit of that. Some customers have taken delivery of small quantities that they're evaluating in their own applications. All of the feedback that I've gotten to date is positive. It looks like multiple customers see advantages in the characteristics of that system and I expect it to be a significant growth opportunity for us in the future, but as usual, it's very difficult for us to guess the timing and the rate of that adoption.

我不太確定會如何展開。這——我們——在過去幾個月才有能力開始向新客戶展示 Puma AE，而我們也做了不少展示。有些客戶已經接收了少量產品，正在他們自己的應用中評估。到目前為止我收到的回饋都是正面的。看起來有多家客戶看到了該系統特性上的優勢，我預期它未來會成為我們重要的成長機會，但一如往常，我們很難去猜測採用的時點與採用速度。

Okay, thanks guys.

好的，謝謝各位。

You bet.

不客氣。

We'll take our next question from Peter Arment with Broadpoint.

我們接下來的問題來自 Broadpoint 的 Peter Arment。

Good afternoon, thanks for taking my questions. Could you give us where you are now on the existing Army acquisition objective for Ravens? I think you ended last quarter at 57%. has there been much change there?

各位下午好，謝謝回答我的問題。你們能否說明目前 Raven 既有的陸軍採購目標（acquisition objective）達成到哪個程度？我記得你們上一季結束時是 57%。現在有很大變化嗎？

Well, as of the Q2 point we were 58% delivered. As Tim mentioned, we started deliveries of the digital Ravens and that is what contributed to the growth from 57% to 58%.

嗯，截至第二季時點，我們的交付達到 58%。如 Tim 提到的，我們開始交付數位 Raven，這就是從 57% 成長到 58% 的原因。

Okay, so not much change. And then also just on the Switchblade, you mentioned there's some small quantities of orders and multiple customers and actually some orders for combat prototypes. Tim, I'd be curious with just your thoughts on how this has -- the customer base has matured, given from when they first got their hands, or at least their eyes on Switchblade 2, now where they're actually ordering some combat prototypes. How should we think about Switchblade going forward?

好的，所以變化不大。另外關於 Switchblade，你提到有一些小量訂單、來自多個客戶，甚至還有一些作戰原型（combat prototypes）的訂單。Tim，我想請教你對此的看法：從他們第一次拿到手上、或至少第一次看到 Switchblade 2，到現在實際下單一些作戰原型，客戶基礎的成熟度是如何演變的？我們應該如何看待未來的 Switchblade？

Well, if we go back almost a year now to when we first demonstrated the full Switchblade system to our initial customer and that was pretty much an end-to-end demonstration in its initial configuration, which is a packaged unmanned aircraft in a -- launched from a tube and the tube is both a carrying package container that could be carried around, for example, in a rucsack and it's the launch tube for the vehicle. In that configuration it allows it to be rapidly pulled out, set on the ground, launched, and put into service almost immediately. Since that time that customer has continued to first evaluate the systems and then -- and in greater and greater detail and in more rigorous and more rigorous testing evaluations.

嗯，如果我們回到將近一年前，當時我們首次向最初的客戶展示完整的 Switchblade 系統，那基本上是一個端到端的展示，採用其初始配置，也就是一架封裝式的無人機——從一個筒狀裝置發射，而這個筒同時是攜行包裝容器，例如可以放在背包（rucksack）裡攜帶，也同時是載具的發射筒。在那種配置下，它可以快速取出、放到地面、發射，並幾乎立即投入使用。自那之後，該客戶持續先評估系統，然後——以越來越深入、越來越嚴格的測試評估來進行。

Other customers have come to look at this. They have now -- they subsequently acquired systems, did their own evaluation and testing. In many of those cases their applications are somewhat different than the original customer's and in all of those various scenarios the testing and evaluation has gone very well. So I believe what's happened in Q2 is a transition from buying small quantities solely for the purpose of testing and evaluation and moving towards what I was referring to as combat prototypes, which I see as a significant next step in this process of evaluation towards adoption.

