AeroVironment, Inc. (AVAV) 2016 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the AeroVironment, Inc. fourth-quarter FY16 earnings call.

各位女士、先生，大家好，歡迎參加 AeroVironment, Inc. 2016 會計年度第四季（FY16）財報電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this call is being recorded for replay purposes. With us today from the Company is the President and Chief Executive Officer, Mr. Wahid Nawabi; Senior Vice President and Chief Financial Officer, Mr. Raymond Cook; and Vice President of Investor Relations, Mr. Steven Gitlin. And now at this time I'd like to turn the call over to Mr. Gitlin. Please go ahead, sir.

提醒各位，本次電話會議將錄音以供重播。今天與會的公司代表包括：總裁兼執行長 Wahid Nawabi 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。現在我想把電話交給 Gitlin 先生。先生，請開始。

Thank you very much Latoya, and welcome to our fourth-quarter and full 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 include without limitation any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain words such as believe, anticipate, expect, estimate, intend, project, plan or words or phrases with similar meaning. 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.

非常感謝你，Latoya，並歡迎各位參加我們第四季及 FY16 全年財報電話會議。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》（Private Securities Litigation Reform Act of 1995）所定義之前瞻性陳述。前瞻性陳述包括但不限於任何可能預測、預報、指示或暗示未來結果、表現或成就的陳述，並可能包含如 believe（相信）、anticipate（預期）、expect（預期）、estimate（估計）、intend（打算）、project（推估）、plan（計畫）或具有類似意義的字詞或片語。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之外部經濟、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。

Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: reliance on sales to the US government, availability of US government funding for defense procurement and R&D programs, changes in the timing and/or amount of government spending, difficulty or inability to obtain required export authorizations to sell our product to international customers, potential need for changes in our long-term strategy in response to future developments, the extent of regulatory requirements governing our contracts with the US government and international customers, the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements, unexpected technical and marketing difficulties inherent in major research and product development efforts, changes in the supply and/or demand and/or prices for of our products and services, the activities of our competitors and increased competition, failure of the markets in which we operate to grow, failure to remain a market innovator and create new market opportunities changes in significant operating expenses including components and raw materials, failure to develop new products, product liability, infringement and other claims, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission.

可能導致實際結果與前瞻性陳述存在重大差異的因素包括但不限於：對美國政府銷售的依賴；美國政府國防採購及研發（R&D）計畫資金的可得性；政府支出時點及／或金額的變動；取得必要出口授權以向國際客戶銷售我們產品的困難或無法取得；因應未來發展而可能需要調整我們長期策略；規範我們與美國政府及國際客戶合約之法規要求的程度；未能遵循該等法規要求可能對我們財務狀況、業務及聲譽造成的後果；重大研究與產品開發工作固有的非預期技術與行銷困難；我們產品與服務的供給及／或需求及／或價格變動；競爭對手的活動及競爭加劇；我們所處市場未能成長；未能維持市場創新者地位並創造新的市場機會；重大營運費用（包括零組件與原物料）之變動；未能開發新產品；產品責任、侵權及其他索賠；法規環境變動；以及美國及全球其他地區的一般經濟與商業狀況。關於上述風險與不確定性的進一步清單與說明，請參閱我們向美國證券交易委員會（SEC）提交的報告。

The content of this conference call contains time-sensitive information that is accurate only as of today, June 28, 2016. 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 Wahid Nawabi. Wahid?

本次電話會議內容包含具時效性的資訊，僅截至今日（2016 年 6 月 28 日）為準確。公司不承擔對我們發言中所含陳述進行任何修訂之義務，亦不承擔更新以反映本次電話會議後發生之事件或情況之義務。接下來由 Wahid Nawabi 發表談話。Wahid？

Good afternoon, and welcome to our fourth-quarter and full FY16 earnings call. I'll begin by expressing my appreciation to the entire AeroVironment team of passionate innovators, our Board of Directors, our customers, and our stockholders for your support in my new role as CEO. Since joining the Company in 2011 I have worked closely with many of our talented and hard-working team members, and developed a strong understanding of our operations.

各位下午好，歡迎參加我們第四季及 FY16 全年財報電話會議。首先，我要對整個 AeroVironment 團隊充滿熱情的創新者、我們的董事會、客戶以及股東，感謝各位在我擔任新任執行長一職上的支持。自 2011 年加入公司以來，我與許多才華洋溢且勤奮的團隊成員密切合作，並對我們的營運建立了深刻的理解。

More recently I have developed relationships with many other stakeholders including customers, stockholders and analysts. Together as a team we have positioned AeroVironment as a Company that develops innovative technology solutions to help customers accomplish their goals, is committed to making prudent strategic investments that enhance stockholder value, and above all is continually working to maintain and enhance its leadership position in large and growing markets.

近期我也與其他許多利害關係人建立了關係，包括客戶、股東與分析師。作為一個團隊，我們已將 AeroVironment 定位為一家開發創新技術解決方案、協助客戶達成目標的公司；致力於進行審慎的策略性投資以提升股東價值；最重要的是，持續努力維持並強化在大型且成長中市場的領導地位。

We're continuing our ongoing efforts to articulate our value proposition to our stakeholders with clarity. Recently we set out to fine tune our corporate brand and positioning by speaking with employees, customers, stockholders and analysts to explore their perceptions of what we do, how we do it, and why it's important to each of our stakeholder groups.

我們持續推動各項工作，以更清晰地向利害關係人闡述我們的價值主張。近期我們透過與員工、客戶、股東與分析師對談，探討他們對我們做什麼、如何做到，以及為何這對各利害關係人群體重要的看法，藉此精進我們的企業品牌與定位。

The conclusion from that process is encapsulated in the following statement, which powerfully conveys who AeroVironment is today. AeroVironment is a courageous technology company that provides customers with more actionable intelligence so they can proceed with certainty.

該流程的結論濃縮為以下陳述，有力地傳達了今日 AeroVironment 的定位：AeroVironment 是一家勇於突破的科技公司，為客戶提供更可採取行動的情資，使其能夠確定無疑地向前推進。

The key message here is, proceed with certainty. I believe this describes our core value proposition which is, how we help customers succeed. This is our goal across all our operations.

這裡的關鍵訊息是：確定無疑地向前推進（proceed with certainty）。我相信這描述了我們的核心價值主張，也就是我們如何協助客戶成功。這是我們在所有營運面向上的目標。

In defense, front line troops use Raven, Puma AE and WASP AE small UAS to gain critical intelligence that enables them to make better decisions and move forward safely. Our Switchblade systems give them the ability to neutralize lethal threats more accurately and with less collateral damage than ever before.

在國防領域，前線部隊使用 Raven、Puma AE 與 WASP AE 小型無人航空系統（small UAS）取得關鍵情資，使其能做出更佳決策並安全前進。我們的 Switchblade 系統讓他們能以前所未有的精準度中和致命威脅，並將附帶損害降至更低。

In emerging commercial applications the detailed analytics we deliver to our customers provide growers, engineers and railroad operators with a much better understanding of their operations so they can make more informed decisions that improve outcomes. In our EV charging solutions we provide drivers with the confidence to go farther, knowing they've received a safe and reliable charge.

在新興商業應用方面，我們提供給客戶的精細分析，讓種植者、工程師與鐵路營運商能更深入理解其作業狀況，從而做出更明智的決策以改善成果。在電動車（EV）充電解決方案方面，我們讓駕駛更有信心行駛更遠，因為他們知道已獲得安全且可靠的充電。

From an investor's perspective at a time of increasing global uncertainty, AeroVironment offers the unique combination of a core business focused on some of the most dynamic segments of the defense market, a strong balance sheet, and the prospects of a potentially large commercial UAS market.

從投資人的角度來看，在全球不確定性日益升高之際，AeroVironment 提供獨特的組合：核心業務聚焦於國防市場中最具動能的部分領域、強健的資產負債表，以及潛在規模龐大的商用無人航空系統（commercial UAS）市場前景。

Identifying and investing strategically in the development of innovative solutions for our customers enables us to create new opportunities for value creation. However, to deliver on our promise of certainty, we must also continuously improve our corporate planning and business processes.

辨識並以策略方式投資於為客戶開發創新解決方案，使我們能創造新的價值創造機會。然而，為了兌現我們對「確定性」的承諾，我們也必須持續改善公司的規劃與業務流程。

I have spent the past two months collaborating with our team members and senior leadership, leading to multiple initiatives focused on achieving that goal. You can see how we're communicating our identity more effectively in the new website we just launched this week, and you will see and hear more of it as it propagates throughout and beyond our Company.

過去兩個月，我與團隊成員及高階領導層合作，推動多項聚焦於達成該目標的倡議。各位可以在我們本週剛上線的新網站中看到我們如何更有效地傳達公司定位；隨著這些訊息在公司內外持續擴散，各位也將看到並聽到更多相關內容。

Now let's discuss our successes during the quarter and full year and the bright future ahead for AeroVironment. On today's call I will highlight three key messages. First, profitability. Our core business remains profitable, with leading market positions and strong customer pull.

