Segment Data

12 Months Ended

Apr. 30, 2017

Segment Data

Segment Data

20.          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 only limited financial statement information by segment.

The segment results are as follows (in thousands):

	Year Ended April 30,
	2017		2016		2015
Revenue:
UAS	$	228,940	$	233,738	$	220,950
EES		35,933		30,360		38,448
Total		264,873		264,098		259,398
Cost of sales:
UAS		135,937		132,209		128,233
EES		26,826		19,786		26,897
Total		162,763		151,995		155,130
Gross margin:
UAS		93,003		101,529		92,717
EES		9,107		10,574		11,551
Total		102,110		112,103		104,268
Selling, general and administrative		56,537		60,077		55,763
Research and development		33,042		42,291		46,491
Income from operations		12,531		9,735		2,014
Other income (expense):
Interest income, net		1,618		1,032		882
Other income (expense), net		60		(2,699)		(1,003)
Income before income taxes	$	14,209	$	8,068	$	1,893

Geographic Information

Sales to non‑U.S. customers accounted for 36%,  28% and 9% of revenue for each of the fiscal years ended April 30, 2017, 2016 and 2015, respectively.