AeroVironment, Inc. (AVAV) 2015 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the AeroVironment Inc. third-quarter FY15 earnings conference call.

各位女士、各位先生，大家好，歡迎參加 AeroVironment Inc. 2015 會計年度第三季財報電話會議。

(Operator Instructions)

（接線員指示）

As a reminder this conference is being recorded for replay purposes. With us from the Company is the Chairman and Chief Executive Officer, Mr. Tim Conver; Interim Chief Financial Officer, Ms. Teresa Covington; and Vice President of Investor Relations, Mr. Steven Gitlin. Now at this time, I will turn the conference over to Mr. Gitlin.

提醒各位，本次電話會議將錄音以供重播。與會的公司代表包括董事長兼執行長 Tim Conver 先生；代理財務長 Teresa Covington 女士；以及投資人關係副總裁 Steven Gitlin 先生。現在我將把會議交給 Gitlin 先生。

Please go ahead, sir.

先生，請開始。

Thank you, Latoya. Welcome to AeroVironment's third-quarter FY15 earnings call.

謝謝你，Latoya。歡迎參加 AeroVironment 2015 會計年度第三季財報電話會議。

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.

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。

For a list and description of such risks and uncertainties, see the reports we filed with the Securities and Exchange Commission. 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.

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。投資人請勿過度依賴任何前瞻性陳述；該等陳述僅截至其作出之日有效。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。

The content of this conference call contains time-sensitive information that is accurate only as of today March 3, 2015. 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.

本次電話會議內容包含具時效性的資訊，且僅在今日（2015 年 3 月 3 日）為準確。公司不承擔對我們發言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的義務。

We will now begin with remarks from Tim Conver. Tim?

現在我們先請 Tim Conver 發表談話。Tim？

Thank you, Steve. Welcome to our third-quarter FY15 earnings call.

謝謝你，Steve。歡迎參加我們 2015 會計年度第三季財報電話會議。

Today I'll discuss our Q3 performance and highlight some of the important progress we've made. Teresa Covington will review Q3 financials and year-to-date results. Then, I'll discuss our outlook for the balance of the fiscal year before we take your questions.

今天我將討論我們第三季的表現，並重點說明我們取得的一些重要進展。Teresa Covington 將回顧第三季財務表現與年初至今的結果。接著，在回答各位問題之前，我將說明本會計年度剩餘期間的展望。

Our team continued to execute our strategy successfully and we delivered results in line with our full-year plan. Q3 revenue of $68.4 million was slightly above Q3 last year and slightly below our expectations for this year due to component parts shortages. The component issues have now been resolved for Q4 shipments.

我們的團隊持續成功執行策略，並交出符合全年計畫的成果。第三季營收為 6,840 萬美元，略高於去年第三季，但因零組件短缺而略低於我們對今年的預期。零組件問題目前已解決，可支援第四季出貨。

Healthy customer-funded R&D revenue in Q3 across multiple projects reflected continued customer interest in our advanced developments. Gross profit margin of 39.5% for the quarter was in line with expectations. Total revenue of $173 million for the first nine months of the year leaves $87 million to go to achieve the midpoint of our annual revenue guidance. Our team once again extended our market leadership in our core business during Q3.

第三季在多個專案上，客戶出資的研發（R&D）營收維持健康水準，反映客戶對我們先進研發成果的持續興趣。本季毛利率為 39.5%，符合預期。今年前九個月總營收為 1.73 億美元，距離達成年度營收指引中點尚差 8,700 萬美元。我們的團隊在第三季再次擴大了核心業務的市場領導地位。

In our EES business segment, we introduced TurboDock during the quarter. This is a simpler, lower cost solution for workplace charging that we believe can expand our EV charging footprint and will help support broader EV adoption.

在我們的 EES 業務部門，我們於本季推出 TurboDock。這是一項更簡單、成本更低的職場充電解決方案，我們相信可擴大我們的電動車（EV）充電佈建版圖，並有助於支持更廣泛的 EV 採用。

TurboDock leverages the unique size and dual-voltage design of our successful TurboCord residential charging solution. It adds a smartphone user interface and back office support to provide a compelling new solution for the workplace, where charging station costs, availability and access issues have slowed adoption to date.

TurboDock 運用我們成功的 TurboCord 家用充電解決方案之獨特尺寸與雙電壓設計，並新增智慧型手機使用者介面與後台支援，為職場提供一項具吸引力的新方案；在職場場景中，充電站成本、可用性與使用權限等問題迄今仍使採用速度放緩。

In our UAS business segment we began shipments of new Wasp AE systems to the US Marine Corps in Q3. This is the first contract to support the Marine's new small, unmanned airplane system family requirement. We also continue to successfully demonstrate shipboard applications of Puma AE during the quarter. Broad and positive customer response continues to reinforce our expectation of significant Navy and other maritime opportunities for our solutions.

在我們的 UAS 業務部門，我們於第三季開始向美國海軍陸戰隊出貨新的 Wasp AE 系統。這是首份支援海軍陸戰隊新一代小型無人機系統系列需求的合約。我們也在本季持續成功展示 Puma AE 的艦載應用。廣泛且正面的客戶回饋持續強化我們的預期：我們的解決方案在海軍及其他海事領域將有顯著機會。

We also continued to make progress on expanding from our core small UAS business into next-generation larger UAS solutions. We're currently executing on phase two of the contract for DARPA's TERN program. The goal of this program is to develop a new class of unmanned airplane system capable of long-range and long-duration operations from naval vessels such as destroyers that lack deck space for traditional aircraft operations.

我們也持續推進，從核心的小型 UAS 業務擴展至下一代、更大型的 UAS 解決方案。我們目前正在執行 DARPA「TERN」計畫合約的第二階段。該計畫目標是開發一種新級別的無人機系統，能夠從缺乏傳統航空器作業甲板空間的海軍艦艇（如驅逐艦）進行長航程、長航時作業。

We have an innovative and practical approach to delivering this capability and are working with a team of industry leaders to develop and demonstrate our system solution. We anticipate a customer decision regarding the TERN phase three contract in our FY16.

我們以創新且務實的方法來交付此能力，並與一支由產業領導者組成的團隊合作，開發並展示我們的系統解決方案。我們預期客戶將在我們 2016 會計年度就 TERN 第三階段合約作出決定。

Now, turning to our international UAS business, you may recall that in 2013 we signed a teaming agreement with Dynamatics Technologies to explore opportunities for our small UAS in the Indian market. Our persistent work together is beginning to yield positive results. We were recently selected as the first of four pathfinder projects as part of the US India Defense Technology Transfer Initiative. This is a strategic initiative supported at the highest levels of both governments.

接著談我們的國際 UAS 業務。各位或許記得，2013 年我們與 Dynamatics Technologies 簽署合作協議，以探索我們小型 UAS 在印度市場的機會。我們持續共同努力，正開始帶來正面成果。我們近期被選為「美印國防技術轉移倡議」四個先導（pathfinder）專案中的第一個。這是一項由兩國政府最高層支持的策略性倡議。

We're working with Dynamatics, the US and the Indian governments to finalize terms on a joint development and production program in India named Cheel. Cheel is to be the next-generation, small UAS based on our small UAS-leading market technology solutions and Dynamatics cost-effective aerospace capabilities.

我們正與 Dynamatics、美國政府及印度政府合作，敲定一項在印度名為 Cheel 的聯合研發與生產計畫之條款。Cheel 將是下一代小型 UAS，結合我們在小型 UAS 市場領先的技術解決方案，以及 Dynamatics 具成本效益的航太能力。

The Indian military is one of the world's largest and has expressed requirements for small UAS. This program's initial objective is to provide a compelling and rapidly available solution for those procurement opportunities. We will update you as we finalize details on this project and begin to move ahead.