現在讓我們討論本季與全年取得的成果，以及 AeroVironment 光明的未來。在今天的電話會議中，我將強調三個關鍵訊息。第一，獲利能力。我們的核心業務仍維持獲利，具備領先的市場地位與強勁的客戶拉動需求。

Second, growth. We are progressing on our strategy to deliver high long-term growth with continued progress in key initiatives targeting very large market opportunities. It is important to note that these opportunities may take time to materially contribute to our results. And third, confidence in our future. Our prospects for FY17 and beyond are promising.

第二，成長。我們正推進策略，以實現長期高成長，並在鎖定極大型市場機會的關鍵倡議上持續取得進展。需要特別指出的是，這些機會可能需要時間才會對我們的業績做出實質貢獻。第三，對未來的信心。我們對 FY17 及之後的前景抱持樂觀。

Today I will briefly review our fourth-quarter financial results, then discuss progress across our business in FY16. Raymond Cook will provide a detailed financial overview. Then I will wrap up our prepared remarks and provide our outlook for FY17 before Raymond, Steve and I take your questions.

今天我將簡要回顧第四季財務結果，接著討論 FY16 全年各業務的進展。Raymond Cook 將提供更詳細的財務概覽。之後我將總結我們的準備發言，並在 Raymond、Steve 與我回答各位提問之前，提供 FY17 的展望。

Now, fourth-quarter and full FY16 results. Our profitable core business continues to create value. Fourth-quarter revenue of $84.8 million and gross profit margin of 45% contributed to full-year revenue and gross profit margin of $264.1 million and 42.4% respectively. This represents 2% revenue growth and a 230 basis point increase in gross profit margin year over year.

接下來是第四季與 FY16 全年結果。我們具獲利能力的核心業務持續創造價值。第四季營收為 8,480 萬美元，毛利率為 45%；帶動 FY16 全年營收達 2.641 億美元、毛利率為 42.4%。這代表營收年增 2%，毛利率年增 230 個基點。

Our government contract reserve reversal along with favorable product mix contributed to our strong gross profit margin during FY16. The high gross profit margin produced a 380% increase in operating income. And an R&D tax credit helped drive a 200% increase in earnings per share year over year.

FY16 期間，我們的政府合約準備金回轉（reserve reversal）以及有利的產品組合，共同促成強勁的毛利率。較高的毛利率帶動營業利益成長 380%。此外，研發（R&D）稅額抵減也協助推動每股盈餘年增 200%。

Revenue in our UAS business segment increased by 6% over FY15, reflecting continued customer demand and solid performance. Please note that we experienced typical AeroVironment seasonality in FY16, with 42% and 58% of revenue occurring in the first and second halves respectively. Additionally the first quarter of FY16 revenue represented slightly more than 40% of first-half revenue.

我們的無人航空系統（UAS）業務部門營收較 FY15 成長 6%，反映客戶需求持續以及穩健的執行表現。請注意，FY16 我們出現 AeroVironment 典型的季節性，上半年與下半年營收占比分別為 42% 與 58%。此外，FY16 第一季營收占上半年營收的比重略高於 40%。

Before I continue, I would like to remind you of the way we define our core business and growth portfolio. Core business refers to products and services we sell to customers on a regular basis. Growth portfolio refers to initiatives under way that have not yet transitioned to full production and sales but have the potential for significant long-term value creation and growth. In some cases these growth initiatives also produce revenue through customer-funded R&D. Some of our product lines contribute to both our core business and growth portfolio.

在我繼續之前，我想提醒各位我們如何定義核心業務與成長投資組合。核心業務係指我們定期銷售給客戶的產品與服務。成長投資組合係指目前正在推動、尚未轉入全面量產與銷售，但具備顯著長期價值創造與成長潛力的各項計畫。在某些情況下，這些成長計畫也會透過客戶出資的研發（R&D）產生營收。我們的部分產品線同時對核心業務與成長投資組合皆有貢獻。

Now I will review the specifics of each of those product lines and clarify how we think of them, while also updating you on our progress in FY16. I'll begin by turning to the operating performance of our Unmanned Aircraft System segment, or UAS, where we focus on global defense and commercial markets with small UAS, tactical missiles systems and commercial UAS.

現在我將檢視各產品線的具體內容，釐清我們如何看待它們，同時向各位更新我們在 FY16 的進展。我將先從我們的無人航空系統（Unmanned Aircraft System，UAS）事業部的營運表現談起；在該事業部，我們聚焦於全球國防與商用市場，涵蓋小型 UAS、戰術飛彈系統以及商用 UAS。

I'll update you on each of these areas separately, starting with small UAS. Our core small UAS business consists of selling Raven, Puma AE and WASP AE systems to US government customers and sustaining them with spare parts, upgrades and training. Small UAS continues to serve as the main driver of our overall business.

我將分別就這些領域逐一更新，先從小型 UAS 開始。我們的小型 UAS 核心業務包括向美國政府客戶銷售 Raven、Puma AE 與 WASP AE 系統，並透過備品、升級與訓練提供後續維持支援。小型 UAS 仍是帶動我們整體業務的主要驅動力。

In FY16 we supported our US customers, primarily through sustainment of their large fleet as illustrated by the $47 million spare parts order we received in August. In November we announced a $13 million Marine Corps contract for new Puma AE systems, reflecting the strong continued demand for our small UAS. In May 2016 we introduced our new I-45 gimbaled sensor suite for Puma AE, which delivers unmatched imagery capabilities for small UAS.

在 FY16，我們支援美國客戶，主要是透過對其龐大機隊的維持支援；這可由我們於 8 月收到的 4,700 萬美元備品訂單看出。11 月，我們宣布獲得 1,300 萬美元的海軍陸戰隊新 Puma AE 系統合約，反映市場對我們小型 UAS 的強勁且持續的需求。2016 年 5 月，我們為 Puma AE 推出全新的 I-45 雲台感測器套件，為小型 UAS 提供無可匹敵的影像能力。

In the past these types of upgrades have contributed meaningfully to our revenue base. Similarly today we are confident that customers will find I-45 to be an attractive and compelling upgrade opportunity.

過去，這類升級對我們的營收基礎有相當顯著的貢獻。同樣地，今天我們也有信心，客戶將會認為 I-45 是一項具吸引力且極具說服力的升級機會。

While our domestic small UAS business is part of our core, we view the international opportunity for our small UAS as a growth driver. In fact, our international small UAS business generated record revenue in FY16. During the year we received orders from a growing list of countries including Australia, Spain, Saudi Arabia and seven Allied nations. We believe the international market for our small UAS is about a decade behind that of the US Department of Defense. This means that 35 international customers we have today and new customers we're pursuing represent significant future growth potential for the business.

雖然我們的國內小型 UAS 業務屬於核心業務的一部分，但我們將小型 UAS 的國際市場機會視為成長動能。事實上，我們的國際小型 UAS 業務在 FY16 創下營收新高。年度期間，我們收到來自愈來愈多國家的訂單，包括澳洲、西班牙、沙烏地阿拉伯以及七個盟國。我們認為，小型 UAS 的國際市場約落後美國國防部（DoD）市場約十年。這表示我們目前的 35 個國際客戶，以及我們正在爭取的新客戶，代表該業務未來顯著的成長潛力。

Our small UAS continues to demonstrate capabilities above and beyond those of even larger competitors. In January a joint AeroVironment and Nova team operated Puma AE as an advanced scout for the Coast Guard Ice Breaker Polar Star in Antarctica. Even in such a challenging environment, operators were able to fly Puma AE more than 25 miles from the ship, demonstrating their ability to rely on our technology while keeping people out of harm's way and helping the Polar Star and Coast Guard proceed with certainty.

我們的小型 UAS 持續展現出甚至超越更大型競爭對手的能力。1 月，AeroVironment 與 Nova 的聯合團隊在南極洲操作 Puma AE，作為海岸防衛隊破冰船 Polar Star 的先進偵察工具。即使在如此嚴苛的環境中，操作人員仍能讓 Puma AE 飛離船艦超過 25 英里，展現他們能仰賴我們的技術，同時讓人員遠離危險，並協助 Polar Star 與海岸防衛隊更有把握地推進任務。

Small UAS is our primary core business, and potential new requirements such as the US Army's short-range micro UAS, a soldier-borne sensor, and a pending Army program to relocate the frequency spectrum on which our small UAS operate represent potential growth opportunities within it. Our Shrike VTOL could potentially satisfy the short-range micro UAS requirement. Another one of our micro UAS in development could potentially satisfy the soldier-borne sensor.

