AeroVironment, Inc. (AVAV) 2019 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the AeroVironment, Inc. First Quarter 2019 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

各位女士、各位先生，大家好，歡迎參加 AeroVironment, Inc.2019 會計年度第一季財報電話會議。(接線員指示) 提醒各位，本次會議將錄音以供重播。

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 the Vice President of Investor Relations, Mr. Steve Gitlin.

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。

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

現在，我想把會議交給 Gitlin 先生。先生，請開始。

Thank you, Michelle, and welcome to AeroVironment's 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 statements that may predict, forecast, indicate or imply future results, performance or achievements, and they 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. 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 United States government; availability of U.S. government funding for defense procurement and research and development 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 extensive regulatory requirements governing our contracts with the U.S. 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; the impact of potential security and cyber threats; changes in the supply and/or demand and/or prices for our products and services; the activities of competitors and increased competition; failure of the markets in which we operate to grow; uncertainties in the customer adoption rate of commercial unmanned aircraft systems; failure to remain a market innovator and create new market opportunities; changes in significant operating expenses, including components of 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.

謝謝你，Michelle，並歡迎各位參加 AeroVironment 的財報電話會議。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、表現或成就的陳述，並包含如 believe（相信）、anticipate（預期）、expect（預期）、estimate（估計）、intend（意圖）、project（推估）、plan（計畫）等字眼，或具有類似意義的詞語或片語。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。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；美國政府對國防採購及研發計畫的資金可得性；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長期策略；規範我們與美國政府及國際客戶合約的廣泛法規要求；未能遵循該等法規要求可能對我們的財務狀況、業務與聲譽造成的後果；重大研發與產品開發工作固有的非預期技術與行銷困難；潛在安全與網路威脅的影響；我們產品與服務的供給及／或需求及／或價格變動；競爭對手的活動與競爭加劇；我們所處市場未能成長；商用無人航空系統客戶採用率的不確定性；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（包括原物料成本構成項目）的變動；未能開發新產品、產品責任、侵權及其他索賠；監管環境變化；以及美國及全球其他地區的一般經濟與商業狀況。

For a further list and description of such risks and uncertainties, see the reports we filed with the Securities and Exchange Commission. The content of this conference call contains time-sensitive information that is accurate only as of today, September 5, 2018. 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.

如需進一步的風險與不確定性清單及其說明，請參閱我們向美國證券交易委員會提交的報告。本次財報電話會議內容包含具時效性的資訊，僅在今天（2018 年 9 月 5 日）為準確。公司不承擔對我們發言中所包含之陳述作任何修訂或更新之義務，以反映本次電話會議後發生的事件或情況。

We will now begin with remarks from Wahid Nawabi.

接下來由 Wahid Nawabi 發表談話。

Thank you, Steve, and welcome to our first quarter fiscal year 2019 earnings call. On today's call, we will focus on 2 key messages. First, our team is successfully executing our plan, and we're on track to achieve our fiscal year 2019 objectives. And second, demand drivers for our solutions remain strong, and we're capitalizing on these opportunities to make progress towards our long-term goals.

謝謝你，Steve，也歡迎各位參加我們 2019 會計年度第一季財報電話會議。今天的電話會議，我們將聚焦兩個關鍵訊息。第一，我們的團隊正成功執行計畫，並按進度達成 2019 會計年度目標。第二，我們解決方案的需求驅動因素仍然強勁，我們正把握這些機會，朝長期目標持續推進。

Today, I will summarize our solid first quarter fiscal year 2019 financial and operating performance and then provide an overview of some notable developments during the quarter. Next, Teresa Covington will provide a detailed financial review of the first quarter, and I will discuss our goals for fiscal year 2019 before Teresa, Steve and I take your questions.

今天我將先總結我們 2019 會計年度第一季穩健的財務與營運表現，並概述本季一些值得注意的進展。接著，Teresa Covington 將就第一季提供更詳細的財務回顧；之後我將討論我們 2019 會計年度的目標，最後由 Teresa、Steve 與我回答各位的提問。

Our momentum continued into the first quarter as we delivered strong results, including revenue of $78 million, up 127% year-over-year, driven by solid funded backlog at the end of fiscal year 2018. This positions us for a more normalized quarterly run rate than in previous years, with our first quarter revenue representing approximately 1 quarter of the midpoint of our full year guidance range.

我們的動能延續至第一季，並交出強勁成果，包括營收 7,800 萬美元，年增 127%，主要受惠於 2018 會計年度期末充足的已獲資金支持之在手訂單（funded backlog）。這使我們的季度營收走勢較以往年度更趨常態化；第一季營收約相當於我們全年財測區間中點的約四分之一。

Our favorable mix of products versus services, plus a strong mix of higher-margin products in contracts, produced gross margin of 42%, up from 25% in first quarter of fiscal year 2018. Diluted earnings per share from continuing operations was $0.85, up more than $1 from the same period last year.

產品相對於服務的有利組合，加上合約中高毛利產品占比較高，使毛利率達 42%，高於 2018 會計年度第一季的 25%。持續營運之稀釋每股盈餘為 0.85 美元，較去年同期增加超過 1 美元。

Please note that first quarter EPS includes a onetime gain of $0.26 per diluted share from a litigation settlement.

請注意，第一季每股盈餘包含因訴訟和解而產生的一次性收益，每股稀釋收益 0.26 美元。

Continued demand for our solutions is reflected in our strong funded backlog of $157 million as of the end of the first quarter, an increase of 120% year-over-year.

對我們解決方案的持續需求，反映在第一季期末強勁的已獲資金支持之在手訂單（funded backlog）達 1.57 億美元，年增 120%。

In the first quarter, we adopted ASC 606, the new accounting standard for revenue recognition, which is reflected in our first quarter fiscal year 2019 and 2018 financials. The standard relates to the timing of how we recognize revenue and associated expenses on our contracts.

第一季我們採用 ASC 606（新的收入認列會計準則），並已反映於我們 2019 與 2018 會計年度第一季財務報表中。該準則與我們在合約中認列收入及相關費用的時點有關。

In the quarter, we disclosed -- we closed the divestiture of our Efficient Energy Systems business. As a result, we recognized a gain of $8.8 million net of taxes, which is reflected in discontinued operations on our income statement. We expect to receive additional cash proceeds of $6.5 million from this divestiture in the current quarter.

