AeroVironment, Inc. (AVAV) 2017 Q3 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the AeroVironment Inc. third-quarter FY17 earnings call.

各位女士、先生，大家好。歡迎參加 AeroVironment Inc. 2017 會計年度第三季財報電話會議。

(Operator Instructions)

（接線員指示）

As reminder, this conference 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, Ms. Teresa Covington; and Vice President of Investor Relations, Mr. Steve Gitlin. And now at this time, I would like to turn the conference over to Mr. Gitlin. Please go ahead, sir.

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：總裁兼執行長 Wahid Nawabi 先生；資深副總裁兼財務長 Teresa Covington 女士；以及投資人關係副總裁 Steve Gitlin 先生。現在我想把會議交給 Gitlin 先生。先生，請開始。

Thank you, Liz. And welcome to today's third-quarter FY17 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 meanings.

謝謝你，Liz。歡迎各位參加今天的 2017 會計年度第三季財報電話會議。請注意，在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。前瞻性陳述包括但不限於任何可能預測、預報、指出或暗示未來結果、績效或成就的陳述，並可能包含例如 believe、anticipate、expect、estimate、intend、project、plan 等字眼，或具有類似含義的詞語或片語。

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.

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。

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. Risks related to our international business, including compliance with export control laws. 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.

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；美國政府用於國防採購及研發（R&D）計畫的資金可用性；政府支出時點及／或金額的變動；與我們國際業務相關的風險（包括遵循出口管制法規）；因應未來發展而可能需要調整我們長期策略；以及規範我們與美國政府及國際客戶合約之監管要求的程度。

Consequences to our financial position, business and reputation that could result in AeroVironment (technical difficulty) regulatory requirements, unexpected (technical difficulty) difficulties in [parent] and major research and product develop efforts. Changes in the supply and/or demand or [near] prices for our products and services. The activities of competitors and increased competition.

可能對我們的財務狀況、業務與聲譽造成影響的後果，可能導致 AeroVironment（技術問題）監管要求、意外（技術問題）在 [parent] 的困難，以及重大研究與產品開發投入。對我們產品與服務的供給及／或需求或 [near] 價格的變動。競爭對手的活動以及競爭加劇。

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.

我們所營運市場未能成長。未能維持市場創新者地位並創造新的市場機會。重大營運費用的變動，包括零組件與原物料。未能開發新產品。

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.

產品責任、侵權及其他索賠。監管環境的變化，以及美國及全球其他地區的一般經濟與商業狀況變動。關於此類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, March 7, 2017. The Company undertakes no obligation to make any revision to the statements contained in our remarks, or to update them to reflect events or circumstances occurring after this conference call.

本次電話會議內容包含具時效性的資訊，僅截至今日（2017 年 3 月 7 日）為準且屬正確。公司不承擔對我們發言中所含陳述作任何修訂之義務，亦不承擔更新以反映本次電話會議後發生之事件或情況的義務。

And just a process check here, Liz, we are receiving reports that there is significant echo on the call that may be causing some problems for our listeners. So I would appreciate it if you could look into that and see if you can do anything about that. Hopefully, with that address, we will now begin with remarks from Wahid Nawabi. Wahid?

另外先確認一下流程，Liz，我們收到回報指出通話中有明顯回音，可能對聽眾造成一些問題。若你能協助查看並看看是否能處理，我將不勝感激。希望在解決後，我們現在開始由 Wahid Nawabi 發表談話。Wahid？

Thanks, Steve, and good afternoon. The three key messages today are, first, third-quarter performance exceeded our expectations. Second, high third-quarter-funded backlog of $128 million demonstrates continued strong customer demand for our innovative solutions. And third, we anticipate growth this year in Tactical Missile Systems and international small UAS, and we are excited about the availability of our commercial information solutions later this calendar year.

謝謝你，Steve，大家下午好。今天有三個關鍵訊息：第一，第三季表現超出我們預期。第二，第三季已獲資金支持（funded）的積壓訂單（backlog）達 1.28 億美元，顯示客戶對我們創新解決方案的需求持續強勁。第三，我們預期今年戰術飛彈系統（Tactical Missile Systems）與國際小型無人機系統（small UAS）將成長，並且我們對於今年稍晚推出商用資訊解決方案感到振奮。

On today's call, I will review our third-quarter financial performance, and then provide an update on the progress we're making to achieve our FY17 objectives. Teresa Covington, AeroVironment's CFO, with then provide a detailed financial review, before I discuss our outlook for the year and confidence in our long-term potential for value creation. Following are prepared remarks, Teresa, Steve and I will take your questions.

在今天的電話會議中，我將回顧第三季財務表現，接著更新我們為達成 2017 會計年度目標所取得的進展。之後 AeroVironment 財務長 Teresa Covington 將提供更詳細的財務回顧，然後我會談談我們對今年的展望，以及我們對長期創造價值潛力的信心。在準備好的發言結束後，Teresa、Steve 和我將回答各位的提問。

Now, a quick summary of third-quarter financial performance. During this quarter, we continued to execute our strategy successfully and achieve our objectives. Importantly, continued strength in bookings, an indicator of robust customer demand for our innovative solutions, produced our third-highest quarter-funded backlog ever of $128 million. This backlog, combined with year-to-date revenue in bookings this quarter, provides us with 94% visibility into the midpoint of our full-year guidance, which Teresa will discuss in more detail shortly.

現在先快速摘要第三季財務表現。本季我們持續成功執行策略並達成目標。重要的是，訂單（bookings）持續強勁——這是客戶對我們創新解決方案需求旺盛的指標——使我們的已獲資金支持積壓訂單達到 1.28 億美元，為歷來第三高的季度水準。此一積壓訂單，加上本季的年初至今營收與訂單表現，使我們對全年財測指引中點具有 94% 的可視度；Teresa 稍後將更詳細說明。

Third-quarter revenue of $53.2 million was above the high end of the range I previewed last quarter, and loss per share of $0.09 was significantly more favorable than our expectations. Two factors contributed to the loss. First, revenue was lower than our breakeven run rate. Second, similar to our first and second quarters this year, planned increases in sustaining engineering reduced gross margins compared to levels from last year. The loss was smaller than we expected, mainly due to higher-than-expected revenue, favorable revenue mix and lower spending.