小型 UAS 是我們的主要核心業務，而潛在的新需求——例如美國陸軍的短程微型 UAS（short-range micro UAS）、士兵攜行式感測器（soldier-borne sensor），以及一項待定的陸軍計畫（將我們小型 UAS 運作所使用的頻譜進行重新配置）——都代表其中的潛在成長機會。我們的 Shrike 垂直起降（VTOL）機型可能可滿足短程微型 UAS 的需求。我們另一款正在研發中的微型 UAS 可能可滿足士兵攜行式感測器的需求。

Successful evaluation of our Tether Eye, a virtual observation and communication tower for buildings, fixed installations in vehicles, would bode well for its adoption and contribution to small UAS growth. In small UAS, we see additional opportunities for adoption in the US Navy which has already deployed Puma AE systems on several vessels, in the Coast Guard, and for Homeland Security applications. We are working hard to achieve all of these opportunities.

若我們的 Tether Eye（用於建築物、固定設施與車載的虛擬觀測與通訊塔）評估結果成功，將有利於其被採用並對小型 UAS 成長作出貢獻。在小型 UAS 方面，我們也看到在美國海軍（其已在多艘艦艇部署 Puma AE 系統）、海岸防衛隊，以及國土安全（Homeland Security）應用上的更多採用機會。我們正全力以赴以實現所有這些機會。

Next, our relatively new tactical missile systems business includes Switchblade, our recently unveiled Black Wing ISR system, and several Switchblade variants that address new customers and new concepts of operations. We've been delivering Switchblade systems designed for use by dismounted infantry units to our US military customers under urgent needs requirements within our core business. The potential US Army program of record for lethal miniature aerial missile systems, or LMAMS, represents a significant growth opportunity.

接下來，我們相對較新的戰術飛彈系統業務包括 Switchblade、我們近期揭露的 Black Wing 情監偵（ISR）系統，以及多款可滿足新客戶與新作戰概念的 Switchblade 變體。我們在核心業務範疇內，已依據緊急需求（urgent needs）要求，向美軍客戶交付供徒步步兵部隊使用的 Switchblade 系統。美國陸軍可能建立的致命微型空中飛彈系統（Lethal Miniature Aerial Missile Systems，LMAMS）正式建案（program of record）代表一項重大的成長機會。

In May we announced that our black 10C Switchblade upgrade had transitioned from development into production. Black 10C integrates our digital data link to position us even more favorably to address existing demand, as well as the pending LMAMS program record once the customer initiates a competition.

5 月，我們宣布黑色 10C Switchblade 升級版已由研發階段轉入量產。Black 10C 整合了我們的數位資料鏈路，使我們在滿足既有需求以及未來一旦客戶啟動競標的 LMAMS 正式建案方面，處於更有利的位置。

As we announced in May, we recently unveiled Black Wing, a small tube launch UAS that deploys from under the surface of the sea from manned submarines and unmanned underwater vehicles. You can think of it as a stealthy, sly periscope for submarines.

如同我們在 5 月所宣布的，我們近期揭露了 Black Wing——一款小型管式發射的 UAS，可由載人潛艦與無人水下載具在海面下方部署發射。你可以把它想像成潛艦用的隱蔽、靈巧的潛望鏡。

Black Wing represents a growth opportunity and is a compelling capability that is currently being adopted by the US Navy. Instead of housing an integrated warhead, Black Wing carries extra batteries, providing longer endurance and shorter range -- greater range. Black Wing's command and patrol system is tightly integrated into US Navy submarine fire control systems, part of the integral system similar to a periscope.

Black Wing 代表一項成長機會，且是一項具吸引力的能力，目前正被美國海軍採用。Black Wing 並非搭載整合式彈頭，而是攜帶額外電池，提供更長的續航與更短的航程——更大的航程。Black Wing 的指揮與巡邏系統與美國海軍潛艦火控系統緊密整合，屬於類似潛望鏡的整體系統之一部分。

At AeroVironment, we are very excited about the Black Wing opportunity, which I will provide some context to. According to publicly available data, the US Navy currently operates about 70 submarines. Outfitting each submarine in the fleet with multiple Black Wings, for example, would represent a total opportunity for hundreds of these single-use units.

在 AeroVironment，我們對 Black Wing 的機會感到非常振奮，我也將提供一些背景說明。根據公開資料，美國海軍目前約操作 70 艘潛艦。若為艦隊中的每艘潛艦配備多具 Black Wing（例如），則整體機會將達到數百具此類一次性使用單元。

Unmanned underwater vehicles, some surface ships and Allied vessels could provide additional opportunity. In assessing this opportunity, it is important to consider that the DoD's five-year future years defense program, or FYFYDP, envisions a multi-year procurement for providing this capability to US submarines.

無人水下載具、部分水面艦艇以及盟國艦艇也可能帶來額外機會。在評估此機會時，重要的是要考量國防部的五年期未來年度國防計畫（five-year future years defense program，FYFYDP）已規劃以多年期採購方式，為美國潛艦提供此項能力。

Our emerging family of tactical missile systems is the direct outcome of prior-year investments that are continuing to yield results. Having the strategic foresight to invest our own funds into the development of Switchblade and its variants has positioned us extremely well as the leading supplier of this capability, as illustrated by the revenue growth we have experienced for this product line.

我們新興的戰術飛彈系統系列，是前幾年投資的直接成果，且這些投資仍持續產生成效。具備策略前瞻性、以自有資金投入 Switchblade 及其變體的研發，使我們在此能力領域成為領先供應商並處於極佳位置；這也可由我們在該產品線所經歷的營收成長得到印證。

In FY11 we generated about $6 million from tactical missile systems. That amount grew to approximately $41 million in FY16. In FY16 we also began shipping production units of one Switchblade variant in addition to Black Wing, and we could see another variant transition to production this fiscal year.

在 FY11，我們的戰術飛彈系統營收約為 600 萬美元；到 FY16，該金額成長至約 4,100 萬美元。在 FY16，我們也開始出貨除 Black Wing 之外的某一款 Switchblade 變體之量產單元，而我們也可能在本會計年度看到另一款變體轉入量產。

Beyond military applications for our small UAS, we continue our investment to develop solutions for the commercial UAS opportunity which we will introduce to the market once we are confident our solution is robust and scalable. Today the commercial UAS initiatives include two significant potential growth opportunities. One, the deployment of small UAS with other sensing technologies and data analytics to provide customers with more actionable intelligence. And two, atmospheric satellites for high altitude long endurance UAS for remote sensing and communication.

除了小型 UAS 的軍事應用之外，我們也持續投入資源，開發商用 UAS 機會的解決方案；一旦我們對解決方案的穩健性與可擴展性有信心，便會將其推向市場。目前商用 UAS 計畫包含兩項重要的潛在成長機會：第一，將小型 UAS 與其他感測技術及資料分析結合部署，為客戶提供更具可行動性的情報；第二，作為高空長航時（high altitude long endurance）UAS 的「大氣層衛星」（atmospheric satellites），用於遙測與通訊。

Our investments to development an integrated information system solution for the commercial opportunity focus on four primary industries. First position, agriculture; second, energy; third, transportation; and fourth, utility infrastructure with hardware and software as part of an integrated system solution.

我們為商用機會所投入、用於開發整合式資訊系統解決方案的資源，聚焦於四大主要產業：第一，農業；第二，能源；第三，運輸；第四，公用事業基礎設施；並以硬體與軟體作為整合式系統解決方案的一部分。

Our commercial software solution includes a functioning cloud-based analytics portal that provides powerful and easy to use geo-rectified data products. This secure portal gives customers their own environment in which to perform analyses, store and compare historical data, and identify anomalies that may pose risks to their operations.

我們的商用軟體解決方案包含一個可運作的雲端分析入口網站，提供強大且易於使用的幾何校正（geo-rectified）資料產品。此安全入口網站為客戶提供其專屬環境，用以進行分析、儲存並比較歷史資料，以及辨識可能對其營運造成風險的異常狀況。

While this solution is still in its early stages, initial pilot customer response is very positive. Even though we're still in the early stages, we have several small but important customer contracts in commercial UAS which demonstrate the opportunity and potential of this market.

雖然此解決方案仍處於早期階段，但初期試點客戶的回饋非常正面。即使我們仍在早期階段，我們在商用 UAS 方面已取得數個規模不大但重要的客戶合約，展現了此市場的機會與潛力。

In fact, we are currently seeing positive feedback from customers on our work. For example, we are engaged with a global energy customer on a pipeline surveying project in the Lower 48. We have worked with two top 10 US electric utilities to provide them with greater insight into their infrastructure, such as power lines and associated right-of-ways.

事實上，我們目前正從客戶對我們工作的回饋中看到正面反應。例如，我們正與一家全球能源客戶合作，在美國本土 48 州（Lower 48）進行一項管線測量專案。我們已與兩家美國前十大電力公用事業公司合作，為其提供對其基礎設施（例如電力線路及其相關通行權範圍）的更深入洞察。

We're also under contract for information solutions as a system integrator with one of the largest US railroads. In May 2016 we announced that we are working with NASA and others to demonstrate a next generation traffic management solution for unmanned aircraft integration in the national air space.

