AeroVironment Narrows Losses, Secures $44.5 Million Contract

AeroVironment Inc. beat Wall Street expectations on revenue in the fiscal third quarter but fell short on earnings. The Monrovia unmanned aircraft and electric vehicle charging station manufacturer reported on Tuesday a net loss of $828,000 (-4 cents a share) for the quarter ending Jan. 27 compared with a net loss of $2.2 million in the same period a year earlier. Revenue increased by 20 percent to $63.9 million. Analysts on average expected earnings of 5 cents on revenue of $62.5 million, according to Thomson Financial Network. AeroVironment develops, manufactures and tests all its unmanned aircraft in Simi Valley. Chief Executive Wahid Nawabi said highlights of the third quarter includes a $100 million joint venture with SoftBank Corp. to launch a stratospheric broadband communication business. Also, on Tuesday the company announced it received a contract for the Puma small unmanned aircraft from a customer in the Middle East valued at $44.5 million. It is the largest-ever international contract and reflects continued strong demand overseas for its small unmanned aircraft systems, Nawabi said. “We remain committed to delivering transformational innovations to our customers and creating significant value for our stockholders,” he added in a statement. Shares in AeroVironment (AVAV) closed up 39 cents, or just less than a percent, to $50.53 on the Nasdaq.