AeroVironment reported results for its fourth quarter ended April 30, 2016. Revenue for the fourth quarter of fiscal 2016 was $84.8 million, a decrease of 2% from Q4 2015 revenue of $86.5 million.
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The decrease in revenue resulted from a decrease in sales in our Unmanned Aircraft Systems (UAS) segment of $2.8 million, partially offset by an increase in sales in our Efficient Energy Systems (EES) segment of $1.1 million.
Gross margin for the fourth quarter of fiscal 2016 was $37.9 million, a decrease of 16% from fourth quarter fiscal 2015 gross margin of $45.4 million.
The decrease in gross margin was due to a decrease in product margin of $8.1 million, partially offset by an increase in service margin of $0.7 million. As a percentage of revenue, gross margin decreased to 45% from 52%.
Income from operations for the fourth quarter of fiscal 2016 was $6.8 million compared to income from operations for the fourth quarter of fiscal 2015 of $7.5 million.
Other income, net, for the fourth quarter of fiscal 2016 was $0.5 million compared to other expense, net, for the fourth quarter of fiscal 2015 of $0.5 million.
AeroVironment net income for the fourth quarter of fiscal 2016 was $5.4 million compared to net income for the fourth quarter of fiscal 2015 of $7.1 million.
Earnings per diluted share for the fourth quarter of fiscal 2016 were $0.23 compared to earnings per diluted share for the fourth quarter of fiscal 2015 of $0.31. Earnings per diluted share for the fourth quarter of fiscal 2015 included a loss of $0.01 per share due to losses on our equity investment.
AeroVironment revenue for fiscal 2016 was $264.1 million, up 2% from fiscal 2015 revenue of $259.4 million. The increase in revenue resulted from an increase in sales in our UAS segment of $12.8 million, partially offset by a decrease in sales in our EES segment of $8.1 million.
Gross margin for fiscal 2016 was $112.1 million, up 8% from fiscal 2015 gross margin of $104.3 million.
Income from operations for fiscal 2016 was $9.7 million compared to income from operations for fiscal 2015 of $2.0 million.
The increase in income from operations was a result of an increase in gross margin of $7.8 million and a decrease in R&D of $4.2 million, partially offset by an increase in SG&A of $4.3 million.
Other expense, net, for fiscal 2016 was $1.7 million compared to other expense, net, for fiscal 2015 of $0.1 million. The increase in other expense, net was primarily due to the recording of an other-than-temporary impairment loss on our CybAero equity securities during the first quarter of fiscal 2016.
Net income for fiscal 2016 was $9.0 million compared to net income for fiscal 2015 of $2.9 million.
Earnings per diluted share for fiscal 2016 were $0.39 compared to earnings per diluted share for fiscal 2015 of $0.13.
As of April 30, 2016, funded backlog was $65.8 million compared to $64.7 million as of April 30, 2015.
For fiscal 2017, AeroVironment expects to generate revenue of between $260 million and $280 million, and earnings per fully diluted share of between $0.20 and $0.35. ■