我們也以系統整合商身分，與美國最大鐵路公司之一簽訂資訊解決方案合約。2016 年 5 月，我們宣布正與 NASA 及其他單位合作，示範用於無人航空器整合至國家空域的下一代交通管理解決方案。

We continue to choose early adopter customers selectively based on their appreciation for the value our solution can deliver to enhance safety, improve risk management, and address regulatory compliance. We're working with these customers to demonstrate our capabilities and understand how best to integrate them into their operations.

我們持續依據客戶對我們解決方案可帶來價值的認同，選擇性地挑選早期採用者客戶，以提升安全性、改善風險管理並因應法規遵循。我們正與這些客戶合作，展示我們的能力，並了解如何將其最佳化地整合至其營運之中。

Beyond these information solutions, we continue to pursue opportunities to deploy atmospheric satellite systems for remote sensing and communications on opportunities that remain binary. That is, it will either happen or not. If this opportunity does occur, it would be meaningful to our growth strategies.

除上述資訊解決方案外，我們也持續尋求部署大氣衛星系統以進行遙測與通訊的機會；這些機會仍屬二元性，也就是要嘛發生、要嘛不發生。若此機會成真，將對我們的成長策略具有重要意義。

Now moving to our EES business segment. We consider EE test systems positively charged industrial EV charging systems and passenger EV charging systems components of our core business. The introduction of ProCore and new Charging solution for electric forklifts demonstrates continued progress in EES towards strengthening our market position and building pathways to growth. The potential upside for passenger EV charging should global EV adoption increase rapidly is another growth opportunity for which we have established a leading market position.

接著談到我們的 EES 業務部門。我們將 EE 測試系統、正極充電的工業用電動車（EV）充電系統，以及乘用電動車充電系統，視為核心業務的組成。ProCore 的推出以及針對電動堆高機的新充電解決方案，展現 EES 在強化市場地位並建立成長途徑方面的持續進展。若全球 EV 採用快速提升，乘用 EV 充電的潛在上行空間將是另一項成長機會，而我們已在此建立領先的市場地位。

Our accomplishments in FY16 produced results within the range of our expectations and advanced our progress towards our long-term objectives. Now Raymond will provide a detailed review of our financial performance in the year.

我們在 2016 財年（FY16）的成果所產生的結果落在我們預期範圍內，並推動我們朝長期目標前進。接下來 Raymond 將就本年度的財務表現提供詳細回顧。

Thank you Wahid, and good afternoon everyone. AeroVironment's FY16 fourth-quarter results are as follows. Revenue for the fourth quarter was $84.8 million, a decrease of 2% from fourth quarter FY15 revenue of $86.5 million. The decrease in revenue was due to a decrease in product deliveries of $3 million partially offset by an increase in contract services revenue of $1.3 million.

謝謝 Wahid，各位下午好。AeroVironment 2016 財年第四季的結果如下：第四季營收為 8,480 萬美元，較 2015 財年第四季的 8,650 萬美元下降 2%。營收下降係因產品交付減少 300 萬美元，部分被合約服務營收增加 130 萬美元所抵銷。

Looking at revenue by segment. UAS revenue was $75.9 million, a decrease of $2.8 million, or 4% compared to the fourth quarter of 2015. The decrease is primarily due to a decrease in product deliveries of $4.3 million, a decrease in customer-funded R&D work of $1.2 million which was partially offset by an increase in service revenue of $2.7 million.

按部門來看營收。UAS 營收為 7,590 萬美元，較 2015 年第四季減少 280 萬美元，或 4%。下降主要由於產品交付減少 430 萬美元，以及客戶出資研發（R&D）工作減少 120 萬美元；部分被服務營收增加 270 萬美元所抵銷。

EES revenue increased $1.1 million, or 14%, to $8.9 million in the fourth quarter versus the same period in 2015. This increases was primarily due to an increase in product deliveries of $1.4 million that's was partially offset by a decrease of $0.3 million of service revenue.

EES 營收在第四季較 2015 年同期增加 110 萬美元，或 14%，至 890 萬美元。此增幅主要來自產品交付增加 140 萬美元，但部分被服務營收減少 30 萬美元所抵銷。

Turning to gross margin. Gross margin for the fourth quarter was $37.9 million, or 45%, a decrease of $7.4 million as compared to $45.4 million, or 52%, in the fourth quarter of 2015. The decrease in gross margin was primarily due to a decrease in product margins of $8.1 million, partially offset by an increase in service revenue margins of $0.7 million.

接著看毛利。第四季毛利為 3,790 萬美元，或 45%，較 2015 年第四季的 4,540 萬美元（或 52%）減少 740 萬美元。毛利下降主要由於產品毛利減少 810 萬美元，部分被服務營收毛利增加 70 萬美元所抵銷。

By segment, UAS gross margin for the fourth quarter was $35 million, a decrease of $7.4 million as compared to $42.3 million for the fourth quarter of 2015. As a percentage of revenue, gross margin for UAS decreased from 54% to 46%, primarily due to product mix. EES gross margin for the fourth quarter was $2.97 million, a decrease of $0.1 million as compared to $3.04 million for the fourth quarter of 2015. As a percentage of revenue, EES gross margin decreased from 39% to 33%, primarily due to product mix.

按部門來看，UAS 第四季毛利為 3,500 萬美元，較 2015 年第四季的 4,230 萬美元減少 740 萬美元。以營收百分比計，UAS 毛利率由 54% 降至 46%，主要因產品組合所致。EES 第四季毛利為 297 萬美元，較 2015 年第四季的 304 萬美元減少 10 萬美元。以營收百分比計，EES 毛利率由 39% 降至 33%，主要因產品組合所致。

SG&A expense for the fourth quarters was $16.8 million, or 20% of revenue, compared to SG&A expense of $15.6 million, or 18% of revenue in the fourth quarter of FY15. R&D expense for the fourth quarter was $14.3 million, or 17% of revenue, compared to R&D expense of $22.3 million, or 26% of revenue in the fourth quarter of FY15.

第四季銷售、一般及行政（SG&A）費用為 1,680 萬美元，佔營收 20%；相較之下，2015 財年第四季 SG&A 費用為 1,560 萬美元，佔營收 18%。第四季研發（R&D）費用為 1,430 萬美元，佔營收 17%；相較之下，2015 財年第四季 R&D 費用為 2,230 萬美元，佔營收 26%。

Operating income for the fourth quarter was $6.8 million, or 8% of revenue, compared to operating income of $7.5 million, or 9% of revenue in the fourth quarter of FY15. The provision for income taxes for the fourth quarter was $1.9 million, or an effective tax rate of 26.4%, compared to the benefit for income taxes of $0.1 million, or an effective tax rate of negative 1.2% for the fourth quarter of FY15. Net income for the fourth quarter was $5.4 million, or $0.23 per diluted share, compared to net income of $7.1 million, or $0.31 per diluted share for the fourth quarter of FY15.

第四季營業利益為 680 萬美元，佔營收 8%；相較之下，2015 財年第四季營業利益為 750 萬美元，佔營收 9%。第四季所得稅費用為 190 萬美元，實際稅率為 26.4%；相較之下，2015 財年第四季所得稅利益為 10 萬美元，實際稅率為負 1.2%。第四季淨利為 540 萬美元，稀釋後每股盈餘 0.23 美元；相較之下，2015 財年第四季淨利為 710 萬美元，稀釋後每股盈餘 0.31 美元。

Now moving through full year 2016 results as compared to FY15. Revenue for FY16 was $264.1 million, an increase of $4.7 million, or 2%, as compared to $259.4 million for FY15. The increase in revenue was due to an increase in contract services of $20.3 million, partially offset by a decrease in product revenue of $15.6 million.

接著說明 2016 全年結果，並與 2015 財年（FY15）比較。2016 財年營收為 2.641 億美元，較 FY15 的 2.594 億美元增加 470 萬美元，或 2%。營收增加係因合約服務增加 2,030 萬美元，部分被產品營收減少 1,560 萬美元所抵銷。

UAS revenue was $233.7 million, an increase of $12.8 million, or 6%, compared to FY15. The increase was primarily due to an increase in customer-funded R&D work of $16.6 million, primarily driven by our tactical missile systems variant programs.

UAS 營收為 2.337 億美元，較 FY15 增加 1,280 萬美元，或 6%。此增幅主要來自客戶出資研發（R&D）工作增加 1,660 萬美元，主要由我們的戰術飛彈系統變體計畫所帶動。

An increase in service revenue of $4.5 million, primarily due to an increase in sustainment activities in small UAS, partially offset by a decrease in product deliveries of $8.3 million that was primarily due to a decrease in deliveries of WASP and Switchblade systems, partially offset by an increase in deliveries of Puma and Raven systems.

