AeroVironment, Inc. (AVAV) 2016 Q1 法說會逐字稿

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

各位女士、先生，大家好，歡迎參加 AeroVironment, Inc. 2015 財年第一季（FY15）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 today from the Company is the Chairman, Chief Executive Officer, Mr. Tim Conver, Senior Vice President and Chief Financial Officer, Mr. Raymond Cook, and Vice President of Investor Relations, Mr. Steven Gitlin.

提醒各位，本次會議將錄音以供重播。今天與會的公司代表包括：董事長兼執行長 Tim Conver 先生、資深副總裁兼財務長 Raymond Cook 先生，以及投資人關係副總裁 Steven Gitlin 先生。

And now at this time I would like to turn the conference over to Mr. Gitlin. Please go ahead, sir.

現在我想把會議交給 Gitlin 先生。先生，請開始。

Thank you, Abigail, and welcome to our first quarter FY16 earnings call. 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，Abigail，歡迎參加我們 2016 財年第一季（FY16）財報電話會議。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（SEC）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, September 1, 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. We will now begin with remarks from Tim Conver. Tim?

投資人應注意，不要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。本次電話會議內容包含具時效性的資訊，僅在今日（2015 年 9 月 1 日）為準確。公司不承擔任何義務對我們發言中所包含的陳述作出任何修訂，或更新以反映本次電話會議後發生的事件或情況。接下來我們將由 Tim Conver 發表談話。Tim？

Thank you, Steve, and welcome to our first quarter 2016 conference call. Our main message today is this, we're on track for our FY16 plan. In our core business, we maintain our market leadership and we are pursuing growth potential in both our UAS and our EES business segments. We're also making good progress in our growth portfolio as we engage with customers showing active adoption interest in our multiple growth opportunities.

謝謝你，Steve，歡迎參加我們 2016 財年第一季電話會議。我們今天的主要訊息是：我們正按計畫推進 FY16 的規劃。在核心業務方面，我們維持市場領導地位，並在 UAS 與 EES 兩大業務部門追求成長潛力。我們在成長型產品組合方面也取得良好進展，並與客戶互動；客戶對我們多項成長機會展現積極採用的興趣。

During the quarter, we fortified our strong Board and Leadership team with the addition of Catharine Merigold as our newest Director, and Raymond Cook as our new Chief Financial Officer. Both Catharine and Raymond bring valuable experience and expertise to help us to continue to grow our business and create long-term stockholder value.

本季我們透過新增 Catharine Merigold 擔任最新董事，以及 Raymond Cook 出任新任財務長，進一步強化我們堅實的董事會與領導團隊。Catharine 與 Raymond 皆具備寶貴的經驗與專業，將協助我們持續拓展業務並創造長期股東價值。

On today's call I'll comment on our first-quarter financial performance, review year-to-date highlights in our core EES and UAS segments and discuss our new market initiatives. Raymond will then review our financial performance in more detail. And I will discuss our view of the balance of the fiscal year, and then Raymond and I will take your questions.

在今天的電話會議中，我將評論第一季財務表現，回顧核心 EES 與 UAS 部門的年初至今重點，並討論我們的新市場倡議。接著 Raymond 將更詳細地說明財務表現。之後我將談談我們對本財政年度剩餘期間的看法，最後由 Raymond 與我回答各位的提問。

Our Q1 operating financial performance was consistent with our annual plan. We expected Q1 revenue to be similar to Q1 last year. At $47.1 million, Q1 revenue was slightly lower than FY15, primarily due to unexpected delays in two shipments that we now expect to be completed in Q2. A Q1 operating loss of $9.1 million is consistent with the expected low first quarter revenue and the high incremental investment in R&D and SG&A. That said, we're pleased to report an increase in our gross margin to 34%, up 7 percentage points over Q1 last year, representing consistent strong performance despite revenue levels in the quarter. We're also encouraged by strong Q1 bookings of $71 million that drove backlog to an $89 million level, an increase of 38% over last quarter and 9% relative to Q1 FY15.

我們第一季（Q1）的營運財務表現符合年度計畫。我們原先預期 Q1 營收將與去年 Q1 類似。Q1 營收為 4,710 萬美元，較 FY15 略低，主要因兩筆出貨出現非預期延遲，我們目前預期將於 Q2 完成。Q1 營運虧損 910 萬美元，與預期的第一季低營收以及研發（R&D）與銷售、一般及行政費用（SG&A）的較高增量投資一致。儘管如此，我們很高興報告毛利率提升至 34%，較去年 Q1 增加 7 個百分點，顯示即使在本季營收水準下仍能維持一貫的強勁表現。我們也對 Q1 強勁的訂單（bookings）感到鼓舞，達 7,100 萬美元，帶動積壓訂單（backlog）至 8,900 萬美元，較上季增加 38%，較 FY15 的 Q1 增加 9%。

And now I'll discuss the Q1 highlights in our core business. In our EES segment, we began delivering the in-truck TurboCord for Volvo and the charger infrastructure rollout at Volvo dealerships to support their FY16 North American plug in electric hybrid vehicle introduction. We also expanded distribution of our new TurboDock Workplace charger.

接下來我將說明核心業務的 Q1 重點。在 EES 部門，我們開始為 Volvo 交付車載 TurboCord，並在 Volvo 經銷商推動充電基礎設施的佈建，以支援其 FY16 在北美推出插電式油電混合車。我們也擴大了新款 TurboDock 職場充電器的通路。

In our core small UAS business, our Raven, Wasp and Puma systems remain the dominant solutions for tactical situational awareness and their installed base continued to grow around the world. Sustainment of that growing installed base will maintain high levels of effectiveness and operational availability contributing to customer success. During Q1, we received contracts worth $35.2 million from the US Army for sustainment of their large fleet of Raven and Puma systems. Additionally, we have a robust pipeline of active proposals in response to a growing international demand for small UAS. We expect most of our international business to continue to be based on direct commercial contracts. However, our recent $3.4 million Raven order for the Spanish Armed Forces illustrates the potential for growing government to government foreign military sales.

