Monrovia drone maker AeroVironment Inc. posted better-than-expected earnings Tuesday, thanks to strong sales of its unmanned aircraft.

The company reported net income of $7.1 million (31 cents a share) for the quarter ended April 30, compared with net income of $8.1 million (35 cents) in the same period a year earlier. Revenue increased 18 percent to $86.5 million.

Analysts on average expected net income of 18 cents on revenue of $85.7 million, according to Thomson Financial Network.

“During the quarter, we strengthened our market positions, moved key programs forward to generate value and focused on innovation,” said Chief Executive Tim Conver in a statement.

Shares closed up 5 cents, or a fraction of a percent, to $26.08 on the Nasdaq.

Meanwhile, the firm is facing a challenge from an activist investor. Newport Beach’s Engaged Capital on Monday told the drone maker it had submitted a proposal to be voted on at company’s 2015 annual stockholders meeting that would declassify the board of directors and cap terms for newly elected directors to one year.

That’s the latest demand from Engaged, which has previously lobbied AeroVironment to put an Engaged representative on the board and wants the company to reduce its reliance on sales of drones to the military.

Engaged wants the company to pursue more commercial drone customers.