其他客戶也來看過這套系統。他們之後也取得了系統，進行自己的評估與測試。在許多情況下，他們的應用與最初客戶的應用略有不同，而在所有這些不同情境下，測試與評估都進行得非常順利。所以我相信第二季發生的是：從僅為測試與評估而採購少量，轉向我所稱的作戰原型；我把這視為從評估走向採用過程中的一個重要下一步。

Okay, and you don't have, though, any Switchblade in their guidance, correct?

好的，不過你們的指引裡沒有納入任何 Switchblade，對嗎？

Well, other than what we would normally expect in these small quantities of procurement that have been taking place and that we expect will continue to take place throughout the fiscal year.

嗯，除了我們通常會預期的這些小量採購——這些採購一直在發生，而且我們預期在整個會計年度都會持續發生。

Okay, thank you very much, guys.

好的，非常謝謝各位。

You bet.

不客氣。

We'll take our next question from Randy Gwirtzman with Baron Capital.

我們接下來的問題來自 Baron Capital 的 Randy Gwirtzman。

Hey, good afternoon guys.

嗨，各位下午好。

Hi, Randy.

嗨，Randy。

I had a question about Global Observer. You mentioned that in the end point of the program was, I guess, to get military qualification with payload by the end of calendar year '10. Is that -- did I hear that correctly?

我有個關於 Global Observer 的問題。你提到該計畫的最終目標是，我想是在 2010 年曆年底前，帶著酬載取得軍用資格認證（military qualification）。我聽得對嗎？

Yes, that's pretty much our expectation.

是的，那基本上就是我們的預期。

So what does that mean in terms of delivery schedule? I would assume that you're going to -- the first three GO's are part of the JCTD, and that would be the first deliverable system? Is that correct?

那麼就交付時程而言，這代表什麼？我猜想你們將會——前三架 GO 是 JCTD 的一部分，而那會是第一套可交付的系統？這樣理解正確嗎？

Yes. The way this one program is structured, Randy, is that we will move -- we will complete the system flight testing, then we will integrate payloads and we will then demonstrate the system effectiveness for military applications with the combination of the ground system, the airplane and the payload and its communication system. At that point the joint -- the JCTD is technically completed and the customer takes delivery of the residual hardware and then they decide at that point what they want to do with the assets that they have taken delivery on and they and other customers would decide what they want to do in terms of future acquisition, or utilization of this potential capability.

是的。Randy，這個專案的架構是這樣：我們會先——完成系統飛行測試，接著整合酬載，然後以地面系統、飛機、酬載及其通訊系統的組合，展示該系統在軍事應用上的效能。到那個時點，聯合——JCTD 在技術上就完成了，客戶會接收剩餘硬體，然後他們會在那時決定要如何處理已交付的資產；他們以及其他客戶也會就未來採購或如何運用這項潛在能力，做出相應決策。

When would acquisition decisions be made? It would be -- it be made post, obviously, the flight.

採購決策會在什麼時候做出？應該會——很明顯是在飛行之後才會做出。

Yes, I think that the broad consensus I get as I talk with potential customers for Global Observer is it's a -- it addresses this apparent gap in capability to provide affordable persistence, and as a result it's very, very interesting to a number of potential customers and to a customer, they want to see it fly. It's such a revolutionary concept that I think fly before buy is in the front of the minds of all potential customers. Once that capability has been demonstrated, then we'll be -- I'm back to my mantra of it's very difficult to predict the timing and the rate of adoption of innovative technologies, but I've had more than one customer tell me that if you build it, we will come.

是的。我認為我在與 Global Observer 的潛在客戶交流時得到的廣泛共識是：它——填補了在以可負擔成本提供長時間持續能力方面的明顯缺口，因此對許多潛在客戶而言非常、非常有吸引力；而對客戶來說，他們想看到它飛起來。這是一個如此革命性的概念，我認為「先飛再買（fly before buy）」是所有潛在客戶最先想到的事。一旦該能力被證明，我又回到我的口頭禪：創新技術的採用時點與採用速度非常難以預測；但不只一位客戶告訴我：只要你們把它做出來，我們就會來。

Okay. And how does that fit into your ability to produce? I know you mentioned you're going to start building the next GO for the JCTD when the first one is packed up and shipped to Edwards and I think there's three aircraft in the program., do you start -- is that right?

