Segment Data

3 Months Ended

Jul. 30, 2016

Segment Data

Segment Data

10. Segment Data

The Company’s product segments are as follows:

· Unmanned Aircraft Systems — 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 — 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 30,		August 1,
		2016	2015
Revenue:
UAS	$	30,497	$	40,167
EES		5,721		6,883
Total		36,218		47,050
Cost of sales:
UAS		25,083		26,466
EES		4,452		4,561
Total		29,535		31,027
Gross margin:
UAS		5,414		13,701
EES		1,269		2,322
Total		6,683		16,023
Selling, general and administrative		13,663		15,256
Research and development		8,600		9,831
Loss from operations		(15,580)		(9,064)
Other income (expense):
Interest income, net		375		224
Other expense, net		(300)		(2,389)
Loss before income taxes	$	(15,505)	$	(11,229)