Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today
announced its financial results for the fourth quarter and full
fiscal year ended September 30, 2016.
Revenues for fiscal 2016 were $28.0 million compared to $20.1
million for fiscal 2015. For the current year, operating income was
$2.4 million, and net income was $2.0 million or $0.12 per share.
In fiscal 2015, the Company reported an operating loss of $(3.6)
million and a net loss of $(5.9) million or $(0.35) per share.
Geoffrey Hedrick, Chairman and Chief Executive Officer of
Innovative Solutions & Support, Inc. said, “Fiscal 2016 was a
year of significant improvement, returning to positive growth in
revenues, profits and cash flow, while also positioning ISSC to
capitalize on emerging opportunities expected to arise with the
approach of new NextGen mandates. We believe our strategy is sound
and is working as we transformed the nature of our revenue over the
past year so that we now generate over 90% of our revenue from
profitable production contracts. The transformation of the air
traffic control system, often referred to as the 'NextGen
mandates', holds great promise, as it is expected to yield
significant improvements to both aircraft safety and performance.
Over the past year, we have significantly increased our commitment
to internally developed new products and are expanding our
distribution channels in order to further penetrate this market.
The fully NextGen - compliant cockpit we’ve developed - capable of
meeting all known upcoming mandates over the next 10 years -
illustrates our ability to quickly respond to emerging
opportunities. I am confident that we have adopted strategy,
developed the technologies, and the financial strength that will
enable us to continue to create value for our shareholders.”
At September 30, 2016, the Company had $18.8 million of cash on
hand and remained debt free. Cash increased by $2.5 million during
the course of fiscal 2016. New orders for the fourth quarter of
fiscal 2016 were $4.4 million, and backlog at September 30, 2016
was $4.6 million, compared to $6.4 million at June 30, 2016.
Backlog excludes potential future sole-source production orders
from products in development under the Company’s engineering
development contracts, including the Pilatus PC-24, and the KC-46A,
both of which the Company expects to remain in production for a
decade following completion of their respective development phases.
The Company expects that these contracts will add to production
sales already in backlog.
For the fourth quarter of fiscal 2016, the Company reported
revenues of $6.2 million, compared to revenues of $3.1 million for
the fourth quarter of fiscal 2015. Cash provided by operating
activities was $1.9 million for the quarter. The Company reported
fourth quarter fiscal 2016 operating income of $500,000 and net
income of $400,000, or $0.02 per share. The Company reported a
fourth quarter fiscal 2015 net loss of $2.6 million, or $(0.15) per
share.
Shahram Askarpour, President of ISSC, commented, “Fiscal 2016
was a transformational year in which we modified our strategy,
realigned our resources and strengthened relationships, all of
which now serve as a solid foundation from which to continue to
grow. By concentrating on production contracts, we’ve sharpened our
focus, which has returned gross margins to their higher, historic
levels. A greater emphasis on internally funded research and
development investment has enabled us to create new products that
we believe can quickly capitalize on current market needs. These
products also appeal to broad market opportunities in contrast to
the narrower market potential of the customer-funded engineering
programs that characterized many past development efforts. And, by
supplementing our strong base of customers with an expanding
distribution network, we can continue to build a steady stream of
increasingly more stable underlying book-and-ship production
revenue. At the same time, we are preparing for a market that is
anxious to implement the latest in NextGen technology. By
incorporating NextGen technologies such as ADS-B in, ADS-B out, LPV
and RNP capabilities into our products, many operators are not
waiting for FAA mandates and are choosing to start to update their
cockpits now. This is creating increased interest, especially in
our Flight Management System. We enter fiscal 2017 in strong
financial position, and with a game plan that is intended to
optimize the value of our franchise and benefit our
shareholders.”
Conference Call
The Company will be hosting a conference call on Thursday,
December 15, 2016 at 10:00 a.m. ET to discuss these results and its
business outlook. Please use the following dial in number to
register your name and company affiliation for the conference call:
877-883-0383 and enter the PIN Number 5238989. 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 reflect 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 Sheets (unaudited)
September 30, September 30, 2016 2015
ASSETS
Current assets Cash and cash equivalents $ 18,767,661 $ 16,282,039
Accounts receivable 4,511,091 2,394,695 Unbilled receivables, net
1,597,672 3,920,209 Inventories 3,645,828 4,597,316 Prepaid
expenses and other current assets 847,207
1,221,717 Total current assets 29,369,459 28,415,976
Property and equipment, net 6,962,562 7,095,330 Non-current
deferred income taxes - 426,315 Other assets 156,948
168,948 Total assets $ 36,488,969 $
36,106,569
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities Accounts payable $ 1,503,771 $ 1,435,981
Accrued expenses 1,889,908 2,568,531 Deferred revenue
179,585 756,745 Total current
liabilities 3,573,264 4,761,257 Non-current deferred income taxes
67,701 - Other liabilities - 2,826
Total liabilities 3,640,965 4,764,083
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
September 30, 2016 and 2015
- -
Common stock, $.001 par value: 75,000,000
shares authorized, 18,812,465 and 18,756,089 issued at September
30, 2016 and 2015, respectively
18,813 18,756 Additional paid-in capital 51,392,159
51,148,722 Retained earnings 2,805,569 818,768
Treasury stock, at cost, 2,096,451 shares
at September 30, 2016 and 1,846,451 at September 30, 2015
(21,368,537 ) (20,643,760 ) Total
shareholders' equity 32,848,004 31,342,486
Total liabilities and shareholders' equity $
36,488,969 $ 36,106,569
Innovative Solutions and Support, Inc. Consolidated
Statements of Operations (unaudited) Three
months ended Twelve months ended September 30, September 30, 2016
2015 2016 2015 Sales $ 6,220,551 $ 3,137,089 $ 27,969,703 $
20,067,084 Cost of sales 2,835,905 2,482,200
11,482,323 13,135,349 Gross
profit 3,384,646 654,889 16,487,380 6,931,735 Operating
expenses: Research and development 1,198,954 603,395 4,873,328
2,705,208
Selling, general and administrative
1,639,232 2,935,725 9,170,865
7,847,270 Total operating expenses 2,838,186 3,539,120
14,044,193 10,552,478 Operating income (loss) 546,460
(2,884,231 ) 2,443,187 (3,620,743 ) Interest income 9,047
6,535 33,504 24,804 Other income 6,950 1,878
78,440 33,283 Income (loss) before
income taxes 562,457 (2,875,818 ) 2,555,131 (3,562,656 )
Income tax expense (benefit) 165,328 (312,006 )
568,330 2,303,478 Net income (loss) $
397,129 $ (2,563,812 ) $ 1,986,801 $ (5,866,134 ) Net income
(loss) per common share: Basic $ 0.02 $ (0.15 ) $ 0.12 $ (0.35 )
Diluted $ 0.02 $ (0.15 ) $ 0.12 $ (0.35 ) Weighted
average shares outstanding: Basic 16,931,156 16,905,526 16,927,055
16,924,189 Diluted 17,075,535 16,905,526 17,039,296 16,924,189
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version on businesswire.com: http://www.businesswire.com/news/home/20161214005938/en/
Innovative Solutions & Support, Inc.Relland Winand, Chief
Financial Officer610-646-0350
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