印度軍方是全球規模最大的軍隊之一，並已提出對小型 UAS 的需求。此計畫的初始目標，是為相關採購機會提供一項具吸引力且可快速取得的解決方案。我們將在敲定此專案細節並開始推進後，向各位更新進度。

Beyond our activities in India, we continue to see significant interest in our small UAS solutions from Allied military forces around the world. International order flow timing tends to be more difficult to predict accurately, but we expect multiple proposals to be decided on over the next few quarters.

除印度以外，我們也持續看到全球盟軍對我們小型 UAS 解決方案的高度興趣。國際訂單的時點通常較難精準預測，但我們預期未來幾季將有多項提案陸續定案。

In government FY16, DoD budget request was recently released, and we found no significant surprises. Budget identified procurement line items have averaged only 15% of our actual DoD bookings over the prior two years. Independent of the budget, it's important to note that the threat environment that drove the initial demand for both small UAS in Switchblade and then validated their compelling advantages does not seem to be abating.

在政府 2016 會計年度方面，國防部（DoD）預算請求近期已公布，我們未發現重大意外。過去兩年中，預算所列的採購科目平均僅占我們實際 DoD 接單（bookings）的 15%。撇開預算不談，重要的是，最初推動小型 UAS 與 Switchblade 需求、並驗證其顯著優勢的威脅環境，似乎並未減弱。

Now onto this year's increased investments in three of our largest growth opportunities, tactical missile systems, Global Observer and commercial UAS solutions. The return on invested capital from adoption and success in these markets is compelling. Positioning for success in these opportunities is a key element of executing our growth strategy to build stockholder value. We are increasing these investments because lead customers in each market continue to show increased interest in adoption.

接下來談今年我們對三項最大成長機會的加碼投資：戰術飛彈系統、Global Observer，以及商用 UAS 解決方案。在這些市場中，採用與成功所帶來的投入資本報酬（return on invested capital）相當具吸引力。為這些機會的成功做好布局，是我們執行成長策略、提升股東價值的關鍵要素。我們之所以提高投資，是因為各市場的領先客戶持續展現更高的採用意願。

We are managing these investments with a metered and gated approach to stay closely linked to customers and adoption timing. These investments have mainly been on the income statements to date in the form of research and development and business development expense. We've made significant progress year to date, and we continue to strengthen our positions and build options for a AV's success when the adoption window opens for these transformational opportunities.

我們以分段衡量、設置關卡（metered and gated）的方式管理這些投資，以便與客戶及採用時點保持緊密連結。迄今這些投資主要反映在損益表上，形式為研發與業務開發費用。年初至今我們已取得顯著進展，並持續強化我們的布局與選項，以便在這些具變革性的機會之採用窗口開啟時，建立 AV 成功的條件。

In tactical missile systems, we are investing in two key areas. First, the development of Switchblade variants to address customer interest in additional concepts of operation. Second, we are developing the capability to demonstrate the compelling solution for an Army program of record.

在戰術飛彈系統方面，我們正投資兩個關鍵領域。第一，開發 Switchblade 的不同衍生型，以回應客戶對更多作戰概念（concepts of operation）的興趣。第二，建立展示一項具吸引力解決方案的能力，以支援陸軍的一項正式列裝計畫（program of record）。

We're pleased to report that initial demonstrations of the first of three new Switchblade variants exceeded customer expectations, and we received follow-on customer funding early in Q4. Two additional Switchblade variant programs for different customers are progressing well and are on schedule.

我們很高興報告，三個新 Switchblade 衍生型中的第一個，其初步展示結果超出客戶預期，且我們在第四季初即獲得客戶後續資金支持。另有兩個針對不同客戶的 Switchblade 衍生型計畫進展順利，並按期推進。

We continue to optimize Switchblade for an Army LMAMS program of record that would institutionalize the enduring requirement and the volume demand for multi-year procurement and sustainment. A program of record continues to grain strong support within the US Army.

我們持續為陸軍 LMAMS 正式列裝計畫（program of record）優化 Switchblade；該計畫將制度化長期需求，並帶來多年期採購與維保的量能需求。正式列裝計畫在美國陸軍內部仍持續獲得強力支持。

We're also making incremental investments this year Global Observer. Customers in other countries continue to express interest in Global Observer solutions, and we have developed teaming relationships to optimally address each. In Turkey we're working through our joint venture Altoy, our memorandum of understanding with Aselsan and others. Our memorandum of understanding with Lockheed Martin is focused on another opportunity set. The timing of these potential opportunities remains uncertain, but the need and the value of affordable seamless persistence is clear.

今年我們也對 Global Observer 進行逐步增量投資。其他國家的客戶持續表達對 Global Observer 解決方案的興趣，我們也建立合作關係以最佳方式因應各項需求。在土耳其，我們透過與 Altoy 的合資公司，以及我們與 Aselsan 等方的合作備忘錄（memorandum of understanding）推進。我們與洛克希德馬丁（Lockheed Martin）的合作備忘錄則聚焦於另一組機會。這些潛在機會的時點仍不確定，但對可負擔、無縫且持續性的能力之需求與價值十分明確。

In commercial UAS, we successfully completed our first season of delivering advanced information services to BP in Alaska. We continue to work closely and collaboratively with BP to expand our services and to integrate into their regular operations. It is important to note that BP has already added pipeline inspection to the scope of our services contract for calendar year 2015. We are excited about BP's success to date and the opportunities ahead.

在商用 UAS 方面，我們已成功完成第一個季度，為 BP 在阿拉斯加提供先進資訊服務。我們持續與 BP 緊密且協作地合作，以擴展我們的服務並整合至其日常營運中。值得注意的是，BP 已將管線檢測納入我們 2015 日曆年度服務合約的範圍。我們對 BP 迄今的成果以及未來的機會感到振奮。

Our successful operations in Alaska have led to significant increase in the FAA authorized airspace for our commercial UAS light operations. As a result, we are now responding to multiple requests for proposal from new customers for our services in Alaska. We expect to expand further within and beyond Alaska this year in the oil and gas industry.

我們在阿拉斯加的成功營運，使 FAA 授權我們商用 UAS 輕型作業的空域大幅增加。因此，我們目前正回應多家新客戶就我們在阿拉斯加服務所提出的多份提案徵求（RFP）。我們預期今年將在油氣產業於阿拉斯加境內及境外進一步擴張。

In addition to the oil and gas industry and Alaska, we continue to support and work with early adopters of small UAS for use in public safety applications. We also are evaluating broad and high-value applications in agriculture. These and other industry-specific solutions show great promise for delivering actionable information that can drive high returns on investment for adopting customers.

除油氣產業與阿拉斯加之外，我們也持續支援並與小型 UAS 在公共安全應用上的早期採用者合作。我們同時也在評估農業領域廣泛且高價值的應用。這些以及其他特定產業解決方案，展現出為採用客戶提供可採取行動的資訊、並推動高投資報酬率的巨大潛力。

We were pleased to see the FAA recently released proposed rules for the small UAS operation. First, it's important to understand that these are proposed rules and that the regulations that had been governing our industry remain in effect until new rules are implemented. The public comment review period may ultimately take many months at a minimum and potentially longer.

我們很高興看到 FAA 近期發布了小型 UAS 作業的擬議規則。首先，重要的是要理解這些是擬議規則，在新規則實施之前，現行一直規範本產業的法規仍然有效。公眾意見徵詢與審查期最終可能至少需要數個月，甚至可能更久。

In the meantime, we are aggressively expanding our commercial operations in Alaska, as I discussed earlier. We are also pursuing all other means for near-term options for authorized commercial UAS operations elsewhere in the United States. We believe that preserving the safety of the national airspace system is vitally important and that the FAA rules need to incorporate standards to ensure safety in UAS operations.

