Segment Data

3 Months Ended

Jul. 27, 2013

Segment Data

Segment Data

9. Segment Data

The Company’s product segments are as follows:

· Unmanned Aircraft Systems (“UAS”) — The UAS segment focuses primarily on the design, development, production, support and operation of innovative UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects to increase the security and effectiveness of the operations of the Company’s customers.

· Efficient Energy Systems (“EES”) — The EES segment focuses primarily on the design, development, production, marketing, support and operation of innovative efficient electric energy systems that address the growing demand for electric transportation solutions.

The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments do not make sales to each other. Depreciation and amortization related to the manufacturing of goods is included in gross margin for the segments. The Company does not discretely allocate assets to its operating segments, nor does the CODM evaluate operating segments using discrete asset information. Consequently, the Company operates its financial systems as a single segment for accounting and control purposes, maintains a single indirect rate structure across all segments, has no inter-segment sales or corporate elimination transactions, and maintains limited financial statement information by segment.The segment results are as follows (in thousands):

	Three Months Ended
	July 27,			July 28,
	2013			2012
Revenue:
UAS	$	35,211		$	48,806
EES	8,906			9,871
Total	44,117			58,677
Cost of sales:
UAS	24,599			32,756
EES	6,973			6,416
Total	31,572			39,172
Gross margin:
UAS	10,612			16,050
EES	1,933			3,455
Total	12,545			19,505
Selling, general and administrative	12,459			13,621
Research and development	7,190			8,136
Loss from operations	(7,104		)	(2,252		)
Other income (expense):
Interest income	205			172
Other expense	(3,394		)	—
Loss before income taxes	$	(10,293	)	$	(2,080	)