AeroVironment reported financial results for its second quarter ended October 31, 2015. Revenue was $64.7 million, up 23% from second quarter fiscal 2015 revenue of $52.7 million.
Article continues below
The increase in revenue resulted from an increase in sales in Unmanned Aircraft Systems (UAS) segment of $13.5 million, offset by a decrease in sales inEfficient Energy Systems (EES) segment of $1.5 million.
Gross margin was $31.5 million, up 76% from second quarter fiscal 2015 gross margin of $17.9 million.
The increase in gross margin was due to an increase in product margin of $9.6 million and an increase in service margin of $4.1 million, both of which were impacted by a reserve reversal of $3.5 million for the settlement of prior year government incurred cost audits.
As a percentage of revenue, gross margin increased to 49% from 34%.
Income from operations for the second quarter of fiscal 2016 was $6.9 million compared to loss from operations for the second quarter of fiscal 2015 of $4.1 million.
The increase in income from operations was a result of an increase in gross margin of $13.7 million, offset by an increase in research and development (R&D) of $1.4 million and in selling, general & administrative (SG&A) expense of $1.3 million.
Other income, net, for the second quarter of fiscal 2016 was $0.1 million compared to other expense, net, for the second quarter of fiscal 2015 of $0.4 million.
Net income for the second quarter of fiscal 2016 was $4.4 million compared to net loss for the second quarter of fiscal 2015 of $2.9 million.
Earnings per diluted share for the second quarter of fiscal 2016 were $0.19 compared to loss per share for the second quarter of fiscal 2015 of $0.13.
Loss per share for the second quarter of fiscal 2015 increased by $0.01 due to the decrease in fair value of the conversion option ofconvertible bond investment and related sales of stock.
There was no impact to earnings per share for the second quarter of fiscal 2016 for the convertible bond investment or sales of stock. ■