Federal Contract Boosts Builder Of Aerial Crafts

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Shares in Aerovironment Inc. have jumped 25 percent over the last few weeks following strong earnings and what could become the biggest order yet for the small aerospace company.

The Monrovia-based manufacturer of miniature unmanned planes landed a deal last week with the U.S. Special Operations Command for 10 of its Puma AE, a drone with a wingspan of 8 & #733; feet and weighing 12 pounds.

The contract has an initial value of $6 million but that could grow to $200 million with additional orders close to Aerovironment’s total 2007 revenues of $216 million.

The contract is contributing to projections by Chief Executive Tim Conver that the company’s annual sales will grow by as much as 25 percent annually through at least 2011.

Conver made the projections June 25 as part of the company’s fiscal fourth quarter earning release. The company’s net income rose 15 percent to $6.4 million on sales of $64.3 million, which was better than projected.

Aerovironment has scored a series of defense contracts as its hand-held aircraft have proved especially useful in Iraq and Afghanistan in gathering “over the hill” battlefield intelligence.

Its workhouse drone, the Raven, which is smaller than the Puma, is expected to log 300,000 hours in the air this year alone, according to the U.S. Army.

The Puma drones will be built at the company’s Simi Valley plant, and while the initial one-year order is only for 10 aircraft, it has an option to be extended four years.

Aerovironment’s share price is now up 30 percent since the company went public in January 2007. Shares closed down July 10 a fraction of a percent to $30.08.

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