服務營收增加 450 萬美元，主要因小型 UAS 的維持（sustainment）活動增加；部分被產品交付減少 830 萬美元所抵銷，該減少主要由 WASP 與 Switchblade 系統交付下降所致，但部分被 Puma 與 Raven 系統交付增加所抵銷。

EES revenue was $30.4 million, a decrease of $8.1 million, or 21% compared to FY15, primarily due to a decrease in product deliveries of our industrial fast charge systems and passenger electric vehicle charging systems, as well as a decrease in service revenue.

EES 營收為 3,040 萬美元，較 FY15 減少 810 萬美元，或 21%，主要由於我們的工業用快速充電系統與乘用電動車充電系統產品交付減少，以及服務營收下降。

Gross margin for FY16 was $112.1 million as compared to $104.3 million for FY15, representing an increase of $7.8 million, or 8%. The increase in gross margin was primarily due to an increase in service margins of $10.5 million, partially offset by a decrease in product margin of $2.7 million, both of which were impacted by the settlement and resolution of the prior-year government incurred cost audits during 2016.

2016 財年毛利為 1.121 億美元，相較 FY15 的 1.043 億美元增加 780 萬美元，或 8%。毛利增加主要來自服務毛利增加 1,050 萬美元，部分被產品毛利減少 270 萬美元所抵銷；兩者皆受到 2016 年完成前一年度政府可報銷成本（incurred cost）稽核之和解與結案的影響。

UAS gross margin increased $8.8 million, or 10%, to $101.5 million for FY16, primarily due to an increase in service revenue as well as favorable product mix and the government contract reserve reduction. As a percentage of revenue, gross margin for UAS increased from 42% to 43%. EES gross margin decreased $1 million, or 8%, to $10.6 million for FY16, primarily due to a decrease in sales volume, partially offset by the government contract reserve reduction. As a percentage of revenue, EES gross margin increased from 30% to 35%.

UAS 毛利於 FY16 增加 880 萬美元，或 10%，至 1.015 億美元，主要因服務營收增加，以及有利的產品組合與政府合約準備金（reserve）減少。以營收百分比計，UAS 毛利率由 42% 提升至 43%。EES 毛利於 FY16 減少 100 萬美元，或 8%，至 1,060 萬美元，主要因銷售量下降，部分被政府合約準備金減少所抵銷。以營收百分比計，EES 毛利率由 30% 提升至 35%。

SG&A expense for FY16 was $60.1 million, or 23% of revenue, compared to SG&A expense of $55.8 million, or 22% of revenue for FY15. SG&A expense increased $4.3 million primarily due to higher bid and proposal costs, an increase in sales commission expense, and an increase in severance-related charges. R&D expense for FY16 was $42.3 million, or 16% of revenue, compared to R&D expense of $46.5 million, or 18% of revenue for FY15.

FY16 的 SG&A 費用為 6,010 萬美元，約占營收的 23%，相較之下 FY15 的 SG&A 費用為 5,580 萬美元，約占營收的 22%。SG&A 費用增加 430 萬美元，主要由於投標與提案成本較高、銷售佣金費用增加，以及與資遣相關的費用增加。FY16 的研發（R&D）費用為 4,230 萬美元，約占營收的 16%，相較之下 FY15 的研發費用為 4,650 萬美元，約占營收的 18%。

Operating income for FY16 was $9.7 million, or 4% of revenue, compared to operating income of $2 million, or 1% of revenue for FY15. The increase in operating income was primarily due to increased gross margin of $7.8 million, decreased R&D expense of $4.2 million, partially offset by an increase in SG&A expense of $4.3 million.

FY16 的營業利益為 970 萬美元，約占營收的 4%，相較之下 FY15 的營業利益為 200 萬美元，約占營收的 1%。營業利益的增加主要來自毛利增加 780 萬美元、研發費用減少 420 萬美元，但部分被 SG&A 費用增加 430 萬美元所抵銷。

The effective income tax benefit rate for FY16 was negative 11.1% compared to the effective income tax benefit rate from FY15 of negative 52.9%. The variance in the effective income tax rate was primarily due to higher pretax income and an increase in federal R&D tax credits.

FY16 的有效所得稅利益率為負 11.1%，相較之下 FY15 的有效所得稅利益率為負 52.9%。有效所得稅率的差異主要由於稅前所得較高，以及聯邦研發（R&D）稅額抵減增加。

Net income for FY16 was $9 million, or $0.39 per diluted share, compared to net income of $2.9 million, or $0.13 per diluted share for FY15. Net income per diluted share for the FY16 was increased by $0.10 due to the reserve reversal for the settlement and resolution of prior-year government incurred cost audits, increased by $0.05 due to the R&D tax credits related to prior fiscal year primarily as a result of the reenactment of the federal R&D tax credit, and decreased by $0.06 due to both the impairment loss and the loss on sale of our remaining holdings of CybAero equity securities during the first half of FY16.

FY16 的淨利為 900 萬美元，或每股稀釋後 0.39 美元，相較之下 FY15 的淨利為 290 萬美元，或每股稀釋後 0.13 美元。FY16 的每股稀釋後淨利因以下因素而增加（或減少）：由於就前一年度政府已發生成本審計的和解與結案而進行準備金回轉，使每股增加 0.10 美元；由於與前一會計年度相關的研發稅額抵減（主要因聯邦研發稅額抵減重新立法）使每股增加 0.05 美元；以及由於 FY16 上半年對減損損失與出售我們剩餘持有之 CybAero 股權證券的處分損失，使每股減少 0.06 美元。

Looking at backlog. Funded backlog as of April 30, 2016 was $65.8 million as compared to $64.7 million at the end of FY15.

接著看在手訂單（backlog）。截至 2016 年 4 月 30 日的已資金支持在手訂單為 6,580 萬美元，相較於 FY15 年底的 6,470 萬美元。

Turning now to our balance sheet. Cash, cash equivalents and investments at the end of FY16 totaled $261.6 million, a decrease of $14 million from $275.6 million as of April 30, 2015. Net accounts receivable as of April 30, 2016 including unbilled and retention receivables totaled $74.9 million, an increase of $24 million over 2015.

現在轉到資產負債表。FY16 期末的現金、約當現金及投資合計為 2.616 億美元，較 2015 年 4 月 30 日的 2.756 億美元減少 1,400 萬美元。截至 2016 年 4 月 30 日的應收帳款淨額（包含未開立帳單及保留款應收）合計為 7,490 萬美元，較 2015 年增加 2,400 萬美元。

Total days outstandings was approximately 87 days for FY16 compared to 66 days for FY15. Net inventory was $37.5 million at the end of FY16 compared to $39.4 million at the end of FY15. Days in inventory were approximately 92 days for FY16 compared to 106 days for FY15.

FY16 的應收帳款週轉天數約為 87 天，相較之下 FY15 為 66 天。FY16 期末的存貨淨額為 3,750 萬美元，相較之下 FY15 期末為 3,940 萬美元。FY16 的存貨天數約為 92 天，相較之下 FY15 為 106 天。

During FY16 we invested approximately $8 million, or 3% of revenue, in property improvements and capital equipment. We recognized approximately $6.1 million of depreciation and amortization expense in the year. Now I'd like to turn things back to Wahid to discuss AV's expectations for FY17.

FY16 期間我們在不動產改善與資本設備上投資約 800 萬美元，約占營收的 3%。本年度我們認列約 610 萬美元的折舊與攤銷費用。現在我想把時間交回給 Wahid，討論 AV 對 FY17 的展望。

Thanks, Raymond. FY16 positions us well for FY17 with strong customer engagement and important progress in our core business and growth portfolio. As we look ahead across FY17, some important milestones to look for include, one, continuing the expansion of our domestic small UAS business through sustainment and upgrades, potential US Army procurement programs and promising US Navy adoption. Two, expanding our growing international installed base for small UAS with existing and new customers. Three, progressing towards the US DoD's frequency relocation program for small UAS.

謝謝你，Raymond。FY16 透過強勁的客戶互動，以及在核心業務與成長組合上的重要進展，讓我們為 FY17 打下良好基礎。展望 FY17，有幾個重要里程碑值得關注：第一，透過維持與升級、潛在的美國陸軍採購計畫，以及美國海軍可望採用，持續擴大我們的國內小型 UAS 業務。第二，與既有及新客戶一起，擴大我們日益成長的國際小型 UAS 裝機基礎。第三，推進美國國防部（US DoD）針對小型 UAS 的頻率遷移計畫。

Four, continuing successful delivery of Switchblade tactical missile systems to our defense customers who see great value in this unique capability. Five, deploying Black Wing systems to the US Navy submarine fleet. Six, continuing progresses in our Switchblade variants, including ongoing production of some variants and progress towards the production of others.

第四，持續成功向重視此一獨特能力的國防客戶交付 Switchblade 戰術飛彈系統。第五，將 Black Wing 系統部署至美國海軍潛艦艦隊。第六，持續推進我們的 Switchblade 各型號，包括部分型號的持續量產，以及其他型號朝量產邁進。

Seven, launching our commercial UAS business for precision agriculture and other verticals, including announcing key customer relationships and projects. Eight, further customer engagement in atmospheric satellite systems. Nine, accelerating progress in our global turbo core EV charging strategy. And 10, successful execution on our continuous improvement initiatives.