同時，正如我先前所述，我們正積極擴大在阿拉斯加的商業營運。我們也在尋求所有其他途徑，以取得在美國其他地區近期可行的商用 UAS 作業授權選項。我們相信，維護國家空域系統的安全至關重要，而 FAA 的規則需要納入確保 UAS 作業安全的標準。

AV invests significant time and resources in developing, testing and validating the underlying technologies and the integrated solutions that enable our systems to operate safely. We have logged more than 1 million operating miles, and we know very well what is required for safe operations. We believe that many industries will come to depend on UAS technologies in support of their mission-critical operations and will necessarily seek safe, professional-grade solutions to do so.

AV 投入大量時間與資源，用於開發、測試與驗證使我們系統能安全運作的底層技術與整合式解決方案。我們已累積超過 100 萬英里的運行里程，並非常清楚安全作業所需的條件。我們相信，許多產業將逐步依賴 UAS 技術以支援其關鍵任務營運，並必然會尋求安全、專業等級的解決方案來達成。

Further, we will believe that the right solutions are capable of safe operation beyond line of sight in the hands of trained and qualified operators. The release of the proposed rules is a significant start to a discussion that we hope will lead to practical laws that enable the many industries, organizations and the economy to benefit from these solutions while protecting our airspace and the people and property underneath it.

此外，我們相信，在受過訓練且具備資格的操作員手中，合適的解決方案能夠在超出目視範圍的情況下安全運作。擬議規則的發布，是一項重要的討論起點；我們希望這能促成務實的法律，使眾多產業、組織與整體經濟得以受益，同時保護我們的空域以及其下方的人員與財產。

We have continue to expand our research and development capacity, and we made progress in developments for tactical missile systems and commercial UAS during the quarter. However, competition for R&D resources from growing customer research and development contracts, which we record as service revenue, limited our total Q3 internal R&D to about flat quarter over quarter. We did accelerate our work to refine customer requirements, define optimal solution sets and explore accelerated market access for these emerging new opportunities. These investments are primarily reflected in our SG&A.

我們持續擴充研發能力，且本季在戰術飛彈系統與商用 UAS 的開發上取得進展。然而，由於成長中的客戶研發合約（我們將其列為服務收入）對研發資源的競爭，使我們第三季內部研發總額較前一季大致持平。我們確實加速了工作，以精煉客戶需求、定義最佳解決方案組合，並探索加速進入市場的途徑，以把握這些新興機會。這些投資主要反映在我們的 SG&A 中。

Our year-to-date delay in internal research and development spending has not reduced our expected total investment. Rather, it pushed that investment to the right. In the meantime, flat R&D investment quarter over quarter resulted in higher operating profit in the third quarter.

我們年初至今內部研發支出的延後，並未降低我們預期的總投資；而是將該投資時點往後推移。同時，研發投資較前一季持平，使第三季營業利益較高。

Moderate success in any of these three growth opportunities can significantly enhance stockholder value. Good success in all three will be transformational for AeroVironment.

在這三項成長機會中的任何一項取得適度成功，都能顯著提升股東價值；若三項皆取得良好成功，將對 AeroVironment 帶來轉型性的影響。

With the overview of the quarter, now I'd like to introduce Teresa Covington, our interim CFO. Teresa joined AeroVironment in 2011 to lead finance for our EES business segment. She's been a key member of AeroVironment's senior financial team since that time, working closely with the management team on operations across the entire organization.

在本季概覽之後，我想介紹我們的代理財務長 Teresa Covington。Teresa 於 2011 年加入 AeroVironment，負責領導我們 EES 事業部門的財務工作。自那時起，她一直是 AeroVironment 資深財務團隊的關鍵成員，並與管理團隊密切合作，涵蓋整個組織的營運。

Teresa will now provide a financial overview. Teresa?

接下來 Teresa 將提供財務概覽。Teresa？

Thank you, Tim. Good afternoon, everyone.

謝謝你，Tim。各位下午好。

AeroVironment's FY15 third-quarter results are as follows. Revenue for Q3 was $68.4 million, a decrease of $0.8 million, or 1% as compared to $69.2 million a year ago. Looking at revenue by segment, UAS revenue was $58 million, an increase of $0.5 million or 1% compared to last year. The increase was primarily due to higher customer funded R&D work of $2.9 million, partially offset with lower service revenue of $2 million and lower product deliveries of $0.4 million. EES revenue decreased $1.4 million or 12% to $10.4 million in the third quarter. This decrease was primarily due to lower product deliveries of our electric vehicle test systems.

AeroVironment 2015 財年第三季的結果如下：第三季營收為 6,840 萬美元，較去年同期的 6,920 萬美元減少 80 萬美元，或 1%。按部門來看，UAS 營收為 5,800 萬美元，較去年增加 50 萬美元，或 1%。增加主要來自客戶出資的研發工作增加 290 萬美元，但部分被服務收入減少 200 萬美元以及產品交付減少 40 萬美元所抵銷。EES 營收在第三季下降 140 萬美元，或 12%，至 1,040 萬美元。此下降主要由於我們電動車測試系統的產品交付減少。

Turning to gross margin, gross margin for the third quarter was $27 million, a decrease of $1.1 million as compared to $27.1 million in the prior year. By segment, UAS gross margin increased $0.8 million, or 4% to $24.8 million in the quarter. The increase was primarily due to favorable product mix.

接著看毛利率，第三季毛利為 2,700 萬美元，較去年同期的 2,710 萬美元減少 110 萬美元。按部門來看，UAS 毛利在本季增加 80 萬美元，或 4%，至 2,480 萬美元。增加主要由於有利的產品組合。

As a percentage of revenue, gross margin for UAS increased from 42% to 43%. EES gross margin decreased $0.9 million or 29% to $2.2 million in the quarter, primarily due to higher manufacturing and engineering overhead support costs, lower sales and unfavorable product mix. As a percentage of revenue, EES gross margin decreased from 27% to 21%.

以營收百分比計，UAS 毛利率由 42% 上升至 43%。EES 毛利在本季減少 90 萬美元，或 29%，至 220 萬美元，主要由於製造與工程間接費用支援成本較高、銷售較低以及不利的產品組合。以營收百分比計，EES 毛利率由 27% 下降至 21%。

SG&A expense of for the third quarter was $13.3 million or 19% of revenue, compared to SG&A expense of $13.2 million or 19% of revenue in the prior year. R&D expense for the third quarter was a $8.6 million, or 13% of revenue compared to R&D investments of $5.2 million or 8% of revenue in the prior year. R&D investments increased by $3.3 million year over year.

第三季 SG&A 費用為 1,330 萬美元，占營收 19%；相較之下，去年同期 SG&A 費用為 1,320 萬美元，同樣占營收 19%。第三季研發費用為 860 萬美元，占營收 13%；相較之下，去年同期研發投資為 520 萬美元，占營收 8%。研發投資年增 330 萬美元。

Operating income for the third quarter was $5.1 million, or 8% of revenue compared to the prior-year operating income of a $8.6 million or 12% of revenue. Operating income was lower primarily due to higher R&D investments.

第三季營業利益為 510 萬美元，占營收 8%；相較之下，去年同期營業利益為 860 萬美元，占營收 12%。營業利益下降主要由於研發投資增加。

Other expense for the quarter was $0.1 million compared to the prior-year other income of $4.9 million. Other income was lower primarily due to the prior-year unrealized gain related to our CybAero convertible notes investment. The effective tax rate for the quarter was 54%, an increase from the prior year of 17%.

本季其他費用為 10 萬美元，相較之下，去年同期其他收入為 490 萬美元。其他收入下降主要由於去年同期與我們對 CybAero 可轉換公司債投資相關的未實現收益。第三季有效稅率為 54%，較去年同期的 17% 上升。

Net income for the quarter was $2.3 million or $0.10 per diluted share compared to net income of $11.2 million or $0.49 per diluted share in the same quarter last year. On an adjusted basis, which excludes the impact in the CybAero investment, EPS would have been $0.10 per diluted share compared to $0.34 per diluted share in the same quarter last year. We have provided an EPS reconciliation table in the press release.

