Innovative Solutions & Support, Inc. (“IS&S” or the
“Company”) (ISSC) today announced its financial results for the
first quarter of fiscal 2017 ended December 31, 2016.
For the first quarter of fiscal 2017, the Company reported gross
sales of $3.8 million and net sales of $3.4 million, reflecting a
return of certain equipment previously sold to a customer to
provide them a more cost effective solution and for other future
installations. The Company had first quarter fiscal 2016 net sales
of $6.6 million. The Company reported a net loss of $1.2 million,
or ($0.07) per share, for the first quarter of fiscal 2017. In the
first quarter a year ago, the Company reported a net loss of $0.2
million, or ($0.01) per share.
Geoffrey Hedrick, Chairman and Chief Executive Officer of
IS&S, said, “Our disappointment in program delays with the
resulting revenue impact is partially mitigated by a pick-up in new
orders and continued progress with the new products we are
developing in anticipation of the implementation of NextGen
mandates. The timing of orders also weighed on our financial
performance. Since adopting our strategy to internally fund new
product development, we have been focused on getting ahead of the
NextGen mandates with innovative new technologies that address
large market opportunities. We continue to progress, with an STC
anticipated on our PC-12 Authothrottle in the second quarter.
Activity is already improving, with the first quarter’s increased
order activity likely to benefit future results. I remain confident
we will get back on track to increased profitable sales and
positive cash flow in the coming quarters.”
At December 31, 2016, the Company had $18.2 million of cash on
hand, down marginally from $18.8 million from September 30,
2016.
New orders in the first quarter of fiscal 2017 were $5.3 million
and backlog as of December 31, 2016 was $6.0 million, up from $4.6
million at September 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, all 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.
Shahram Askarpour, President of IS&S, added, "The addition
of an MRO distribution channel is also beginning to produce
results. In addition, we increased our commitment to research and
development in the quarter. We believe these are signs of the
underlying strength of our franchise. We are very excited about the
new products we have been introducing and will be introducing in
2017, as they target large market opportunities with a very
compelling value proposition, as we continue to build the value of
our brand for our shareholders.”
Conference Call
The Company will be hosting a conference call February 9, 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 2573587. 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 December 31,
September 30, 2016 2016 (unaudited)
ASSETS
Current assets Cash and cash equivalents $ 18,161,147 $ 18,767,661
Accounts receivable, net 3,786,980 4,511,091 Unbilled receivables,
net 1,604,069 1,597,672 Inventories 4,198,432 3,645,828 Prepaid
expenses and other current assets 1,222,595
847,207
Total current assets 28,973,223 29,369,459 Property and
equipment, net 6,901,566 6,962,562 Other assets 156,948
156,948 Total assets $ 36,031,737
$ 36,488,969
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities Accounts payable $ 1,713,616 $ 1,503,771
Accrued expenses 2,246,154 1,889,908 Deferred revenue
351,229 179,585 Total current
liabilities 4,310,999 3,573,264 Non-current deferred income
taxes 67,708 67,701 Total
liabilities 4,378,707 3,640,965
Commitments and contingencies (See Note 6) 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, 2016 and September 30, 2016
$ - $ -
Common stock, $.001 par value: 75,000,000
shares authorized, 18,812,465 issued at December 31, 2016 and
September 30, 2016
18,813 18,813 Additional paid-in capital 51,392,159
51,392,159 Retained earnings 1,610,595 2,805,569
Treasury stock, at cost, 2,096,451 shares
at December 31, 2016 and September 30, 2016
(21,368,537 ) (21,368,537 ) Total
shareholders' equity 31,653,030 32,848,004
Total liabilities and shareholders' equity $
36,031,737 $ 36,488,969
Innovative
Solutions and Support, Inc. Consolidated Statements of
Operations (unaudited) Three months ended
December 31, 2016 2015 Gross sales $ 3,824,047 $ 6,583,578
Returns and allowances (458,181 ) - Net Sales
3,365,866 6,583,578 Cost of sales 1,828,052
3,267,767 Gross profit 1,537,814 3,315,811
Operating expenses: Research and development 1,085,988
931,600 Selling, general and administrative 2,047,121
2,692,944 Total operating expenses 3,133,109
3,624,544 Operating loss (1,595,295 ) (308,733 )
Interest income 9,876 7,025 Other income 19,114
32,410 Loss before income taxes (1,566,305 ) (269,298
) Income tax benefit (371,331 ) (53,860 )
Net loss $ (1,194,974 ) $ (215,438 ) Net loss per
common share: Basic $ (0.07 ) $ (0.01 ) Diluted $ (0.07 ) $ (0.01 )
Weighted average shares outstanding: Basic
16,716,014 16,909,638
Diluted
16,716,014
16,909,638
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version on businesswire.com: http://www.businesswire.com/news/home/20170208006246/en/
Innovative Solutions & Support, Inc.Relland WinandChief
Financial Officer610-646-0350rwinand@innovative-ss.com
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