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AV AeroVironment ™ PROCEED WITH CERTAINTY AeroVironment , Inc. Announces Fiscal 2021 Third Quarter Results March 9 , 2021 SIMI VALLEY , Calif .-- ( BUSINESS WIRE ) -- Mar . 9 , 2021-- AeroVironment . Inc. ( NASDAQ : AVAV ) , a global leader in unmanned aircraft systems ( UAS ) , today reported financial results for its third quarter ended January 30 , 2021 . This press release features multimedia . View the full release here : https://www.businesswire.com/news/home/20210309005954/en/ AEROVIRONMENT PORTFOLIO OF UNMANNED SYSTEMS T - 20 NAPORY 55 QUANTOX REDON www.AVINC.COM JUMP 20 PUNALE AV SOLAR HAPS PUMA NE FAVEN WASPA AeroVironment's Portfolio of Unmanned Systems ( Graphic : Business Wire ) SWITCHBLADE 600 SVITDELACE 300 • Revenue of $ 78.8 million , a year - over - year increase of 27 percent • Gross margin of $ 28.6 million , a year - over - year increase of 22 percent • Diluted earnings per share of $ 0.01 , a year - over - year increase of $ 0.05 • Diluted non - GAAP earnings per share of $ 0.14 , a year - over - year increase of $ 0.15 " Our team delivered year - over - year increases in revenue , gross margin , diluted earnings per share and Non - GAAP diluted earnings per share in the third quarter , despite the ongoing challenges presented by the COVID - 19 pandemic , " said Wahid Nawabi , AeroVironment president and chief executive officer . " We continue to shape our portfolio with three transformative acquisitions that we are confident will accelerate our success and value creation . Our acquisition of Arcturus UAV extends our reach and expands our solutions portfolio with medium UAS , which addresses a more than $ 1 billion segment of the UAS market . Our pending acquisition of Telerob will add a suite of unmanned ground vehicles to our portfolio , expanding our offering to the ground domain for defense and non - defense customers , such as law enforcement and first responders . Through our acquisition of Progeny Systems Corporation's Intelligent Systems Group , we will accelerate AeroVironment's development and deployment of critical technologies , such as artificial intelligence and perceptive autonomy , which will help our customers operate more effectively in contested airspace against peer and near - peer adversaries and increase our customer - funded research and development revenue . " We continue to build on our momentum and recently received United States government approval for our first export of Switchblade 300 to an allied nation . We are delivering on our commitments while working toward achieving our fiscal year 2021 objectives to produce a fourth consecutive year of profitable , double - digit topline growth . " FISCAL 2021 THIRD QUARTER RESULTS Revenue for the third quarter of fiscal 2021 was $ 78.8 million , an increase of 27 % from the third quarter of fiscal 2020 revenue of $ 61.9 million . The increase in revenue was due to an increase in product sales of $ 21.9 million , partially offset by a decrease in service revenue of $ 5.0 million . Gross margin for the third quarter of fiscal 2021 was $ 28.6 million , an increase of 22 % from the third quarter of fiscal 2020 gross margin of $ 23.5 million . The increase in gross margin was primarily due to an increase in product margin of $ 7.2 million , partially offset by a decrease in service margin of $ 2.1 million . As a percentage of revenue , gross margin decreased to 36 % from 38 % . The decrease in gross margin percentage was primarily due to an unfavorable product mix . Loss from operations for the third quarter of fiscal 2021 was $ 0.6 million , a decrease of $ 0.5 million from the third quarter of fiscal 2020 loss from operations of $ 1.1 million . The decrease in loss from operations was primarily a result of an increase in gross margin of $ 5.2 million , partially offset by an increase in selling , general and administrative ( " SG & A ” ) expense of $ 2.4 million , and an increase in research and development ( " R & D " ) expense of $ 2.3 million . The increase in SG & A expense for the third quarter of fiscal 2021 includes an increase in acquisition - related expenses of $ 3.1 million related to the acquisitions of Arcturus UAV and Progeny Systems Corporation's Intelligent Systems Group ( " ISG " ) and the pending acquisition of Telerob GmbH . Other income , net , for the third quarter of fiscal 2021 was $ 0.1 million , as compared to $ 1.2 million for the third quarter of fiscal 2020. The decrease in other income , net was primarily due to a decrease in interest income resulting from a decrease in the average interest rate earned on our investment