Segments

6 Months Ended

Oct. 29, 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 October 29, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	26,681	$	31,101	$	27,281	$	9,066	$	17,455	$	111,584
Gross margin		12,319		12,636		(6,884)		3,001		4,818		25,890
Income (loss) from operations		(2,079)		2,004		(15,242)		1,564		(561)		(14,314)
Acquisition-related expenses		-		-		119		-		450		569
Amortization of acquired intangible assets and other purchase accounting adjustments		669		-		5,897		-		1,276		7,842
Adjusted income (loss) from operations	$	(1,410)	$	2,004	$	(9,226)	$	1,564	$	1,165	$	(5,903)

	Three Months Ended October 30, 2021
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	54,714	$	18,418	$	26,525	$	10,342	$	12,009	$	122,008
Gross margin		27,754		6,222		2,223		3,944		2,312		42,455
Income (loss) from operations		13,377		47		(7,000)		2,073		(5,158)		3,339
Acquisition-related expenses		297		163		108		58		222		848
Amortization of acquired intangible assets and other purchase accounting adjustments		707		-		6,358		-		3,257		10,322
Adjusted income (loss) from operations	$	14,381	$	210	$	(534)	$	2,131	$	(1,679)	$	14,509

	Six Months Ended October 29, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	69,937	$	54,113	$	46,542	$	19,281	$	30,227	$	220,100
Gross margin		33,615		20,383		(7,957)		6,325		7,238		59,604
Income (loss) from operations		5,946		973		(24,826)		4,103		(3,784)		(17,588)
Acquisition-related expenses		-		-		340		-		564		904
Amortization of acquired intangible assets and other purchase accounting adjustments		1,350		-		10,842		-		2,611		14,803
Adjusted income (loss) from operations	$	7,296	$	973	$	(13,644)	$	4,103	$	(609)	$	(1,881)

	Six Months Ended October 30, 2021
	Small UAS		TMS		MUAS		HAPS		All other		Total
Revenue	$	94,638	$	37,594	$	48,904	$	20,694	$	21,187	$	223,017
Gross margin		44,674		12,211		5,404		7,118		1,771		71,178
Income (loss) from operations		15,335		(416)		(13,381)		3,176		(13,488)		(8,774)
Acquisition-related expenses		721		414		1,492		162		1,313		4,102
Amortization of acquired intangible assets and other purchase accounting adjustments		1,414		-		11,549		-		6,483		19,446
Adjusted income (loss) from operations	$	17,470	$	(2)	$	(340)	$	3,338	$	(5,692)	$	14,774

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.

	October 29, 2022
	Small UAS		TMS		MUAS		HAPS		All other		Corporate		Total
Identifiable assets	$	103,277	$	77,334	$	394,872	$	7,200	$	72,098	$	236,901	$	891,682

	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