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
AV's largest business segment, UAS (85% 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
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.
The company has principal offices located in California and facilities located in California, Alabama, and Virginia. Its international sales accounted for almost 10% of its revenue during 2015.
Sales and Marketing
AV's revenues jumped 3% from $252 million in 2014 to $259 million in 2015. Profits, however, dropped 79% from $14 million to $3 million during that same time period mainly due to a spike in research and development costs.
The revenue growth for 2015 was driven by a 6% rise in UAS sales driven by higher product deliveries of Puma AE systems. This bump in sales was offset by a 10% decrease in EES sales due to decreased product deliveries of industrial fast charge systems and electric vehicle test systems.
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 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.
900 INNOVATORS WAY
Simi Valley, CA 93065-2072
Phone: 1 (805) 581-2187
Employer Type: Publicly Owned
Stock Symbol: AVAV
Stock Exchange: , NASDAQ
Chairman: Timothy Conver
SVP and CFO: Teresa P. Covington
President and CEO: Wahid Nawabi
Employees (This Location): 60
Employees (All Locations): 697