本季我們揭露——我們已完成出售 Efficient Energy Systems（EES）事業。因此，我們認列稅後處分利益 880 萬美元，並於損益表中列示於停業單位。我們預期在本會計年度當季將自該項處分再收到 650 萬美元的額外現金價款。

Through the EES divestiture and the formation of our HAPSMobile joint venture, we have transformed AeroVironment into a pure play, unmanned technology solution provider. We are focused on delivering innovative solutions based on future-defining technologies that include robotics, sensors, software analytics and connectivity to large and growing global defense telecommunications and commercial markets.

透過出售 EES 以及成立 HAPSMobile 合資企業，我們已將 AeroVironment 轉型為專注於無人化技術解決方案的純粹型公司（pure play）。我們聚焦於提供以定義未來的技術為基礎之創新解決方案，包括機器人、感測器、軟體分析與連結能力，服務於規模龐大且持續成長的全球國防、電信與商業市場。

These solutions currently consist of advanced unmanned aircraft systems, tactical missile systems, high-altitude pseudo-satellite systems under development and Commercial Information Solutions. In all cases, our solutions deliver either actionable intelligence or advanced effects that help our customers proceed with certainty.

這些解決方案目前包括先進無人航空系統、戰術飛彈系統、開發中的高空偽衛星系統，以及商業資訊解決方案。在所有情況下，我們的解決方案提供可採取行動的情報或先進效應，協助客戶更有把握地推進任務。

We believe our solutions provide a unique combination of advanced technology, reliability, safety, effectiveness and ease-of-use that differentiate them from our competition, contributing to our outstanding track record of success when competing in our global-end markets.

我們相信，我們的解決方案結合了先進技術、可靠性、安全性、效能與易用性等獨特優勢，能與競爭對手形成差異，並促成我們在全球終端市場競標時的卓越成功紀錄。

Within the U.S. Department of Defense market, we remain the leader in small UAS, and our growing loitering missile systems business is disrupting the tactical missile systems category.

在美國國防部市場中，我們仍是小型無人航空系統（small UAS）的領導者，而我們持續成長的滯空攻擊飛彈系統（loitering missile systems）業務，正在顛覆戰術飛彈系統類別。

In the first quarter, small UAS represented 53% of revenue, and TMS, another 29%.

第一季中，小型無人航空系統占營收 53%，而戰術飛彈系統（TMS）占另外 29%。

On August 13, the President signed the government fiscal year 2019 Defense Authorization Act into law. Now the Senate and House of Representatives are conferencing to resolve differences between their 2 versions of the Defense Appropriations Bill so they can send it to the President before October 1, the beginning of government fiscal year 2019. Both the Senate and House versions of the Appropriations Bill reflect continued strong demand for our solutions and related capabilities as follows: nearly $113 million for Army LMAMS procurement for -- of hardware and services to be satisfied by our Switchblade offering in the Senate version with $105 million in the current House version; $5.5 million for Marine Corps LMAMS procurement in both versions, this is the first year the Marine Corps requested funds for LMAMS procurement; $46 million for Army Raven procurement in both versions; and $13.5 million for Air Force Puma procurement in both versions. This totals more than $170 million in proposed funding for our solutions, a much higher level of budget visibility than in prior years.

8 月 13 日，總統已簽署政府 2019 會計年度《國防授權法案》成為法律。目前參議院與眾議院正進行協商，以解決其兩個版本《國防撥款法案》之差異，並在 10 月 1 日（政府 2019 會計年度開始日）前送交總統簽署。參議院與眾議院版本的撥款法案均反映對我們解決方案及相關能力的持續強勁需求，內容如下：陸軍 LMAMS 採購經費近 1.13 億美元——參議院版本為滿足由我們 Switchblade 方案提供之硬體與服務；眾議院現行版本為 1.05 億美元；海軍陸戰隊 LMAMS 採購經費兩版本皆為 550 萬美元，這是海軍陸戰隊首次提出 LMAMS 採購經費需求；陸軍 Raven 採購經費兩版本皆為 4,600 萬美元；空軍 Puma 採購經費兩版本皆為 1,350 萬美元。合計超過 1.7 億美元的擬議資金將用於我們的解決方案，相較以往年度，預算能見度高出許多。

In our international business, we secured our first contract for the adoption of our Puma systems by the German Navy. This provides another indication of the continued strength of our small UAS in the global market. International sales, which constituted 55% of total revenue in the quarter, remained an important driver for the company as our Family of Systems continues to be the solution of choice among U.S. allies.

在我們的國際業務方面，我們取得了德國海軍採用我們 Puma 系統的首份合約。這再次顯示我們的小型無人航空系統（UAS）在全球市場持續展現強勁實力。本季國際銷售占總營收的 55%，仍是公司重要的成長動能，因為我們的系統家族（Family of Systems）持續成為美國盟友的首選解決方案。

We remain excited about the long-term business opportunity HAPS represents for us, and our HAPS team remains fully focused on executing the development and demonstration contract.

我們對 HAPS 所代表的長期商機仍感到振奮，而我們的 HAPS 團隊也持續全力專注於執行開發與示範合約。

In coordination with our joint venture partner, we look forward to providing update as we achieve key milestones.

在與我們的合資夥伴協同合作下，隨著我們達成關鍵里程碑，我們期待提供最新進展。

While we do not expect Commercial Information Solutions to contribute meaningfully to our financial results this fiscal year, we are receiving positive feedback from growers, agricultural service providers and scientists supporting our belief that this is a truly differentiated solution. Our CIS team continues to focus on building our channel and expanding awareness of our highly differentiated Quantix and AV DSS solution within the agriculture market.

雖然我們預期本會計年度商業資訊解決方案（Commercial Information Solutions）不會對我們的財務結果做出顯著貢獻，但我們正從種植者、農業服務供應商以及科學家獲得正面回饋，支持我們相信這是一項真正具差異化的解決方案。我們的 CIS 團隊持續專注於建立通路，並在農業市場中擴大對我們高度差異化的 Quantix 與 AV DSS 解決方案的認知。

We continue to seek strategic partners to help us capitalize on this large long-term value creation opportunity.

我們持續尋求策略夥伴，以協助我們把握這項龐大的長期價值創造機會。

Our MacCready Works team continues to push the envelope of technology and capabilities through its groundbreaking projects. One such project is helping JPL and NASA build the Mars Helicopter, which will be the first robotic system to fly in the atmosphere of another planet. This is another example of AeroVironment doing what has never been done before, part of what makes us unique in the eyes of the most selective customers on this planet.

