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
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...