Profile: AeroVironment, Inc. (AVAV.O)

AeroVironment, Inc., incorporated in July 1971, designs, develops, produces and supports a portfolio of unmanned aircraft systems (UAS), that it supplies primarily to organizations within the United States Department of Defense (DoD), charging systems for electric industrial vehicle batteries and electric vehicle test systems devices that it supplies to commercial and government customers. The Company derives the majority of its revenue from these business areas. The Company's core technological capabilities include lightweight aerostructures, electric propulsion systems, electric energy generation and storage systems, energy packaging, miniaturization, controls integration and systems engineering optimization. The Company is organized into two segments: UAS and Efficient Energy Systems. The Company’s UAS business segment focuses primarily on the design, development, production and support of UAS that provide situational awareness to the security of its customers' operations. Its Efficient Energy Systems business segment focuses primarily on the design, development, production and support of electric energy systems that address the demand for clean transportation and clean energy solutions.

During the fiscal year ended April 30, 2009 (fiscal 2009), approximately 43% of its sales were made to the United States Army pursuant to orders made under contract by the United States Army on behalf of itself, as well as several other services of the United States Military. Other United States government agencies and government subcontractors accounted for 38% of its sales revenue, while purchases by foreign and commercial customers accounted for the remaining 19% of sales revenue during fiscal 2009.

UAS Products

The Company's small UAS, including Raven, Wasp and Puma AE, are designed to provide intelligence, surveillance and reconnaissance (ISR), including real-time tactical reconnaissance, tracking, combat assessment and geographic data, directly to the small tactical unit or individual warfighter. Its small unmanned aircraft wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors, enabling the operator to view and capture images, during the day or at night, on a hand-held ground control unit. All of its ground control units allow the operator to control the aircraft by programming it for global positioning system (GPS)-based autonomous navigation using operator-designated way-points and also provide for manual flight operation. All of its production small unmanned aircraft operate from the common ground control unit.

In military applications, the Company's systems enable tactical leaders to observe the next corner, intersection or ridgeline in real-time. The Company's small UAS solutions include spare equipment, alternative payload modules, batteries, chargers, repairs and customer support. It maintains a forward operating depot in Iraq to support the large fleet of the small UAS deployed there. During fiscal 2009, sales of the Company’s UAS products and services accounted for 85% of its revenue.

UAS Services

In support of its small UAS the Company offers a suite of services that help its customers. The Company provides spare parts, as well as repair, refurbishment and replacement services through its services operation. The Company developed an Internet-accessible logistics system that provides its customers with the status of their returned products and their inventory that it helps manage. This secure system also provides parts and repairs and tracks usage data to enable inventory optimization forecasting. Its Simi Valley, California facility, which also serves as the primary depot for repairs and spare parts, is supplemented by a forward supply depot in Iraq. The Company provides training services to support all of its small UAS. It offers turnkey flight operation services to customers requiring the information generated by the small UAS.

Efficient Energy Systems Products

Efficient Energy Systems business segment produces industrial productivity and clean transportation solutions for commercial and government customers, develops new potential clean transportation and clean energy solutions, and performs contract engineering services. These solutions consist of PosiCharge electric vehicle charging systems for industrial electric material handling fleets, and electric vehicle test systems for developers of hybrid and electric vehicles, as well as battery packs, electric motors and fuel cells. During fiscal 2009, Efficient Energy Systems sales accounted for 15% of its revenue.

PosiCharge Electric Vehicle Charging Systems

Developed from its work on electric and hybrid electric vehicles and battery systems in the, PosiCharge electric vehicle charging systems recharge industrial vehicle batteries while the batteries remain in the vehicle during regularly scheduled breaks and other times when the vehicle is not in use. By eliminating battery changing, PosiCharge systems improve supply chain productivity by returning time to the vehicle operator to complete more work. By eliminating battery changing, PosiCharge improves supply chain productivity by returning time to the vehicle operator to complete work. The Company's line of fast charge products enables it to design customized system solutions for each facility based on its shift schedule, workload, truck type and battery type. Its solution consists of system configuration, installation, training, asset management and performance monitoring. Operators of fleets of electric industrial vehicles who use PosiCharge in multiple settings, including factories, distribution centers, cold storage facilities and airport tarmacs, include Ford Motor Company, SYSCO Corporation, Southwest Airlines and IKEA.

The Company's PosiCharge systems and support products include PosiCharge ELT, PosiCharge DVS, PosiCharge MVS, PosiCharge SVS, PosiCharge GSE and PosiCharge eSV. ELT, the Company's fast charge product, is designed to deliver the highest current (up to 600 amps) to electric forklifts, such as counterbalance or sit-down trucks, used in heavy duty applications. PosiCharge DVS is capable of charging either one vehicle at a time at up to 500 amps or two vehicles simultaneously at up to 320 amps each. MVS, a multiple-port, multi-vehicle fast charge system, is designed for charging low-to-medium-duty electric industrial vehicles, such as pallet jacks, reach trucks and tow motors, in distribution, warehousing and general manufacturing settings. PosiCharge SVS is a fast charge solution for single vehicle applications, the SVS line of fast change systems has a compact footprint and provides up to 500 amps of current through its single port. PosiCharge GSE is designed to deliver all the benefits of its MVS product to the airport ground support equipment market. The eSVS opportunity charger line provides a fleet solution for low duty vehicles.

The Company offers a variety of accessories to help its customers integrate PosiCharge into their operations. Single point, automatic watering systems ensure that battery electrolyte is maintained at an optimal level and that watering occurs at the optimal time. Charge indicator lights provide fleet supervisors with color codes visible from a distance that indicate the status of the battery's charge. The Company supplies a line of electric vehicle test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems and electricity storage systems. Customers employ this electric load and sink systems to test batteries, electric motors and fuel cell systems. Its line of direct current (DC0 test systems performs a variety of supplier load tests. It also offers software control options - via the C language remote operation system (ROS), Windows-based languages, such as LabVIEW and CAN.

The Company competes with Elbit Systems Ltd., L-3 Communications Holdings Inc., Lockheed Martin Corporation., The Boeing Company, General Dynamics, EADS, Ball Aerospace, Orbital Sciences, Aker Wade Power Technologies LLC, PowerDesigners, LLC, Northrop Grumman Corporation, General Atomics, Inc, Textron and Ecotality.