AeroVironment Inc., a Monrovia company that makes military aircraft drones and electric-car chargers, has taken a step toward building a new market by proving the real-world effectiveness of its exploding kamikaze plane.

Bloomberg reported last week that the company’s small Switchblade drones were used in Afghanistan last year against Taliban targets. It marks the first time in AeroVironment’s 40-year history that one of its planes was used as a weapon in combat. The company wouldn’t confirm the report.

But Steven Gitlin, vice president of investor relations at AeroVironment, called the Switchblade a “game changer” because of its effect on the battlefield and the company’s product line.

“It’s a one-use type of device, so after it’s flown, you need a new one to fly again,” said Gitlin.

He said the Switchblade was the company’s first “consumable product,” but would not say how much each plane costs.

AeroVironment’s other drone systems, Raven and Puma, conduct reconnaissance with on-board cameras. Surveillance drones are much larger and more complex than the Switchblade, but can be used repeatedly.

The source for the Bloomberg story was the Army, but the military did not confirm in follow-up reports whether Switchblades were used in battle. The Army issued a statement that the military had “purchased a limited quantity of the Switchblade munition to support an urgent operational request. Quantities, fielding locations, dates and units involved are confidential.”

The Switchblade is about 2 feet long and weighs 6 pounds. It stores in a tube that can fit into a soldier’s backpack. To deploy it, the soldier sets up the tube and sets off a small charge to send the craft skyward. The spring-loaded wings open like a switchblade knife – hence the name.

Once airborne, the Switchblade has enough battery power for a 10-minute flight. A pilot guides it using GPS and video images the drone transmits from a tiny onboard camera. When the pilot locates the target, he can fly the drone straight at it and command the warhead to explode on contact or at a specified distance before contact.

Gitlin said a typical use of the Switchblade would be when U.S. soldiers are pinned down by enemy sniper fire. Until now they would try to get off a lucky shot or call in a jet fighter or helicopter. But by launching a Switchblade, they can search for the sniper, locate his position and neutralize him without the use of other troops.

“It’s at the frontline of the fight, where time is precious and risk is highest,” Gitlin said. “We’ve been developing this capability for several years and demonstrating it for one to two years in simulated environments.”

The Army’s contract for the Switchblade was $4.9 million. That sale was made in June. Gitlin declined to speculate on future sales, saying that decision was up to the military.

“We’re eager to introduce it as widely as possible within the military, and we believe we can do that by showing its effectiveness,” he said.

Alex Hamilton, an analyst at EarlyBirdCapital in New York who follows AeroVironment, said the company’s approach to developing niche products is a smart strategy in the current economy.

“The Switchblade being tested by the Army is one step – a very important step – toward proof of concept,” Hamilton said. “It highlights AeroVironment’s keen ability to tap into new markets with new products.”

Good news

In addition to reaching a milestone with the Switchblade system, AeroVironment had good news with two other product lines in as many weeks.

On Oct. 20, the company secured a $7.3 million contract for training and maintenance in connection with Puma drones that it previously sold to the U.S. Army. On Oct. 13, Nissan announced it was lowering the price of the AeroVironment-made charger for its Leaf electric car.

AeroVironment’s stock has reacted passively to the news. Last week, shares gained about 1 percent.

In its most recent quarterly filing Sept. 7, the company reported earnings of $326,000, or 1 cent per share, compared with a loss of $3.4 million, or 16 cents per share, for the same quarter last year. Wall Street analysts expected the company to break even for the quarter.

Hamilton at EarlyBirdCapital wrote in a note to investors Sept. 8 that “the current share price does not reflect the strong growth prospects at the company.”

He rates the company a “buy” with a target price of $36 per share, an 18 percent premium to its closing price Oct. 19.