第三季營收為 5,320 萬美元，高於我在上季預告區間的上緣；每股虧損 0.09 美元也顯著優於我們的預期。造成虧損的因素有兩點：第一，營收低於我們的損益兩平運行水準（breakeven run rate）。第二，與今年第一季與第二季相同，為維持工程（sustaining engineering）所規劃的增加投入，使毛利率較去年水準下降。虧損小於我們預期，主要因為營收高於預期、營收組合有利，以及支出較低。

Now, let's quickly review progress in the quarter against some of the milestones I identified at the beginning of this fiscal year. Our core business with the US Department of Defense for Group 1 UAS remains strong, with the largest unit share by far of the total unmanned aircraft fleet. And a successful track record of winning more than 90% of the competitive task [Florida] dollars issued under the Army's latest small UAS program since inception in 2012. We continue to provide new small UAS to customers to meet their stated requirements, and deliver replacements when systems reach the end of their operational lives.

接下來，我們快速回顧本季在本會計年度初我所提出的一些里程碑之達成進度。我們與美國國防部（US Department of Defense）在第 1 組小型無人機系統（Group 1 UAS）的核心業務仍然強勁，在整體無人機機隊中擁有迄今最大的單位占比。此外，自 2012 年陸軍最新小型無人機計畫啟動以來，我們在該計畫下所發布的競爭性任務 [Florida] 金額中，成功贏得超過 90%，具備良好紀錄。我們持續向客戶提供新的小型無人機系統以滿足其明確需求，並在系統達到其作業壽命終點時交付替換品。

In UAS, we also deliver sustainment support through spare parts, and provide options for our customers to upgrade their products in order to serve their needs better. Our i45 Sensor Suite significantly improves situational awareness through superior optical capabilities. The i45 is an upgrade to our Puma AE system that represents a healthy opportunity for us, and reflects the value of continuous innovation to create a new capability for our customers. As a point of reference, when we introduced the gamble sensor upgrade several years ago, our US DOD customers procured it to upgrade their existing Raven B fleets.

在無人機系統（UAS）方面，我們也透過備品提供維保支援，並為客戶提供升級其產品的選項，以更好地滿足其需求。我們的 i45 感測器套件（Sensor Suite）透過更優異的光學能力，顯著提升態勢感知。i45 是對我們 Puma AE 系統的升級，對我們而言代表一項良好的機會，也反映持續創新、為客戶創造新能力的價值。作為參考，幾年前我們推出 gamble 感測器升級時，美國國防部客戶採購該升級以更新其既有的 Raven B 機隊。

We recently submitted our proposal to the Army for the frequency relocation program, which requires that all small UAS be modified to operate on a new segment of the frequency spectrum. This spectrum shift is due to the fact that the federal government sold the frequency currently used by small UAS to commercial firms. We will provide an update on this opportunity as we learn more.

我們近期已向陸軍提交頻率遷移計畫（frequency relocation program）的提案，該計畫要求所有小型無人機系統必須修改，以在新的頻譜區段運作。此次頻譜轉移的原因在於聯邦政府已將目前小型無人機所使用的頻率出售給商業公司。我們將在獲得更多資訊後，就此機會提供更新。

Indicative of new opportunities within the US DOD, we expect to deliver 30 next-generation Snipe Nano unmanned aircraft systems to a domestic customer for evaluation soon. The Army's Soldier Borne Sensor, or SBS, program calls for pocketable UAVs that front-line troops can quickly deploy to gain situational awareness within their immediate surroundings. We also continue to work with the US Navy to pursue the deployment of Puma AE systems on a larger number of their vessels. Given our strong customer relationships and innovative solutions, we believe we are well-positioned to build on these opportunities, to drive value for our stockholders.

顯示美國國防部內的新機會，我們預期不久將向國內客戶交付 30 套下一代 Snipe Nano 微型無人機系統以供評估。陸軍的士兵攜行感測器（Soldier Borne Sensor，SBS）計畫需要可放入口袋的無人機（UAV），讓前線部隊能快速部署，以掌握其周遭即時環境的態勢感知。我們也持續與美國海軍合作，推動在更多艦艇上部署 Puma AE 系統。憑藉我們強健的客戶關係與創新解決方案，我們相信自己具備良好定位，可把握這些機會，為股東創造價值。

After a strong first-generation small UAS procurement cycle from the early 2000s to early 2010, the US DOD market has transitioned into a sustainment and upgrade phase for those systems, while we continue to refine and advance new second-generation capabilities. In contrast, the international market is in the initial stage of adoption for first-generation small UAS. During our third quarter, we continued to see strong international demand for our small UAS, contributing to our robust funded backlog, and representing a significant portion of our expected high fourth-quarter revenue.

在 2000 年代初期至 2010 年初期第一代小型無人機系統採購週期強勁之後，美國國防部市場已轉入這些系統的維保與升級階段；同時我們持續精進並推進新的第二代能力。相較之下，國際市場仍處於第一代小型無人機系統的初期採用階段。在第三季期間，我們持續看到國際市場對我們小型無人機系統的強勁需求，推升我們已獲資金支持的積壓訂單，並且占我們預期第四季高營收的重要比重。

Turning back to the US government market, our Tactical Missile Systems business, which has grown into a significant contributor to our results, remains a strategic, long-term growth opportunity. We believe the market opportunity for Tactical Missile Systems represents more than $1 billion, based on analog DOD expenditures for legacy weapon systems. We believe our TMS family of systems offers fundamentally superior and more cost-effective solutions than the legacy systems employed today., and which we expect to displace for an array of missions. TMS remains focused on US government customers, and continues to grow -- the direct result of strategic investments we made in prior years that have and will continue to benefit our results.

回到美國政府市場，我們的戰術飛彈系統（Tactical Missile Systems，TMS）業務已成長為公司業績的重要貢獻來源，仍是一項具策略性、長期的成長機會。我們認為戰術飛彈系統的市場機會超過 10 億美元，係以國防部對傳統武器系統的類比支出為基礎。我們相信，我們的 TMS 系統家族相較於目前使用的傳統系統，提供本質上更優越且更具成本效益的解決方案，並預期可在多種任務中取而代之。TMS 仍聚焦於美國政府客戶並持續成長——這是我們在過去幾年所做策略性投資的直接成果，這些投資已經並將持續使我們的業績受益。

Within TMS, we continue to produce Switchblade systems for dismounted infantry force protection, and focus on improving this product for a pending Army program of record for Lethal Miniature Aerial Missile Systems, or LMAMS. We continue to work with the US Navy to position Blackwing, our submarine-launched intelligence, surveillance and reconnaissance, or ISR solution, for broad adoption through deployment, development and evaluation. Of the four additional Switchblade variants we have discussed previously, one is in production and three are in various stages of development, casting and evaluation, much of it with customer funding. We expect TMS revenue to grow significantly from FY16, and believe there are compelling opportunities for additional growth in the years ahead.