第七，推出我們面向精準農業及其他垂直領域的商用 UAS 業務，包括宣布關鍵客戶關係與專案。第八，進一步與大氣衛星系統客戶互動。第九，加速推進我們的全球渦輪核心（turbo core）電動車充電策略。第十，成功執行我們的持續改善計畫。

With our plan in place, we expect effective execution across our portfolio of opportunities to produce FY17 revenue of between $260 million and $280 million. We are moderating our incremental internal R&D investments this year based on our progress last year and our expectations for market adoption timing this year.

在既定計畫下，我們預期能在整體機會組合上有效執行，FY17 營收可達 2.60 億至 2.80 億美元。今年我們將依據去年進展以及對今年市場採用時點的預期，適度放緩新增的內部研發投資。

For FY17 we are targeting an internally funded R&D rate of 12% of revenue. As a reminder, we are generating a growing amount of customer R&D funding, resulting in total R&D higher than what we fund ourselves. As a result of lower internally funded R&D, we expect to produce operating profit this year that will deliver earnings per share of between $0.20 and $0.35.

FY17 我們的目標是將內部自籌研發占營收比率設定為 12%。提醒一下，我們正取得愈來愈多的客戶研發資金，因此研發總額將高於我們自籌的部分。由於內部自籌研發較低，我們預期今年可產生營業利益，使每股盈餘介於 0.20 至 0.35 美元。

We expect seasonality similar to what we have experienced in recent years but a bit more pronounced, with the second half of the year representing two-thirds of full-year revenue. Within the first half of the year we expect a similar distribution to FY16 with about 40% of first-half revenue in the first quarter.

我們預期季節性與近年相似，但會更為明顯一些，下半年將占全年營收的三分之二。在上半年之內，我們預期分布與 FY16 類似，上半年營收約有 40% 會落在第一季。

Before we turn the call over to Q&A, I would like to reiterate our points for continued areas of focus for value creation. One, our core business remains profitable with leading market positions and strong customer pull. Two, we're progressing on our strategy to deliver high long-term growth with continued progress in key growth initiatives targeting very large market opportunities. It's important to note that these opportunities may take time to develop into material financial contributors to our results. And third, our prospects for FY17 and beyond are promising.

在把電話會議交給問答之前，我想重申我們持續聚焦於價值創造的幾個重點領域。第一，我們的核心業務仍具獲利能力，擁有領先的市場地位與強勁的客戶拉動需求。第二，我們正推進以高長期成長為目標的策略，並在鎖定極大型市場機會的關鍵成長計畫上持續取得進展。需要注意的是，這些機會可能需要時間，才會發展成對我們業績具有實質貢獻的財務來源。第三，我們對 FY17 及之後的前景感到樂觀。

We have much work to do and I cannot think of a more capable team than the one I have been given the privilege to lead. I look forward to spending more time with our stockholders, analysts, our leadership team and our Board in order to deliver on your high expectations of us. Thank you to our employees, our customers, and our stockholders for your trust and ongoing engagement. I am eager to help all of our stakeholders proceed with certainty.

我們還有很多工作要做，而我想不到有比我有幸領導的這支團隊更有能力的團隊。我期待能花更多時間與我們的股東、分析師、領導團隊以及董事會交流，以達成各位對我們的高度期待。感謝我們的員工、客戶與股東對我們的信任與持續互動。我也渴望協助所有利害關係人更有把握地向前邁進。

Raymond, Steve and I will now take your questions.

Raymond、Steve 和我現在開始回答各位的問題。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

The first question comes from Troy Jensen of Piper. Your line is now open.

第一個問題來自 Piper 的 Troy Jensen。您的線路已開通。

Gentlemen, congrats on a nice profitability.

各位先生，恭喜你們獲利表現不錯。

Thank you.

謝謝。

Wahid, for you, and maybe Raymond can help with this, too. Just to go over your full-year guidance again. So you said $260 million to $280 million, it's 65%, or two-thirds in the second half and one-third in the first half.

Wahid，這題問你，也許 Raymond 也能一起補充。想再確認一下你們的全年指引。所以你說是 2.60 億到 2.80 億美元，下半年占 65%（或三分之二），上半年占三分之一。

Correct.

正確。

And then what was the comment about 40% of it, you expect 40% of the first-half number expects to be in the July quarter, is that correct?

然後你提到 40% 的那段評論是指，你們預期上半年數字中的 40% 會落在 7 月那一季，對嗎？

Yes. What we did is we gave some color. And we said about one-third/two-thirds between first half and second half. And then for the first half we expected it to be about a 40%/60% split between Q1 and Q2.

是的。我們提供了一些補充說明。我們說上半年與下半年大約是三分之一／三分之二的分布。然後在上半年，我們預期第一季與第二季大約是 40%／60% 的分布。

Understood. So if I run the math off the midpoint that equates to about $36 million in sales for the July quarter? Am I doing that correctly, Ray?

了解。所以如果我用中位數來算，等於 7 月那一季的銷售額大約是 3,600 萬美元？我算得對嗎，Ray？

I think if you're doing the math at the midpoint, that's about correct.

我認為如果你用中點來計算，大致上是正確的。

Your comment on more pronounced volatility on the revenues here, can you kind of comment on why the big (inaudible) drop? Why the big year-over-year drop? What are you seeing in the pipeline, kind of guide to such a low number?

你提到這裡營收波動更為明顯，你能否談談為什麼會有這麼大的（聽不清）下滑？為什麼年對年會大幅下滑？你們在案源管線（pipeline）中看到了什麼，才會指引到這麼低的數字？

Troy, this is Wahid. Historically if you look at our past years, for many, many years, going back to FY11, FY12 and all those years, our business in general has been quite seasonal. And we have tried to figure out exactly what drives that. And we can all have different thoughts on this.

Troy，我是Wahid。從歷史來看，如果你回顧我們過去很多很多年，追溯到FY11、FY12以及那些年度，我們的業務整體而言一直相當具有季節性。我們也一直試著找出究竟是什麼在驅動這種情況。而對此我們每個人可能都有不同的看法。

But generally we have smaller first halves than second halves. And the ratios that you've seen this year in FY16 is fairly similar to the prior years. And in FY17 it's slightly more pronounced. As Raymond pointed out that in first half it's roughly one-third of the revenue and then two-thirds in the second half.

但一般而言，我們上半年會比下半年小。而你在FY16看到的比例，與前幾年相當類似；在FY17則稍微更為明顯一些。正如Raymond指出的，上半年大約占三分之一的營收，下半年則占三分之二。

And we have a very high portion of our business that is what I refer to book and bill. Because of the urgent need nature of our customers' requirements and needs, we have to have the ability to turn around quickly and convert contracts into shipments so they can utilize the capabilities that our products and services offer to them.

而且我們的業務中有很高的比重屬於我所稱的「接單即開票（book and bill）」。由於客戶需求具有急迫性，我們必須具備快速周轉的能力，能把合約迅速轉換為出貨，讓他們可以運用我們產品與服務所提供的能力。

So for that reason we have a fairly short what I call gestation period between when we receive a contract and when we actually ship products. And they are lumpy because they're fairly different sizes in nature.

因此，我們在收到合約到實際出貨之間，我所稱的孕育期（gestation period）相當短。而且因為訂單規模差異很大，所以呈現不均勻、忽高忽低（lumpy）的特性。

Just the $36 million seems well below any number we've seen in prior years. So just kind of curious why is it so pronounced this year versus other years?

只是這個3,600萬美元看起來遠低於我們過去幾年看到的任何數字。所以我有點好奇，為什麼今年相較其他年份會這麼明顯？

We have different theories behind it. I couldn't give you a specific reason as to why, but it's really driven by our markets and our customers.

我們對此有不同的推測。我無法給你一個具體原因，但這確實是由我們的市場與客戶所驅動的。

That's fine. (Multiple speakers) Go ahead, Ray, finish.

好的。（多人同時說話）你先說，Ray，把話說完。

Yes, I was going to say, and their ordering patterns, what we're projecting for the year.

是的，我本來要說的是，還有他們的下單模式，以及我們對全年所做的預測。

All right. Understood. So (multiple speakers)

好，了解。所以（多人同時說話）

Sorry. Another thing to keep in mind, Troy, is that we now have -- the government fiscal year is different than our fiscal year. And so we believe that that has an impact on it. We also have a very large growing number of international customers, and those customers have different fiscal years, depending on the country. And of course based on their demands and requirements, the timing of their demand and requirements change and it's not really in our control. So we try our best to address their need as soon as they have a need and they execute a contract with us.

