Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today
announced its financial results for the fourth quarter and full
fiscal year ended September 30, 2017.
Revenues for fiscal 2017 were $16.8 million compared to $28.0
million in fiscal 2016. The Company reported net income of $4.6
million or $0.27 per share for fiscal 2017, compared to $2.0
million or $0.12 per share in fiscal 2016. Net income in 2017
includes $4.9 million of other income, comprised primarily of $4.1
million from the settlement of the Delta Airline, Inc. (“Delta”)
lawsuit and from the sale of Pennsylvania State R&D tax
credits.
Geoffrey Hedrick, Chairman and Chief Executive Officer of
Innovative Solutions & Support, Inc. said, “While our fiscal
2017 operating performance was disappointing, we reported an
increase in profits compared to fiscal 2016, and strong cash flow,
as we ended the year with a $5.9 million increase in our cash
position. We continue to be optimistic about our newest product,
the PC-12 Autothrottle, which, in June, received the FAA’s
first-ever Supplemental Type Certificate (STC) for a Turboprop
Autothrottle, (Patent Pending Design) and in the process, created
what we believe will be a large, completely new market opportunity.
We have continued to expand our opportunity in this emerging market
through a partnership that will next extend our proprietary
Autothrottle technology to the King Air C90, 200 and 350 platforms.
Aviation International News called the Autothrottle ‘a significant
safety advancement [and]… the next best thing to a FADEC because it
slashes pilot workload from takeoff to short final.’ In addition,
our global distribution network was greatly enhanced through our
agreement with Lufthansa Technik, which will now distribute and
install our flat panel display systems worldwide and most recently,
the addition of the Triumph Group. In 2017, we do not believe the
top line reflected the exciting potential of our significantly
enhanced product portfolio and growing global presence. However, we
are confident that our strategy to invest in internally developed
new technology and products will ultimately deliver superior
returns and create value for our shareholders.”
At September 30, 2017, the Company had $24.7 million of cash on
hand. Cash increased by $5.9 million over the prior twelve
months.
During fiscal 2017, the Company booked new orders of $15.7
million and backlog, as of September 30, 2017, was $3.0 million.
Backlog excludes potential future sole-source production orders
from products developed under the Company’s Pilatus PC-24 and
Boeing KC-46A engineering development contracts, both of which the
Company expects to remain in production for more than a decade. The
Company expects that these contracts will add to its production
sales already in backlog.
For the fourth quarter of fiscal 2017, the Company reported
revenues of $4.2 million compared to $6.2 million for the fourth
quarter of fiscal 2016. The Company reported a fourth quarter
fiscal 2017 net loss of $(186,000), or $(0.01) per share, compared
to fourth quarter fiscal 2016 net income of $397,000, or $0.02 per
share.
Shahram Askarpour, President of IS&S, said, “This has been a
year of significant organizational transformation, having
essentially completed our transition to a strategy whereby we will
internally develop 100% of all new products. This is yielding
exciting results, with the most recent being our innovative new
Autothrottle. With the Pilatus PC-12 Autothrottle STC secured, we
are now working on the King Air Autothrottle, which, when
certified, will add approximately 5,000 aircraft to the thousands
of Pilatus aircraft already in the target market for our
Autothrottle product. Our goal in fiscal 2018 is to focus on the
sales effort of our newly developed products by leveraging our
reputation for best in class price for performance and expand our
global distribution network to generate attractive growth and
returns for our shareholders.”
Conference Call
The Company will be hosting a conference call on Thursday,
December 14, 2017 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 7993264. 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, 2017 2016
ASSETS
Current assets Cash and cash equivalents $ 24,680,301 $ 18,767,661
Accounts receivable 2,748,597 4,511,091 Unbilled receivables, net
1,480,822 1,597,672 Inventories 4,179,654 3,645,828 Prepaid
expenses and other current assets 1,092,064
847,207 Total current assets 34,181,438 29,369,459
Property and equipment, net 6,669,011 6,962,562 Other assets
187,315 156,948 Total assets $
41,037,764 $ 36,488,969
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities Accounts payable $ 1,321,251 $ 1,503,771
Accrued expenses 1,760,037 1,889,908 Deferred revenue
280,354 179,585 Total current
liabilities 3,361,642 3,573,264 Non-current deferred income
taxes 67,742 67,701 Total
liabilities 3,429,384 3,640,965
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, 2017 and 2016
- -
Common stock, $.001 par value: 75,000,000
shares authorized, 18,879,580 and 18,812,465 issued at September
30, 2017 and 2016, respectively
18,880 18,813 Additional paid-in capital 51,583,841
51,392,159 Retained earnings 7,374,196 2,805,569
Treasury stock, at cost, 2,096,451 shares
at September 30, 2017 and at September 30, 2016
(21,368,537 ) (21,368,537 ) Total
shareholders' equity 37,608,380 32,848,004
Total liabilities and shareholders' equity $
41,037,764 $ 36,488,969
Innovative
Solutions and Support, Inc. Consolidated Statements of
Operations (unaudited)
Three months ended Twelve months
ended September 30, September 30, 2017 2016 2017 2016 Sales
$ 4,225,484 $ 6,220,551 $ 16,786,674 $ 27,969,703 Cost of
sales 2,373,726 2,835,905 8,668,348
11,482,323 Gross profit 1,851,758 3,384,646
8,118,326 16,487,380 Operating expenses: Research and
development 1,065,476 1,198,954 4,456,657 4,873,328 Selling,
general and administrative 1,713,282 1,639,232
3,739,234 9,170,865 Total operating expenses
2,778,758 2,838,186 8,195,891 14,044,193 Operating (loss)
income (927,000 ) 546,460 (77,565 ) 2,443,187 Interest
income 8,383 9,047 35,888 33,504 Other income 683,272
6,950 4,858,224 78,440 (Loss)
income before income taxes (235,345 ) 562,457 4,816,547 2,555,131
Income tax (benefit) expense (49,300 ) 165,328
247,920 568,330 Net (loss) income $
(186,045 ) $ 397,129 $ 4,568,627 $ 1,986,801 Net
(loss) income per common share: Basic $ (0.01 ) $ 0.02 $ 0.27
$ 0.12 Diluted $ (0.01 ) $ 0.02 $ 0.27 $ 0.12
Weighted average shares outstanding: Basic 16,763,245
16,931,156 16,742,461 16,927,055 Diluted 16,763,245 17,075,535
16,855,644 17,039,296
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171213005944/en/
Innovative Solutions & Support, Inc.Relland Winand, Chief
Financial Officer610-646-0350
Innovative Solutions and... (NASDAQ:ISSC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Innovative Solutions and... (NASDAQ:ISSC)
Historical Stock Chart
From Apr 2023 to Apr 2024