在 TMS 內，我們持續生產 Switchblade 系統，用於下車步兵部隊防護，並專注於改良此產品，以因應陸軍即將列為正式建案（program of record）的「致命微型空中飛彈系統」（Lethal Miniature Aerial Missile Systems，LMAMS）計畫。我們也持續與美國海軍合作，透過部署、開發與評估，推動 Blackwing（我們的潛艦發射情報、監視與偵察（ISR）解決方案）獲得更廣泛採用。在我們先前討論的另外四種 Switchblade 變體中，一種已投入生產，另外三種處於不同的開發、鑄造與評估階段，其中多數由客戶資金支持。我們預期 TMS 營收將較 FY16 顯著成長，並相信未來數年仍有具吸引力的額外成長機會。

Another area of strategic investment is our commercial information solutions business, or CIS. Based on third-party market assessments, we see a global market valued in the billions of dollars for drone-based commercial solutions.

另一個策略性投資領域是我們的商業資訊解決方案業務（commercial information solutions，CIS）。根據第三方市場評估，我們看到以無人機為基礎的商業解決方案在全球擁有數十億美元規模的市場。

CIS offers three differentiated solutions to commercial customers. First, our unique Quantix drone enables our customers to automatically map and scan more than 400 acres in 45 minutes, using both color and multi-spectral sensors, all at the push of a button. Second, our decision-support system processes scanned imagery, and automatically produces descriptive analytics and historical comparisons. And third, our turnkey flight services support customers who choose not to own or operate drones.

CIS 為商業客戶提供三項具差異化的解決方案。第一，我們獨特的 Quantix 無人機可讓客戶只需按下一個按鈕，即可在 45 分鐘內自動完成超過 400 英畝的測繪與掃描，並同時使用彩色與多光譜感測器。第二，我們的決策支援系統會處理掃描影像，並自動產出描述性分析與歷史比較。第三，我們的一站式飛行服務支援那些選擇不自行擁有或操作無人機的客戶。

Part of what differentiates our valuable offering is its ease of use, high degree of integration, and its professional-grade design. For example, if the customer knows how to use a tablet device, then they can operate our Quantix drone. Which plans its own flight path based on a user-defined mapping area, then launches, scans the area, and lands itself right where it launched from. Our AV DSS processes the data from Quantix, and then performs a number of automated operations that include anomaly detection and canopy coverage analysis for growers.

我們這項有價值的產品之所以與眾不同，部分原因在於其易用性、高度整合，以及專業級設計。舉例來說，只要客戶會使用平板裝置，就能操作我們的 Quantix 無人機。它會依使用者定義的測繪區域自行規劃飛行路徑，接著起飛、掃描區域，並在起飛處自行降落。我們的 AV DSS 會處理 Quantix 的資料，並執行多項自動化作業，包括異常偵測與針對種植戶的樹冠覆蓋分析。

We continue to work with early-adopter customers in agriculture, energy, utilities and transportation, to test and validate our solution. And this process is generating strong interest as we prepare for production and delivery later this calendar year.

我們持續與農業、能源、公用事業與運輸領域的早期採用客戶合作，測試並驗證我們的解決方案。隨著我們準備在本曆年稍晚進入生產與交付，這一流程正引發強烈興趣。

Moving to another opportunity area, we remain engaged with potential customers for our atmospheric satellite capabilities. We will inform you should we achieve meaningful results in our discussions.

談到另一個機會領域，我們仍持續與潛在客戶就我們的大氣衛星能力保持接觸。若我們在討論中取得具實質意義的成果，將會通知各位。

In our EES segment -- which consists of EV test systems, EV solutions and industrial EV charging systems -- quarterly revenue increased by more than 70% year over year. We experienced strong demand for EV test systems from global automakers and battery manufacturers in North America and Asia. In our EV solutions product line, we began shipping our Level 2 home chargers to meet larger-than-forecasted initial demand, driven by the Chevy Bolt EV, launched in an additional North America OEM program. In January, we surpassed 45,000 Level 2 chargers deployed.

在我們的 EES 部門——由電動車（EV）測試系統、EV 解決方案與工業用 EV 充電系統所組成——季度營收年增超過 70%。我們在北美與亞洲的全球汽車製造商及電池製造商方面，看到 EV 測試系統需求強勁。在 EV 解決方案產品線方面，受 Chevy Bolt EV 帶動的初期需求高於預期，且該車亦在北美另一項 OEM 計畫中推出，因此我們開始出貨 Level 2 家用充電器以滿足需求。1 月時，我們已部署超過 45,000 台 Level 2 充電器。

Our Posicharge industrial charger shipments picked up, with several deployments of our new ProCore line introduced earlier this year. We also benefited from continued demand for our ground support equipment charging systems at several airports during the quarter.

我們的 Posicharge 工業充電器出貨量回升，並在本季完成多項今年稍早推出之新 ProCore 產品線的部署。我們也受惠於本季多座機場對地面支援設備充電系統的持續需求。

Before turning to our financial results, I would like to welcome Teresa Covington to her new position as Chief Financial Officer. Teresa most recently served as our Vice President of Finance, responsible for EES finance and managing corporate planning and treasury functions. I would also like to thank Raymond Cook for his service as our previous CFO, and wish him well. Now Teresa will review third-quarter and year-to-date financials. Teresa?

在轉入財務結果之前，我想歡迎 Teresa Covington 就任新的財務長（Chief Financial Officer）。Teresa 最近擔任我們的財務副總裁，負責 EES 財務並管理公司規劃與資金（treasury）職能。我也要感謝前任財務長 Raymond Cook 的服務，並祝福他一切順利。接下來 Teresa 將說明第三季與年初至今的財務狀況。Teresa？

Thank you, Wahid, and good afternoon, everyone. Before I review our third-quarter financial results, I would like to take a moment to express my gratitude and excitement at serving our stakeholders as Chief Financial Officer. I have been with AeroVironment for six years, and have developed a deep understanding of our UAS and EES businesses, while also developing a profound appreciation for our incredible team. I look forward to meeting our stockholders and the analysts who cover us.