我們的 MacCready Works 團隊透過其突破性的專案，持續推進技術與能力的極限。其中一項專案是協助 JPL 與 NASA 打造火星直升機（Mars Helicopter），這將是第一個在另一顆行星大氣層中飛行的機器人系統。這再次展現 AeroVironment 正在完成前所未有之事，這也是我們在地球上最挑剔客戶眼中獨特之處的一部分。

Thanks to our outstanding team, we continued our momentum into fiscal year 2019 with another quarter of strong financial and operational performance. Looking ahead, we remain focused on our fiscal year 2019 objectives and are confident that with continued disciplined execution of our strategy, we will build on this foundation and deliver continued growth and long-term value creation.

憑藉我們傑出的團隊，我們在 2019 會計年度延續動能，再度交出一季強勁的財務與營運表現。展望未來，我們仍專注於 2019 會計年度目標，並相信只要持續以紀律執行我們的策略，我們將在此基礎上再接再厲，實現持續成長與長期價值創造。

Now Teresa will discuss our first quarter financials in greater detail. Teresa?

接下來 Teresa 將更詳細說明我們第一季的財務表現。Teresa？

Thank you, Wahid, and good afternoon, everyone.

謝謝你，Wahid，各位下午好。

AeroVironment's fiscal 2019 first quarter results are as follows: revenue from continuing operation for the first quarter fiscal 2019 of $78 million, an increase of $43.6 million or 127% from the first quarter of fiscal 2018 revenue of $34.4 million. The increase was due to an increase in product deliveries of $36.5 million and an increase in service revenue of $7.1 million.

AeroVironment 2019 會計年度第一季的業績如下：第一季持續營運收入為 7,800 萬美元，較 2018 會計年度第一季的 3,440 萬美元增加 4,360 萬美元，增幅 127%。此增長主要來自產品交付增加 3,650 萬美元，以及服務收入增加 710 萬美元。

Gross margin from continuing operations for the first quarter fiscal 2019 was $32.6 million or 42% of revenue compared to $8.7 million or 25% of revenue for the first quarter of fiscal 2018. The increase in gross margin was primarily due to an increase in product sales margin of $22.7 million and an increase in service margins of $1.2 million.

2019 會計年度第一季持續營運的毛利為 3,260 萬美元，占營收 42%；相較之下，2018 會計年度第一季毛利為 870 萬美元，占營收 25%。毛利增加主要來自產品銷售毛利增加 2,270 萬美元，以及服務毛利增加 120 萬美元。

Gross margin as a percentage of revenue increased from 25% to 42%, primarily due to higher revenue and a higher percentage of product sales in the first quarter.

毛利率由 25% 提升至 42%，主要因第一季營收較高，且產品銷售占比提高。

Looking at the rest of the income statement, SG&A expense from continuing operations for the first quarter of fiscal 2019 was $12 million or 15% of revenue compared to SG&A expense of $11.3 million or 33% of revenue for the first quarter of fiscal 2018.

再看損益表其餘項目，2019 會計年度第一季持續營運的銷售、一般及行政（SG&A）費用為 1,200 萬美元，占營收 15%；相較之下，2018 會計年度第一季 SG&A 費用為 1,130 萬美元，占營收 33%。

R&D expense from continuing operations for the first quarter of fiscal 2019 was $6.4 million or 8% of revenue compared to R&D expense of $5.5 million or 16% of revenue for the first quarter of fiscal 2018. Income from continuing operations for the first quarter of fiscal 2019 was $14.2 million or 18% of revenue compared to a loss of $8.1 million or minus 24% of revenue for the first quarter of fiscal 2018. The increase in income from operations was primarily due to higher gross margins of $23.9 million, partially offset by an increase in R&D expense of $0.9 million and an increase in SG&A of $0.7 million.

2019 會計年度第一季持續營運的研發（R&D）費用為 640 萬美元，占營收 8%；相較之下，2018 會計年度第一季研發費用為 550 萬美元，占營收 16%。2019 會計年度第一季持續營運的營業利益為 1,420 萬美元，占營收 18%；相較之下，2018 會計年度第一季為虧損 810 萬美元，占營收為負 24%。營業利益增加主要來自毛利增加 2,390 萬美元，部分被研發費用增加 90 萬美元及 SG&A 增加 70 萬美元所抵銷。

Net other income for the first quarter of fiscal 2019 was $9.3 million compared to net other income of $0.5 million for the first quarter of fiscal 2018. The increase in net other income was due to the onetime gain on a confidential legal settlement, higher interest income and income from the transition services agreement with Webasto Charging Systems. The effective income tax rate from continuing operations was 10.9% for the first quarter of fiscal 2019 as compared to an effective income tax rate of 42.3% for the first quarter of fiscal 2018. The effective income tax rate for the first quarter fiscal 2019 included a discrete excess tax benefit of $1.1 million resulting from divesting of restricted stock awards and exercise of the stock options.

2019 會計年度第一季其他淨收益為 930 萬美元，相較之下，2018 會計年度第一季其他淨收益為 50 萬美元。其他淨收益增加係因一項保密法律和解的一次性收益、利息收入增加，以及與 Webasto Charging Systems 的過渡服務協議所帶來的收入。持續營運的有效所得稅率在 2019 會計年度第一季為 10.9%，相較之下，2018 會計年度第一季為 42.3%。2019 會計年度第一季的有效所得稅率包含 110 萬美元的一次性超額稅務利益，源自限制性股票獎勵的歸屬以及股票選擇權的行使。

Equity method investment activity, net of tax, for the first quarter of fiscal 2019 was a loss of $0.6 million or $0.02 per diluted share compared to no equity method investment activity, net of tax, for the first quarter of fiscal 2018. Net income from continuing operations attributable to AeroVironment for the first quarter of fiscal 2019 was $20.3 million or $0.85 per diluted share compared to a net loss from continuing operations attributable to AeroVironment of $4.4 million or a $0.19 loss per share for the first quarter of fiscal 2018. The $0.85 per diluted share included a $0.26 onetime gain from a confidential legal settlement. Without this onetime gain, the net income from continuing operations attributable to AeroVironment for the first quarter of fiscal 2019 would have been $0.59 per diluted share.

