Snapshot for Defense Stocks: (NASDAQ: $AAXN), (NASDAQ: $AVAV), (TSX.V: $PAT.V), (OTCQB: $PTOTF), (NASDAQ: $MRCY), ($SIE.F)
Axon (NASDAQ: $AAXN) Beats on Earnings; Patriot One (TSX.V: $PAT.V) (OTCQB: $PTOTF) Announces Deal with Reseller Serving U.S. Gov’t and #Military
Point Roberts, WA - May 11, 2017 (Investorideas.com Newswire - Investorideas.com, a global news source covering defense stocks issues a sector snapshot featuring recent news from Axon (NASDAQ:AAXN), AeroVironment, Inc. (NASDAQ: AVAV), Mercury Systems, Inc. ( NASDAQ:MRCY), Siemens (SIE.F) and Patriot One Technologies Inc. (TSX.V: PAT) (OTCQB: PTOTF) (FRANKFURT: 0PL).
According to the 2017 Global aerospace and defense industry outlook by Deloitte, growth prospects and trends remain upbeat.
"The global aerospace and defense (A&D) industry is likely to experience stronger growth in 2017, following multiple years of positive but a subdued rate of growth."
Defense sub-sector analysis
- Defense sub-sector revenues are likely to grow at a much faster 3.2 percent in 2017 as defense spending in the US has returned to growth after multi-year declines in defense budgets, and future growth may be driven by the new US administration's increased focus on strengthening the US military.
- Rising global tensions have led to increasing demand for defense and military products in the Middle East, Eastern Europe, North Korea, and the East and South China Seas. This is in turn resulting in increased defense spending globally, especially in the United Arab Emirates (UAE), Saudi Arabia, South Korea, Japan, India, China, Russia.
Recent Sector News headlines:
Patriot One (TSX.V: $PAT.V) (OTCQB: $PTOTF) Obtains Purchase Agreement with Reseller Serving U.S. Gov't and #Military
TORONTO, ON - May 10, 2017 (Investorideas.com Newswire - Patriot One Technologies Inc., (TSX.V: PAT) (OTCQB: PTOTF) (FRANKFURT: 0PL) ("Patriot One" or the "Company"), developer of the revolutionary award-winning PATSCAN CMR concealed weapons detection system, today announced a reseller agreement with Information Technology Communications contracting firm JJB Federal LLC and its specialty sales division UnitedEye Inc., based in the Washington, DC area.
Patriot One CEO Martin Cronin said, "We are pleased to have entered into a reseller agreement with JJB Federal, a highly credible industry partner. With today's announcement, and in just four weeks since our launch in Las Vegas, we have now achieved a number of contractual commitments totalling over $1.1 million USD. Access to government and military contracts require years of experience and an established network of contacts in any region; Washington DC is particularly unique and complex. The JJB Federal team has the connections, reach and proven experience to accelerate Patriot One product sales. We are delighted to welcome JJB Federal to our growing sales network, and to help protect the public and those who serve."
Having initially taken note of Patriot One at the International Chiefs of Police Conference (IACP) in October 2016, and upon seeing live product demonstrations of Patriot One's PATSCAN CMR system at the recent ISC West event, JJB Federal Manager Marshal Plotner commented, "The emergence of this technology is a breakthrough in advanced threat detection that positively identifies those with intentions to cause harm; who, up until this technology arrived would go undetected until the threat was imminent. With this heightened capability, we are now able to proactively react to an aggressor and, simultaneously, protect potential targets, bystanders and/or property. The added strength and advantage that Patriot One's CMR1000 brings is crucial in disrupting violence and safeguarding the populace. To say this faculty is simply necessary is to greatly understate its impact!"
Cronin added, "We will be shipping several units to JBB Federal in support of demonstrations to U.S. government agencies. Our reseller agreement includes an initial commitment of 50 units, and we anticipate very strong federal interest and demand to follow."
Axon (NASDAQ: $AAXN) Reports 2017 First Quarter Results
SCOTTSDALE, Ariz., May 9, 2017 -- Axon Enterprise, Inc. (NASDAQ: AAXN) reports financial results for the first quarter ended March 31, 2017.
"We are off to a strong start on the year as we executed across all of our business lines," commented Rick Smith, CEO and Founder of Axon. "We recently rebranded the company as Axon to better reflect our ecosystem of connected solutions and robust pipeline of new offerings. We also launched our national free trial offering to accelerate adoption of our body camera program. The initial response has been encouraging, and we see tremendous opportunity to extend our market leadership."
First Quarter 2017 Financial Highlights:
Net sales increased 43% to $79.2 million in the first quarter of 2017 compared to $55.5 million in the first quarter of 2016. International sales were $14.5 million in the first quarter of 2017.
TASER Weapons segment revenues increased 26% to $57.7 million in the first quarter of 2017 compared to $45.8 million in the first quarter of 2016.
Software and Sensors segment revenues increased 122% to $21.6 million in the first quarter of 2017 compared to $9.7 million in the first quarter of 2016.
Consolidated gross margin was 61% in the first quarter of 2017 compared to 66% in the first quarter of 2016.
TASER Weapons segment gross margin remained consistent at 69% in the first quarter 2017 and 2016.
Software and Sensors segment gross margin was 42% in the first quarter of 2017 compared to 53% in the first quarter of 2016. Service margin was 70% in the first quarter of 2017 including $1.0 million of non-recurring data migration expense compared to 76% in the first quarter of 2016. Hardware product margin (excluding services) was 8% in the first quarter 2017 compared to 30% in the first quarter of 2016.