謝謝你，Wahid，各位下午好。在我回顧第三季財務結果之前，我想花一點時間表達我能以財務長身分服務各位利害關係人的感謝與期待。我在 AeroVironment 已任職六年，對我們的 UAS 與 EES 業務建立了深入理解，同時也對我們卓越的團隊深感敬佩。我期待與我們的股東以及追蹤我們的分析師見面。

Now, third-quarter financial results. Revenue for Q3 was $53.2 million, a decrease of $14.4 million, or minus 21% from the third quarter of FY16 revenue of $67.6 million. The decrease in revenue resulted from a decrease in product sales of $16.6 million, partially offset by an increase in contracts services revenue of $2.2 million.

現在談第三季財務結果。Q3 營收為 5,320 萬美元，較 FY16 第三季的 6,760 萬美元減少 1,440 萬美元，或下降 21%。營收下滑主要源自產品銷售減少 1,660 萬美元，部分被合約服務營收增加 220 萬美元所抵銷。

Looking at revenue by segment, UAS revenue was $41.9 million, a decrease of $19.2 million or minus 31% from the third quarter of FY16 revenue of $61.1 million. The decrease was due to a decrease in product deliveries of $21.5 million, partially offset by an increase in service revenue of $2.1 million, and an increase in customer-funded R&D work of $0.2 million. EES revenue was $7.3 million, an increase of $4.8 million or 74% from the third quarter of FY16 revenue of $6.5 million. This increase was primarily due to an increase in product deliveries of EV test systems and industrial EV charging systems.

按部門來看營收，UAS 營收為 4,190 萬美元，較 FY16 第三季的 6,110 萬美元減少 1,920 萬美元，或下降 31%。下降原因為產品交付減少 2,150 萬美元，部分被服務營收增加 210 萬美元，以及客戶出資研發（R&D）工作增加 20 萬美元所抵銷。EES 營收為 730 萬美元，較 FY16 第三季的 650 萬美元增加 480 萬美元，或成長 74%。此增長主要來自 EV 測試系統與工業用 EV 充電系統的產品交付增加。

Turning to gross margin, gross margin for the third quarter was $19.4 million or 36%, as compared to $26.6 million or 39% for the third quarter of FY16. The decrease in gross margin was primarily due to decrease in product sales margins of $8.3 million, partially offset by an increase in service margin of $1 million.

接著看毛利率，第三季毛利為 1,940 萬美元或 36%，相較 FY16 第三季為 2,660 萬美元或 39%。毛利下降主要由於產品銷售毛利減少 830 萬美元，部分被服務毛利增加 100 萬美元所抵銷。

By segment, UAS gross margin decreased to $16.4 million for the third quarter of FY17, from $24.6 million. As a percentage of revenue, gross margin UAS decreased from 40% to 39%, primarily due to the increase in sustaining engineering costs in support of our existing products. EES gross margin increased $1 million to $3 million for the third quarter of FY17, primarily due to the increased sales volume, partially offset by the increase in sustaining engineering costs and support our existing products.

按部門來看，UAS 毛利在 FY17 第三季降至 1,640 萬美元，低於先前的 2,460 萬美元。以營收百分比計，UAS 毛利率由 40% 降至 39%，主要因支援既有產品的維持性工程（sustaining engineering）成本增加。EES 毛利在 FY17 第三季增加 100 萬美元至 300 萬美元，主要因銷售量提升，部分被維持性工程成本增加以及支援既有產品的成本所抵銷。

SG&A expense for the third quarter of FY17 was $12.8 million or 24% of revenue, compared to SG&A expense of $13.3 million or 20% of revenue for the third quarter of 2016. R&D expense for the quarter of FY17 was $8 million or 15% of revenue, compared to R&D expense of $8.2 million or 12% of revenue for the third quarter of FY16.

FY17 第三季的 SG&A 費用為 1,280 萬美元，占營收 24%，相較 2016 年第三季 SG&A 費用為 1,330 萬美元，占營收 20%。FY17 本季的 R&D 費用為 800 萬美元，占營收 15%，相較 FY16 第三季 R&D 費用為 820 萬美元，占營收 12%。

The operating loss for the third quarter was $1.4 million or minus 3% of revenue, compared to operating income of $5.1 million or 7% of revenue for the third quarter of FY16. The operating income decrease was primarily due to lower gross margins of $7.3 million, partially offset by a decrease in SG&A expense of $0.5 million, and a decrease in R&D expense of $0.3 million.

第三季營業損失為 140 萬美元，或占營收 -3%，相較 FY16 第三季營業利益為 510 萬美元，或占營收 7%。營業利益下滑主要由於毛利減少 730 萬美元，部分被 SG&A 費用減少 50 萬美元，以及 R&D 費用減少 30 萬美元所抵銷。

Our effective income tax rate was minus 101.9% for the third quarter of FY17, as compared to an effective income tax rate of minus 22.5% for the third quarter of FY16. Our effective income tax rate for the third quarter of FY17 was impacted by a change in estimate, which reduced our estimated full-year FY17 effective income tax rate. The net loss for the third quarter of FY17 was $2.2 million or a $0.09 loss per share, compared to net income of $6.2 million or $0.27 earnings per share for the three months ended January 30, 2016.

FY17 第三季的有效所得稅率為 -101.9%，相較 FY16 第三季的有效所得稅率為 -22.5%。FY17 第三季的有效所得稅率受到估計變更影響，該變更降低了我們對 FY17 全年有效所得稅率的估計。FY17 第三季淨損為 220 萬美元，或每股虧損 0.09 美元；相較截至 2016 年 1 月 30 日止三個月的淨利為 620 萬美元，或每股盈餘 0.27 美元。

Now, moving through the first three quarters FY17 results. Revenue for the first three quarters of FY17 was $139.5 million, a decrease of $39.8 million, as compared to $179.3 million for the nine months ended January 30, 2016. The decrease in revenue was due to a decrease in product deliveries of $47.6 million, partially offset by an increase in contract service revenue of $7.8 million.

接著看 FY17 前三季的結果。FY17 前三季營收為 1.395 億美元，較截至 2016 年 1 月 30 日止九個月的 1.793 億美元減少 3,980 萬美元。營收下降係因產品交付減少 4,760 萬美元，部分被合約服務營收增加 780 萬美元所抵銷。

UAS revenue decreased $44.6 million to $113.2 million for the first three quarters of the FY17. Primarily due to a decrease in product delivery to $52.8 million, partially offset by an increase in service revenue of $5.4 million and an increase in customer-funded R&D work of $2.7 million. EES revenue increased $4.8 million to $26.3 million for the first three quarters of FY17, primarily due to an increase in product delivery of EV test systems, EV solutions and industrial EV charging systems.