在核心小型 UAS 業務方面，我們的 Raven、Wasp 與 Puma 系統仍是戰術態勢感知的主導解決方案，其裝機基礎在全球持續成長。對這一日益擴大的裝機基礎進行維保（sustainment），將維持高水準的效能與作戰可用率，並促進客戶成功。Q1 期間，我們獲得美國陸軍價值 3,520 萬美元的合約，用於其大量 Raven 與 Puma 系統的維保。此外，因應國際對小型 UAS 日益成長的需求，我們有強健的在手提案管線。我們預期大部分國際業務仍將以直接商業合約為主。然而，我們近期來自西班牙武裝部隊的 340 萬美元 Raven 訂單，顯示政府對政府（G2G）的對外軍售（FMS）具備成長潛力。

We continue to be encouraged by the potential adoption of all environment small UAS for maritime applications which could materially expand the small UAS defense market opportunity. For example, in Q1 we successfully demonstrated autonomous precision recovery of Puma AE on a Navy patrol craft. In addition to working with the Navy, in July we supported the US Coast Guard and the National Oceanographic and Atmospheric Administration in the Arctic as they successfully demonstrated their first integrated manned helicopter and unmanned Puma search and rescue operation. The success of this operation led to the first procurement contract from the US Coast Guard for a Puma. Our team also provided emergency information services with Puma in response to a high profile offshore oil spill, further illustrating the non defense maritime applications for all environment small UAS.

我們持續看好「全環境」小型 UAS 在海事應用上的採用潛力，這可能實質擴大小型 UAS 的國防市場機會。例如在 Q1，我們成功展示 Puma AE 在海軍巡邏艇上的自主精準回收。除了與海軍合作外，7 月我們也在北極支援美國海岸防衛隊與美國國家海洋暨大氣總署（NOAA），成功展示其首次整合有人直升機與無人 Puma 的搜救作業。該作業的成功促成美國海岸防衛隊首次採購 Puma 的合約。我們團隊也在一宗高度受關注的離岸漏油事件中，使用 Puma 提供緊急資訊服務，進一步說明全環境小型 UAS 在非國防海事領域的應用。

Turning to our growth portfolio, customer adoption interest in tactile missile systems, large unmanned aircraft systems and commercial UAS continues to pull significant engagement and investment. In tactical missile systems we are now delivering hardware under the contracts for a variant of Switchblade that we developed last year. Strong customer interest continues for two additional variants we also demonstrated last year, and we anticipate RFPs for additional development later this year. These significant opportunities are the direct result of development, successful demonstrations and investments that we made in FY15. We continue to be encouraged by customer interest in Switchblade, which remains high, and we are focused on delivering the high level of unique value to customers to drive significant growth and stockholder value. Moving forward, you should anticipate continued constraints in our disclosure of some of the specific information in our tactical missile systems business, due to customer preferences.

談到我們的成長型產品組合，客戶對戰術飛彈系統、大型無人機系統以及商用 UAS 的採用興趣，持續帶動大量的互動與投資。在戰術飛彈系統方面，我們目前正依據合約交付硬體，該合約對應的是我們去年開發的 Switchblade 其中一個衍生型號。客戶對另外兩個我們去年也展示過的衍生型號仍保持高度興趣，我們預期今年稍晚將收到進一步研發的徵求建議書（RFP）。這些重大機會，直接源自我們在 FY15 所進行的研發、成功展示與投資。我們持續對客戶對 Switchblade 的高度興趣感到鼓舞，並專注於向客戶交付高度獨特的價值，以推動顯著成長與股東價值。展望未來，由於客戶偏好因素，關於我們戰術飛彈系統業務的部分具體資訊揭露，您應預期仍將受到限制。

Our large UAS team is focused on executing Phase II of the DARPA Tern program. The Tern system offers a next generation medium altitude long endurance, or MALE, UAS solution with a compelling value proposition for the integrated Navy/Marine Corps mission. We expect a procurement decision for the planned Phase III program in the second half of our fiscal year. We continue to engage with customers and team members on potential opportunities for Global Observer, a high altitude long endurance, or HALE, UAS. To put the large UAS opportunity in perspective for AeroVironment, the price of a typical MALE UAS can be two orders of magnitude greater than for our small UAS. And yet another order of magnitude greater for a HALE system. Successfully entering the market for either or both a MALE UAS like Tern or a HALE UAS like Global Observer, will represent huge growth opportunities for AeroVironment with high returns on invested capital.

我們的大型 UAS 團隊正專注於執行 DARPA Tern 計畫的第二階段（Phase II）。Tern 系統為整合海軍／海軍陸戰隊任務提供新一代中高度長航時（MALE）UAS 解決方案，具備具吸引力的價值主張。我們預期在本財政年度下半年，將就規劃中的第三階段（Phase III）計畫作出採購決策。我們也持續與客戶及團隊成員就 Global Observer（高高度長航時，HALE，UAS）的潛在機會進行互動。為了讓各位理解 AeroVironment 的大型 UAS 機會規模：典型 MALE UAS 的價格可能比我們的小型 UAS 高出兩個數量級；而 HALE 系統則可能再高出一個數量級。若能成功切入 MALE（如 Tern）或 HALE（如 Global Observer）市場之一或兩者，將為 AeroVironment 帶來巨大的成長機會，並具備高投入資本報酬率。

Moving now to our emerging commercial UAS business, more customers are soliciting demonstrations and working with us as we continue to develop our new commercial UAS solutions. We are developing these new solutions to deliver high value actionable information that can move the dial for enterprise customers. We are investing in extended engagements with a number of customers and we are actively evaluating the adoption of small UAS solutions in industries such as transportation, agriculture, energy and public safety.

