U.S. Markets closed
  • S&P 500

    3,435.56
    -7.56 (-0.22%)
     
  • Dow 30

    28,210.82
    -97.97 (-0.35%)
     
  • Nasdaq

    11,484.69
    -31.80 (-0.28%)
     
  • Russell 2000

    1,603.78
    -13.93 (-0.86%)
     
  • Crude Oil

    39.99
    -1.71 (-4.10%)
     
  • Gold

    1,927.80
    +12.40 (+0.65%)
     
  • Silver

    25.16
    +0.18 (+0.72%)
     
  • EUR/USD

    1.1858
    +0.0029 (+0.2490%)
     
  • 10-Yr Bond

    0.8160
    +0.0190 (+2.38%)
     
  • Vix

    28.49
    -0.86 (-2.93%)
     
  • GBP/USD

    1.3137
    +0.0190 (+1.4661%)
     
  • USD/JPY

    104.5620
    -0.9080 (-0.8609%)
     
  • BTC-USD

    12,724.60
    +1,667.59 (+15.08%)
     
  • CMC Crypto 200

    255.01
    +10.12 (+4.13%)
     
  • FTSE 100

    5,776.50
    -112.72 (-1.91%)
     
  • Nikkei 225

    23,639.46
    +72.42 (+0.31%)
     

Innovative Solutions & Support, Inc. Announces Second Quarter Fiscal 2020 Financial Results

·6 mins read

Innovative Solutions & Support, Inc. ("IS&S" or the "Company") (NASDAQ: ISSC) today announced its financial results for the second quarter of fiscal 2020, ended March 31, 2020.

For the second quarter of fiscal 2020, the Company reported net sales of $4.8 million, compared to $4.2 million in the second quarter a year ago. The Company reported net income of $438,000 or $0.03 per share, compared to $202,000, or $0.01 per share, in the second quarter of fiscal 2019.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, "We have not escaped the threat of the coronavirus pandemic, but have taken immediate remedial actions to minimize its impact to our business. We have taken aggressive steps to protect the health and well-being of our employees, their families, our customers and our other partners. As a result, we have been able to safely keep our operation open and, as an essential service, continue to meet our obligation to fill our customers’ orders.

"In fact, the March quarter was our strongest quarter in four years, with growth in revenues, new orders, backlog and cash flow. In addition, we expect to begin shipping a new OEM AutoThrottle order before the end of this fiscal year. While this pandemic and the evolving containment and relief measures that accompany it make it particularly difficult to forecast future sales, we are confident that the progress we have achieved has us well-positioned to prosper over the long-term."

Cash flow from operations was approximately $500,000 for the quarter, so that at March 31, 2020 the Company had $22.6 million of cash on hand.

New orders in the second quarter of fiscal 2020 were $8.3 million, and backlog as of March 31, 2020, was nearly $10 million, the highest backlog in several years. Backlog excludes potential future sole-source production orders from the Pilatus PC-24 and the KC-46A programs both of which the Company expects to remain in production for a decade. The Company expects that these contracts will add to production sales already in backlog.

Six Months Results

Total sales for the six months ended March 31, 2020 were $9.3 million compared to $8.2 million for the six months ended March 31, 2019. For the six months ended March 31, 2020, the Company reported net income of $766,000, or $0.04 per share, up from $342,000, or $0.02 per share, for the first half of fiscal 2019.

Conference Call

The Company will be hosting a conference call on Thursday, May 14, 2020, 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), AutoThrottle Systems 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,
2020

September 30,
2019

(unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

22,644,037

$

22,416,830

Accounts receivable

2,684,981

2,348,537

Contract asset

186,848

80,182

Inventories

4,821,062

4,470,694

Prepaid expenses and other current assets

1,057,797

642,049

Total current assets

31,394,725

29,958,292

Property and equipment, net

8,282,858

8,444,692

Other assets

230,678

154,041

Total assets

$

39,908,261

$

38,557,025

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable

$

1,355,755

$

1,079,073

Accrued expenses

1,177,065

1,110,918

Contract liability

97,136

29,231

Total current liabilities

2,629,956

2,219,222

Non-current deferred income taxes

129,689

129,651

Other liabilities

5,637

-

Total liabilities

2,765,282

2,348,873

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 March 31, 2020 and September 30, 2019

$

-

$

-

Common stock, $.001 par value: 75,000,000 shares authorized, 19,080,877 and 19,005,487 issued at March 31, 2020 and September 30, 2019, respectively

19,081

19,006

Additional paid-in capital

52,155,835

51,987,096

Retained earnings

6,336,600

5,570,587

Treasury stock, at cost, 2,096,451 shares at March 31, 2020 and September 30, 2019

(21,368,537

)

(21,368,537

)

Total shareholders' equity

37,142,979

36,208,152

Total liabilities and shareholders' equity

$

39,908,261

$

38,557,025

Innovative Solutions and Support, Inc.

Consolidated Statements of Operations

(unaudited)

Three months ended

Six months ended

March 31,

March 31,

2020

2019

2020

2019

Net Sales

4,835,065

4,203,127

9,346,493

8,180,777

Cost of sales

2,539,894

1,856,921

4,449,675

3,668,768

Gross profit

2,295,171

2,346,206

4,896,818

4,512,009

Operating expenses:

Research and development

712,019

648,482

1,378,634

1,244,854

Selling, general and administrative

1,531,389

1,524,657

3,234,663

2,998,073

Total operating expenses

2,243,408

2,173,139

4,613,297

4,242,927

Operating income

51,763

173,067

283,521

269,082

Interest income

65,721

26,480

144,591

48,032

Other income

11,219

10,746

28,499

32,600

Income before income taxes

128,703

210,293

456,611

349,714

Income tax (benefit) expense

(309,402

)

7,794

(309,402

)

7,794

Net income

$

438,105

$

202,499

$

766,013

$

341,920

Net income per common share:

Basic

$

0.03

$

0.01

$

0.05

$

0.02

Diluted

$

0.03

$

0.01

$

0.04

$

0.02

Weighted average shares outstanding:

Basic

16,931,138

16,860,568

16,920,087

16,850,584

Diluted

17,123,388

16,875,720

17,102,483

16,858,160

View source version on businesswire.com: https://www.businesswire.com/news/home/20200513005786/en/

Contacts

Investor Relations Contact:
Relland Winand
610-646-0350