Segment Data

9 Months Ended

Jan. 28, 2017

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				Nine Months Ended
		January 28,		January 30,		January 28,		January 30,
		2017	2016			2017	2016
Revenue:
UAS	$	41,894	$	61,086	$	113,220	$	157,842
EES		11,269		6,474		26,277		21,499
Total		53,163		67,560		139,497		179,341
Cost of sales:
UAS		25,530		36,488		76,549		91,268
EES		8,282		4,447		19,497		13,892
Total		33,812		40,935		96,046		105,160
Gross margin:
UAS		16,364		24,598		36,671		66,574
EES		2,987		2,027		6,780		7,607
Total		19,351		26,625		43,451		74,181
Selling, general and administrative		12,788		13,313		39,838		43,302
Research and development		7,988		8,247		25,105		27,975
(Loss) income from operations		(1,425)		5,065		(21,492)		2,904
Other income (expense):
Interest income, net		390		181		1,162		673
Other expense, net		(46)		(215)		(476)		(2,796)
(Loss) income before income taxes	$	(1,081)	$	5,031	$	(20,806)	$	781