2019 會計年度第一季按權益法核算之投資活動（扣稅後）為虧損 60 萬美元，或每股稀釋虧損 0.02 美元；相較之下，2018 會計年度第一季（扣稅後）並無按權益法核算之投資活動。2019 會計年度第一季歸屬於 AeroVironment 的持續營運淨利為 2,030 萬美元，或每股稀釋盈餘 0.85 美元；相較之下，2018 會計年度第一季歸屬於 AeroVironment 的持續營運淨損為 440 萬美元，或每股虧損 0.19 美元。每股稀釋盈餘 0.85 美元包含來自一項保密法律和解的一次性收益 0.26 美元。若不含此一次性收益，2019 會計年度第一季歸屬於 AeroVironment 的持續營運淨利將為每股稀釋盈餘 0.59 美元。

The company completed the sale of the EES business to Webasto Charging Systems in the first quarter of fiscal 2019. The company received cash consideration of $32 million upon closing, which resulted in a gain of $11.4 million pretax and $8.8 million after-tax. The company will receive additional cash consideration of $6.5 million upon the assignment of 2 of the remaining customer contracts to Webasto. This amount was not recorded on our first quarter fiscal 2019 as the amount was not realized or realizable as of July 28, 2018. The company expects to collect the additional cash consideration in the second quarter, and it will show as a gain from discontinued operations.

公司於 2019 會計年度第一季完成將 EES 業務出售予 Webasto Charging Systems。公司於交割時收到 3,200 萬美元現金對價，產生稅前收益 1,140 萬美元及稅後收益 880 萬美元。在將剩餘客戶合約中的 2 份轉讓給 Webasto 後，公司將再收到 650 萬美元的額外現金對價。由於截至 2018 年 7 月 28 日該金額尚未實現或不具可實現性，因此未於 2019 會計年度第一季入帳。公司預期將於第二季收取該筆額外現金對價，並將以終止營運收益的形式呈現。

The gain from discontinued operations, net of tax, for the first quarter of fiscal 2019 was $7 million or $0.29 per diluted share compared to a loss from discontinued operation, net of tax, of $1.5 million for the first quarter of fiscal 2018 or a $0.06 loss per share. The $7 million gain net of tax for the first quarter included $8.8 million gain net of tax on the sale of the EES business and a $1.8 million loss, net of tax, on discontinued operations.

2019 會計年度第一季終止營運收益（扣稅後）為 700 萬美元，或每股稀釋盈餘 0.29 美元；相較之下，2018 會計年度第一季終止營運損失（扣稅後）為 150 萬美元，或每股虧損 0.06 美元。2019 會計年度第一季扣稅後 700 萬美元的收益包含出售 EES 業務的扣稅後收益 880 萬美元，以及終止營運的扣稅後損失 180 萬美元。

Turning to our balance sheet. Cash, cash equivalents and investments at the end of the first quarter fiscal 2019 totaled $325.8 million, an increase of $28 million from the end of fiscal 2018 cash, cash equivalents and investments of $297.8 million. Net accounts receivable, including unbilled receivables and retention from continuing operations, at the end of the first quarter fiscal 2019 totaled $73.7 million, which was consistent with the end of the fourth quarter fiscal 2018. Total days sales outstanding from continuing operations for the first quarter fiscal year 2019 was approximately 85 days compared to 48 days for the fourth quarter fiscal year 2018.

接著談我們的資產負債表。2019 會計年度第一季末的現金、約當現金及投資合計為 3.258 億美元，較 2018 會計年度末的現金、約當現金及投資 2.978 億美元增加 2,800 萬美元。2019 會計年度第一季末，持續營運之應收帳款淨額（包含未開立帳單之應收款及保留款）合計為 7,370 萬美元，與 2018 會計年度第四季末一致。2019 會計年度第一季持續營運之應收帳款週轉天數約為 85 天，相較 2018 會計年度第四季為 48 天。

Net inventory from continuing operations at the end of the first quarter fiscal year 2019 was $42.2 million compared to $37.4 million at the end of the fourth quarter fiscal year 2018. Days in inventory outstanding from continuing operations for the first quarter fiscal year 2019 was approximately 79 days, the same as the fourth quarter fiscal year 2018.

2019 會計年度第一季末，持續營運之存貨淨額為 4,220 萬美元，相較 2018 會計年度第四季末為 3,740 萬美元。2019 會計年度第一季持續營運之存貨週轉天數約為 79 天，與 2018 會計年度第四季相同。

Accounts payable from continuing operations at the end of the first quarter fiscal year 2019 was $12.9 million compared to $21.3 million at the end of the fourth quarter fiscal year 2018. Total days payable outstanding from continuing operations for the first quarter fiscal year 2019 was approximately 34 days compared with 24 days for the fourth quarter fiscal year 2018.

2019 會計年度第一季末，持續營運之應付帳款為 1,290 萬美元，相較 2018 會計年度第四季末為 2,130 萬美元。2019 會計年度第一季持續營運之應付帳款週轉天數約為 34 天，相較 2018 會計年度第四季為 24 天。

Turning to capital expenditures. In the first quarter fiscal year 2019, we invested approximately $1.4 million in property improvements and capital equipment for continuing operations and recognized $1.7 million of depreciation and amortization expense.

接著談資本支出。在 2019 會計年度第一季，我們在持續營運方面約投資 140 萬美元於不動產改善與資本設備，並認列 170 萬美元的折舊與攤銷費用。

We adopted the new ASC 606 revenue recognition standard as required for all public companies on May 1, 2018, under the full retrospective transition method. The adoption of 606 resulted in a cumulative adjustment to decrease retained earnings by $1.1 million at May 1, 2018, relating to both our continuing and discontinued EES operations.

我們依規定於 2018 年 5 月 1 日採用新的 ASC 606 收入認列準則，並採全面追溯法轉換。採用 606 使得截至 2018 年 5 月 1 日的保留盈餘累積調整減少 110 萬美元，該調整與我們的持續營運及已停業的 EES 營運皆相關。

For our continuing operations, the adoption of 606 resulted in a cumulative adjustment to increase retained earnings by $1.1 million at May 1, 2018. The impact to our revenue in prior years is primarily driven by contracts in our tactical missile systems business, which will now be recognized over time.

