Segments

12 Months Ended

Apr. 30, 2022

Segments

Segments

23.          Segments

The Company’s reportable segments are as follows:

Small Unmanned Aircraft Systems —The Small UAS segment focuses primarily on products designed to operate reliably at very low altitudes in a wide range of environmental conditions, providing a vantage point from which to collect and deliver valuable information as well as related support services including training, spare parts, product repair, product replacement, and the customer contracted operation.

Tactical Missile Systems – The TMS segment focuses primarily on TMS products, which are tube-launched aircraft that deploy with the push of a button, fly at higher speeds than small UAS products, and perform either effects delivery or reconnaissance missions, and related support services including training, spare parts, product repair, and product replacement. The TMS segment also includes customer-funded research and development programs.

Medium Unmanned Aircraft Systems—The MUAS segment, which originates with the acquisition of Arcturus, focuses on designs, engineers, tools, and manufactures unmanned aerial and aircraft systems including airborne

platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related generally to unmanned aircraft systems including ISR services.

High Altitude Pseudo-Satellite Unmanned Aircraft Systems (“HAPS”)—The HAPS segment consists of the Company’s existing development of High Altitude Pseudo-Satellite systems in conjunction with SoftBank.

All other—All other segments include MacCready Works and the recently acquired ISG and Telerob businesses.

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. The following table (in thousands) sets forth segment revenue, gross margin, operating (loss) income and adjusted operating (loss) income from operations for the periods indicated. Adjusted operating (loss) income is defined as operating (loss) income before intangible amortization, amortization of purchase accounting adjustment related to increasing the carrying value of certain assets to fair value, and acquisition related expenses.

	Year Ended April 30, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	178,201	$	76,415	$	93,156	$	43,325	$	54,635	$	445,732
Gross margin		83,759		24,486		6,155		15,533		11,303		141,236
Income (loss) from continuing operations		28,980		(3,120)		(27,715)		8,056		(16,088)		(9,887)
Acquisition-related expenses		502		297		1,994		123		1,938		4,854
Amortization of acquired intangible assets and other purchase accounting adjustments		2,828		-		22,170		-		11,709		36,707
Adjusted income (loss) from operations	$	32,310	$	(2,823)	$	(3,551)	$	8,179	$	(2,441)	$	31,674

	Year Ended April 30, 2021
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	235,854	$	87,268	$	15,837	$	42,426	$	13,527	$	394,912
Gross margin		119,062		26,675		2,965		13,038		2,818		164,558
Income (loss) from continuing operations		58,194		(3,131)		(1,869)		268		(10,149)		43,313
Acquisition-related expenses		3,026		1,661		1,682		593		1,019		7,981
Amortization of acquired intangible assets and other purchase accounting adjustments		2,649		-		4,356		-		453		7,458
Adjusted income (loss) from operations	$	63,869	$	(1,470)	$	4,169	$	861	$	(8,677)	$	58,752

	Year Ended April 30, 2020
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	225,888	$	63,781	$	-	$	60,864	$	16,763	$	367,296
Gross margin		117,538		18,082		-		17,436		46		153,102
Income (loss) from continuing operations		64,680		(15,822)		-		9,744		(11,467)		47,135
Acquisition-related expenses		537		336		-		134		112		1,119
Amortization of acquired intangible assets and other purchase accounting adjustments		2,467		-		-		-		-		2,467
Adjusted income (loss) from operations	$	67,684	$	(15,486)	$	-	$	9,878	$	(11,355)	$	50,721

Segment assets are summarized in the table below. Corporate assets primarily consist of cash and cash equivalents, short-term investments, prepaid expenses and other current assets, long-term investments, property and equipment, net, operating lease right-of-use assets, deferred income taxes and other assets managed centrally on behalf of the business segments.

	April 30, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Corporate		Total
Identifiable assets	$	110,286	$	91,862	$	388,058	$	8,148	$	86,617	$	229,229	$	914,200

	April 30, 2021
	Small UAS		TMS		MUAS		HAPS		All other		Corporate		Total
Identifiable assets	$	115,156	$	72,073	$	400,901	$	598	$	37,677	$	302,161	$	928,566