接著談我們新興的商用 UAS 業務，隨著我們持續開發新的商用 UAS 解決方案，越來越多客戶正在邀請我們進行展示並與我們合作。我們開發這些新解決方案，是為了提供高價值、可採取行動的資訊，能夠為企業客戶帶來實質影響。我們正投入與多家客戶的延伸合作，並積極評估在運輸、農業、能源與公共安全等產業採用小型 UAS 解決方案的可能性。

For example, we recently worked with Duke Energy in North Carolina to evaluate inspecting solar panels and transmission lines as well as monitoring large coal piles with our advanced UAS-based information service. Working closely with early adopter customers by applying our leading UAS capabilities in their real world applications enlightens and validates our development of the optimized solution for new markets. Our objective is to provide commercial customers essential, reliable and timely information, allowing them to proceed with confidence in their otherwise uncertain operating environments. Not coincidentally, that is the same value proposition that we deliver with great success across the Department of Defense, and to over 30 other countries.

例如，我們最近與北卡羅來納州的 Duke Energy 合作，運用我們先進的以 UAS 為基礎的資訊服務，評估對太陽能板與輸電線路的檢測，以及對大型煤堆的監測。與早期採用者客戶緊密合作，將我們領先的 UAS 能力應用於其真實世界的應用情境，能啟發並驗證我們為新市場開發最佳化解決方案的工作。我們的目標是為商業客戶提供關鍵、可靠且及時的資訊，使其能在原本充滿不確定性的營運環境中更有信心地推進。並非巧合的是，這正是我們在美國國防部以及其他 30 多個國家成功交付的同一項價值主張。

In summary, we're on track for our annual plan. Our core business is strong and we are making meaningful progress across our growth portfolio designed to drive significant stockholder value. And now Raymond Cook will review our Q1 financials.

總結而言，我們正按年度計畫穩步推進。我們的核心業務表現強勁，並且在旨在創造顯著股東價值的成長組合上取得實質進展。接下來 Raymond Cook 將回顧我們第一季的財務表現。

Thank you, Tim, and good afternoon, everyone. Before we look at the results for the quarter, let me just say that I am honored to have joined the highly dedicated team at AeroVironment. The culture of innovation and focus on the end customer's needs is pervasive throughout the organization. I look forward to working with our analysts, investors, customers, suppliers and the AV team in the years to come.

謝謝你，Tim，各位下午好。在我們檢視本季結果之前，我想先說，我很榮幸能加入 AeroVironment 這支高度投入的團隊。創新文化以及對終端客戶需求的聚焦，貫穿整個組織。我期待在未來幾年與我們的分析師、投資人、客戶、供應商以及 AV 團隊一同合作。

Moving now to AeroVironment's FY16 first-quarter results, are as follows. Revenue for Q1 was $47.1 million, a decrease of $4.8 million, or 9%, as compared to $51.9 million a year ago. The decrease in revenue was due to a decrease in product deliveries of $16.2 million, offset by an increase in service revenues of $11.4 million.

接著來看 AeroVironment 2016 財年第一季的業績如下：第一季營收為 4,710 萬美元，較去年同期的 5,190 萬美元減少 480 萬美元，或 9%。營收下滑主要是產品交付減少 1,620 萬美元所致，但部分被服務營收增加 1,140 萬美元所抵銷。

Looking at revenue by segment, UAS revenue was $40.2 million, a decrease of $1 million, or 2%, compared to last year. The decrease was primarily due to a decrease in product deliveries of $12.8 million, a decrease in service revenue of $0.5 million, offset with an increase in customer-funded R&D work of $12.2 million. EES revenue decreased $3.8 million, or 36%, to $6.9 million in the first quarter. This decrease was primarily due to a decrease in product deliveries of our industrial fast charge systems.

按部門別來看營收，UAS 營收為 4,020 萬美元，較去年減少 100 萬美元，或 2%。下降主要由產品交付減少 1,280 萬美元與服務營收減少 50 萬美元所致，但被客戶出資的研發工作增加 1,220 萬美元所抵銷。EES 營收在第一季下降 380 萬美元，或 36%，至 690 萬美元。此下降主要由我們工業用快速充電系統的產品交付減少所致。

Turning to gross margin, gross margin for the first quarter was $16 million, or 34%, an increase of $2 million, as compared to the $14.1 million, or 27%, in the prior year. By segment, our UAS gross margin increased $3.5 million, or 35%, to $13.7 million in the quarter. The increase was primarily due to favorable product mix. As a percentage of revenue, gross margin for UAS increased from 25% to 34%. EES gross margin decreased $1.6 million, or 40%, to $2.3 million in the quarter, primarily due to a decrease in sales volume and an unfavorable product mix. As a percentage of revenue, EES gross margin decreased from 36% to 34%.

再看毛利率，第一季毛利為 1,600 萬美元，毛利率 34%，較去年同期的 1,410 萬美元（毛利率 27%）增加 200 萬美元。按部門別來看，本季 UAS 毛利增加 350 萬美元，或 35%，至 1,370 萬美元，主要受惠於有利的產品組合。以營收百分比計，UAS 毛利率由 25% 提升至 34%。EES 毛利在本季下降 160 萬美元，或 40%，至 230 萬美元，主要因銷售量下降及不利的產品組合所致。以營收百分比計，EES 毛利率由 36% 降至 34%。

SG&A expense for the first quarter was $15.3 million, or 32% of revenue, compared to SG&A expense of $13.4 million, or 26% of revenue in the prior year. SG&A expense increased $1.9 million, primarily due to higher professional services and bid and proposal costs. R&D investments for the first quarter were $9.8 million, or 21% of revenue, compared to R&D investment of $7.1 million, or 14% of revenue in the prior year. The increase in R&D investments was primarily due to increased development activities for certain strategic initiatives.

第一季 SG&A（銷售、一般及行政）費用為 1,530 萬美元，占營收 32%；去年同期 SG&A 費用為 1,340 萬美元，占營收 26%。SG&A 費用增加 190 萬美元，主要因專業服務費用以及投標與提案成本上升。第一季研發（R&D）投入為 980 萬美元，占營收 21%；去年同期研發投入為 710 萬美元，占營收 14%。研發投入增加主要是因若干策略性計畫的開發活動增加。

The operating loss for the first quarter was $9.1 million, or 19% of revenue, compared to prior-year operating loss of $6.5 million, or 12% of revenue. The operating loss increase was primarily due to higher SG&A and R&D spending. Net other expense for the quarter was $2.4 million, compared to the prior year net other income of $0.6 million. Other income decreased due to the recording of an other than temporary impairment loss of $2.2 million, related to available for sale equity shares of CybAero AB stock.

