Segments

3 Months Ended

Jul. 30, 2022

Segments

Segments

20. 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 (which includes the recently acquired ISG business) and Telerob.

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, income (loss) from operations and adjusted income (loss) from operations for the periods indicated. Adjusted income (loss) from operations is defined as income (loss) from operations before intangible amortization, amortization of purchase accounting adjustment related to increasing the carrying value of certain assets to fair value, and acquisition related expenses.

	Three Months Ended July 30, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	43,256	$	23,011	$	19,262	$	10,215	$	12,772	$	108,516
Gross margin		21,296		7,746		(1,073)		3,324		2,421		33,714
Income (loss) from operations		8,025		(1,031)		(9,584)		2,539		(3,223)		(3,274)
Acquisition-related expenses		-		-		221		-		114		335
Amortization of acquired intangible assets and other purchase accounting adjustments		682		-		4,831		-		1,334		6,847
Adjusted income (loss) from operations	$	8,707	$	(1,031)	$	(4,532)	$	2,539	$	(1,775)	$	3,908

	Three Months Ended July 31, 2021
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	39,924	$	19,176	$	22,379	$	10,352	$	9,178	$	101,009
Gross margin		16,920		5,989		3,181		3,174		(541)		28,723
Income (loss) from operations		1,958		(463)		(6,381)		1,103		(8,330)		(12,113)
Acquisition-related expenses		424		251		1,384		104		1,091		3,254
Amortization of acquired intangible assets and other purchase accounting adjustments		707		-		5,191		-		3,226		9,124
Adjusted income (loss) from operations	$	3,089	$	(212)	$	194	$	1,207	$	(4,013)	$	265

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.

	July 30, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Corporate		Total
Identifiable assets	$	102,098	$	83,864	$	383,579	$	9,863	$	85,133	$	232,121	$	896,658

	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