好的。那這與你們的產能如何配合？我知道你提到第一架打包運往 Edwards 之後，你們就會開始為 JCTD 建造下一架 GO，而且我想這個計畫有三架飛機。你們會開始——是這樣嗎？

Yes, we will continue to execute on the existing JCTD and, in fact, the second airplane has been in the development facility in the first of three fabrication stations behind the first airplane and as the first one moves out, the second one will move into station number two. We will -- we'll deliver those sequentially and we will -- they will be ultimately flight testing both the first and the second airplane simultaneously in our plan. There was a second part of your question. I think. that I -- that escaped me that I didn't address?

是的。我們會持續執行既有的 JCTD；事實上，第二架飛機已在研發設施中，位於第一架飛機後方三個製造工位中的第一個；當第一架移出後，第二架就會移入第二號工位。我們會——依序交付這些飛機；依我們的計畫，最終會同時對第一架與第二架飛機進行飛行測試。你問題的第二部分我想——我——漏掉了，沒有回答到？

No, the last part of the question was the third aircraft and then future -- how do you scale in future production? You obviously have to balance competing interests of waiting for orders until the flight comes (inaudible)?

沒有，問題最後一部分是第三架飛機以及未來——你們如何擴大未來的生產？你們顯然必須在等到飛行之後才有訂單（聽不清）之間平衡彼此競爭的考量？

Yes, I think our plan would be that we would not be building airplanes in anticipation of future orders, so we'll be -- we've got this situation where our customers are waiting to see the air -- the flight test results before they make decisions on future orders and we'll be waiting for future orders before we make decisions on production, so that's --

是的。我認為我們的計畫是：不會在預期未來訂單的情況下先行造機；所以我們——目前的情況是，客戶在做出未來訂單決策前，會等著看——飛行測試結果；而我們也會在做出生產決策前，等到未來訂單到來，所以——

Okay. And last question is, just the flight test itself, that's on schedule basically and that's supposed to occur by April, I think it was?

好的。最後一個問題是，關於飛行測試本身，基本上是按進度進行，並且應該會在四月前後進行，我記得是這樣？

Yes, we -- my comments last call, Randy, were that we expected to be in flight test in the second half of our fiscal year and we still expect to be there.

是的。Randy，我上次電話會議的評論是，我們預期會在本會計年度下半年進入飛行測試，而我們仍然預期會如此。

Okay, thank you, guys.

好的，謝謝各位。

You bet. Thanks, Randy.

沒問題。謝謝你，Randy。

And we'll take our next questions from Michael Ciarmoli with Boenning & Scattergood.

接下來我們將接聽 Boenning & Scattergood 的 Michael Ciarmoli 的提問。

Hey, good afternoon, gentlemen, thanks for taking my questions.

嗨，各位先生，下午好，謝謝讓我提問。

Hi, Mike.

嗨，Mike。

How are you? Just, Tim, if you can, obviously with the announcement to surge troops into Afghanistan, can you give me a sense as to what you guys might be expecting from you services revenues? If I look back towards the Iraq troop surge you guys were seemingly doing a run rate north of $60 million. Do you have -- are you planning for elevated levels of service, or is it still too early to tell?

你好嗎？Tim，如果可以的話，顯然隨著宣布增派部隊到阿富汗，你能否讓我了解一下你們對服務營收可能會有什麼預期？如果我回頭看伊拉克增兵期間，你們看起來的年化運行水準（run rate）超過 6,000 萬美元。你們是否——正在規劃更高水準的服務，還是現在判斷仍為時過早？

I think it's probably too early anticipate the affect. We -- certainly there are many reasons to think there might be an affect of one sort or another. Our position at this point is to rely on our vaunted agility. We are working with our customers to plan how we're going to support the increased troop level and, therefore, the increased use of our systems in Afghanistan and we have the advantage of years of optimizing that forward support capability in Iraq to be able to plan with them. But in terms of anticipating the effect on production rates or service revenues we'll just wait to see. I think we're in a position to respond in a timely manner when we see the whites of the eyes of demand.