第一季營業損失為 910 萬美元，占營收 19%；去年同期營業損失為 650 萬美元，占營收 12%。營業損失擴大主要由 SG&A 與研發支出增加所致。本季其他淨費用為 240 萬美元，去年同期其他淨收益為 60 萬美元。其他收益下降係因認列 220 萬美元的非暫時性減損損失，與可供出售之 CybAero AB 股權股票相關。

During the month of August, we sold all of our remaining shares of CybAero stock and netted proceeds of $0.8 million. Our investment in CybAero has proven to be successful. Our initial investment of $3 million in CybAero convertible bonds in FY13 has resulted in cumulative cash proceeds of $7.8 million over FY14 to FY16, with the conversion and sales of the shares. The net gain from the transaction was $4.8 million, or 160% total return.

在 8 月期間，我們出售了所持有的全部剩餘 CybAero 股票，取得淨收益 80 萬美元。我們對 CybAero 的投資已證明是成功的。我們於 2013 財年對 CybAero 可轉換公司債的初始投資為 300 萬美元，透過股份轉換與出售，在 2014 至 2016 財年間累計取得 780 萬美元的現金收入。本次交易的淨收益為 480 萬美元，總報酬率為 160%。

The benefit for income taxes for the quarter was $4.2 million, or an effective tax rate of 37.8%, compared to the benefit for income taxes of $2.1 million, or an effective tax rate of 36.3%, in the prior year.

本季所得稅利益為 420 萬美元，有效稅率為 37.8%；去年同期所得稅利益為 210 萬美元，有效稅率為 36.3%。

The net loss for the quarter was $7 million, or a $0.30 loss per share compared to a net loss of $3.6 million, or a $0.16 loss per share in the same quarter last year. On an adjusted basis, which excludes the impact of the convertible bond and related equity investment in CybAero AB, the first quarter EPS loss would have been a $0.24 loss per share, compared to an $0.18 loss per share in the same quarter last year. We have provided an EPS reconciliation table in the press release.

本季淨損為 700 萬美元，每股虧損 0.30 美元；去年同季淨損為 360 萬美元，每股虧損 0.16 美元。以調整後基礎（排除 CybAero AB 可轉債及相關股權投資的影響）計算，第一季每股虧損將為 0.24 美元，去年同季為每股虧損 0.18 美元。我們已在新聞稿中提供每股盈餘（EPS）調節表。

Looking at backlog, funded backlog at the end of the first quarter was $89 million, an increase of $7 million, or 9% from the first quarter of the prior year, and an increase of $24.3 million, or 38% from the prior quarter.

再看積壓訂單（backlog），第一季末的已獲資金支持之積壓訂單為 8,900 萬美元，較去年第一季增加 700 萬美元，或 9%；較前一季增加 2,430 萬美元，或 38%。

Turning to our balance sheet, cash, cash equivalents and investments at the end of the first quarter totaled $262.2 million, a decrease of $13.4 million from the prior quarter. The decrease in cash, cash equivalents and investments was driven by higher working capital needs and the first quarter loss.

再看資產負債表，第一季末現金、約當現金及投資合計為 2.622 億美元，較前一季減少 1,340 萬美元。現金、約當現金及投資的下降主要由較高的營運資金需求以及第一季虧損所驅動。

Turning to receivables. At the end of the first quarter, our accounts receivable, including unbilled receivables, totaled $42.2 million, a decrease of $8.8 million from the prior quarter. Total days outstanding was approximately 81 days compared to 53 days at the end of the prior quarter. This increase in DSO was primarily attributable to the reduced revenue in Q1 versus the prior quarter combined with the timing of unbilled accounts receivable.

接著看應收款項。第一季末，我們的應收帳款（含未開立帳單之應收款）合計為 4,220 萬美元，較前一季減少 880 萬美元。應收帳款週轉天數（DSO）約為 81 天，前一季末為 53 天。DSO 上升主要歸因於第一季營收較前一季降低，以及未開立帳單之應收帳款的入帳時點所致。

Taking a look at inventory, inventories were $43.9 million at the end of the quarter, compared to $39.4 million at the end of the prior quarter. Days in inventory were approximately 127 days compared to 86 days at the end of the prior quarter. This increase in days in inventory was primarily attributable to a decrease in revenue levels and delays in Q1 shipments due to timing of export licenses.

再看存貨，季末存貨為 4,390 萬美元，前一季末為 3,940 萬美元。存貨天數約為 127 天，前一季末為 86 天。存貨天數增加主要歸因於營收水準下降，以及因出口許可證時點因素導致第一季出貨延遲。

Turning to capital expenditures, in the first quarter we invested approximately $0.9 million, or 2% of revenue, in property improvements and capital equipment. AV recognized $1.4 million of depreciation during the quarter.

再看資本支出，第一季我們在不動產改善與資本設備上投資約 90 萬美元，約占營收 2%。AV 本季認列折舊費用 140 萬美元。

Now an update to our FY16 visibility. As of today, we have year-to-date revenues for Q1 of $47 million. Q1 ending backlog that we can execute in FY16 of an additional $85 million. Q2 quarter-to-date bookings that we can execute in FY16 of an additional $12 million, unfunded backlog from incrementally funded contracts that we expect to recognize revenue during the balance of the year of $5 million and revenues needed to hold EES revenues flat relative to last year of $23 million. This adds up to $173 million, or 64% at the midpoint of our revenue guidance. Now I would like to turn things back to Tim to discuss AV's expectations for the remainder of FY16.

