Business Context and Reporting Period
Company: Aerovironment Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: March 1, 2011
Event: Entry into a Material Definitive Agreement with the United States Army Contracting Command (AMCOM).
Key Financial Metrics
This filing reports a specific contract award rather than periodic financial performance metrics (e.g., revenue, profit, cash flow, or margins). The filing text does not provide a clear value for the company's overall financial position, debt, or liquidity.
| Contract Value (Total Ceiling) | Initial Order Value | Contract Duration |
|---|---|---|
| $39,267,040 | $114,627 | 5 Years |
Material Changes
The material change reported is the award of a Small Business Innovative Research (SBIR) Phase III contract. This agreement is an extension of previously awarded SBIR Phase I and Phase II contracts. The contract focuses on the technology development and integration of small organic precision munitions.
Outlook, Risks, and Unusual Items
- Contract Structure: The agreement is an indefinite delivery/indefinite quantity (ID/IQ) contract funded under cost-plus-fixed-fee and cost-reimbursable arrangements.
- Scope: The initial order covers technical and engineering support and is fully funded.
- Documentation: The full contract text is not included in this filing but will be filed as an exhibit to the Annual Report on Form 10-K for the fiscal year ending April 30, 2011.
Investor Verification Checklist
- Verify the total potential revenue recognition timeline given the ID/IQ nature of the contract.
- Review the upcoming Form 10-K (fiscal year ending April 30, 2011) for the complete contract text and specific terms.
- Assess the impact of the cost-plus-fixed-fee structure on future profit margins compared to fixed-price contracts.
- Confirm the status of the preceding SBIR Phase I and Phase II contracts to understand the project's maturity.