就我們的持續營運而言，採用 606 使得截至 2018 年 5 月 1 日的保留盈餘累積調整增加 110 萬美元。對前幾年營收的影響主要來自我們戰術飛彈系統業務中的合約，這些合約現在將改為隨時間認列。

Now an update to our fiscal 2019 visibility. As of today, we have: year-to-date revenue in fiscal 2019 of $78 million; first quarter ending backlog from continuing operations that we expect to execute in fiscal 2019 of $128 million; Q2 quarter-to-date bookings from continuing operations that we anticipate to execute in fiscal 2019 of $3 million; unfunded backlog from incrementally funded contracts and continuing operations that we anticipate to recognize revenue during the balance of the year of $13 million. This adds up to $223 million or 74% at the midpoint of revenue guidance. With the Tax Cut and Jobs Act, we anticipate a lower full year effective tax rate for continuing operations in the range of 14% to 17%.

現在更新我們對 2019 會計年度的可視性。截至今天，我們有：2019 會計年度年初至今營收 7,800 萬美元；第一季末持續營運之期末在手訂單（backlog），我們預期於 2019 會計年度執行者為 1.28 億美元；第二季截至目前持續營運之接單（bookings），我們預期於 2019 會計年度執行者為 300 萬美元；以及來自增量撥款合約之未撥款在手訂單（unfunded backlog）與持續營運，我們預期於本會計年度剩餘期間認列營收者為 1,300 萬美元。合計為 2.23 億美元，約占營收指引中點的 74%。在《減稅與就業法案》（Tax Cut and Jobs Act）之下，我們預期持續營運的全年有效稅率將較低，約落在 14% 至 17% 的區間。

Now, I would like to turn things back to Wahid to discuss AV's expectations for fiscal year 2019.

現在，我想把時間交還給 Wahid，請他討論 AV 對 2019 會計年度的展望。

Thank you, Teresa.

謝謝你，Teresa。

We're off to a solid start in our fiscal year 2019. With strong backlog, revenue visibility of 74% to the midpoint of our guidance range and a focus and committed team, we continue to expect fiscal year 2019 revenue from continuing operations of between $290 million and $310 million with diluted earnings per share of between $1.10 and $1.40. We continue to expect R&D investments totaling 10% to 11% of annual revenue.

我們在 2019 會計年度有一個穩健的開局。憑藉強勁的在手訂單、達到我們指引區間中點 74% 的營收可視性，以及一支專注且投入的團隊，我們仍預期 2019 會計年度持續營運營收介於 2.90 億至 3.10 億美元之間，稀釋後每股盈餘介於 1.10 至 1.40 美元之間。我們也仍預期研發投資總額約占年營收的 10% 至 11%。

With respect to the distribution of revenue and earnings in fiscal year 2019, we continue to expect first half revenue about equal to half of the midpoint of our full year revenue guidance range. In contrast to first quarter revenue mix, we expect lower-margin revenue mix for the balance of the year. We also expect increased operating expenditures, including R&D and SG&A investments, along with a higher effective tax rate through our fourth quarter.

就 2019 會計年度營收與獲利的分布而言，我們仍預期上半年營收約等於全年營收指引區間中點的一半。相較第一季的營收組合，我們預期今年剩餘期間的營收組合毛利率較低。我們也預期營運支出將增加，包括研發與銷售、一般及行政（SG&A）投資，同時在第四季之前有效稅率也會較高。

While revenue in our second, third and fourth quarters will be close to that of our first quarter, the effects of lower-margin revenue mix, higher operating expenditures and a higher effective tax rate imply lower quarterly earnings, producing the annual earnings guidance I just mentioned a moment ago.

雖然我們第二、第三與第四季的營收將接近第一季，但較低毛利率的營收組合、更高的營運支出以及更高的有效稅率之影響，意味著單季獲利將較低，從而形成我剛才提到的全年獲利指引。

In summary, we are confident in our ability to achieve our fiscal year 2019 objectives and deliver another strong year of profitability and growth.

總結來說，我們對達成 2019 會計年度目標並再度交出強勁的獲利與成長表現充滿信心。

To reiterate our main points for today's call: first, our team is successfully executing our plan, and we're on track to achieve our fiscal year 2019 objectives; and second, demand drivers for our solutions remain strong, and we're capitalizing on these opportunities to make progress towards our long-term goals.

再次重申今天電話會議的重點：第一，我們的團隊正成功執行計畫，並按進度達成 2019 會計年度目標；第二，我們解決方案的需求驅動因素依然強勁，我們正把握這些機會，朝長期目標持續推進。

Thank you to our team members who worked tirelessly to create value for our customers and stockholders. Thank you to our customers who place their trust in AeroVironment to support their most critical missions. And thank you to our stockholders for recognizing the value creation potential of our people and our company.

感謝我們的團隊成員不懈努力，為客戶與股東創造價值。感謝我們的客戶信任 AeroVironment，讓我們支援他們最關鍵的任務。也感謝我們的股東認同我們的人才與公司所具備的價值創造潛力。

Teresa, Steve and I will now take your questions.

Teresa、Steve 和我現在開始回答各位的提問。

(Operator Instructions) The first question in the queue, sir, comes from Joseph DeNardi with Stifel.

（接線員指示）隊列中的第一個問題，先生，來自 Stifel 的 Joseph DeNardi。

Wahid, I think you mentioned in your prepared comments that TMS was 29% of revenue in the first quarter, small UAS was 53%. What's the other 18%? Is that HAPS? Or what's the right math there?

Wahid，我想你在事先準備的發言中提到，第一季 TMS 占營收 29%，小型 UAS 占 53%。那另外的 18% 是什麼？是 HAPS 嗎？或者這裡正確的算法是什麼？

Joe, Teresa here. HAPS -- HAPS was 15% in Q1, and then we have other at 3%, which is inclusive of MacCready Works (inaudible).

Joe，我是 Teresa。HAPS——HAPS 在第一季占 15%，然後其他占 3%，其中包含 MacCready Works（聽不清）。

Okay. And Teresa, do you have the similar percentages for first quarter '18 just so we can get a sense for the growth rate?

好的。Teresa，你有沒有 2018 年第一季的類似百分比，讓我們可以了解成長率？

Sure, Joe. In the first quarter of fiscal '18, small UAS was 58%, TMS was 28%, HAPS was 7%, and other was 6%.

當然，Joe。在 2018 會計年度第一季，小型 UAS 占 58%，TMS 占 28%，HAPS 占 7%，其他占 6%。

Great. That's very helpful. Wahid, just maybe a higher-level question for you. Given what the stock price has done, I'm wondering if that changes how you view your appetite for M&A and how you think about using stock to finance any of that.