接下來更新我們對 2016 財年的可視度。截至今日，我們年初至今第一季營收為 4,700 萬美元；第一季末積壓訂單中可於 2016 財年執行的另有 8,500 萬美元；第二季截至目前的接單中可於 2016 財年執行的另有 1,200 萬美元；來自逐步撥款合約的未獲資金支持之積壓訂單中，我們預期在本年度剩餘期間認列營收者為 500 萬美元；以及為使 EES 營收相較去年持平所需的營收為 2,300 萬美元。合計為 1.73 億美元，約占我們營收指引中點的 64%。現在我想把時間交還給 Tim，討論 AV 對 2016 財年剩餘期間的展望。

Thank you, Raymond. We're on track for FY16 and we reiterate our original FY16 guidance. We expect revenue between $260 million and $280 million in FY16 with gross profit margin between 36% and 37.5%. We expect additional planned R&D and SG&A investments in our FY16 for commercial UAS market opportunities could consume up to all of the operating profit we would otherwise have generated from the revenue and gross margin we anticipate this year.

謝謝你，Raymond。我們在 FY16 進度如期，並重申我們原先的 FY16 指引。我們預期 FY16 營收介於 2.60 億美元至 2.80 億美元之間，毛利率介於 36% 至 37.5%。我們預期在 FY16 為商用 UAS 市場機會所規劃的額外研發（R&D）與銷售、一般及行政（SG&A）投資，可能會消耗掉我們在今年依據預期營收與毛利率原本可產生的全部營業利益。

Beyond revenue and gross margin, we consistently monitor progress against our operating plan objectives throughout the year. Key milestones that we will be looking for as we move through FY16 include the following. In our EES segment, we'll be looking for growing TurboCord and TurboDock adoption and market expansion opportunities for our industrial electric vehicle charging product line.

除了營收與毛利率之外，我們全年持續監控相對於營運計畫目標的進展。隨著我們進入 FY16，我們將關注的關鍵里程碑包括以下幾點。在我們的 EES 事業部門，我們將關注 TurboCord 與 TurboDock 的採用成長，以及我們工業用電動車充電產品線的市場擴張機會。

In our small UAS business, we'll look for additional US Marine Corps procurement against their new family of systems requirement, indications of maritime adoption of small UAS, international order flow and the next opportunity to provide system upgrades for the large fleet of Raven, Wasp and Puma systems owned and operated by our government customers.

在我們的小型 UAS 業務方面，我們將關注美國海軍陸戰隊針對其新「系統家族」需求的進一步採購、海事領域採用小型 UAS 的跡象、國際訂單流量，以及下一次為我們政府客戶所擁有並操作的大量 Raven、Wasp 與 Puma 系統機隊提供系統升級的機會。

In tactical missile systems, we'll be looking for additional customer funding that confirms growing demand for Switchblade variants which we foresee as the basis of a family of systems driving a growing tactical missile systems business. Primary indicators for large unmanned airplane systems will include a Tern III procurement decision in the second half of FY16. And increasingly specific indicators of procurement activities for Global Observer, atmospheric satellite solutions in the second half of our FY16 or the first half of FY17.

在戰術飛彈系統方面，我們將關注額外的客戶資金，以確認對 Switchblade 各型號日益成長的需求；我們預期這將成為一個「系統家族」的基礎，帶動戰術飛彈系統業務成長。大型無人飛機系統的主要指標將包括 FY16 下半年對 Tern III 的採購決策，以及在 FY16 下半年或 FY17 上半年，針對 Global Observer（大氣衛星解決方案）採購活動愈來愈明確的指標。

In commercial UAS, we'll be looking for an increase in successful pilot demonstrations of multiple industries. We'll also be closely monitoring internal product development milestones for the integrated solution that we believe will provide the most compelling customer value in large global markets. Much of our commercial UAS development will be subject to constrained disclosure for competitive reasons, but we will update you on our progress in these areas as we are able to.

在商用 UAS 方面，我們將關注多個產業成功的試點示範增加。我們也將密切監控內部產品開發里程碑，聚焦於我們相信能在大型全球市場中提供最具吸引力客戶價值的整合式解決方案。我們的商用 UAS 開發有相當部分將因競爭因素而受限於揭露，但在可行範圍內，我們會向各位更新我們在這些領域的進展。

We continue to manage our investments to create solutions that deliver significant value to customers in large markets, match projected market adoption timing and achieve high returns on invested capital. We are closely monitoring the progress and the performance of our developments, integrating invaluable customer perspectives from pilot projects, and gating all investments to manage risk and achieve the optimal profitable growth that will enhance stockholder value.

我們持續管理各項投資，以打造能在大型市場為客戶帶來顯著價值、符合預期市場採用時點，並達成高投入資本報酬率的解決方案。我們正密切監控各項開發的進度與表現，整合試點專案中客戶提供的寶貴觀點，並對所有投資設置關卡以管理風險、達成最佳的獲利成長，進而提升股東價值。

Thank you to AeroVironment's outstanding employee team that continues to work hard, smart and courageously. Our team does what's necessary to earn and maintain the trust of our customers and they consistently go above and beyond in their efforts to do so. And thank you on this call for your interest in AeroVironment. Raymond and I will now look forward to taking your questions.

感謝 AeroVironment 優秀的員工團隊持續努力、聰明且勇敢地工作。我們的團隊做必要的事以贏得並維持客戶的信任，且一貫地付出超乎預期的努力。也感謝各位在本次電話會議中對 AeroVironment 的關注。Raymond 和我現在將開始回答各位的提問。

(Operator Instructions)

（接線員指示）

Our first question comes from the line of Bobby Burleson with Canaccord.

我們的第一個問題來自 Canaccord 的 Bobby Burleson。

So a quick one for Tim, if we think about the strategic R&D and SG&A investments for commercial UAS, obviously those are planned here for FY16, I'm wondering how much discretion is in that plan? Is it a wide amount of discretion? And then if there is some discretion or latitude in how much you spend there, is it because of specific customer programs that may or may not be impacted by the macro environment?

我有個簡短問題想問 Tim：如果我們思考商用 UAS 的策略性研發與 SG&A 投資，顯然這些已規劃在 FY16 進行，我想知道這個計畫中有多少裁量空間？裁量幅度大嗎？另外，如果在支出金額上確實有一些裁量或彈性，是否是因為特定客戶專案可能會或可能不會受到總體環境影響？

I think the answer is there is some discretion in that amount, Bobby. If you recall multiple times I've described our investment management process where we are closely monitoring and gating those investment decisions. Those gate decisions are based on performance against the plan internally and insights that we gain from our customer engagements and changes to the extent they happen in our perception of adoption timing with customers.