本季淨利為 230 萬美元，或稀釋後每股 0.10 美元；相較之下，去年同季淨利為 1,120 萬美元，或稀釋後每股 0.49 美元。以調整後基礎（排除 CybAero 投資的影響）計算，EPS 將為稀釋後每股 0.10 美元，相較之下，去年同季為稀釋後每股 0.34 美元。我們已在新聞稿中提供 EPS 調節表。

Now moving quickly through our first nine months FY15 results. Revenue for the first nine months of FY15 was $172.9 million, a decrease of $5.3 million or 3% as compared to $178.2 million in the prior year. UAS revenue decreased $6.5 million or 4% to $142.3 million primarily due to decreases in service revenue of $5.5 million and customer funded R&D work of $4 million, offset by higher product deliveries of $3.1 million. EES revenue increased $1.2 million, or 4%, to $30.7 million, primarily due to increased product deliveries of our industrial fast-charge system.

接著快速說明 2015 財年前九個月的結果。2015 財年前九個月營收為 1.729 億美元，較去年同期的 1.782 億美元減少 530 萬美元，或 3%。UAS 營收下降 650 萬美元，或 4%，至 1.423 億美元，主要由於服務收入減少 550 萬美元以及客戶出資研發工作減少 400 萬美元，但部分被產品交付增加 310 萬美元所抵銷。EES 營收增加 120 萬美元，或 4%，至 3,070 萬美元，主要由於我們工業用快速充電系統的產品交付增加。

Gross margin for the nine months was $58.9 million, as compared to $63.5 million in the prior year. This represents a decrease of $4.6 million, or 7%. Gross margin was impacted by a government contract accounting reserve we set up in the second quarter for prior-year incurred cost audit findings.

前九個月毛利為 5,890 萬美元，相較之下去年同期為 6,350 萬美元，減少 460 萬美元，或 7%。毛利受到我們在第二季因前一年度已發生成本審計發現事項而針對政府合約會計所提列的準備金影響。

UAS gross margin decreased $4.9 million or 9% to $50.4 million. The decrease is primarily due to a termination settlement for our Global Observer technology demonstration contract that occurred during the first nine months of the prior year and lower service margins. As a percentage of revenue gross margin for UAS decreased from 37% to 35%.

UAS 毛利減少 490 萬美元（或 9%）至 5,040 萬美元。此下降主要係因前一年度前九個月期間發生之我們 Global Observer 技術示範合約終止和解，以及服務毛利率較低所致。以營收百分比計，UAS 毛利率由 37% 降至 35%。

EES gross margin increased $0.4 million, or 5%, to $8.5 million primarily due to higher sales volume. As a percentage of revenue EES gross margin remained at 28%.

EES 毛利增加 40 萬美元（或 5%）至 850 萬美元，主要由於銷售量增加。以營收百分比計，EES 毛利率維持在 28%。

SG&A expense for the nine months was $40.1 million, or 23% of revenue compared to SG&A expense of $38.7 million, or 22% of revenue in the prior year. R&D investments for the nine months were $24.2 million, or 14% of revenue compared to R&D investments of $19.3 million, or 11% of revenue in the prior year.

前九個月的 SG&A 費用為 4,010 萬美元（占營收 23%），相較於前一年度 SG&A 費用 3,870 萬美元（占營收 22%）。前九個月的研發（R&D）投資為 2,420 萬美元（占營收 14%），相較於前一年度研發投資 1,930 萬美元（占營收 11%）。

Operating loss for the nine months was $5.5 million or negative 3% of revenue compared to operating income or $5.5 million or 3% of revenue last year. Other income for the nine months was $0.4 million compared to the prior-year other expense of $0.4 million. Other income was higher primarily due to the prior-year expense related to the conversion feature of our CybAero convertible notes investment.

前九個月的營業損失為 550 萬美元（或占營收負 3%），相較於去年同期營業利益 550 萬美元（或占營收 3%）。前九個月其他收益為 40 萬美元，相較於前一年度其他費用 40 萬美元。其他收益較高主要係因前一年度認列與我們對 CybAero 可轉換公司債投資之轉換特徵相關的費用。

The effective tax rate for the nine months was 18% compared to the effective tax benefit rate from prior year of 12.3%. The net loss for the nine months was $4.2 million, or $0.18 loss per share compared to the net income of $5.7 million, or $0.25 per diluted share last year. On an adjusted basis, which excludes the impact of the CybAero investment, EPS would've been a $0.19 loss per share, compared to earnings of $0.28 per diluted share in the prior year.

前九個月的有效稅率為 18%，相較於前一年度有效稅務利益率 12.3%。前九個月淨損為 420 萬美元（每股虧損 0.18 美元），相較於去年淨利 570 萬美元（稀釋後每股盈餘 0.25 美元）。以調整後基礎（排除 CybAero 投資影響）計算，每股盈餘（EPS）將為每股虧損 0.19 美元，相較於前一年度稀釋後每股盈餘 0.28 美元。

Looking at backlog, funded backlog at the end of the quarter was $89.3 million, up $23.4 million, or 36% from April 30, 2014.

就在手訂單（backlog）而言，本季末已獲資金支持的在手訂單為 8,930 萬美元，較 2014 年 4 月 30 日增加 2,340 萬美元（或 36%）。

Turning to our balance sheet, cash equivalents and investments at the end of the third quarter totaled $258.1 million, up $1 million from the prior quarter. The increase in cash equivalents and investments was driven by lower working capital needs.

接著看資產負債表，第三季末現金等價物及投資合計 2.581 億美元，較前一季增加 100 萬美元。現金等價物及投資的增加係由較低的營運資金需求所帶動。

Turning to receivables, at the end of the third quarter our accounts receivable, including unbilled receivables, totaled $46.2 million up $8 million from the prior quarter. Total days sales outstanding was at approximately 61 days, compared to 65 days at the end of the prior 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 4,620 萬美元，較前一季增加 800 萬美元。應收帳款週轉天數（DSO）約為 61 天，相較於前一季末的 65 天。

Taking a look at inventory, inventories were $48.8 million at the end of the quarter, compared to $51.8 million at the end of the prior quarter. Days in inventory were approximately 106 days compared to 134 days at the end of the prior quarter.

再看存貨，季末存貨為 4,880 萬美元，相較於前一季末的 5,180 萬美元。存貨天數約為 106 天，相較於前一季末的 134 天。

Turning to capital expenditures, in the third quarter we invested approximately $1.2 million, or 2% of revenue and property improvements in capital equipment. AV recognized $2.1 million of depreciation in the quarter.

再看資本支出，第三季我們投資約 120 萬美元（或占營收 2%），用於資本設備及不動產改善。AV 本季認列折舊 210 萬美元。

Now an update to our FY15 visibility as of today, year-to-date third-quarter revenues of $173 million; third-quarter ending backlog that we can execute in FY15 of $73 million; fourth-quarter quarter-to-date bookings that we can execute in FY15 of $4 million; unfunded backlog that we expect to recognize in FY15 of $4 million, revenues needed to hold EES revenues flat relative to last year of $6 million. This puts the total FY15 revenue visibility at $260 million, or 100% of the midpoint of guidance. This implies fourth-quarter revenue of $87 billion.

現在更新截至今日我們對 FY15 的可見度：年初至第三季累計營收 1.73 億美元；第三季末可於 FY15 執行的在手訂單 7,300 萬美元；第四季截至目前可於 FY15 執行的接單 400 萬美元；我們預期於 FY15 認列的未獲資金支持在手訂單 400 萬美元；為使 EES 營收相較去年持平所需的營收 600 萬美元。據此，FY15 營收可見度合計為 2.60 億美元，或達指引中點的 100%。這意味著第四季營收為 870 億美元。

Now, I'd like to turn things back to Tim to discuss AV's expectations for the balance of FY15.