我認為現在要預估其影響可能還太早。我們——當然有很多理由認為可能會以某種方式產生影響。我們目前的立場是依靠我們引以為傲的敏捷性。我們正與客戶合作規劃，將如何支援阿富汗增加的駐軍規模，因而也會增加我們系統在阿富汗的使用；而我們的優勢是，多年來在伊拉克已優化前線支援能力，能夠與他們一起做規劃。但就預估對生產速率或服務營收的影響而言，我們會先觀望。我認為當我們真正看到明確的需求時，我們有能力及時回應。

Okay, fair enough. And then, Steve, just so I have it correct, was that service revenue number this quarter about $9.4 million? Did I do the math correct there?

好的，合理。然後，Steve，為了確認我理解正確，本季的服務營收大約是 940 萬美元嗎？我這樣算對嗎？

Total service revenue this quarter $8.9 million, --

本季服務營收總額為 890 萬美元，——

$8.9 million.

890 萬美元。

-- project R&D $23.3 million and products $19.1 million.

——專案研發（project R&D）2,330 萬美元，產品 1,910 萬美元。

Perfect. And then last question and I'll jump off here. Tim, just on penetration, I know it's something we've talked about in the past, how many troops will be -- or Raven systems per soldiers, do you see that penetration rate increasing at all given the more -- the unique challenges related to Afghanistan, the complete lack of infrastructure? I think you guys might be at one system per every 180 soldiers now. Do you see that rate changing?

太好了。最後一個問題，我問完就先下線。Tim，關於滲透率（penetration），我知道我們過去談過：每名士兵配置多少套 Raven 系統。鑑於阿富汗更——獨特的挑戰、基礎設施完全不足，你認為滲透率會提高嗎？我想你們現在大約是每 180 名士兵配一套系統。你覺得這個比率會改變嗎？

Well, I'll maybe address that in two segments, Mike. As to Afghanistan, I don't know and I think that's an issue that a number of our customers are evaluating to -- in that area and we'll wait to see what they decide. One could certainly anticipate some possibility of change given the obvious differences in the nature of troop deployment and operations in Afghanistan. Secondly, and in a broader area, a number of our customers continue to evaluate the potential value of pushing these systems farther down into their [pork] structure and I have -- if anything I've seen more thinking in that line rather than less over the last year, so that's certainly a consideration that's on the table and in the minds of some of our existing customers that have been using these systems for a long time and developing a high level of experience and appreciation for what they bring to the party.

Mike，我可能分兩部分回答。就阿富汗而言，我不知道；我認為這也是許多客戶正在評估的議題——在那個地區我們就等著看他們的決定。鑑於阿富汗在部隊部署與作戰性質上的明顯差異，確實可以預期存在一些改變的可能性。第二，在更廣泛的層面上，我們的一些客戶持續評估，將這些系統進一步下放到其「[pork]」編制結構更基層的潛在價值；如果有什麼變化的話，過去一年我看到的是朝那個方向的思考更多而不是更少。因此，這確實是一項仍在檯面上、也在一些既有客戶心中的考量；這些客戶長期使用這些系統，並對其帶來的價值累積了高度的經驗與認同。

Okay, that's fair enough, that's helpful. Thanks a lot, guys.

好的，合理，這很有幫助。非常感謝各位。

Thank you.

謝謝。

That completes the question-and-answer session today. At this time I will turn the conference back over to Mr. Gitlin for any additional or closing remarks.

今天的問答環節到此結束。現在我將把會議交回給 Gitlin 先生，請他做任何補充或結語。

Thank you, Melanie. With that as our final question we thank you all for your continued attention and interest in AeroVironment and 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.

謝謝你，Melanie。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，並提醒各位，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 查閱。我們期待在下季財報結果公布後再次與各位交流。

That concludes today's conference call. We thank you for your participation.

今天的電話會議到此結束。感謝各位的參與。