我認為答案是那個金額確實有一些裁量空間，Bobby。你如果記得，我多次描述過我們的投資管理流程：我們會密切監控並對這些投資決策設置關卡。這些關卡決策是基於內部相對於計畫的執行情況，以及我們從客戶互動中獲得的洞見，並且也會考量（若發生）我們對客戶採用時點認知的變化。

So I think if everything went well as we planned, we could very well consume all of the operating profit we would otherwise generate in the year. On the other hand, if market adoption timing slowed, if we run into delays in programs that we could theoretically spend somewhat less or somewhat more than we currently plan.

所以我認為，如果一切如我們計畫般順利，我們很可能會消耗掉我們在該年度原本可產生的全部營業利益。另一方面，如果市場採用時點放緩、如果我們在某些專案上遇到延遲，理論上我們可能會比目前計畫花得稍少或稍多。

Great. And then a follow up, when we look at TERN, I'm wondering what the requirements are there in terms of technical requirements, or things that AeroVironment's good at that you see that puts you in a strong position as we get to some of that second half FY16 selection process, given that we're talking in some cases about a defense form factor versus where you guys have very high share right now.

了解。接著追問一下，談到 TERN，我想知道那邊在技術要求等方面的需求是什麼？或是有哪些是 AeroVironment 擅長、你認為能讓你們在 FY16 下半年某些遴選流程中處於有利位置的因素？因為我們談到的在某些情況下是國防的機體規格（form factor），而你們目前高市占的領域又不太一樣。

Well let me just restate your question and make sure I've got it. So it's around the TERN program that we're currently working on with DARPA. And the -- specifically your question refers to, I think, the planned Phase III that we expect an award decision from DARPA on in our second half. But could you clarify for me the question?

我先重述一下你的問題，確認我理解正確。你是在問我們目前與 DARPA 合作進行的 TERN 計畫。然後——具體來說，你的問題我想是指我們預期在下半年由 DARPA 做出授標決策的第三階段（Phase III）。不過你能再幫我釐清一下問題嗎？

Yes, I think that to simplify the question, I'm wondering how confident you are that you guys are in a strong position there? Any developments there that increase your confidence or are we pretty much where we were last quarter when we talked about this?

是的，為了簡化問題，我想問你對於你們在那邊處於強勢位置有多有信心？是否有任何進展提高了你的信心，還是我們基本上和上季談到時差不多？

We are very focused on doing a good job of executing Phase II on TERN, which we continue to work on as we speak. The design that we have put forward, we believe, meets the objective requirements of the customer. We think it is highly innovative and practical, and has the potential to deliver a compelling next generation solution for the integrated Navy and Marine Corps mission.

我們非常專注於把 TERN 的第二階段（Phase II）執行好，我們目前也仍在持續進行。我們提出的設計，我們相信符合客戶的目標需求。我們認為它高度創新且務實，並有潛力為海軍與海軍陸戰隊整合任務提供一個具吸引力的下一代解決方案。

We also are very much aware that we're competing against one of the largest and most well capitalized defense companies on the planet, so we're taking nothing for granted. But that competition -- the nature of that competition is inherent in our strategic intent of delivering compelling innovative solutions to large markets. So we continue to focus on meeting our customers' expectations and we'll see what happens.

我們也非常清楚，我們是在與全球規模最大、資本最雄厚的國防公司之一競爭，所以我們不會把任何事情視為理所當然。但這種競爭——其本質就內建在我們的策略意圖之中，也就是為大型市場提供具吸引力的創新解決方案。因此我們會持續專注於滿足客戶的期待，然後看看結果如何。

Okay, I appreciate the thoroughness of the answer. I'll jump back into the queue.

好的，感謝你詳盡的回答。我先回到排隊序列。

Our next question comes from the line of Joe De Nardi with Stifel.

我們下一個問題來自 Stifel 的 Joe De Nardi。

Tim, I'm wondering on the commercial market what your expectations are for the economics there in terms of as that ramps up and assuming some of these investments pay off, does that market ramp up profitably for you or is it more of a revenue story and then the profitability takes a couple of years to mature? Any color on what your expectations are for that ramping up.

Tim，我想請教在商用市場方面，你對那邊的經濟性（economics）有什麼預期？也就是說，隨著規模拉升、並假設這些投資有所回報，對你們而言那個市場的成長會是有利可圖地擴張，還是比較像是先有營收故事、然後獲利要再過幾年才成熟？能否談談你對這個爬坡過程的預期？

Joe, we think the commercial market for enterprise solutions using small unmanned aircraft can be very, very large. There's -- and I think the approach that we're taking, which I've described as delivering actionable information that can significantly improve revenue, reduce cost or increase safety in large global enterprises, has the potential to significantly move the dial in important operations of those enterprises.

Joe，我們認為以小型無人飛機提供企業級解決方案的商用市場可能非常、非常大。我們採取的方法——我曾描述為提供可採取行動的資訊，能在大型全球企業中顯著提升營收、降低成本或提高安全——有潛力在這些企業的重要營運上帶來顯著影響。

So if you extrapolate that across industries like oil and gas, energy, agriculture, even transportation and public safety, it's clearly a huge potential. The level of -- the rate and the timing of that adoption, as you know, is very difficult to predict. And the nature of the adoption of that solution, as well as the rate, will end up driving the initial revenues and the associated profitability or the period of time of initial investment during that adoption.

因此，如果你把這個推廣到石油與天然氣、能源、農業，甚至運輸與公共安全等產業，顯然具有巨大的潛力。至於——採用的速度與時點，如你所知，非常難以預測。而該解決方案的採用型態以及採用速度，最終將驅動初期營收，以及相關的獲利能力，或是在採用期間初期投資所需的時間長度。

So I'm hesitant to give you a straight answer to your question because I can't predict the rate of adoption accurately. We do believe that the revenue potential is very large and that there are very strong value propositions that can be delivered. And delivering those value propositions can generate significant profitability. The timing of the growth in the revenue and the period of point in time when investment translates or kicks over into profitable returns, we'll have to wait and see.