現在，我想把時間交還給 Tim，請他說明 AV 對 FY15 餘下期間的預期。

Thanks, Teresa.

謝謝你，Teresa。

We guided on revenue and gross profit margin of this year to maintain visibility on our core business operations because planned R&D and SG&A investments could consume more operating profit. We remain on track for our FY15 annual revenue and gross profit margin guidance. We plan to significantly increase our FY15 growth opportunity investments this quarter, including a target to increase IR&D by more than 50% over Q3. Our visibility gives us confidence in our FY15 guidance of $250 million to $270 million in revenue. Strong Q3 gross profit in our Q4 outlook support our gross profit margin guidance of 34.5% to 37.5%. In Q4 the primary focus of new bookings is on building backlog for FY16 revenues.

我們對今年的營收與毛利率提供指引，以維持對核心業務營運的可見度，因為規劃中的研發（R&D）與 SG&A 投資可能會消耗更多營業利益。我們仍按計畫達成 FY15 全年營收與毛利率指引。本季我們計畫大幅提高 FY15 成長機會投資，包括目標將 IR&D 較第三季提高逾 50%。我們的可見度使我們對 FY15 營收 2.50 億至 2.70 億美元的指引具信心。第三季強勁的毛利與我們對第四季的展望，支持我們 34.5% 至 37.5% 的毛利率指引。第四季新接單的主要重點在於建立 FY16 營收的在手訂單。

Looking ahead, our funded backlog and our new order pipeline remains strong. Our increased investments this year are positioning us well for market opportunities that can drive significant stockholder value. We will continue to closely monitor and adjust these investments based on customer adoption behavior, timing and projected returns on invested capital.

展望未來，我們已獲資金支持的在手訂單與新訂單管線仍然強勁。我們今年增加的投資正使我們在市場機會上具備良好定位，這些機會可為股東創造顯著價值。我們將持續密切監控並依客戶採用行為、時程以及投入資本的預期報酬，調整這些投資。

We are actively engaged in the planning process for FY16, and we are excited about the opportunities ahead. We look forward to providing you with our views on the coming year in our Q4 earnings release.

我們正積極投入 FY16 的規劃流程，並對未來的機會感到振奮。我們期待在第四季財報發布時，向各位提供我們對來年的看法。

Before we close the call and open it for Q&A, I want to recognize our employees for their hard work every day. It has extended AV's position as a market leader across our business segments and our product lines, while at the same time positioning AV for leadership in exciting new markets with compelling innovations. This team is the best in the world at what they do.

在結束本次電話會議並開放問答之前，我想肯定我們員工每天的辛勤付出。這不僅鞏固了 AV 在各業務部門與產品線的市場領導地位，同時也藉由具吸引力的創新，讓 AV 在令人興奮的新市場中具備領導定位。這個團隊在其所做的事情上是世界上最頂尖的。

Thank you for your interest, and now we will take your questions.

感謝各位的關注，現在我們開始回答各位的問題。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

The first question is from Michael Ciarmoli of KeyBanc. Your line is open.

第一個問題來自 KeyBanc 的 Michael Ciarmoli。您的線路已開通。

This is actually Kevin on for Mike. Just wondering if you could give us additional color on the TERN program? Now that the first downselect is complete, what the Company is working on there to get ready for the next downselect and whether you're still expecting that to occur in the next nine months or so? I think last quarter you said give or take 12 months, where that stands now?

其實我是 Kevin，代替 Mike 提問。想請問您是否能就 TERN 計畫提供更多說明？既然第一輪篩選（downselect）已完成，公司目前在做哪些工作以準備下一輪篩選？以及您是否仍預期該篩選會在未來九個月左右發生？我記得上季您提到大約 12 個月上下，現在的狀況如何？

Sure, Kevin. TERN is a DARPA program that's intended to be a next-generation unmanned airplane system. It's a ship-based vertical takeoff and landing, medium-altitude, long-endurance platform. Five companies competed during phase one. That was downselected to two companies currently competing in phase two. We do expect phase three to be awarded during our FY16. We are working on an innovative approach that we believe represents a high value and highly reliable means of achieving the DARPA objectives. We have a broad team of industry experts collaborating with us in developing and demonstrating this system design that our team has developed. We think this puts us in a strong position for next-generation, larger UAS solutions that, as I've said before, is a priority for us.

當然可以，Kevin。TERN 是 DARPA 的一項計畫，目標是打造下一代無人飛機系統。它是一種艦載式垂直起降（VTOL）、中高度、長航時的平台。第一階段共有五家公司競爭，之後篩選為兩家公司，目前在第二階段競爭。我們確實預期第三階段將在我們的 FY16 期間授予。我們正在推進一種創新方法，我們相信這代表一種高價值且高度可靠的方式，以達成 DARPA 的目標。我們有一個廣泛的產業專家團隊與我們合作，共同開發並展示我們團隊所提出的系統設計。我們認為這使我們在下一代、更大型的 UAS 解決方案上處於有利位置；如我先前所說，這是我們的優先事項。

Okay. Thanks, Tim. Then just looking at the R&D line, any color you can give us there in terms of how the mix has changed over the past quarter or so and where you see it going in 4Q as it relates to specific programs or markets?

了解。謝謝你，Tim。接著看研發（R&D）這一行，能否就過去一季左右其組合如何變化、以及你們預期在第四季（4Q）會如何發展提供一些說明？特別是與特定計畫或市場的關聯。

Well, our R&D -- I think of it as being divided into three sections. We are running internally funded R&D to support our core businesses. We are investing incrementally in internally funded R&D to position ourselves for these three large, emerging markets that we see adoption activity increasing with in customers. We conduct customer-funded research and development. We've been building our R&D capacity significantly through the year. We knew we planned on incrementally increasing the investments for these growth opportunities. That capacity growth is both in terms of internal resources and developing additional external relationships that can execute R&D in conjunction with us.

好的，我們的研發（R&D）——我把它分成三個部分。我們進行內部資金支持的研發，以支援核心業務。我們也額外投資內部資金支持的研發，以使我們在三個我們看到客戶採用活動正在增加的新興大型市場中取得有利定位。第三，我們也進行客戶資金支持的研發。我們在今年大幅擴充研發產能。我們知道計畫逐步增加對這些成長機會的投資。這種產能成長同時包括內部資源的增加，以及建立更多可與我們共同執行研發的外部合作關係。

During Q3, we had a significant increase in customer-funded research and development activities. That competes directly with the same resources that we applied to our internal projects, and so the balance of R&D that was allocated to the core business and R&D that was allocated to our growth opportunities accounted for a flat, internally funded R&D quarter over quarter.

在第三季（Q3），我們的客戶資金支持研發活動大幅增加。這些活動會直接與我們用於內部專案的相同資源競爭，因此分配到核心業務的研發與分配到成長機會的研發之間的平衡，使得內部資金支持的研發在季度間呈現持平。

We expect to significantly increase our R&D in Q4. Our target, as I mentioned in my call, is to increase internally funded R&D by over 50%. This is still a delicate dance between allocation of scarce resources to multiple high-priority activities, but we think we are getting our capacity where we need it. We are moving ahead with that intent.

我們預期在第四季大幅增加我們的研發投入。如同我在電話會議中提到的，我們的目標是將內部自籌研發提高超過50%。這仍是在多項高優先事項之間分配稀缺資源的一場微妙平衡，但我們認為我們正把產能提升到所需水準。我們將依此意圖持續推進。

Thank you. The next question is from Tyler Hojo of Sidoti & Company. Your line is open.

