Knobias Clip Report (11-20-2007)

Submitted By Knobias ClipReport

AeroVironment Receives $19.3M in Orders from U.S. Marine Corps

AeroVironment, Inc. (NASDAQ: AVAV) announced on Tuesday that the U.S. Marine Corps has ordered $19.3 million in BATMAV (Battlefield Air Targeting Micro Air Vehicle) systems, each consisting of two Wasp III micro air vehicles, AeroVironment’s Battery Charger, spares and support services.

The Company designs, develops, produces, and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient electric energy systems.

Tuesday’s announcement is in addition to contracts awarded in September from the United States Special Operations Command and Danish Army Operational Command to deliver UAS. Combined with these other orders, total value of UAS contracts has reached $78.7 million in recent months, with a potential of approximately $129.3 million.

The order followed a successful Marine Corps evaluation of Wasp systems provided by the Defense Advanced Research Projects Agency (DARPA). The Marine Corps is obtaining the BATMAV systems through the Air Force BATMAV contract, which was awarded to AeroVironment in December 2006, and plans to issue Wasp III systems at the platoon level.

According to the Company’s website, the Wasp III Micro Air Vehicle (MAV) is a small, portable, reliable, and rugged unmanned aerial platform designed for front-line day/night reconnaissance and surveillance. Wasp is the result of a multi-year joint development effort between AeroVironment and DARPA.

With a wingspan of 72 cm and a weight of 430 grams, the Wasp is the Company’s smallest Unmanned Aircraft System. Wasp can be manually operated or programmed for GPS-based autonomous navigation, and carries integrated Forward and Side Look EO Cameras. Able to fly as high as 1,000 feet above ground level, it has a range of 5 km line-of-sight. Wasp can reach speeds of 65 km/h, and has a battery life of up to 45 minutes.

U.S. Marine Corps Major James Roudebush, Tier I UAV Program Manager, PMA-263, noted in the press release, "The small size and light weight of Wasp makes it ideally suited for deployment directly to platoons, where flexibility, portability and reliability are critically important. We have been evaluating Wasp for some time, and believe that it offers a unique new capability to support our Marines' missions around the world.”

In addition to its Military relationship, AeroVironment offers a variety of products and services to civilian markets as well. Last month, in conjunction with Altair Nanotechnologies Inc. (Nasdaq: ALTI), Micro-Vett, SPA and Go Green Holding AS, the Company announced successful public demonstrations of the all-electric Fiat Doblo to government officials and potential commercial customers in Oslo, Norway. The Doblo is designed both as a commercial medium-duty transport vehicle, as well as a regular size family car. With battery packs from Altairnano, the fast-charge infrastructure is provided by AeroVironment.

And in October, the Company announced the installation of its Architectural Wind system on the roof of a manufacturing facility in Salem, Oregon. The project included 18 wind turbines, and assuming normal wind conditions, was projected to generate approximately 28,000 kilowatt hours of power each year.

AeroVironment has reported TTM revenues of $191.4 million, EBITDA of $27.7 million, $1.26 in diluted EPS, and a net margin of 9.56%. The Company recently reaffirmed guidance for fiscal year 2008 of 20% to 25% revenue growth over fiscal year 2007 and 12% to 14% operating margin.



Visit 1800blogger to see all of our industry leading blogs