太好了。這非常有幫助。Wahid，我再問一個比較宏觀的問題。考量股價的表現，我想知道這是否會改變你對併購（M&A）意願的看法，以及你如何看待用股票來為任何併購融資。

No problem, Joe. So obviously, we have a very strong and healthy balance sheet in terms of our financials. That is obviously not an accident. We worked really hard to achieve that. The primary reason for that is to execute our strategy -- our organic strategy and delivering the long-term value creation and achieving the success and the opportunities that we're pursuing, Joe. We also recognize that there will be multiple opportunities to use our balance sheet, and potentially even our stock if we needed to, to supplement or to achieve our strategic gets, either faster, better, cheaper in different ways. An example of that in the past year, for example, was the formation of a joint venture with SoftBank Corp., where we invested 5% initially, and we can raise that percentage up to 19%, and we expect that decision to happen sometime this fiscal year.

沒問題，Joe。很明顯，我們在財務面有非常強健且健康的資產負債表。這當然不是偶然。我們為此付出了很大的努力。其主要原因是為了執行我們的策略——我們的內生成長策略，並實現長期價值創造，以及達成我們正在追求的成功與機會，Joe。我們也認知到，未來會有多種機會運用我們的資產負債表，必要時甚至可能使用我們的股票，來補強或更快、更好、更便宜地達成我們的策略性目標。例如在過去一年，我們與 SoftBank Corp. 成立合資企業，我們初期投資 5%，並可將持股比例提高至 19%；我們預期會在本會計年度的某個時間點做出該決定。

So with those types of activities, we intend to use our balance sheet to progress our strategy. Beyond that, there may be other opportunities inorganically that would require a combination of potentially cash and noncash, such as our stock. Those are all options that we as a management team as well as the board considers on a regular basis. We review those. And should we make any decisions on that, we will keep you updated. But certainly, that's under mix of our consideration for decisions in the future.

因此，針對這類活動，我們打算運用資產負債表來推進我們的策略。除此之外，可能還有其他非有機的機會，將需要可能由現金與非現金（例如我們的股票）組合而成的對價。這些都是我們管理團隊以及董事會定期考量的選項。我們會檢視這些選項。若我們就此作出任何決定，我們會持續向各位更新。但可以確定的是，這確實是我們對未來決策所考量的組合之一。

The next question comes from Brian Ruttenbur with Drexel Hamilton.

下一個問題來自 Drexel Hamilton 的 Brian Ruttenbur。

So I just wanted to clarify a couple of points. First of all, the way you're looking at the quarter, it's a normalized $0.59, and that would equate to your guidance, that $0.59 goes into the $1.10 to $1.40. Is that correct?

我只是想釐清幾點。首先，你們看待本季的方式是將其正規化為 0.59 美元，而這會對應到你們的指引，也就是這 0.59 美元會落在 1.10 至 1.40 美元之內。這樣理解正確嗎？

The $1.10 to $1.40, when we gave that range, was inclusive of the onetime legal settlement that we had of $0.26. So that included that. So it was the $0.85 that we've talked about from continuing operations was part of the guidance, the $1.10 to $1.40.

我們提出 1.10 至 1.40 美元這個區間時，已包含一次性的法律和解影響 0.26 美元。所以那已經包含在內。因此，我們所談到來自持續營運的 0.85 美元，是 1.10 至 1.40 美元指引的一部分。

Okay. So you've made $0.85 in the first quarter, but you only anticipate making another $0.35 to $0.60, whatever, you've made half your -- over half your year. I haven't done the math, off the top of my head, I apologize. You've made half your year in the first quarter, and you anticipate the second quarter being also very strong, is that correct, at least on the revenue side, but not as much on the margin side. Is that correct?

好的。所以你們第一季賺了 0.85 美元，但你們只預期接下來再賺 0.35 到 0.60 美元之類的——你們在第一季就已經賺了你們全年的一半——我沒有即時計算，抱歉。你們在第一季就賺了全年的一半，而你們預期第二季也會非常強勁，至少在營收面是如此，但在毛利率面不會那麼強。這樣說對嗎？

That is correct, Brian. So this is Wahid. You raised up a really good point, which is absolutely, as you heard from my remarks, we expect the second, third and fourth quarters in terms of revenue to be roughly equal to that of our first quarter. However, the profit margin on the second quarter and the remaining of the year has a significantly different picture than the first quarter, and it's driven primarily by the following factors. First, the mix of our revenue for the remainder of the year is quite different. We have lower-margin product sales as well as a higher percentage of services contracts than product contracts that we anticipate to shift throughout the remainder of the year. .

沒錯，Brian。我是 Wahid。你提出了一個非常好的觀點；正如你從我的發言中聽到的，我們預期第二、第三與第四季的營收大致會與第一季相當。然而，第二季以及今年剩餘期間的利潤率情況，與第一季有顯著不同，主要由以下因素所驅動。第一，今年剩餘期間的營收組合相當不同。我們有較低毛利的產品銷售，以及我們預期在今年剩餘期間，服務合約占比將高於產品合約，並會持續轉移。.

Second, we also expect to increase our OpEx investments. Q1 was lower, as we've -- we mentioned that to you guys last quarter. And then third, our effective tax rate would also be higher for the remainder of the year. We benefited from that on the first quarter, and that would not be the case in the remaining 3 quarters. So the combination of those 3 factors equates to a lower EPS for the remainder of the year, and we therefore reconfirmed our guidance of $1.10 and $1.40 for the full year.

第二，我們也預期會增加營業費用（OpEx）投資。第一季較低，正如我們在上一季已向各位提到的。第三，我們的有效稅率在今年剩餘期間也會較高。第一季我們受惠於較低稅率，而在接下來三季就不會如此。因此，這三項因素的組合會導致今年剩餘期間的每股盈餘較低，所以我們因此再次確認全年 1.10 至 1.40 美元的指引。

Okay. I'm sorry to have you repeat that. I heard that. You made those in the prepared comments, but it seemed odd to me that it was such a big quarter and that there was no raising. And I appreciate you going back over that. Can you talk a little bit...

好的。抱歉讓你重複說明。我有聽到。你在事先準備的講稿裡有提到，但對我來說，這一季這麼強卻沒有上調指引，看起來有點奇怪。也謝謝你再把這點說明一次。你能不能稍微談談……

No problem.

