Segment Data

6 Months Ended

Oct. 29, 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				Six Months Ended
		October 29,		October 31,		October 29,		October 31,
		2016	2015			2016	2015
Revenue:
UAS	$	40,829	$	56,589	$	71,326	$	96,756
EES		9,287		8,142		15,008		15,025
Total		50,116		64,731		86,334		111,781
Cost of sales:
UAS		25,936		28,314		51,019		54,780
EES		6,763		4,884		11,215		9,445
Total		32,699		33,198		62,234		64,225
Gross margin:
UAS		14,893		28,275		20,307		41,976
EES		2,524		3,258		3,793		5,580
Total		17,417		31,533		24,100		47,556
Selling, general and administrative		13,387		14,733		27,050		29,989
Research and development		8,517		9,897		17,117		19,728
(Loss) income from operations		(4,487)		6,903		(20,067)		(2,161)
Other income (expense):
Interest income, net		397		268		772		492
Other expense, net		(130)		(192)		(430)		(2,581)
(Loss) income before income taxes	$	(4,220)	$	6,979	$	(19,725)	$	(4,250)