謝謝。下一個問題來自 Sidoti & Company 的 Tyler Hojo。您的線路已開通。

Yes, hi. Thanks for taking the question. The first one, just on, Tim, you mentioned multiple RFPs coming in, just similar to what you are doing with BP in Alaska. I was hoping that maybe you could just talk about the size of this near-term opportunity and also what the competitive dynamic looks like? How many people do you think offer a similar offering or maybe just generally competing for the same work you are?

是的，您好。謝謝讓我提問。第一個問題是，Tim，您提到有多個 RFP 進來，類似於您在阿拉斯加與 BP 正在做的事情。我想請您談談這個短期機會的規模，以及競爭態勢大概是什麼樣子？您認為有多少人提供類似的方案，或更一般地說，正在與您競爭同一類工作？

Let me maybe address the competitive issue first, Tyler, and then try to talk about the size of the operations. When BP put out RFPs for the services that they were interested in previously, they had multiple responses from many different types of organizations, including multiple UAV suppliers. In the final analysis, we were selected for all of the services exclusively. I think that goes to -- that says a lot about a sophisticated organization doing an informed analysis of available capabilities and matching them to the needs of the organization.

Tyler，我先回應競爭面的問題，然後再談談營運規模。當 BP 先前針對他們感興趣的服務發出 RFP 時，他們收到了來自許多不同類型機構的多份回覆，其中也包括多家 UAV 供應商。最終，我們被獨家選為所有服務的供應商。我認為這充分說明了一個成熟的組織在對可用能力進行充分分析後，能將其與組織需求做出匹配。

We continue to see multiple other companies, primarily companies with quadcopter capability in the commercial space. They are clearly great fun to fly. They produce wonderful video. They are carrying an increasing number of other payloads. But I think we find that large enterprises that are looking at integrating this capability into the core part of their operations are looking for reliable, safe, professional solutions that can operate not just when it's a pleasant day outside but when their operations require it. As a result, we have been extremely successful in competing in those environments.

我們持續看到其他多家公司，主要是在商用領域具備四旋翼能力的公司。它們顯然很有趣、很好飛，能產出很棒的影片，也能搭載越來越多其他酬載。但我們發現，想把這項能力整合進其核心營運的大型企業，尋求的是可靠、安全、專業的解決方案，不僅能在天氣宜人的日子運作，也能在其營運需要時運作。因此，我們在這些環境中的競爭一直非常成功。

As to the size of the operation, the number of opportunities are growing dramatically. Dramatically, we started with one customer in Alaska. They are growing by quite a bit based on the success in the first year. I still don't expect that to transition into meaningful revenue contributions yet this year.

至於營運規模，機會數量正在大幅成長。我們一開始在阿拉斯加只有一個客戶。基於第一年的成功，他們的規模正在顯著擴大。不過，我仍不預期今年就能轉化為有意義的營收貢獻。

We're still -- in each one of these new organizations, we will be working with them for the first time as they evaluate how they integrate this capability into their operation. As I mentioned in my call earlier, BP is moving forward to add new services and to overtly move to integrate these services into regular operations. I think that's very positive, and it supports our view that there is significant economic return for customers that adopt this capability.

我們仍在——對於每一個新組織，我們都將首次與他們合作，因為他們正在評估如何把這項能力整合進其營運。如同我先前在電話會議中提到的，BP 正在推進新增服務，並明確地朝將這些服務整合進例行營運的方向前進。我認為這非常正面，也支持我們的看法：採用這項能力的客戶可獲得顯著的經濟回報。

Okay, great. Thanks, Tim. Just a second question, if I may? Just on the R&D line of questioning earlier, could you maybe just talk a little bit about how early on or where you think you are in this development spending curve? Is it early? Should we expect elevated levels to persist for some time? Just some general comments there would be helpful.

好的，很棒。謝謝，Tim。若可以的話，我再問第二個問題？關於先前研發那條線的提問，您能否談談您認為目前在這條開發支出曲線上的哪個階段？是早期嗎？我們是否應預期較高水準會持續一段時間？一些概括性的評論會很有幫助。

If you recall when we initiated our plan for FY15 and announced our intent to make significant investments in R&D and in SG&A to position ourselves for these three emerging markets, the majority of our investments was anticipated to be in research and development for the new solutions optimized for these applications. That is turning out to be the case. Most of our investments are in R&D and a lesser amount in SG&A.

如果您還記得，當我們啟動 FY15 的計畫並宣布我們打算在研發與 SG&A 上進行重大投資，以便為這三個新興市場做好布局時，我們預期大部分投資將用於研發，開發針對這些應用最佳化的新解決方案。事實證明確實如此。我們的大部分投資都在研發，較少部分在 SG&A。

We are behind our plan, year to date, in our R&D investments. We are trying to play catch-up in Q4. To the extent that we don't complete all of the R&D investments that we had planned for FY15 and they continue as they look right now, they continue to look like they are necessary and appropriate for optimally positioning for these opportunities. Then we will probably move that incremental amount into the first part of 2016.

截至目前，我們的研發投資落後於原計畫。我們正試圖在第四季追趕。若我們未能完成 FY15 原先規劃的所有研發投資，而這些投資如目前所見仍然必要且適當、能讓我們在這些機會上取得最佳定位，那麼我們可能會把這部分增量移到 2016 年的前段期間。

Beyond what we had planned for 2015, I think the situation will remain open for analysis and reaction to what customers decide to do and what the timing of adoption looks like as it evolves. It's a constantly moving target. When and if we see the acceleration of adoption that would call for increased investment to maximize the stockholder returns that we can get from capturing a market position there, we'll clearly look seriously at that. That will be sometime in 2016. We may or may not know anymore, as we talk about our plan for 2016, when we present that to you next call.

至於超出我們 2015 年原先規劃的部分，我認為情況仍將保持開放，需視客戶決策以及採用時程如何演變來分析並做出反應。這是一個不斷移動的目標。當且若我們看到採用加速，並因此需要增加投資以最大化我們透過取得市場地位所能帶來的股東報酬，我們會明確且認真地評估。那將會是在 2016 年的某個時點。我們在下次電話會議向各位提出 2016 年計畫時，可能也未必會知道更多。

Thank you. The next question is from Josephine Millward of Benchmark Company.

謝謝。下一個問題來自 Benchmark Company 的 Josephine Millward。

Hi, Tim.

嗨，Tim。

Hello, Josephine.

你好，Josephine。

Tim, given the limited visibility you have from the FY16 budget requests, what do you see as the biggest drivers for AV in the coming year? Is it international? Is it a Switchblade? Do you expect the DoD to continue to upgrade their small UAS fleet?

Tim，鑑於您從 FY16 預算請求中能見度有限，您認為來年 AV 最大的驅動因素會是什麼？是國際市場嗎？是 Switchblade 嗎？您是否預期國防部（DoD）會持續升級其小型 UAS 機隊？

I think the answer to all three of those questions will be yes, Josephine. Our pipeline and our activities in international business development indicate strong and growing demand. As I mentioned in my comments, the timing of contract processing for international orders is a little more difficult to be accurate about. Clearly, the pipeline is there, and we think that will continue to grow.

Josephine，我想這三個問題的答案都會是肯定的。我們在國際業務開發方面的管線與活動顯示需求強勁且持續成長。如同我在評論中提到的，國際訂單的合約處理時程較難精準掌握。不過，管線很明確存在，我們也認為它將持續成長。

Interest and demand for Switchblade is increasing. We have obvious constraints in the budget, and it's a new program that needs to get adjudicated across theaters. I think the demand for Switchblade itself, the strong interest in the variants that we are developing for Switchblade and the growing support within the Army for a program of record for LMAMS are all positive indicators for future demand.

