Drone maker AeroVironment, Inc. (AVAV) said Tuesday after the markets closed that its third quarter profit fell 32% from last year, as revenue declined due to delays in government procurements.
The company's quarterly earnings per share came in well below analysts' expectations as did its quarterly revenue. At the same time, the company sharply lowered its fiscal year revenue and earnings outlooks.
The company reported net income for the third quarter of $3.9 million or $0.17 per share, compared to $5.7 million or $0.26 per share for the year-ago quarter.
Revenue for the third quarter fell 35% to $47.09 million from $71.96 million a year ago.
Analysts polled by Thomson Reuters expected the company to earn $0.37 per share on revenue of $89.02 million for the third quarter.
"Third quarter revenue of $47.1 million and earnings per share of $0.17 fell well short of our plans primarily due to delays in government procurements expected during the quarter," said Tim Conver, AeroVironment chairman and chief executive officer.
"We believe these are delays in order timing, and not lost orders. We have recalibrated our expectations for order and shipment timing in our UAS business based on the procurement timelines we are currently experiencing, resulting in a significant reduction in expected revenue and earnings per share for fiscal 2013," Conver added.
As of January 26, 2013, funded backlog was $70.5 million compared to $93.2 million as of April 30, 2012.
For fiscal year 2013, the company now forecasts revenue of $230 million to $250 million and earnings of $0.30 to $0.50 per share. Previously, the company forecast revenue of $348 million to $370 million and earnings of $1.41 to $1.51 per share.
Analysts currently expect the company to earn $1.45 per share on revenue of $353.15 million for the fiscal year 2013.
AeroVironment shares are currently losing 23.24% in after hours trading after closing the day's regular trading session at $21.69, down 16 cents.
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