抱歉。Troy，還有一點要記住的是，我們現在——政府的會計年度與我們的會計年度不同。因此我們認為這會產生影響。我們也有非常多且持續成長的國際客戶，而這些客戶依國家不同有不同的會計年度。當然，基於他們的需求與要求，他們需求發生的時間點會改變，這並不在我們的控制範圍內。所以我們會盡最大努力在他們有需求、並與我們簽訂合約後，盡快滿足他們的需求。

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

謝謝。下一個問題來自The Benchmark Company的Josephine Millward。你的線路已開通。

Hi, guys.

嗨，各位。

Hi, Josephine.

嗨，Josephine。

Hi. Wahid, can you tell us what international UAS was in 2016? I think it was around $20 million in FY15.

嗨。Wahid，你能告訴我們2016年的國際UAS是多少嗎？我記得FY15大約是2,000萬美元。

FY15?

FY15？

No, just last year, 2016. You said it grew significantly. I'm trying to size how big it was.

不，是去年，2016。你說它大幅成長。我想估算一下規模有多大。

I could tell you that we had a record year. Historically we have not guided and given details to the product line level.

我可以告訴你我們那一年創下紀錄。歷來我們並未在產品線層級提供指引或揭露細節。

What we have said and you heard in my opening remarks that our international business is a growing business. And we have many new countries that have adopted our solutions, and as you heard in my remarks. And we have a fairly decent list of additional countries that have requested information about our products and engaged with us in terms of demand.

我們所說的、以及你在我開場致詞中聽到的是，我們的國際業務是一項成長中的業務。我們有許多新國家採用了我們的解決方案，正如你在我發言中所聽到的。我們也有一份相當不錯的新增國家名單，這些國家已就我們的產品提出資訊需求，並在需求面與我們接洽。

So we have a fairly optimistic view on our commercial sales in general. But we have not guided to the product level.

因此，整體而言我們對商業銷售抱持相當樂觀的看法。但我們沒有提供到產品層級的指引。

Okay. In terms of the new small UAS opportunities with the US Army, do you expect decisions on these programs this coming year? Can you give us a sense of timing and the size of the market opportunity? I think it's you talked about the short-range micro UAS and soldier-borne sensor.

好的。就美國陸軍新的小型UAS機會而言，你預期這些計畫會在今年做出決策嗎？你能否讓我們了解一下時程與市場機會的規模？我想你提到短程微型UAS以及士兵攜行感測器（soldier-borne sensor）。

Yes. The government's plans have specific requirements for these product capabilities already included in their plans. And we are working with our customers based on their own planning and timing adoption as to when they will initiate that.

是的。政府的計畫已在其規劃中納入這些產品能力的具體需求。我們正依據客戶自身的規劃與採用時程，與客戶合作，了解他們何時會啟動。

At this time we do not have enough information to be able to give you a more precise answer on that. All I can tell you is that based on the engagements we've had with the customers, there is a real intent by the Army to enable our US Army with these capabilities, and both of those two requirements are in there.

目前我們沒有足夠資訊，無法給你更精確的答案。我能告訴你的是，根據我們與客戶的互動，陸軍確實有強烈意圖要讓美國陸軍具備這些能力，而那兩項需求都包含在其中。

Thank you. The next question is from Michael Ciarmoli of KeyBanc Capital Markets. Your line is open.

謝謝。下一個問題來自KeyBanc Capital Markets的Michael Ciarmoli。你的線路已開通。

Good evening, guys. Thanks for taking the question. Just to maybe look on into the 2017 outlook, focusing maybe on backlog. Backlog entering the year at one of the lowest levels.

各位晚上好。謝謝讓我提問。或許看一下2017年的展望，可能先聚焦在積壓訂單（backlog）。年初的backlog處於相對偏低的水準。

Can you sort of bridge the gap for us in terms of how we get to the midpoint of guidance? What ships out of backlog. I think you've done that walk a couple of time on prior calls. What you're expecting from new order flow, level of EES, et cetera.

你們能否幫我們把差距串起來，說明如何達到指引中點？有多少會從backlog出貨？我想你們在之前的電話會議中做過幾次這樣的拆解。你們對新訂單流入、EES的水準等等有何預期。

Yes, Michael. So our 2016 funded backlog was roughly $65.8 million. I believe we've disclosed that in our -- on our earnings release. And that is fairly similar or typical to our historical levels.

是的，Michael。我們2016年的已獲資金支持的backlog（funded backlog）約為6,580萬美元。我相信我們已在——在我們的財報新聞稿中揭露過。這與我們歷史水準相當接近或屬典型。

In 2015 entering into 2016 was somewhat of a similar ratio. And in general our funded backlog going into the year typically has been less than roughly a third of our business in general that we've done in the past.

2015年進入2016年時的比例也有些類似。一般而言，我們在年初的funded backlog通常不到我們過去整體業務的大約三分之一。

So I would argue that this is fairly typical of the last few years that I've been here and that I've seen our track record in that respect. As I said earlier, our business is lumpy. And the timing of these opportunities and contracts are not something that's in our control. And we try our best to give as much visibility as we can, but the most important thing is to take care of our customers and address their needs.

所以我會認為，就我在這裡的這幾年、以及我所看到我們在這方面的紀錄而言，這相當典型。正如我先前所說，我們的業務是忽高忽低（lumpy）的。這些機會與合約的時點並不在我們控制之中。我們會盡力提供盡可能多的能見度，但最重要的是照顧好客戶並滿足他們的需求。

So can you provide a bridge in terms of what gets us to that midpoint? I mean, how much ships out of that backlog, what orders are, what the expectation is for EES revenue, as you guys have done sort of in the past, bridging that kind of path toward the midpoint of guidance?

那你能否提供一個橋接（bridge），說明是什麼讓我們到達中點？我的意思是，多少會從那個backlog出貨、訂單會是多少、你們對EES營收的預期是什麼——就像你們過去做過的那樣，橋接出通往指引中點的路徑？

I do not have that information handy right now. But we could work on that and get back to you on that separately later on, Michael.

我現在手邊沒有那些資訊。但我們可以整理一下，之後再另外回覆你，Michael。

Michael, with respect to the EES component of that, what we've typically done is we've typically looked at last year's or prior year's EES revenue contribution and made an assumption that that -- if that were to be stable then that would be a portion of that visibility walk-down. Obviously as we progress through the year, by the time we come down to the Q1 earnings call, we'll have better visibility into the balance of the year and be able to address it at that time.

Michael，關於其中的EES組成部分，我們過去通常是看去年或前一年的EES營收貢獻，並假設——如果它保持穩定——那就會是那個能見度拆解中的一部分。當然，隨著年度進行，等到我們在Q1財報電話會議時，對全年剩餘期間會有更好的能見度，屆時也能再做說明。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

The next question is from Howard Rubel of Jefferies. Your line is open.

下一個問題來自Jefferies的Howard Rubel。你的線路已開通。

Thank you. Talk a little bit more about Black Wing for a moment. I mean, you've sort of had it in your pocket. Now it's showing up.

謝謝。稍微多談一下Black Wing。我是說，你們有點像一直把它放在口袋裡。現在它開始浮現了。

What were the things that caused the Navy to find this so appealing? And how do you think about it going forward as part of a larger product line?

是什麼因素讓海軍覺得它如此有吸引力？以及你們如何看待它未來作為更大產品線的一部分？

Sure, Howard. Good afternoon. It's Wahid here.

當然可以，Howard。下午好。我是Wahid。

Thank you.

謝謝。

Yes, you're welcome. The US Navy has expressed interest in this for a while. We've been working with them in trying to understand the requirements more clearly. And we have so far delivered some products for what I refer to as a pilot's phase prototype testing and evaluation.

是的，不客氣。美國海軍對此表達興趣已有一段時間。我們一直與他們合作，試著更清楚地了解需求。到目前為止，我們已交付一些產品，用於我所稱的飛行員階段（pilot's phase）的原型測試與評估。

And then recently we have actually shipped some products for them to be able to use those in the field in an operational, what I call con ops, or concept of operation and template. And so we feel fairly optimistic about this opportunity.

然後最近我們實際上已經出貨了一些產品，讓他們能夠在現地以作業方式使用，我稱之為 con ops（作戰概念，concept of operation）以及範本。因此，我們對這個機會感到相當樂觀。

And it is also in the DoD's future year's defense program, or FYDP, plan. And the US Navy intends to essentially equip our submarines with this capability. And our track record so far has been fairly positive. And we believe that this represents a fairly large opportunity long term.

而且它也已納入國防部的未來年度國防計畫（FYDP）規劃中。美國海軍打算基本上讓我們的潛艦具備這項能力。到目前為止，我們的實績相當正面。我們相信，長期而言這代表一個相當大的機會。

And just to add to that, Howard, in terms of your question about how to think about it from a broader perspective. If you turn back the clock to when we first started talking about Switchblade, that's really -- that's always been a solution focused on dismounted infantry types of application.