FY17 前三季 UAS 營收減少 4,460 萬美元至 1.132 億美元，主要因產品交付減少 5,280 萬美元，部分被服務營收增加 540 萬美元以及客戶出資研發（R&D）工作增加 270 萬美元所抵銷。FY17 前三季 EES 營收增加 480 萬美元至 2,630 萬美元，主要因 EV 測試系統、EV 解決方案與工業用 EV 充電系統的產品交付增加。

Gross margin for the first three quarters of FY17 was $43.5 million, as compared to $74.2 million for the first three quarters of FY16. The decrease was primarily due to a decrease in product margins of $32.2 million, partially offset by an increase in service margins of $1.5 million.

FY17 前三季的毛利為 4,350 萬美元，相較於 FY16 前三季的 7,420 萬美元。下降主要是由於產品毛利減少 3,220 萬美元，部分被服務毛利增加 150 萬美元所抵銷。

UAS gross margin decreased to $36.7 million for the first three quarters of FY17, from $66 million. As a percentage of revenue, gross margin for UAS decreased from 42% to 32%, primarily due to the reversal for the settlement of prior-year government incurred cost audits recorded in the second quarter of FY16. An increase in sustaining engineering costs in support of our existing products, and an increase in warranty-related costs.

UAS 毛利在 FY17 前三季降至 3,670 萬美元，低於 6,600 萬美元。以營收百分比計，UAS 毛利率由 42% 降至 32%，主要原因為 FY16 第二季所認列、針對前一年度政府已發生成本稽核結算的回沖。此外，為支援既有產品而增加的維持性工程成本，以及保固相關成本的增加。

EES gross margin decreased $0.8 million to $6.8 million for the first three quarters of FY17, primarily due to an increase in sustaining engineering costs in support of our existing products. And the reserve reversal for the settlement of prior-year government incurred cost audits recorded in the second quarter of FY16, partially offset by the increased sales volume.

EES 毛利在 FY17 前三季減少 80 萬美元至 680 萬美元，主要由於為支援既有產品而增加的維持性工程成本，以及 FY16 第二季所認列、針對前一年度政府已發生成本稽核結算的準備回沖；部分被銷售量增加所抵銷。

SG&A expense for the first three quarters of FY17 was $39.8 million or 29% of revenue, compared to SG&A expense of $43.3 million or 24% of revenue for the first three quarters of FY16. SG&A expense decreased $3.5 million, primarily due to a decrease in bid and proposal costs, a decrease in professional service, and a decrease in bonus expense. R&D expense for the first three quarters of FY17 was $25.1 million or 18% of revenue, compared to R&D expense of $28 million or 16% of revenue for the first three quarters of FY16. The decrease in R&D expense was primarily due to a decrease in development activities for certain strategic initiatives.

FY17 前三季的 SG&A 費用為 3,980 萬美元，占營收 29%，相較於 FY16 前三季 SG&A 費用 4,330 萬美元，占營收 24%。SG&A 費用減少 350 萬美元，主要由於投標與提案成本下降、專業服務費用下降，以及獎金費用下降。FY17 前三季的研發（R&D）費用為 2,510 萬美元，占營收 18%，相較於 FY16 前三季研發費用 2,800 萬美元，占營收 16%。研發費用下降主要由於若干策略性計畫的開發活動減少。

The operating loss for the first three quarters of FY17 was $21.1 million or minus 15% of revenue, compared to operating income of $2.9 million or 2% of revenue for the first three quarters of FY16. The increase in operating loss was per merely due to lower gross margins of $30.7 million, partially offset by a decrease in SG&A expense of $3.5 million and R&D expense of $2.9 million.

FY17 前三季的營業損失為 2,110 萬美元，或占營收負 15%，相較於 FY16 前三季營業利益 290 萬美元，或占營收 2%。營業損失增加主要是由於毛利降低 3,070 萬美元，部分被 SG&A 費用減少 350 萬美元及研發費用減少 290 萬美元所抵銷。

The effective income tax benefit rate for the nine months ended January 28, 2017, was 13.5%, compared to the effective income tax benefit rate from the prior year of 361.2% for the nine months ended January 30, 2016. The net loss for the first three quarters of FY17 was $18 million or a $0.78 loss per share, compared to net income of $3.6 million or $0.16 earnings per share for the nine months ended January 30, 2016. Our funded backlog as of January 28, 2017 was $128.2 million, an increase of $48.5 million or 61% from the third quarter of FY16. And an increase of $8.6 million or 7% from the second quarter of FY17.

截至 2017 年 1 月 28 日止九個月的有效所得稅利益率為 13.5%，相較於前一年度截至 2016 年 1 月 30 日止九個月的有效所得稅利益率 361.2%。FY17 前三季的淨損為 1,800 萬美元，或每股虧損 0.78 美元，相較於截至 2016 年 1 月 30 日止九個月的淨利 360 萬美元，或每股盈餘 0.16 美元。截至 2017 年 1 月 28 日，我們的已資金支持（funded）在手訂單（backlog）為 1.282 億美元，較 FY16 第三季增加 4,850 萬美元或 61%；並較 FY17 第二季增加 860 萬美元或 7%。

Turning to our balance sheet, cash, cash equivalents and investments at the end of the third quarter of FY17 totalled $238.1 million, a decrease of $11.5 million from the prior quarter. The decrease in cash, cash equivalents and investments was driven by higher working capital requirements of the business. Accounts receivable, including unbilled and retention receivables, at the end of the third quarter of FY17 totalled $37.9 million, a decrease of $5.1 million from the prior quarter.

接著看資產負債表，FY17 第三季末的現金、約當現金及投資合計為 2.381 億美元，較前一季減少 1,150 萬美元。現金、約當現金及投資的減少主要是由於營運資金需求提高。FY17 第三季末的應收帳款（包含未開立帳單及保留款應收帳款）合計為 3,790 萬美元，較前一季減少 510 萬美元。

Total day sales outstanding was approximately 68 days, compared to 81 days the end of the prior quarter. The inventory at the end of the third quarter of FY17 was $68.8 million, compared to $55.2 million at the end of the prior quarter. Days in inventory were approximately 164 days, compared to 137 days at the end of the prior quarter. This increase in days in inventory was primarily due to an increase in inventory for anticipated fourth-quarter shipments.