所以我不太願意直接給你一個明確答案，因為我無法精準預測採用速度。我們確實相信營收潛力非常大，也有非常強的價值主張可以交付。而交付這些價值主張可以帶來可觀的獲利。至於營收成長的時點，以及投資何時轉化或跨越到可獲利的報酬，我們只能再觀察。

Okay. Thanks, Tim.

好的。謝謝你，Tim。

And then on the commentary around FY16, operating income being offset by SG&A and R&D in commercial. I think previously there were some other buckets that you guys were investing in, has that changed at all in terms of taxable missiles or Global Observer and now the focus is more on commercial? Or is it really just as it was six months ago?

另外，關於 FY16 的評論提到營業利益會被商用領域的 SG&A 與研發抵銷。我記得之前你們也有在其他項目上投資，這方面有任何改變嗎？例如戰術飛彈或 Global Observer，現在是否更聚焦在商用？還是其實就跟六個月前一樣？

Last year, Joe, we were incrementally investing in all three of those large growth opportunities. And we described specific areas we are investing in tactical missile systems, large UAS and commercial UAS. I think we accomplished our immediate objectives in tactical missile system investments and in large UAS investments last year.

去年，Joe，我們逐步投資於那三個大型成長機會。我們也說明了我們投資的具體領域，包括戰術飛彈系統、大型UAS以及商用UAS。我認為去年我們在戰術飛彈系統投資與大型UAS投資方面，已達成我們的短期目標。

However, as we went into FY16 this year, we see the compelling need to continue to make incremental investments to position ourselves for commercial UAS solutions. I think we see our ongoing typical investment in IR&D, internal research and development, that has ranged between 8% and 10% of revenue, to be adequate for now to support the growth in our core businesses and the work we need to continue to do in tactical missile systems and large UAS. The incremental investment this year over and above that 8% to 10% of revenue for IR&D is focused on commercial UAS development.

然而，進入本年度FY16後，我們看到仍有迫切需要持續進行增量投資，以便讓我們在商用UAS解決方案上做好布局。我認為我們持續且一貫的IR&D（內部研發）投資，約占營收的8%到10%，目前足以支持核心業務的成長，以及我們在戰術飛彈系統與大型UAS方面需要持續推進的工作。今年在IR&D占營收8%到10%之上所增加的投資，將聚焦於商用UAS的開發。

Our next question comes from the line of Andrea James with Dougherty & Company.

下一個問題來自Dougherty & Company的Andrea James。

Wanted to ask about the CybAero partnership. I remember when you guys took the stake in late 2012 you were talking about expanding your offerings with a tier 2 UAS and at the time I think you were looking at US NATO and allied forces. So had a question, is that -- obviously you haven't mentioned it in a while, is that something we shouldn't really think about anymore or are you still keeping a relationship with them somehow?

我想問一下關於與CybAero的合作夥伴關係。我記得你們在2012年底入股時，曾談到要以第二級（tier 2）UAS擴展你們的產品組合，當時我想你們的目標是美國、北約以及盟軍部隊。所以我有個問題：這件事——顯然你們有一段時間沒再提了——是不是我們不需要再把它納入考量？還是你們仍以某種方式與他們維持關係？

Well, I think your memory is correct, Andrea, when we made that initial investment in CybAero and developed our strategic relationship with them, we were primarily focused on responding to a very large Department of State requirement for UAS services that required both small UAS and tier 2 vertical takeoff and landing, or helicopter solutions. So we worked closely with CybAero to develop that integrated solution for the Department of State, which at the time had a $1 billion, 5-year IDIQ, RFP out that we were addressing.

我想你的記憶沒錯，Andrea。當我們對CybAero進行初始投資並與其建立策略關係時，我們主要聚焦於回應美國國務院一項非常大型的UAS服務需求，該需求同時需要小型UAS以及第二級垂直起降（VTOL）或直升機解決方案。因此，我們與CybAero密切合作，為國務院開發該整合式解決方案；當時國務院針對我們所回應的需求，發布了一份金額10億美元、為期5年的IDIQ（不定期交付／不定量）RFP（徵求建議書）。

The Department of State subsequently -- and at the same time, we had been working with other customers that had requirements for similar tier 2 helicopter, unmanned helicopter requirements. When the Department of State decided to not go forward with their RFP and their subsequent procurement for the UAS services, we ultimately decided to not make the incremental investments in the development of the tier 2 helicopter that would be necessary to meet the specific requirements of other customers in that area.

其後國務院——同時我們也一直與其他客戶合作，這些客戶也有類似的第二級直升機、無人直升機需求。當國務院決定不再推進其RFP以及後續針對UAS服務的採購時，我們最終決定不再投入必要的增量投資來開發第二級直升機，以滿足該領域其他客戶的特定需求。

Had we pursued the delivery against the State Department, we would have completed significant incremental development of that helicopter and been very close to the requirement solution for the other customers. But we weren't prepared to make that incremental investment in anticipation of the new requirements without the State Department contract.

如果我們當時追求履行國務院的交付，我們本會完成該直升機相當可觀的增量開發，並且非常接近能滿足其他客戶需求的解決方案。但在沒有國務院合約的情況下，我們不準備為了預期新需求而進行那筆增量投資。

That's super helpful, thank you. And then I was intrigued by the commentary about the oil spill, using the Puma to look at what is going on. Who's the customer there? And if you don't want to identify that, I'd love if you did, but is it a pipeline company or is it a government entity or some other entity who procures the Puma?

這非常有幫助，謝謝。接著我對你們提到的漏油事件很感興趣，使用Puma去觀察現場狀況。那邊的客戶是誰？如果你不方便指名也沒關係——但如果可以我很希望你能說——那是管線公司、政府機構，或是其他採購Puma的單位？

I will defer defining the specific, or identifying the specific customer until they make their own public announcements, but this was government customers addressing the spill.

在他們自行對外公開宣布之前，我先不界定或指認特定客戶；但這次是政府客戶在處理該漏油事件。

Our next question comes from the line of Troy Jensen with Piper Jaffray.