沒問題。

Yes. And then can you talk a little bit about the long-term growth in the business? Where do you see it going? It's obviously going to be a solid year this year. And now that you're kind of a pure play on the UAS side, where do you expect that to grow in 2020 and beyond?

是的。那你能不能談談這項業務的長期成長？你們認為它會往哪裡走？顯然今年會是穩健的一年。而現在你們某種程度上成為 UAS 業務的純粹標的，你們預期 2020 年及之後會如何成長？

Sure, Brian. So this is Wahid again. Obviously, we feel very good about our performance for the first quarter. We're very pleased with the results that we achieved -- accomplished so far. It is still early for the year, and that's why we're reconfirming the guidance, and we expect to achieve the outcomes that we have set in front of us as part of our goals for this year.

當然可以，Brian。我再說一次，我是 Wahid。顯然，我們對第一季的表現感到非常好。我們對目前為止所達成——完成的成果非常滿意。今年仍在早期階段，這也是我們再次確認指引的原因；我們預期能達成我們今年目標中所設定的成果。

Beyond fiscal '19, we don't comment specifically on the growth in dollars or revenue percentages and all that. We will provide them in the fourth quarter.

至於 2019 會計年度之後，我們不會就以美元或營收百分比等方式具體評論成長。我們會在第四季提供相關資訊。

I can tell you that inherent to our strategy of the business is to pursue these very large global end markets with highly differentiated, compelling and sustainable value proposition solutions and then capitalize on those and basically achieve adoption with those and achieve great success. That has been our history in our small UAS. That has been our history so far in our Tactical Missile Systems business. And we intend to achieve even greater successes with the other 2 businesses that we're somewhat younger in those businesses, such as our HAPS business as well as our Commercial Information Solutions. So in general, that's our strategy, and we're -- we feel pretty strong about our value proposition and our odds for success in the long term.

我可以告訴你，我們的業務策略核心，是鎖定這些非常龐大的全球終端市場，提供高度差異化、具吸引力且可持續的價值主張解決方案，並加以把握，基本上推動市場採用並取得卓越成功。這一直是我們在小型 UAS 的歷史。這也是我們迄今在戰術飛彈系統（Tactical Missile Systems）業務的歷史。而對於另外兩項我們相對較新的業務，例如我們的 HAPS 業務以及商業資訊解決方案（Commercial Information Solutions），我們也打算取得更大的成功。總體而言，這就是我們的策略；我們對自身的價值主張以及長期成功的勝算感到相當有信心。

The next question comes from Joseph DeNardi with Stifel.

下一個問題來自 Stifel 的 Joseph DeNardi。

Wahid, I appreciate the revenue disclosures you guys have provided. That's helpful for us to understand how the business looks, and I don't want you to regret doing that. But given the commentary around the mix of business changing a little bit in the back of the year, should we think about the margin profile of kind of the TMS business, the small UAS business and the HAPS business as being different? So as one ramps up a little bit, that there's going to be a margin drag associated with that?

Wahid，我很感謝你們提供的營收揭露。這有助於我們理解業務的樣貌，我也不希望你們因此後悔這麼做。但考量到你們提到下半年業務組合會有些變化，我們是否應該認為 TMS 業務、小型 UAS 業務與 HAPS 業務的毛利率輪廓是不同的？也就是說，當其中某一項業務加速成長時，會伴隨毛利率被拖累的情況？

Joe, certainly, that is the case with our businesses on any given time. Our different product lines and businesses have different profiles even based on specific contracts. So even within our small UAS business, Joe, our fixed price contracts tend to have slightly higher risk but also a higher profitability of gross margins. Our cost-plus contracts are less risky in terms of its outcome for AeroVironment. However, it's got also a lower profile for profitability.

Joe，當然，在任何特定時間點，我們的各項業務確實會出現這種情況。我們不同的產品線與業務，即使是基於特定合約，也會有不同的輪廓。因此，即便在我們的小型 UAS 業務內，Joe，我們的固定價格合約通常風險略高，但毛利率的獲利能力也較高。我們的成本加成（cost-plus）合約在結果上對 AeroVironment 而言風險較低。然而，其獲利能力的輪廓也較低。

And in terms of our different businesses, that is also true. Obviously, right now in our HAPS business, in the joint venture, we are executing against the contract that we have in place, which we announced earlier, which is a cost-plus fixed fee contract. And by nature, it is a lower gross margin endeavor, which we believe is the right thing for the long-term value creation opportunity for AeroVironment.

就我們不同業務而言，情況也同樣如此。顯然，目前在我們的 HAPS 業務（合資企業）中，我們正依照已簽訂的合約執行；我們先前已公告該合約，屬於成本加成固定費用（cost-plus fixed fee）合約。就其性質而言，這是一項毛利率較低的工作，但我們相信，對 AeroVironment 的長期價值創造機會而言，這是正確的做法。

So throughout the year, Joe, we do expect differences in gross margin based on different product lines as well as within the product lines based on the mix of the products.

因此，在全年期間，Joe，我們確實預期毛利率會因不同產品線而有所差異；同時，即使在同一產品線內，也會因產品組合不同而出現差異。

Okay. That's helpful. And then just on Switchblade or TMS. I'm wondering if you can just talk about, to the extent you can, how it's being used by the customer right now. I know you've been hesitant to talk about that in detail in the past. I'm wondering if that's changed at all. Is the usage primarily in theater still? Or is it being used more broadly kind of the normal course of training? Or is it still very focused, limited type of deployment at this point?

好的。這很有幫助。接著談到 Switchblade 或 TMS。我想請你在可透露的範圍內，談談目前客戶是如何使用它的。我知道你們過去一直不太願意詳細談這部分。我想知道這點是否有任何改變。目前使用是否仍主要在戰區？還是更廣泛地用於一般訓練的常態流程？或者現階段仍是非常聚焦、有限度的部署？

So Joe, we have always believed and continue to believe that our Switchblades, the original Switchblade that we have introduced many years ago, is a disruptor of a very large typical missiles business. We believe that our solution set is very compelling, and it provides a very compelling value proposition for the type of problems and challenges that our men and women in uniform face daily out in the world. We've been at the belief of that. And as you see -- as you can see from our results and our track record, we have built that business and grown it very, very steadily over the last few years, very handsomely. We still believe we're in the early stages of adoption. Our customer still is the U.S. government. We're not shipping those internationally to date. Cannot comment specifically on the actual use of the product with what type of forces and all that due to our customer confidentiality needs.