應收帳款週轉天數（DSO）約為 68 天，相較於前一季末的 81 天。FY17 第三季末存貨為 6,880 萬美元，相較於前一季末的 5,520 萬美元。存貨天數約為 164 天，相較於前一季末的 137 天。存貨天數增加主要是由於為預期第四季出貨而增加存貨。

Turning to capital expenditures, in the third quarter of FY17, we invested approximately $3.1 million or 6% of revenue in property improvements and capital equipment, and recognized $1.8 million of depreciation and amortization expense.

接著談資本支出，FY17 第三季我們在不動產改善與資本設備上投資約 310 萬美元，約占營收 6%，並認列 180 萬美元的折舊與攤銷費用。

Now, an update to our FY17 visibility. As of today, we have year-to-date Q3 revenues of $139 million. Q3 ending backlog that we expect to execute in FY17 of an additional $107 million. Q4 quarter-to-date- bookings that we anticipate to execute in FY17 of an additional $6.5 million. No unfunded backlog from incrementally funded contracts that we anticipate to recognize revenue during the balance of the year. And no revenues needed to hold EES revenue flat relative to last year.

現在更新我們對 FY17 的可見度。截至今日，我們年初至今（YTD）第三季營收為 1.39 億美元。第三季期末在手訂單中，我們預期於 FY17 執行的另有 1.07 億美元。第四季截至目前的接單（bookings）中，我們預期於 FY17 執行的另有 650 萬美元。對於採增量撥款合約（incrementally funded contracts）所形成、且我們預期在本年度剩餘期間認列營收的未資金支持在手訂單（unfunded backlog），目前為零。且不需要任何額外營收即可使 EES 營收相較去年持平。

This adds up to $252.6 million or 94% at the midpoint of our revenue guidance. Now I'd like to turn things back to Wahid to discuss AV's expectations for the remainder of the year.

合計為 2.526 億美元，約占我們營收指引中點的 94%。接下來我想把時間交回給 Wahid，請他談談 AV 對今年剩餘期間的預期。

Thanks, Teresa. We continue to execute our strategy, building on leading positions in our core business and moving our growth portfolio toward the significant, long-term marketing opportunities we are pursuing. We remain the leading supplier of small UAS to the US DOD. Our international small UAS business is thriving. TMS is growing, CIS is poised for launch, and we see great progress in EES. We are also very much aware of the variability in our short-term financial performance due to uncertainties associated with customer adoption.

謝謝，Teresa。我們持續執行策略，在核心業務的領先地位上再接再厲，並推動成長型產品組合朝向我們正在追求的重大、長期市場機會邁進。我們仍是美國國防部（US DOD）小型 UAS 的領先供應商。我們的國際小型 UAS 業務蓬勃發展。TMS 正在成長，CIS 已準備推出，而我們也看到 EES 有很大的進展。我們也非常清楚，由於客戶採用（adoption）相關的不確定性，我們短期財務表現存在波動性。

As we have stated throughout this fiscal year, our results have been in line with our expectations. We've been preparing for an expected increase in revenue during the fourth quarter to achieve our full-year outlook. We have been ordering long-lead items in advance, preparing documentation for export license requests to the US Department of State, building inventory, and implementing additional efficiency enhancements across the organization.

如同我們在本會計年度一再表示的，我們的結果符合預期。我們一直在為第四季預期的營收增加做準備，以達成全年展望。我們已提前採購長交期項目（long-lead items）、準備向美國國務院提出出口許可申請的文件、建立存貨，並在全組織推動額外的效率提升措施。

Even with our planning and preparation, as our international business and the number of customers we're servicing has grown, our exposure to delays associated with contracting, exporting, licensing and even travel visa approvals, has increased. As we look to the balance of the fiscal year with this exposure in mind, we now expect full-year financial results at the low-end of our previously stated revenue and earnings per share guidance range of $260 million to $289 million, and $0.20 to $0.35, respectively.

即使我們已規劃並做好準備，隨著國際業務以及我們服務的客戶數量成長，我們面臨與簽約、出口、許可，甚至旅行簽證核准相關的延遲風險也隨之增加。考量到這些風險並展望本會計年度剩餘期間，我們目前預期全年財務結果將落在先前所述營收與每股盈餘指引區間的低端，分別為 2.60 億至 2.89 億美元，以及 0.20 至 0.35 美元。

Once again, our main messages today are: first, third-quarter revenue performance exceeded our expectations. Second, high third-quarter funded backlog of $128 million demonstrates continued, strong customer demand for innovative solutions. And third, we anticipate growth this year in Tactical Missile Systems and international small UAS, and we're excited about the availability of our commercial information solutions later this calendar year.

再次重申，我們今天的主要訊息是：第一，第三季營收表現超出我們的預期。第二，第三季已資金支持在手訂單達 1.28 億美元，顯示客戶對創新解決方案的需求持續強勁。第三，我們預期今年戰術飛彈系統（Tactical Missile Systems）與國際小型 UAS 將成長，並且我們對於今年稍晚推出商業資訊解決方案（commercial information solutions）的可用性充滿期待。

Thanks to our customers who place their trust in their environment to help them proceed with certainty. Thanks to you, our stockholders, who trust us to create long-term value. And thanks to our employees for their continuous efforts to deliver on our commitments. Now Teresa, Steve and I will take your questions.

感謝我們的客戶，信任我們的環境能協助他們更有把握地前進。感謝各位股東，信任我們能創造長期價值。也感謝員工持續努力，履行我們的承諾。現在 Teresa、Steve 和我將回答各位的問題。

(Operator Instructions)

（接線員指示）

Ken Herbert, Canaccord.

Ken Herbert，Canaccord。

Hi, good afternoon.

嗨，下午好。

Good afternoon, Ken.

下午好，Ken。

Hi, Wahid. I just wanted to follow up specifically on the international growth you are seeing within the small unmanned aircraft, or the small unmanned systems market. Clearly it seems like that's been a real source of upside over the last few quarters. Can you provide any commentary specifically around risks to this, from a timing standpoint?