另外補充一下，Howard，針對你關於如何從更宏觀角度思考的問題。如果把時鐘撥回到我們第一次開始談 Switchblade 的時候，那其實——它一直都是一個聚焦於下車步兵（dismounted infantry）類型應用的解決方案。

And as we were out demonstrating that to customers, other customers came out to those demonstrations and liked what they saw and asked us if we could modify them to address their emerging concepts of operation, unique operator requirements for that.

當我們在外向客戶展示時，其他客戶也來參加那些展示，喜歡他們所看到的，並詢問我們是否能修改產品，以因應他們正在形成的作戰概念，以及其獨特的操作人員需求。

So we began to do that. And over time we ended up at a point where we are now where we've grown beyond just Switchblade into truly an emerging family of tactical missile systems, or loitering missile systems if you will, that encompass both direct fire, lethal types of effects, as well as ISR types of effects.

因此我們開始這麼做。隨著時間推進，我們走到今天這一步：我們已不僅僅是 Switchblade，而是成長為一個真正正在成形的戰術飛彈系統家族——或者你也可以稱之為滯空飛彈系統（loitering missile systems）——涵蓋直接射擊、致命效果（lethal）的類型，以及 ISR（情監偵）類型的效果。

So Switchblade remains a good example of the lethal type of loitering missile system we've been talking about. Black Wing is an example of a similar architecture adapted for ISR types of application. Switchblade, as we've been talking about, has been addressing dismounted infantry. Black Wing is now addressing submerged submarines.

因此，Switchblade 仍是我們所談論的致命型滯空飛彈系統的一個很好的例子。Black Wing 則是採用類似架構、但針對 ISR 類型應用所調整的例子。正如我們一直在談的，Switchblade 一直在滿足下車步兵需求；而 Black Wing 現在則在滿足水下潛艦的需求。

And so we're really expanding the addressable market, expanding the number of customers, the number of con ops that we can address through this emerging family of systems. As Wahid also mentioned, we have a growing number of variants that have continued to evolve and progress toward the point where at least one of them, as we've said, has moved into more of a production type of a situation, and others might be moving in that direction shortly. So that entire family of tactical missile systems/loitering missile systems has been growing, continues to grow, continues to expand its footprint and address a larger and growing market opportunity.

因此，我們確實正在擴大可服務市場、擴大客戶數量，以及透過這個正在成形的系統家族所能涵蓋的 con ops（作戰概念）數量。正如 Wahid 也提到的，我們有越來越多的型號變體持續演進與推進，至少其中一款——如我們所說——已進入較偏量產的情境，其他款也可能很快朝那個方向前進。因此，整個戰術飛彈系統／滯空飛彈系統家族一直在成長、持續成長，並持續擴大其版圖，去滿足更大且持續成長的市場機會。

I appreciate it. I mean, we can count ships or we can count subs or we can -- it goes well beyond just a few applications. Thank you very much.

了解，謝謝。我是說，我們可以數艦艇、也可以數潛艦，或者我們可以——它遠不只少數幾個應用。非常感謝。

You're welcome. That's accurate, Howard. Thank you.

不客氣。Howard，你說得沒錯。謝謝。

Thank you. The next question is from Michael Ciarmoli of KeyBanc Capital Markets. Your line is open.

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

Hey, guys. Thanks for taking the follow-up. Maybe just going back to this visibility question, can you guys tell me what portion of remaining government funding you have entering into this fiscal year?

嗨，各位。謝謝讓我追問。也許回到這個能見度的問題，你們能告訴我，在進入本會計年度時，你們尚餘的政府資金占比是多少嗎？

I'm just trying to understand -- can you tell me what portion of government funding you have left that you expect to execute on in this fiscal year? I'm just trying to get a sense, is your visibility better entering into this year or is it lower than it's been in previous years?

我只是想了解——你們能告訴我，你們還剩下多少政府資金，預期會在本會計年度內執行嗎？我想掌握的是：你們在進入今年時的能見度，是比以往年度更好，還是比過去幾年更低？

Michael, I would say that in terms of better, worse, or equal, I would call it equivalent to last year. And so I would characterize our current visibility and funded and unfunded backlog fairly similar to what we did in FY15.

Michael，我會說，就更好、更差或相同而言，我會稱之為與去年相當。因此，我會把我們目前的能見度，以及已獲資金與未獲資金的在手訂單（backlog），描述為與 FY15 相當類似。

If you want specific numbers, these are some of the numbers that we've actually shared already. In FY15, starting at that time, our funded backlog was $64.7 million. And we had an additional $19 million worth of unfunded backlog, which totaled to about $83 million and change. In FY16, funded backlog is about $66 million, $65.8 million to be more exact, and then an additional $16.7 million worth of unfunded backlog, which totals to about $83 million as well.

如果你想要具體數字，這些其實是我們已經分享過的一些數字。在 FY15，當時期初我們的已獲資金在手訂單為 6,470 萬美元；另外還有 1,900 萬美元的未獲資金在手訂單，合計約 8,300 萬美元出頭。在 FY16，已獲資金在手訂單約 6,600 萬美元，更精確地說是 6,580 萬美元；另外還有 1,670 萬美元的未獲資金在手訂單，合計也約 8,300 萬美元。

Okay. Okay, that's fair. And then just on the -- you have been talking a lot about growth initiatives. Can you give us a sense -- the guidance for revenues is the same as it was for FY16. Can you give us a sense of what programs or what product lines are seeing revenue headwinds in the overall portfolio that's offsetting some of the growth in international and tactical missiles, just to try and get a better understanding of what's going on with mix in the portfolio?

好。好，這樣說合理。接著再問——你們一直在談很多成長計畫。能否讓我們了解一下——營收指引與 FY16 相同。你們能否說明，在整體產品組合中，哪些專案或產品線正面臨營收逆風，因而抵銷了國際市場與戰術飛彈成長的一部分，好讓我們更理解產品組合（mix）到底發生了什麼？

Sure, Michael. So as we said before, and as we continue this journey, our family of system solutions, both in the small UAS as well as in the tactical missile systems or loitering missile systems family, is fairly large now. The portfolio's fairly large and our customer base is pretty large. And there's been variants of these products, whether it's Raven, Puma, WASP, or Switchblade or variants of Switchblade, they're in different phases of their adoption curve with different customers.

當然可以，Michael。正如我們之前所說，並且在我們持續推進的過程中，我們的系統解決方案家族——不論是小型 UAS，或是戰術飛彈系統／滯空飛彈系統家族——現在都相當龐大。產品組合相當大，客戶基礎也相當大。而這些產品的不同變體，不論是 Raven、Puma、WASP、Switchblade 或 Switchblade 的各種變體，對不同客戶而言都處在其採用曲線的不同階段。

And so I will characterize, for example, our Raven and Puma business to be fairly established in a domestic market. However, we have significant opportunity for growth in international markets.

因此，例如我會把我們的 Raven 與 Puma 業務描述為在國內市場相當成熟。不過，我們在國際市場仍有顯著的成長機會。

We have opportunity for growth in the defense market for sustainment and upgrades, like we launched the I-45 gimbaled sensor suite which has unmatched capability in the industry. So any one of our products, you can look at any time, the family of the system has various -- or they're in various stages of their adoption and acquisition.

我們也在國防市場的維持（sustainment）與升級方面有成長機會，例如我們推出了 I-45 雲台（gimbaled）感測器套件，具備業界無可匹敵的能力。因此，你可以在任何時間點檢視我們任何一項產品，這個系統家族的各項產品都處於不同——或說處於採用與採購的不同階段。

So primarily in FY17 we see strong demand and growth in international markets. We see strong demand and customer needs for our tactical missile systems, as I described earlier.

因此，主要在 FY17，我們看到國際市場有強勁需求與成長。我們也看到對我們戰術飛彈系統的強勁需求與客戶需求，如我先前所描述。

Obviously we intend to enter in the commercial UAS market with the right solution first. And we're focused on perfecting that solution, and the adoption of that really will take time. And it also depends on the market itself. It's a very large market with lots of different verticals and lots of different applications.

顯然，我們打算以正確的解決方案優先切入商用 UAS 市場。我們正專注於把該解決方案打磨到位，而其採用確實需要時間。同時也取決於市場本身。那是一個非常大的市場，涵蓋許多不同的垂直領域與許多不同的應用。

Thank you. And at this time there are no further questions in the queue. I'll turn the call back over for closing remarks.

謝謝。目前問題隊列中沒有其他問題。我將把電話交回以進行結語。

Thank you very much. And thanks for your attention on today's call and your ongoing interest in AeroVironment. An archived version of this call, all SEC filings and relevant Company and industry news can be found on our website, AVINC.com. And we look forward speaking to you again following next quarter's results. Have a good day.

非常感謝。也謝謝各位今天參與本次電話會議並持續關注 AeroVironment。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 AVINC.com 上找到。我們期待在下個季度財報公布後再次與各位交流。祝各位有美好的一天。

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。祝各位有美好的一天。