Welcome!

News Feed Item

Innovative Solutions & Support, Inc. Announces First Quarter Fiscal 2013 Financial Results

Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced its financial results for the first quarter of fiscal 2013, ended December 31, 2012.

For the first quarter, the Company reported revenue of $6.5 million, a 35 percent increase compared to the first quarter fiscal 2012 revenue of $4.8 million. The Company reported first quarter 2013 net income of $318,000, or $0.02 per diluted share, compared to a loss of $343,000, or ($0.02) per fully diluted share, in the same quarter a year ago.

Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. (“ISSC”) said, “The year is off to a strong start, with 35 percent revenue growth leading to our fourth consecutive profitable quarter. New orders totaled over $16 million in the quarter, which increased backlog by nearly $10 million over the last three months. The majority of the orders are related to strategically important new products. These results reflect our strategy of growth through a combination of near term orders for existing products and simultaneous investment in new capabilities that build upon our proprietary technology to develop new opportunities for us across our various commercial air transport, general aviation, and military markets. Over the course of this year, we expect R & D spending to remain elevated and gross margins to reflect a higher mix of Engineering Modification and Development (“EMD”) contracts as we focus on completing programs that will enable us to bring new products to market. Despite the continuing high level of engineering spend on EMD programs and IR&D, we expect to remain profitable. We are progressing toward the next phase of our growth strategy, as we begin a transition from new product development to production orders.”

In December 2012, the Company paid a special cash dividend of $1.50 per share, or an aggregate payment of approximately $25 million. At December 31, 2012, the Company had $17 million in cash and no debt.

First Quarter orders of $16.3 million, backlog increases by 50%

Orders were $16.3 million in the first quarter and backlog was approximately $29.4 million at December 31, 2012, up almost $10 million over the last three months from $19.7 million at September 30, 2012. Backlog includes only modest levels of potential future sole-source production orders from products currently in development under the Company’s EMD contracts.

Shahram Askarpour, President of ISSC, commented, “The first quarter was noteworthy from both a strategic and operational perspective. We booked over $16 million in new business, including production orders for near-term delivery and orders for new products. These orders include a $4 million military contract to provide the Company’s integrated suite of avionics for the C-130 and L-100 aircraft, and an order from Eclipse Aerospace, Inc. for an initial fifty ship sets of our advanced avionics suite. Strategically, we will be providing a first-of-its-kind military application of our flight management system and Beta 3 GPS receivers that provide RNP (Required Navigational Performance) and LPV (Localizer Performance with Vertical Guidance) capabilities. Operationally, these new contracts include initial orders for the more profitable sole source production of products developed under our EMD programs. We are focused on increasing shareholder value by remaining dedicated to serving customers by improving aircraft performance with dependable, high-quality products that offer competitively priced, enhanced functionality.”

Business Outlook

Mr. Hedrick concluded that, “For the fiscal year ending September 30, 2013, we expect to increase sales and generate a profit, which would represent our fifth consecutive profitable year. Our ability to provide specific targets and ranges remains difficult in the present economic climate; however, we are optimistic about results for 2013. We continue to project that 2013 sales will increase over 2012 sales; however, the continued high investment in lower margin EMD programs and IR&D will constrain the growth of operating income. We will provide additional commentary during our earnings conference call.”

Conference Call

The Company will be hosting a conference call January 24, 2013 at 10:00 AM ET to discuss these results and its business outlook. Those planning to dial in to the call should dial the following number and register their names and company affiliations: 877-883-0383, and enter the PIN Number 0070901. The call will also be carried live on the Investor Relations page of the Company web site at www.innovative-ss.com.

About Innovative Solutions & Support, Inc.

Headquartered in Exton, Pa., Innovative Solutions & Support, Inc. (www.innovative-ss.com) is a systems integrator that designs and manufactures flight guidance and cockpit display systems for Original Equipment Manufacturers (OEM’s) and retrofit applications. The company supplies integrated Flight Management Systems (FMS) and advanced GPS receivers for precision low carbon footprint navigation.

Certain matters contained herein that are not descriptions of historical facts are “forward-looking” (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflects management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 
Innovative Solutions and Support, Inc.
Consolidated Balance Sheet
(unaudited)
 
       
December 31, September 30,
2012 2012

ASSETS

Current Assets
Cash and cash equivalents $ 17,027,886 $ 42,977,501
Accounts receivable, net 4,238,626 3,978,512
Inventories 3,467,694 3,801,547
Deferred income taxes 1,683,578 1,588,162
Prepaid expenses and other current assets   3,669,728     2,031,644  
 
Total current assets 30,087,512 54,377,366
 
Property and equipment, net 7,151,650 7,214,378
Non-current deferred income taxes 697,805 846,887
Other assets   145,400     158,600  
 
Total Assets $ 38,082,367   $ 62,597,231  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current Liabilities
Accounts payable $ 779,288 $ 1,139,464
Accrued expenses 2,609,028 2,723,812
Deferred revenue   1,161,532     1,426,552  
 
Total current liabilities 4,549,848 5,289,828
 
Deferred income taxes 129,201 128,998
Other liabilities   77,376     98,002  
 
Total Liabilities   4,756,425     5,516,828  
 
Commitments and contingencies - -
 
Shareholders' Equity
 

Preferred Stock, 10,000,000 shares authorized, $.001 par value, of which 200,000 shares are authorized as Class A Convertible stock. No shares issued and outstanding at December 31, 2012 and September 30, 2012

- -
 

Common stock, $.001 par value: 75,000,000 shares authorized, 18,521,044 and 18,329,314 issued at December 31, 2012 and September 30, 2012, respectively

18,521 18,329
 
Additional paid-in capital 48,781,705 47,845,732
Retained earnings 4,915,307 29,605,236

Treasury stock, at cost, 1,756,807 and 1,756,632 shares at December 31, 2012 and September 30, 2012, respectively

  (20,389,591 )   (20,388,894 )
 
Total Shareholders' Equity   33,325,942     57,080,403  
 
Total Liabilities and Shareholders' Equity $ 38,082,367   $ 62,597,231  
 
 
Innovative Solutions and Support, Inc.
Consolidated Statement of Operations
(unaudited)
       
 
Three months ended December 31,
2012 2011
 
Sales $ 6,536,734 $ 4,755,459
 
Cost of Sales   3,496,482   2,629,860  
 
Gross Profit 3,040,252 2,125,599
 
Operating expenses:
Research and development 850,852 790,223
Selling, general and administrative   1,804,809   1,993,575  
Total operating expenses 2,655,661 2,783,798
 
Operating income (loss) 384,591 (658,199 )
 
Interest income 17,572 21,779
Interest expense - (237 )
Other income   11,545   42,069  
 
Income (loss) before income taxes 413,708 (594,588 )
 
Income tax expense (benefit)   96,119   (251,609 )
 
Net income (loss) $ 317,589 $ (342,979 )
 
Net income (loss) per common share
Basic $ 0.02 $ (0.02 )
Diluted $ 0.02 $ (0.02 )
 
Weighted Average Shares Outstanding
Basic 16,613,122 16,721,494
Diluted 16,613,128 16,721,494
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...