嗨，Wahid。我想特別追問你們在小型無人飛機（small unmanned aircraft），或小型無人系統市場中所看到的國際成長。很明顯，過去幾個季度這似乎一直是上行的主要來源。你能否就此在時程面（timing）可能存在的風險提供一些評論？

It sounds like most of this obviously is in your backlog. But are you seeing any concern past the fourth quarter of 2017 into FY18 around sustainability of this growth? And any change recently in the attitude amongst your customers, since the election in particular, internationally?

聽起來其中大部分顯然都已反映在你們的在手訂單中。但你們是否看到任何疑慮：從 2017 年第四季之後延伸到 FY18，這種成長的可持續性如何？另外，特別是自選舉以來，在國際市場上，你們客戶的態度最近是否有任何變化？

Ken, that's a great question, and a question that we think about and discuss and analyze quite thoroughly internally. Overall, as you know, our international sales this year, in the past year as well, have grown significantly. And we expect this growth to continue throughout FY17.

Ken，這是個很好的問題，也是我們在內部反覆思考、討論並相當深入分析的問題。整體而言，如你所知，我們今年的國際銷售，以及過去一年，也都大幅成長。我們預期這項成長將在 FY17 全年持續。

Given and knowing that we have significant revenue and growth in this space, the size of these orders and contracts are large in nature. And the number of, I would refer to as hurdles, that we have to go through in order to secure a contract, get international travel schedules arranged, get visa approvals for some of our customers to come for demonstrations and factory acceptance tests. As well as securing export licenses from our US Department of State, always is a risk factor and continues to be a risk factor in terms of the timing of those orders being transformed into revenue. And so for that matter, we do see those risks as we have always seen, and that has been the nature of our business.

鑑於並且我們也知道我們在這個領域有可觀的營收與成長，這些訂單與合約的規模本質上都相當大。而為了取得合約，我們必須跨越許多我所稱的「門檻」，包括安排國際差旅行程、取得部分客戶來參加展示與工廠驗收測試的簽證核准；以及向美國國務院取得出口許可。這些一向都是風險因素，並且在這些訂單轉化為營收的時點上，仍持續構成風險。因此，就此而言，我們確實如同以往一樣看見這些風險，而這也一直是我們業務的本質。

In regards to the prospects for the long term, we remain confident about our international small UAS business. I've said this in the previous earnings calls, that our assessment is that the international market for small UAS is about five to 10 years behind the adoption curve of the US domestic DOD market. That means that we believe, in the long run, we will see more adoption of our products and need for our products internationally, and we look forward to that. However, the timing of those orders always is a tough challenge to predict precisely.

就長期前景而言，我們對國際小型 UAS 業務仍然有信心。我在先前的財報電話會議中也提過，我們的評估是：國際小型 UAS 市場在採用曲線上大約落後美國國內國防部（DOD）市場 5 到 10 年。這表示我們相信，長期來看，我們的產品在國際上會有更高的採用度與需求，我們也期待如此。然而，這些訂單的時點一向很難精準預測。

Thanks, Wahid. Just as a follow-up to that, are you using as much demand internationally on the services side as you establish a foothold with the products? And is that something that you have seen much of the upside there yet? Or is that really upside that could be coming here in the future?

謝謝你，Wahid。就此再追問一下，當你們以產品建立立足點時，在服務端是否也同樣看到大量的國際需求？而你們是否已經看到那方面相當多的上行空間？還是說那其實是未來可能出現的上行空間？

Pretty much, Ken, on all of our international customers, we not only provide our customers with a family of systems or a system solution, but also services related to training, enabling their force just to be able to operate these systems effectively, so they can get the actionable intelligence they deserve, to proceed with certainty. As well as support and logistics services, such as spare parts and sustainment, as well as repair activities that goes beyond just the initial acquisition of system solution and services.

Ken，基本上，對我們所有的國際客戶而言，我們不僅提供一系列系統或整體系統解決方案，也提供與訓練相關的服務，讓他們的部隊具備有效操作這些系統的能力，使其能取得他們應得的可行情報，從而更有把握地採取行動。此外，我們也提供支援與後勤服務，例如備品與維保（sustainment），以及超出初始採購之系統解決方案與服務範圍的維修活動。

Usually almost all of our international as well as domestic customers have a long lifecycle with us beyond the initial procurement. And once we are into the sustainment mode, we also get an opportunity to provide upgrades beyond just spare parts and sustainment.

通常，我們幾乎所有的國際與國內客戶，在初次採購之後都會與我們維持長期的產品生命週期合作。一旦進入維保模式，我們也有機會提供不僅限於備品與維保的升級。

Thank you very much. I will stop there.

非常感謝。我就先到這裡。

You're welcome.

不客氣。

(Operator Instructions)

（接線員指示）

Joseph De Nardi, Stifel.

Joseph De Nardi，Stifel。

Thank you very much. Wahid, I'm just wondering if you can talk a little bit about where we are on this curve of reinvesting core earnings back into the business for some of the growth drivers? Does that come to an end next year? You're going to generate a decent amount of earnings in fourth quarter. Help us think about what the runway is for next year?

非常感謝。Wahid，我想請你談談，我們目前在把核心獲利再投資回業務、以支持部分成長驅動因素的這條曲線上，走到哪個階段？這會在明年結束嗎？你們第四季將產生相當不錯的獲利。請協助我們思考明年的成長跑道會是什麼樣子？

Joe, great question again. So as I mentioned in my remarks previously as well as today, our domestic US DOD -- as you know, primarily with the US Army, we are what I refer to as in a sustainment mode. They have the number for the quantity of systems that our US DOD customer believes, primarily US Army, to maintain and meet the requirements that they had intended to achieve. And in the past several years, as you know, we have been providing a significant amount of spare parts, repair activities and upgrades to our existing fleet.

Joe，又是一個很好的問題。正如我先前以及今天的發言所提到的，我們在美國國內的美國國防部（DOD）業務——如你所知，主要是美國陸軍——我們目前處於我所稱的維保模式。他們已經擁有其認為能維持並滿足原先預期需求所需的系統數量，主要是美國陸軍。在過去幾年中，如你所知，我們一直為現有機隊提供大量備品、維修活動與升級。

So beyond that, we have opportunity to sell and deliver new solutions for new requirements of our existing customers and new customers. For example, the Snipe UAV that I just mentioned in this call, and also at last call, is a new requirement by the US Army for Soldier Borne Sensor, which we believe we're positioned extremely well. And we are going to be delivering 30 systems for demonstration and evaluation. Beyond that, we've been engaged in the last year or two with the US Navy for the maritime application of our Puma AE system.