Joe，我們一直相信，且現在仍然相信，我們的 Switchblade——也就是多年前推出的原始 Switchblade——是對規模非常龐大的傳統飛彈業務具有顛覆性的產品。我們認為我們的解決方案組合非常有吸引力，並且針對我們軍中男女官兵每天在世界各地面臨的問題與挑戰，提供了非常有說服力的價值主張。我們一直都這麼相信。而且如你所見——從我們的成果與過往紀錄可以看出，我們在過去幾年非常穩健、持續地建立並擴大了這項業務，成長相當亮眼。我們仍然認為目前仍處於採用的早期階段。我們的客戶仍是美國政府。截至目前我們尚未進行國際出貨。基於客戶保密需求，我無法具體評論產品實際使用於哪些部隊等細節。

However, there's very strong funding line within the U.S. DoD budget, as I mentioned in my earlier remarks, close to $113 million in the proposed budget, which was just signed by the President. And again, this is a repeated demand signal of high demand, high validation of the solution's compelling value proposition to the market that we serve. And we've also mentioned that there are multiple variants of that solution and different phases of its adoption and development process, which we believe is going to address a much bigger market long term.

不過，如我先前的發言所提，在美國國防部預算中有一條非常強勁的資金編列，於提案預算中接近 1.13 億美元，且該預算剛由總統簽署。再次強調，這是重複出現的需求訊號，代表需求強勁，也高度驗證了我們解決方案對所服務市場的價值主張。我們也提到，該解決方案有多個型號（variants），並處於不同的採用與研發階段；我們相信長期而言這將能切入更大的市場。

Helpful. Wahid, the $113 million that's in the budget, I'm assuming that's not in your backlog yet. When would that go into your backlog? And when do you expect to record that $113 million in revenue? Is that primarily an FY '20 event for you guys? Or would some of that start to hit this fiscal year?

很有幫助。Wahid，預算中的那 1.13 億美元，我猜目前還沒有列入你們的在手訂單（backlog）吧。那它什麼時候會進入你們的在手訂單？你們預期何時會把這 1.13 億美元認列為營收？這主要會是你們 FY '20 的事件嗎？還是其中一部分會在本會計年度開始反映？

So Joe, you are right that it is not in our backlog today because it's actually proposed funding that has been just signed by the President. There are still some debate and discussion that has to happen between the 2 Houses of Congress. And then the expected plan as of right now is for that to be resolved and delivered to the President before October 1, which is the beginning of the new government fiscal year. And what that means is if that were to happen by that time frame, then that line of approval is going to be funded through the government fiscal year 2019, which starts October 1 and ends in September -- end of September of 2019 calendar year. That means that the booking of that could happen any time towards the end of our year or beginning of next fiscal year. And we will update you as we progressed through that process. We're engaged with our customer on that very closely, and we're working towards a successful outcome for both our customer and AeroVironment.

Joe，你說得對，今天它還不在我們的在手訂單中，因為它其實是剛由總統簽署的「提案」資金。國會兩院之間仍有一些辯論與討論需要進行。依目前預期計畫，這些事項將在 10 月 1 日之前解決並送交總統，也就是新政府會計年度的開始。這表示如果能在該時間點前完成，那條預算核准將透過政府 2019 會計年度撥款，該年度自 10 月 1 日開始，至 2019 年曆年 9 月底結束。這意味著該筆訂單的入帳（booking）可能會在我們會計年度末的任何時間點，或在下一個會計年度初發生。我們會在推進該流程的過程中向各位更新。我們正與客戶非常密切地合作，並朝著對客戶與 AeroVironment 皆成功的結果努力。

Okay. And then one last one for me if I could. Just on the international opportunity for Switchblade. Can you just talk about what the time line there could be when you could actually start to sell that to some of our closer foreign allies and whether any of those customers have expressed interest in that type of capability?

好的。最後一個問題，如果可以的話。關於 Switchblade 的國際機會。你能否談談可能的時間表：你們何時能真正開始向一些較親近的外國盟友銷售？以及是否有任何這些客戶對這類能力表達過興趣？

Sure. So Joe, we believe that similar to the U.S. DoD customer of ours that the capability and the value proposition of Switchblade and its variants is very attractive and applicable to our multitude of allied nations. Obviously, because it is such a disruptive solution, in technology, our customer, U.S. government, feels that it needs to be carefully vetted in terms of the ability for it to be able to ship internationally. We have been working on that, and we continue to work on that with the U.S. government and State Department. We've been very successful of that in our small UAS business for the last multiple decades, and we've grown that business as you've seen. Long term, I believe that we're going to be successful there. However, it's going to take more effort, and you have to go through the process. When will that happen? It's really hard to predict the exact timing of that, Joe, but we're working through that process. And we will update you as we have any updates on that.

當然。Joe，我們相信，類似於我們的美國國防部客戶，Switchblade 及其各型號的能力與價值主張，對眾多盟國同樣非常具吸引力且適用。顯然，由於這是一項在技術上極具顛覆性的解決方案，我們的客戶——美國政府——認為在能否進行國際出貨方面需要審慎審核。我們一直在推進這件事，並持續與美國政府及國務院合作。在我們的小型無人機系統（small UAS）業務上，過去數十年我們在這方面非常成功，也如你所見持續擴大了該業務。長期而言，我相信我們會在這方面取得成功。不過，這需要更多努力，也必須走完相關流程。至於何時會發生？Joe，確切時間點很難預測，但我們正在推進這個流程。一旦有任何進展，我們會向各位更新。

We have no further questions at this time. I would turn the call over to Mr. Gitlin for any closing remarks.

我們目前沒有其他問題。我將把電話會議交給 Gitlin 先生做結語。

Thanks, Michelle, and thank you all for your attention today and for your interest in AeroVironment. An archived version of this call, all SEC filings and relevant company and industry news can be found on our website, avinc.com. We look forward to speaking with you again following next quarter's results. Good day.

謝謝你，Michelle，也謝謝各位今天的關注，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。祝各位有美好的一天。

Thank you, ladies and gentlemen. This concludes today's teleconference. Thank you for participating. You may now disconnect.

謝謝各位女士與先生。今天的電話會議到此結束。感謝各位參與。您現在可以掛線。