對 Switchblade 的興趣與需求正在增加。我們在預算上顯然有約束，而且這是一個需要跨戰區裁定的新計畫。我認為，對 Switchblade 本身的需求、對我們正在開發之 Switchblade 各型版本的強烈興趣，以及陸軍內部對將 LMAMS 納入正式建案（program of record）的支持日益增加，都是未來需求的正面指標。

As to the small UAS that you mentioned, I think the sustainment activities are likely to continue. There are other programs that appear to be driving upgrade demands in small UAS across DoD. And we have the new CPDs in both the Army and the Marine Corps for the family of small UAS that we think -- although we don't know the specific timing of that, we expect to continue to see that to generating demand for Puma AE, Wasp AE and others in the future.

至於您提到的小型 UAS，我認為維持（sustainment）相關活動很可能會持續。國防部內還有其他計畫似乎正在推動小型 UAS 的升級需求。而且我們在陸軍與海軍陸戰隊都取得了針對小型 UAS 系列的新 CPD；我們認為——雖然我們不知道具體時程——未來仍將看到這些因素持續帶動對 Puma AE、Wasp AE 及其他產品的需求。

Tim, a follow-up on that. Can you expand on this US-India Technology Transfer Initiative? It seems like the Indian papers are talking about joint production of the Raven, perhaps later this year, and a multi-billion-dollar pipeline. Can you give us a little more on that?

Tim，針對這點追問一下。您能否進一步說明這個美印技術移轉倡議（US-India Technology Transfer Initiative）？看起來印度媒體在談論可能在今年稍晚共同生產 Raven，以及一個數十億美元的管線。您能多提供一些資訊嗎？

Yes, I will mostly reiterate the comments I made during my previous comments. If that isn't adequate then I will follow up later. This is a strategic initiative between the governments of the United States and India that's a joint defense technology transfer agreement. This project for small UAS is the first pathfinder project along the way of what is anticipated to be a broad and growing defense technology agreement.

可以。我大多會重申我在先前評論中所說的內容。如果那樣仍不夠，我之後會再補充。這是美國與印度兩國政府之間的策略性倡議，屬於一項聯合的國防技術移轉協議。這個小型 UAS 專案是預期將會廣泛且持續成長的國防技術協議路徑上的第一個先導（pathfinder）專案。

The initial intent of this project is for AeroVironment and our partner Dynamatics that we signed an MOU with in 2013 for this for the purpose of pursuing small UAS in India and for the two companies to do a joint development and production program of a next-generation, small, unmanned airplane system. We are applying all of our technology and know-how to this program and Dynamatics will apply their technology, their know-how, and their extensive aerospace manufacturing capability within India as we jointly develop this and then produce this in India. The initial intent of that production capability of this new design will be to address what we believe is a large demand within the Indian government.

此專案的初始意圖是由 AeroVironment 與我們的合作夥伴 Dynamatics——我們在 2013 年為此簽署了 MOU——共同在印度推動小型 UAS，並由兩家公司共同開發與生產下一代小型無人飛機系統。我們將把所有技術與專業知識投入此計畫，Dynamatics 則將投入其技術、專業知識，以及其在印度境內廣泛的航太製造能力；我們將共同開發，並在印度進行生產。這項新設計的初始生產能力，意在滿足我們認為印度政府內部龐大的需求。

There is, I believe, something like 550 brigades in the Indian Army, which is one of the largest in the world, plus other police requirements, so the potential requirement is quite large. The interest at the highest levels of the government seems to be real and on point. So we are in the process now of working with Dynamatics, with the US government, and with the Indian government to finalize the terms of how we would structure this agreement and how we would move forward. As we get that finalized and begin actually moving, then we will report more to you.

我相信印度陸軍大約有 550 個旅，是全球規模最大的軍隊之一，另外還有其他警務需求，因此潛在需求相當可觀。政府最高層級的興趣似乎是真實且切中要點的。因此，我們目前正與 Dynamatics、美國政府以及印度政府合作，敲定我們將如何架構此協議以及如何推進。待我們完成定案並開始實際推動後，我們會再向各位提供更多資訊。

Thank you. The next question is from Troy Jensen of Piper. Your line is open.

謝謝。下一個問題來自 Piper 的 Troy Jensen。您的線路已開通。

Thanks for taking my question. Tim, just to put some numbers behind this R&D comment, so $8.6 million in the January quarter should go to $13 million? That's assuming there's no externally funded R&D to offset that?

謝謝讓我提問。Tim，為了把這個研發（R&D）的評論用數字具體化，一月季度的 860 萬美元應該會到 1,300 萬美元？這是假設沒有外部資助的研發來抵銷嗎？

That's our target. You could hopefully hear me hedging that a little bit. That's what we want to do. That's what we're planning on doing, and we have ongoing competition with our customer-funded R&D to accomplish it with the same resources. That looks like an achievable plan at this early point in the quarter.

那是我們的目標。你應該也聽得出來我稍微保留了一點。這是我們想做的，也是我們計畫要做的；同時我們也在持續與客戶資助的研發競爭，希望用相同的資源來達成。以本季度目前這個早期階段來看，這看起來是可達成的計畫。

Okay. Understood. Then on the R&D spend, are you guys doing any development in data analytics outside of capturing the video just to process and interpret what the camera is seeing?

好的，了解。那在研發支出方面，你們是否有在做資料分析方面的開發，不只是擷取影像，而是用來處理並解讀相機所看到的內容？

Excuse me, I missed the first part of the question, Troy. Could you try that again?

不好意思，我漏聽了問題的前半段，Troy。你可以再說一次嗎？

Just on the R&D spending, is any of it going towards data analytics?

就是關於研發支出，其中有任何部分是用在資料分析上嗎？

Oh, yes. Yes, in terms of the R&D that's being applied towards our growth opportunities, it includes UAV platforms, payloads, and the data analytics associated with much of the actionable intelligence intent of our commercial solution.

喔，有的。有的。就用於我們成長機會的研發而言，包含 UAV 平台、酬載（payload），以及與我們商用解決方案中多數可執行情資（actionable intelligence）意圖相關的資料分析。

All right. Understood. Last question and I'll cede the floor. With the proposed rules for UAVs, just curious to know if you think that the line of sight is going to be any type of constraints to growth here?

好，了解。最後一個問題我就把時間讓出來。關於 UAV 的擬議規則，我只是好奇你是否認為目視範圍（line of sight）會不會成為這裡成長的任何限制？

Well, to the extent that the existing constraint on line of sight stays in place, it does clearly limit the potential benefit that customers can achieve from these solutions. As I mentioned in my comments, we believe that a properly defined solution with properly trained and certified operators can safely operate beyond line of sight. I think there is probably room for ongoing discussion with this.

嗯，在現有的目視範圍限制若持續存在的情況下，它確實會限制客戶能從這些解決方案中獲得的潛在效益。如我在評論中提到的，我們相信，若解決方案定義得當，且操作人員受過適當訓練並取得認證，就能在目視範圍外安全操作。我認為這方面可能仍有持續討論的空間。

Clearly, the FAA's intent is safety in the national airspace. There are huge potential economic benefits to optimizing these solutions. We will continue to work with the FAA and with our providing optimized design solutions to maximize safety in that environment.

顯然，FAA 的意圖是在國家空域中確保安全。要把這些解決方案最佳化，具有巨大的潛在經濟效益。我們將持續與 FAA 合作，並透過提供最佳化的設計解決方案，以在該環境中最大化安全性。

Thank you. The next question is from Greg Konrad of Jefferies. Your line is open.

謝謝。下一個問題來自 Jefferies 的 Greg Konrad。您的線路已開通。

Good evening. Just wanted to go back to commercial UAVs. It seems like you are making some progress with BP, and you mentioned that you had a bunch of other RFPs out there. Obviously, without blanket rules in place, you have some flexibility to go after commercial business. When these rules finally do get in place, what are the biggest markets that open up after, versus some of the things you can do on a one-off basis today?