除此之外，我們也有機會針對既有客戶的新需求，以及新客戶，銷售並交付新的解決方案。舉例來說，我在本次電話會議以及上次會議提到的 Snipe UAV，是美國陸軍對「士兵攜行感測器」（Soldier Borne Sensor）的新需求，我們相信自己具備非常有利的定位。我們將交付 30 套系統用於展示與評估。此外，過去一到兩年，我們也與美國海軍就 Puma AE 系統的海事應用進行合作。

So in the domestic market, we continue to serve to our domestic existing customers with sustainment and upgrades. And we also continue to pursue new growth opportunities with new customers, or existing customers and new products.

因此在國內市場方面，我們持續以維保與升級服務既有的國內客戶；同時也持續透過新客戶，或既有客戶與新產品，追求新的成長機會。

And last, we also believe that, while the lifecycle of the first generation of UAVs with the US domestic customers is going sometime come to an end, we believe that it will initiate the procurement of what we refer to as the second generation of our small UAS solutions to our US domestic customers. And that will take a little bit of time. However, we do look forward to that, and we are working toward that opportunity and outcome.

最後，我們也相信，雖然第一代 UAV 在美國國內客戶端的生命週期終將告一段落，但這將啟動我們所稱的第二代小型 UAS 解決方案在美國國內客戶端的採購。這需要一些時間。不過，我們非常期待，並正朝著這個機會與成果努力。

Okay. And then just on the balance sheet with the plan for the cash, maybe on a commercial or enterprise side of the business, do you see yourselves as acquirers in that market? Or is it too early, really, to do that?

好的。那再談談資產負債表與現金運用計畫，也許是在商業或企業端的業務上，你們是否認為自己會成為該市場的收購方？還是說現在談這個還太早？

We, Joe, believe that the commercial information solutions, or the commercial application of drones in [software] analytics represents a very large but also long-term opportunity. And we're very much, as you said, at the very early stages of getting the right solution to the market first. We believe that our existing solution set that we have demonstrated and unveiled is disruptive, and has a unique and compelling value proposition that has received, so far, very strong, positive customer feedback.

Joe，我們認為商業資訊解決方案，或無人機在（軟體）分析上的商業應用，是一個非常龐大但也屬於長期的機會。而如你所說，我們目前仍處於非常早期的階段，首要之務是先把正確的解決方案推向市場。我們相信，我們已展示並對外揭露的既有解決方案組合具有顛覆性，並具備獨特且有說服力的價值主張；截至目前，已獲得非常強勁且正面的客戶回饋。

So we're excited about launching that product. And then we will be in a position to be able to test the market, and then provide you with some updates as to what we expect in that market to happen. Related to the capabilities and acquisitions, we've always had the belief and the intent to fill the gaps in our capabilities, when we find opportunities for acquisitions of filling that gap, either in terms of a timeframe or cost. If we could do it better and cheaper by acquisitions, we will always do so. So far, we haven't come across any that we believe and the Board leaves that is right for a decision and execution and implementation.

因此，我們對推出該產品感到興奮。接著我們將能夠測試市場，並向各位更新我們對該市場發展的預期。就能力與併購而言，我們一向相信並有意在發現機會時補足能力缺口——無論是就時程或成本而言。如果透過併購能做得更好、成本更低，我們一向會這麼做。到目前為止，我們尚未遇到任何我們認為、且董事會也認為適合做出決策並加以執行與落地的標的。

I also personally believe that there is quite significant investments going on in this space, and the likelihood of properties becoming available at reasonable prices probably will improve over time with any other industry. And when we find those opportunities, we will not hesitate to take action and deliver the results that we expect to our shareholders.

我個人也認為，這個領域目前有相當可觀的投資在進行，而隨著時間推移，如同其他產業一樣，以合理價格出現可收購資產的可能性大概會提高。當我們找到這些機會時，我們不會猶豫採取行動，並為股東交付我們所期望的成果。

Thank you.

謝謝。

I'm showing no further questions, thank you. At this time, I'd like to turn the call back to Mr. Gitlin for any closing remarks.

我這邊顯示沒有其他問題，謝謝。此時我想把電話交回給 Gitlin 先生，請他做結語。

Thank you, Liz. Before we do close out, one question that typically comes up on the call for Teresa would be some indication of our expected CapEx this year and tax rate for the full year. Teresa, would you mind addressing that?

謝謝你，Liz。在我們結束之前，通常會有一個在電話會議上會問到 Teresa 的問題，也就是請她提供我們今年預期的資本支出（CapEx）以及全年稅率的一些指引。Teresa，你方便回應一下嗎？

Sure. Regarding our capital spend, our history at AeroVironment has been in the 2% to 5% of revenue range. Year to date, we've spent $7.6 million on capital, and I would expect our full year to be in the 3% to 4% of revenue range. Regarding our tax rate, we estimate our full-year tax rate, and we start with the statutory rate of our federal and state. And then we have both a deduction for our federal R&D tax credit, and then we also mentioned that we had a reserve release in Q1 of $900,000. And so that would be our estimate of our full-year tax rate, is the combination of those factors.

當然。關於資本支出，我們 AeroVironment 過去的水準大約在營收的 2% 到 5% 區間。截至目前，我們已投入 760 萬美元的資本支出，我預期全年會落在營收的 3% 到 4% 區間。關於稅率，我們估算全年稅率時，會先以聯邦與州的法定稅率為起點。接著我們有聯邦研發（R&D）稅額抵減的扣除，另外我們也提到第一季有 90 萬美元的準備金回轉（reserve release）。因此，我們對全年稅率的估計，就是上述因素的綜合結果。

Great. So with that, we'll close out. And we thank you all for your attention today, for your interest in AeroVironment. An archived version of this call, all SEC filings, and relevant Company and industry news can be found on our website, AVInc.com. We look forward to speaking with you again following next quarter's results. Good afternoon.

很好。那麼我們就到此結束。感謝各位今天的關注，以及對 AeroVironment 的興趣。本次電話會議的存檔版本、所有 SEC 申報文件，以及相關的公司與產業新聞，都可在我們的網站 AVInc.com 查閱。我們期待在下季財報結果公布後再次與各位交流。午安。

Ladies and gentlemen, thank you for your participation in today's conferences. This concludes the program, and you may now disconnect. Everyone, have a great day.

各位女士、先生，感謝您參與今天的電話會議。至此會議結束，您現在可以掛線。祝各位有美好的一天。