AeroVironment Overestimated Electric Vehicle Adoption Rates; Reports Reduced Annual Revenue as a Result
AeroVironment recently presented its last quarter and fiscal 2013 year-end results.
These results don’t paint a bright picture for the charging station provider.
AeroVironment’s revenue stream has shrunk, but the company, which is mainly focused on unmanned aircraft systems managed to stayed profitable for the fiscal year ($10.4 million net income). Sadly, the first quarter of 2013 brings $795,000 in net loss.
Why we should care? Well, because Tim Conver, AeroVironment chairman and chief executive officer said:
“Government contracting delays for unmanned aircraft systems combined with lower than expected electric vehicle adoption rates to reduce annual revenue by 26 percent compared to fiscal 2012. Despite these market headwinds, we maintained market leadership in each business area and strengthened our cash position by $11 million, further enhancing our ability to move quickly and decisively when growth opportunities arise.”
So, it seems that AeroVironment joins the majority of companies – automakers, battery manufacturers and charging manufacturers – that overestimated initial EV adoption rates.
AeroVironment is one of the leading infrastructure providers in the US with thousands of Level 2 stations and at least several dozens CHAdeMO DC fast chargers deployed to date.
Will sales grow this year to a level that could make AeroVironment happy? Maybe, but we think AeroVironment needs more orders for the profit-making DC quick-charge stations.