晚安。我想回到商用 UAV。看起來你們與 BP 有一些進展，而且你提到還有一堆其他的 RFP 在外面。顯然，在尚未有一體適用的規則之前，你們在爭取商用業務上有一些彈性。當這些規則最終落地後，相較於你們今天可以以個案方式做的事情，哪些最大的市場會因此被打開？

We've been focusing, as we've described, primarily on large industrial markets that by nature are global. Oil and gas, for example. Agriculture, for example. Both of those appear, at this point, to offer very large global opportunities. In both cases the use of unmanned aircraft to capture digital data, process that data to generate concise, actionable information that significantly improves the safety and the economics of the operation of the enterprise, and as a result delivers significant return on investment.

我們一直如先前所述，主要聚焦在本質上具全球性的重大工業市場。例如油氣。例如農業。就目前來看，這兩者似乎都提供非常龐大的全球機會。在這兩種情況下，使用無人機來擷取數位資料、處理該資料以產生精簡且可執行的資訊，能顯著提升企業營運的安全性與經濟性，並因此帶來顯著的投資報酬。

To the extent that that continues to be validated as we roll out these solutions with those and other industries like that, then these large projections of economic activity associated with commercial UAS seem quite plausible to me.

只要我們在這些以及其他類似產業推出解決方案的過程中，持續驗證上述價值，那麼與商用 UAS 相關的這些龐大經濟活動預測，在我看來就相當可信。

Then just to go back to electric vehicle charging. Have you seen any impact in the business from gas prices? I know they've obviously been fairly volatile. Then just the follow-up to that, over the past three years you've announced a number of preferred relationships with different models of electric vehicle. What type of take rate are you seeing on that to help us correlate sales of these vehicles with AV products?

再回到電動車充電。你們有看到油價對業務造成任何影響嗎？我知道油價顯然波動很大。接著追問一下，過去三年你們宣布了多個與不同電動車車款的優先合作關係。你們看到的搭載率（take rate）大概是多少，好讓我們能把這些車款的銷售與 AV 產品的銷售做關聯？

We've had quite a difficulty in getting an accurate tie with EV sales and our attach rate, because the mechanism for selling the chargers is not directly with the car, but consumers make their decision for charging infrastructure independent and they make it in -- with not necessarily in the same timeframe. I don't have an accurate answer for our attach rate with you.

我們一直很難把電動車銷量與我們的搭載率做出精準連結，因為充電器的銷售機制不是直接隨車銷售；消費者會獨立做出充電基礎設施的決策，而且不一定在同一個時間點。我沒有辦法給你一個精準的搭載率答案。

We have clearly seen a decline in the last couple of months in the sale of plug-in electric vehicles. It's very early, and it's hard to determine what the correlation is with the price of gasoline, but one would suspect that higher gas prices would motivate higher EV sales. I think it will be a few more months, at the minimum, before anyone makes an informed correlation decision there.

我們確實看到過去幾個月插電式電動車的銷售下滑。現在還很早，也很難判斷與汽油價格的相關性，但一般會推測油價越高會促使電動車銷量越高。我認為至少還需要再過幾個月，才會有人能做出有根據的相關性判斷。

(Operator Instructions)

（接線員指示）

The next question is from Michael Ciarmoli of KeyBanc. Your line is open.

下一個問題來自 KeyBanc 的 Michael Ciarmoli。您的線路已開通。

Good evening, again. Kevin. Just a quick follow-up. Tim, just wondering what drove the increase in customer funded R&D in the quarter? It seems like it was unexpected and I'm just wondering what drove that?

晚安，再次問候。Kevin。簡單追問一下。Tim，我想知道本季度客戶資助研發增加的原因是什麼？看起來有點出乎意料，我只是想了解是什麼驅動的？

I don't think it was necessarily unexpected, Kevin, but there are multiple projects being funded by customers, most of which I will leave for the customers to announce. The nature of customer-funded R&D often can be sensitive, competitive information, although the largest piece of that is the TERN program.

Kevin，我不認為那一定是出乎意料，但確實有多個由客戶資助的專案，其中大多數我會留給客戶自行宣布。客戶資助研發的性質往往可能涉及敏感、具競爭性的資訊；不過其中最大的一塊是 TERN 計畫。

Okay. Great. Thanks. That's all I have.

好的，很好。謝謝。就這些。

Thank you. The next question is from Joe De Nardi of Stifel. Your line is open.

謝謝。下一個問題來自 Stifel 的 Joe De Nardi。您的線路已開通。

Good evening. Tim, I'm wondering if you could talk about, given some of the issues or maybe the headwinds you are having with the EES business, does that business still make sense to have within AeroVironment? What are some the synergies that flow through to the UAV business? Do you see that as an impediment to a potential acquirer, not necessarily wanting the EES business?

晚安。Tim，我想問的是，考量你們在 EES 業務上遇到的一些問題或可能的逆風，這項業務放在 AeroVironment 旗下是否仍然合理？有哪些協同效益能流向 UAV 業務？你是否認為這會成為潛在收購方的阻礙，因為對方不一定想要 EES 業務？

Joe, we've got three product lines within EES. We have a leading market share position in each of those. Currently, the EV test product line is in decline. That's a poststimulus environment of overcapacity generated by the stimulus, and it hasn't really grown back yet. The electric vehicle industrial charging market is actually a growth opportunity. Electric forklifts and other early vehicles are continuing to gain share over IC engines.

Joe，EES 之下我們有三條產品線，而且在每一條我們都處於領先的市占地位。目前，電動車測試產品線正在下滑。那是補貼後環境：補貼造成的產能過剩，而目前尚未真正恢復成長。電動車工業充電市場其實是一個成長機會。電動堆高機以及其他早期車種，正持續相對於內燃機（IC）引擎提升市占。

We do have a strong position in North America in charging infrastructure for plug-in electric vehicles. That's not yet a significant revenue generator, but it has the potential to be very significant if and when the adoption rate of plug-in vehicles reaches even single-digit penetration in the overall car market. We don't expect that's likely to happen within the next few years, or we do expect it will happen maybe within 3 to 5 years.

在北美，我們在插電式電動車的充電基礎設施方面確實有很強的地位。這目前還不是顯著的營收來源，但如果、以及當插電式車款的採用率在整體汽車市場中達到即便是個位數的滲透率時，它就有可能變得非常可觀。我們不預期這在未來幾年內就會發生，或是我們預期它可能會在 3 到 5 年內發生。

Overall, we have, we think, given the strong position we have and the potential growth in those markets, it's a good option to have in the enterprise. There is a lot of synergy in the underlying technology. Both businesses are essentially focused on electric vehicles, and much of the core technology in electric vehicles resides in our EES system. We leverage the same kind of production and program management and strategic practices and systems across both.

整體而言，我們認為，鑑於我們的強勢地位以及這些市場的潛在成長，把它作為企業內的一個選項是好的。底層技術有很多協同效益。兩個業務本質上都聚焦於電動車，而電動車的許多核心技術都在我們的 EES 系統中。我們在兩邊都沿用相同類型的生產、專案管理與策略性作法與系統。

In general, the owning and managing the EES segment has not been a diversion from the other growth opportunities in the UAS system. We've always felt that if and when that happens, then we would reassess this.

一般來說，持有並管理 EES 部門並未分散我們在 UAS 系統其他成長機會上的注意力。我們一直認為，如果且當那種情況發生時，我們就會重新評估。

Okay. Thanks, Tim.

好的，謝謝你，Tim。

Thank you. There are no further questions at this time. I will turn the call back for closing remarks.

謝謝。目前沒有其他問題。我將把電話交回以進行結語。

Thank you for your attention and for your interest in AeroVironment. 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. Good day.

感謝各位的關注，以及對 AeroVironment 的興趣。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。我們期待在下個季度業績公布後再次與各位交流。祝各位安好。

Thank you. Ladies and gentlemen, this concludes today's conference. You may now disconnect. Good day.

謝謝。各位女士、先生，今天的電話會議到此結束。您現在可以掛線。祝各位安好。