AeroVironment Inc. reported better-than-expected profit for its fiscal second quarter as revenue from contract services slightly offset the drop in sales of its drone aircraft.

After Tuesday’s market close, the Monrovia company reported net income of $2.2 million (10 cents a share) for the quarter ended Oct. 31, compared with net income of $9.1 million (41 cents) a year ago.

Revenue dropped 22 percent to $51.4 million. Product sales were nearly half that of a year earlier, but contract service revenue was up 13 percent.

Analysts surveyed by Thomson Reuters were expecting adjusted per-share earnings of 5 cents on revenue of $52.5 million.

AeroVironment said as of Oct. 31, funded backlog was $107 million. The company, which has been selling its drones for use by the U.S. military in Afghanistan, continues to expect revenue growth of 18 percent to 22 percent for the full year.

“The initiation of digital Raven deliveries at the end of our second quarter marked a milestone for our business and our customers,” Chief Executive Tim Conver said in a statement. “Digital Raven systems provide more capability to support and protect ground forces, including those operating in difficult environments such as Afghanistan.

Shares on Wednesday closed up $1.23, or 4 percent, to $30.16 on the Nasdaq.