下一個問題來自Piper Jaffray的Troy Jensen。

This is actually Austin Bohlig on behalf of Troy Jensen. My first question is for Tim.

我是Austin Bohlig，代表Troy Jensen提問。我的第一個問題是問Tim。

On the commercial side again, you guys brought up you guys started to do some business with Duke Energy, going over some solar panels. I was curious, is that -- did you start using that business with the Exemption 333 process? Or were you able to do that because your Puma had been certified before that statute was put in place?

再回到商用端，你們提到開始與Duke Energy做一些業務，去巡檢一些太陽能板。我想了解的是：那——你們是透過Exemption 333（333豁免）流程開始做那項業務的嗎？還是因為你們的Puma在該法規生效前就已經取得認證，所以才能做？

Austin, I'm going to hedge a little bit. I'm not positive, but I believe in that particular instance, we used the 333 Exemption to deploy the Puma system and do that demonstration for Duke.

Austin，我先保留一點。我不完全確定，但我相信在那個特定案例中，我們是使用333豁免來部署Puma系統，並為Duke進行那次示範。

Okay. And then a follow up, last time on the call I know you guys talked about possibly maybe considering entering the prosumer market, maybe the lower end consumer drones. Is there any other -- or has there been any developments inside the Company to further pursue those opportunities?

好的。接著追問一下，上次電話會議我知道你們談到可能考慮進入prosumer市場，也就是較低端的消費級無人機。公司內部是否有任何其他——或是否有任何進展，來進一步追求那些機會？

We're primarily focused on the enterprise solution development that I've been describing, Austin. I think we were well aware, of course, of the significant consumer demand for the quadcopters that are currently available at that level. There's no doubt that if we were to conclude that we could bring a compelling product to the market that people were fascinated with and wanted to own and fly, that we would do that.

Austin，我們主要仍聚焦於我一直在描述的企業級解決方案開發。我想我們當然很清楚，目前該層級的四軸飛行器有相當顯著的消費需求。毫無疑問，如果我們判斷能推出一款具吸引力的產品，讓人們著迷、想要擁有並飛行，我們就會去做。

Okay. All right well thank you, gentlemen.

好的。好，謝謝各位先生。

(Operator Instructions)

（接線員指示）

Our next question comes from the line of Josephine Millward with Benchmark.

下一個問題來自Benchmark的Josephine Millward。

Tim, in your prepared remarks, you said AV is now delivering the new Switchblade variant that you developed last year. Now is this the production order that you expected? And can you tell us the size of this order?

Tim，在你準備好的發言中，你提到AV現在正在交付你們去年開發的新Switchblade變體。這是否就是你們預期的量產訂單？你能告訴我們這筆訂單的規模嗎？

This is a contract for one of the variants that we developed and demonstrated last year. I think I previously said we thought that was a possibility. And in fact, that's turned into a reality during Q1. I think the contracts and the revenue there are in -- they're a little over $5 million.

這是一份針對我們去年開發並展示的其中一個變體的合約。我想我之前說過我們認為那是有可能的。事實上，在第一季這已成為現實。我認為相關合約與營收——略高於500萬美元。

Congratulations to you. Do you think that has potential to grow, to expand?

恭喜你們。你認為這有成長、擴大的潛力嗎？

I do.

我認為有。

Great. Now a maritime small UAS adoption, when do you think you have more clarity on timing and is any of this in your guidance? That sounds like a very exciting market.

很好。那麼，小型UAS在海事領域的採用，你認為何時能更清楚掌握時程？這部分有納入你們的財測指引嗎？聽起來是個非常令人興奮的市場。

The -- we have a lot of customer engagement. We have a lot of focus on meeting the unique requirements for maritime applications. We are very focused on finding a cost effective and compelling solution that can address the Navy's mission. And as I described in my comments, there are other maritime applications that go to the Coast Guard and many others.

我們——與客戶有大量互動，也非常專注於滿足海事應用的獨特需求。我們非常專注於找到一個具成本效益且有吸引力的解決方案，能夠支援海軍的任務。正如我在評論中所描述的，還有其他海事應用，涵蓋海岸防衛隊以及許多其他單位。

I think at this point, for this fiscal year, we think we're still in the early adoption phase and our primary focus is working with customers, refining solutions that are compelling for them and looking for indication that they are moving towards initial adoption. The potential, as I've commented before, we think is quite large.

我認為就本會計年度而言，我們仍處於早期採用階段；我們的主要重點是與客戶合作、精煉對他們而言具吸引力的解決方案，並尋找他們正朝向初期採用邁進的跡象。正如我之前評論過的，我們認為其潛在規模相當大。

But that probably doesn't generate significant revenue growth yet this year. But we'll keep plugging away.

但這大概還不會在今年帶來顯著的營收成長。不過我們會持續努力推進。

We have a follow-up question from the line of Andrea James with Dougherty.

我們有一個追問，來自Dougherty的Andrea James。

Can you give us the funded R&D number for the quarter?

你能提供本季的受資助研發（funded R&D）金額嗎？

Funded R&D revenue number, Andrea?

Andrea，你是指受客戶資助的研發營收金額嗎？

Yes.

是的。

Our customer funded R&D for the quarter was $16.5 million.

本季我們的客戶資助研發金額為1,650萬美元。

Okay, thank you. Thank you, that's good. Thank you.

好的，謝謝。謝謝，這很好。謝謝。

Thank you. I'm showing no further questions at this time. I'd like to turn the call back to Management for closing remarks.

謝謝。目前顯示沒有其他問題。我想把電話交回管理層作結語。

Thank you very much, Abigail, and thank you all for your attention on this call and for your interest in AeroVironment. A recording 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.

非常感謝你，Abigail，也感謝各位在本次電話會議中的關注，以及對AeroVironment的興趣。本次電話會議的錄音、所有SEC申報文件以及相關的公司與產業新聞，都可在我們的網站www.avinc.com上找到。我們期待在下季財報結果公布後，再次與各位交流。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, you may all disconnect. Everyone have a great day.

各位女士、先生，感謝您參與今天的會議。至此本次議程結束，您可以掛線。祝各位有美好的一天。