Income from operations was $5.4 million in the first quarter of 2017 compared to $5.1 million in the first quarter of 2016.
Net income for the first quarter of 2017 was $4.6 million, or $0.09 per diluted share, compared to $3.5 million, or $0.06 per diluted share, in the first quarter of 2016. Excluding a $1.0 million discrete tax benefit related to stock-based compensation for restricted stock units that vested and stock options that were exercised during the quarter, net income for the first quarter of 2017 would have been $3.6 million, or $0.07 per diluted share.
Adjusted EBITDA for the first quarter of 2017 was $10.6 million compared to $8.4 million in the first quarter of 2016.
AeroVironment (NASDAQ: $AVAV) Begins Full Rate Production and Shipment of Mantis i45 EO/IR Gimbal Sensor Suite for Puma™ AE UAS
AUVSI XPONENTIAL - AeroVironment, Inc. (NASDAQ: AVAV), a global leader in unmanned aircraft systems (UAS) for both military and commercial applications, today announced that its Mantis i45 electro-optical/infrared (EO/IR) gimbal sensor suite designed for the AeroVironment Puma AE (All Environment) small UAS is now in full production and shipping to customers. Unveiled last May, the i45 Mantis significantly enhances Puma AE's intelligence, surveillance and reconnaissance (ISR) capabilities.
"With its dramatically improved imaging capabilities, AeroVironment's Mantis i45 gimbal is a powerful, versatile and high value tool that gives military users world-class ISR capabilities comparable to platforms many times the size and cost of Puma AE," said Kirk Flittie, vice president and general manager of AeroVironment's Unmanned Aircraft Systems business segment. "Puma AE, equipped with the Mantis i45 sensor suite, enables operators to see better and farther than ever before, providing more actionable intelligence so customers can proceed with certainty.
"In operations, the Mantis i45 reduces the likelihood of detection by increasing the distance between the Puma AE and areas of interest while still providing the clarity and image quality of a close-range asset," Flittie added. "The higher resolution imagery also aids in target analysis, positive identification and better enables operators to identify threats to friendly forces. By minimizing Puma's exposure to detection by the enemy, the Mantis i45 greatly improves its ability to complete reconnaissance missions safely and effectively."
The AeroVironment Mantis i45 features an advanced suite of ultra-high-resolution EO and long wave IR imagers as well as a new low-light camera for optimum operations at any time of day in a single payload. Its cutting-edge EO/IR/low-light/illuminator sensor suite - featuring dual-color, 15 megapixel (MP) cameras (wide and narrow views), improved (640 x 480 MP) infrared imagery, a new 1.5 MP low-light camera, a high-power illuminator, 50-times zoom in EO, optional on-board storage of high definition video and high-resolution stills, and a dedicated on-board image processor - delivers superior imagery and data both day and night.
Mercury Systems (NASDAQ: $MRCY) Receives $8.8M Order for Digital Signal Processing Subsystems for ISR Application
ANDOVER, Mass., May 09, 2017 - Mercury Systems, Inc. (NASDAQ:MRCY) (www.mrcy.com) announced it received an $8.8 million follow-on order from a leading defense prime contractor for high-performance digital signal processing subsystems for an unmanned airborne intelligence, surveillance and reconnaissance (ISR) application. The order was booked in the Company's fiscal 2017 third quarter and is expected to be shipped over the next several quarters.
"This order underscores our role as a trusted partner to our customer and is a testament to our success in delivering commercially-developed, affordable technology that meets or exceeds their expectations," said Didier Thibaud, Mercury's Executive Vice President and Chief Operating Officer. "For decades, our advanced, innovative signal processing systems have provided exceptional value and performance in ISR programs that improve U.S. intelligence capabilities in global military operations."
Siemens (SIE.F) Earnings Release and Financial Results Q2 FY 2017: Another strong quarter - profitable growth continuing
Munich, 2017-May-04- Siemens (SIE.F) Revenue rose 6% compared to Q2 FY 2016, to €20.2 billion, including a strong performance by short-cycle businesses, and orders were €22.6 billion, up 2% despite a high basis of comparison including orders totaling €3.1 billion in Q2 FY 2016 in Egypt; the book-to-bill ratio was 1.12
On a comparable basis, excluding currency translation and portfolio effects, revenue rose 5% and orders increased 1%
Strong margin expansion in nearly all industrial businesses due to strong operational execution, and a €138 million positive effect from pension plan amendments, took Industrial Business profit margin up to 12.1%
Industrial Business profit climbed 18% year-over-year, to €2.5 billion
Net income was level at €1.5 billion, despite a higher income tax rate and a lower contribution to net income from discontinued operations; basic earnings per share (EPS) of €1.79 compared to €1.78 in Q2 FY 2016
At the end of Q2 FY 2017, Siemens acquired all shares of Mentor Graphics Corporation (Mentor Graphics) and, at the beginning of Q3 FY 2017, closed the merger of Siemens' wind power business with Gamesa Corporación Tecnológica S.A. (Gamesa)
"We delivered another strong team performance and continue to outperform the markets. In the second half of the fiscal year, we will focus on duly integrating Mentor Graphics and on a successful start of Siemens Gamesa Renewable Energy, while keeping a close eye on our operational performance. And there is more work to do."
Joe Kaeser, President and Chief Executive Officer of Siemens AG
Read the complete Earnings Release and Financial Results in the attached PDF: Earnings Release and Financial Results http://www.siemens.com/press/pool/de/events/2017/corporate/2017-q2/2017-q2-earnings-release-e.pdf
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