Segment Data

6 Months Ended

Oct. 26, 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					Six Months Ended
	October 26,			October 27,		October 26,			October 27,
	2013			2012		2013			2012
Revenue:
UAS	$	56,079		$	65,433	$	91,290		$	114,239
EES	8,788			14,845		17,694			24,716
Total	64,867			80,278		108,984			138,955
Cost of sales:
UAS	35,280			35,279		59,879			68,035
EES	5,709			9,363		12,682			15,779
Total	40,989			44,642		72,561			83,814
Gross margin:
UAS	20,799			30,154		31,411			46,204
EES	3,079			5,482		5,012			8,937
Total	23,878			35,636		36,423			55,141
Selling, general and administrative	13,084			13,176		25,543			26,797
Research and development	6,861			9,386		14,051			17,522
Income (loss) from operations	3,933			13,074		(3,171		)	10,822
Other income (expense):
Interest income	195			162		400			334
Other expense	(2,307		)	—		(5,701		)	—
Income (loss) before income taxes	$	1,821		$	13,236	$	(8,472	)	$	11,156