Aerovironment, Inc.

AeroVironment (AV) gives soldiers a birds-eye view of their mission. The company designs and manufactures a line of small unmanned aircraft systems (UAS) for the Department of Defense (DoD). Small enough for one-man transport and launch and operable through a hand-held control, AV's UAS provide intelligence, surveillance, and reconnaissance for small tactical units. Through its Efficient Energy Systems (EES) unit, AV produces PosiCharge fast-charge systems for industrial equipment batteries and electric vehicles (EV), as well as EV testing systems used by auto, defense, and utility markets. The US Army and other US government agencies generate about 83% of sales.

AV's largest business segment, UAS (84% of sales), makes small UAS -- the Raven, Wasp AE, and Puma -- that wirelessly communicate real-time video using electro-optical or infrared sensors; they provide reconnaissance, tracking, combat assessment, and geographic data to warfighter ground units. Though Northrop Grumman and General Atomics compete indirectly with their larger UAS, AV's smaller systems offer a competitive edge because they are harder to see from the ground and can be moved, assembled without tools, and launched in less than five minutes by one person.

On the wings of change, AV has tapped another emerging market through its EES business segment. The company offers industrial electric vehicle charging systems, power cycling and test systems, and contract engineering services. This segment is netting customers as it continues to spotlight the advantages of its PosiCharge products; they improve productivity and safety by eliminating frequent and laborious battery changes. PosiCharge customers include Continental AirlinesFord, and IKEA

Revenues in  fiscal 2012 increased 11% over 2011's figures. UAS revenue rose 10% during the same period to meet more demand for digital Puma AE systems. EES went up 20% thanks mainly to strong sales of electric vehicle charging systems and power cycling and test systems. For the past three years net income has enjoyed a trend of steady increases. It rose from $20.7 million in 2010 to $25.9 million in 2011 and then up to $30.4 million in fiscal 2012.

Given the US DoD's shift in defense spending priorities -- moving away from combat warfare equipment toward unmanned aerial vehicles (UAVs), advanced sensors, and other high-tech systems -- AV's systems are answering the call for products that will allow the US military more speed, flexibility, precision, and responsiveness. Even with this edge, the company wants to reduce its exposure to US government budgetary constraints, and it is angling to add militaries from allied nations and non-military industries in the US to its roster of customers. To that end, the company is introducing  applications to support law enforcement, infrastructure monitoring, and border surveillance. Helpful for that effort is the FAA Modernization and Reform Act of 2012, which encourages the adoption of small UAS for public and commercial use.

The company uses the contract engineering services of its EES segment not only to serve customers, but in a sense to also serve itself. Contract engineering services helps the company to stay innovative and improve technical capabilities. The segment also partners with auto manufacturers, utilities, and others to develop demand for systems that charge electric and hybrid electric vehicles. It also licenses electrical contractors for direct sales to consumers.

Chairman and CEO Timothy Conver owns more than 20% of AV. He took the reins in 1993 from aeronautical inventor and company founder Paul MacCready, who passed away in 2007. MacCready's family owns a company stake just shy of 10%.

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Aerovironment, Inc.

181 W Huntington Dr #202
Monrovia, CA 91016-8406
Phone: 1 (626) 357-9983
Fax: 1 (626) 3599628


  • Employer Type: Public
  • Stock Symbol: AVAV,
  • Stock Exchange: , NASDAQ
  • President, CEO, and Director: Timothy Conver
  • SVP and COO, Unmanned Aircraft Systems: Tom Herring
  • Founder: Paul MacCready

Major Office Locations

  • Monrovia, CA
  • Monrovia, CA

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