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Innovative Solutions & Support, Inc. Announces Second Quarter Fiscal 2019 Financial Results

EXTON, Pa.--(BUSINESS WIRE)--

Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced its financial results for the second quarter of fiscal 2019, ended March 31, 2019.

For the second quarter of fiscal 2019 the Company reported net sales of $4.2 million compared to net sales of $3.7 million in the second quarter a year ago. The Company reported net income of $202,000, or $0.01 per share, compared to a net loss of $1.3 million, or ($.08) per share, in the second quarter of fiscal 2018.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “Revenues in the second quarter were up sequentially from the first quarter, reflecting steady improvement in both new orders and production activity.”

At March 31, 2019, the Company had $21.2 million of cash on hand, up nearly a million dollars sequentially over the past three months from $20.3 million at December 31, 2018.

New orders in the second quarter of fiscal 2019 were $5.3 million, and backlog as of March 31, 2019, was $5.4 million, also up sequentially from $4.3 million at December 31, 2018. Backlog excludes potential future sole-source production orders from the Pilatus PC-24 and the KC-46A programs both of which are currently in production. The Company expects both programs to remain in production for multiple years and that these contracts will add to production sales already in backlog.

Six Months Results

Total sales for the six months ended March 31, 2019, were $8.2 million compared to $6.8 million for the six months ended March 31, 2018. For the six months ended March 31, 2019, the company reported net income of $342,000, or $0.02 per share, a significant improvement from the net loss $2.2 million, or ($0.13) per share for the first half of fiscal 2018.

Conference Call

The Company will be hosting a conference call on Thursday, May 9, 2019, at 10:00 a.m. ET to discuss these results and the Company’s business outlook and product development. Please use the following dial in number to register your name and company affiliation for the conference call: 877-270-2148 and ask to be joined into the Innovative Solutions & Support call. 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 (OEMs) 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
 
 
March 31, September 30,
2019 2018
(unaudited)

ASSETS

Current assets
Cash and cash equivalents $ 21,241,196 $ 20,390,713
Accounts receivable 2,620,448 3,449,893
Inventories 4,570,812 4,280,108
Prepaid expenses and other current assets 561,791 544,234
           
Total current assets 28,994,247 28,664,948
 
Property and equipment, net 8,640,532 8,786,737
Other assets 165,547 181,993
           
Total assets $ 37,800,326   $ 37,633,678  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 
Current liabilities
Accounts payable $ 985,935 $ 1,529,792
Accrued expenses 1,459,089 1,463,021
Contract liability 525,899 356,801
           
Total current liabilities 2,970,923 3,349,614
 
Non-current deferred income taxes 129,627 129,594
           
Total liabilities   3,100,550     3,479,208  
 
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 March 31, 2019 and September 30, 2018

$ - $ -
 

Common stock, $.001 par value: 75,000,000 shares authorized, 19,005,487 and 18,937,050 issued at March 31, 2019 and September 30, 2018, respectively

19,006 18,937
 
Additional paid-in capital 51,987,096 51,783,779
Retained earnings 4,062,211 3,720,291

Treasury stock, at cost, 2,096,451 shares at March 31, 2019 and September 30, 2018

(21,368,537 ) (21,368,537 )
           
Total shareholders' equity 34,699,776 34,154,470
           
Total liabilities and shareholders' equity $ 37,800,326   $ 37,633,678  
 
               
Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
(unaudited)
 
 
Three months ended Six months ended
March 31, March 31,
2019 2018 2019 2018
 
Net Sales 4,203,127 3,727,204 8,180,777 6,815,188
 
Cost of sales   1,856,921   2,082,347     3,668,768   3,675,616  
 
Gross profit 2,346,206 1,644,857 4,512,009 3,139,572
 
Operating expenses:
Research and development 648,482 1,031,622 1,244,854 1,955,343
Selling, general and administrative   1,524,657   1,756,746     2,998,073   3,379,301  
Total operating expenses 2,173,139 2,788,368 4,242,927 5,334,644
 
Operating (loss) income 173,067 (1,143,511 ) 269,082 (2,195,072 )
 
Interest income 26,480 11,681 48,032 21,305
Other income   10,746   15,664     32,600   37,096  
(Loss) income before income taxes 210,293 (1,116,166 ) 349,714 (2,136,671 )
 
Income tax expense   7,794   200,705     7,794   61,819  
 
Net (loss) income $ 202,499 $ (1,316,871 ) $ 341,920 $ (2,198,490 )
 
Net loss per common share:
Basic $ 0.01 $ (0.08 ) $ 0.02 $ (0.13 )
Diluted $ 0.01 $ (0.08 ) $ 0.02 $ (0.13 )
 
Weighted average shares outstanding:
Basic   16,860,568   16,800,244     16,850,584   16,791,687  
Diluted   16,875,720   16,800,244     16,858,160   16,791,687  
 

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