N@N

Innovative Solutions & Support, Inc. Announces Fiscal 2010 Third Quarter Financial Results

^{Published on 2010-07-28 15:41:19 - Market Wire}
 

EXTON, Pa.--([ BUSINESS WIRE ])--Innovative Solutions & Support, Inc. (NASDAQ:ISSC) today announced its financial results for the fiscal 2010 third quarter ending June 30, 2010.

"We are pleased to report improvement in top and bottom line performance in the quarter, despite the continued sluggish economy"

Revenue in the third quarter improved over the immediately preceding quarter, increasing to $7.8 million from $5.4 million, and up incrementally from the third quarter of fiscal 2009. Operating income in the third quarter was $1.6 million, up 57% from the fiscal 2009 third quarter and up on a sequential basis from an operating loss in the second quarter of the current fiscal year. For the third quarter, the Company reported net income of$1.39 million, or$0.08 per fully diluted share, up from net income of $1.25 million, or $0.07 per diluted share, in the third quarter of fiscal 2009 and up sequentially from a net loss of ($746,000), or ($0.04) per share in the second quarter of fiscal 2010. Cash flow from operations in the quarter was $2.4 million compared to $1.9 million in the comparable prior year quarter, an increase of 26%.

aWe are pleased to report improvement in top and bottom line performance in the quarter, despite the continued sluggish economy,a said Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. aOur margins in the quarter were up from the year ago period on incrementally higher revenues. The increase is attributable to both the operating leverage of the Companya™s business model and the delivery of products with increased functionality. During the quarter, we generated positive operating cash flow and increased our backlog.a

The company continues to have a strong balance sheet with cash of $38.0 million and virtually no debt. Backlog as of June 30, 2010 was $39.2 million compared to $35.0 million at March 31, 2010, an increase of $4.2 million.

Nine Month Results

Revenues were $17.8 million for the first three quarters of 2010 compared to $28.8 million for the nine months ended June 30, 2009. For the nine months ended June 30, 2010, the net loss was ($502,906) or ($.03) per share compared to net income of $4.4 million or $0.26 per fully diluted share for the nine months ended June 30, 2009. Cash flow from operations was $2.6 million for the nine months ended June 30, 2010 compared to $4.6 million for the prior year comparable period.

Roman Ptakowski, President of ISSC, added, aBoth our backlog and new opportunities are growing as our flat panel display Cockpit/ IPa" gets qualified on an ever increasing range of general aviation, commercial air transport, and military aircraft. New product enhancements, such as RNP (Required Navigation Performance), are finding a strong reception in the market. We are also seeing some increase in the demand for our air data products. Our strategy continues to be growing both our top and bottom line by continually improving the performance and functionality of our Flat Panel Display System. It is a cost effective solution for improved cockpit safety and situational awareness.a

Business Outlook

We will continue to be profitable and generate positive operating cash flow in the 4^th quarter. Our ability to provide specific targets and ranges remains difficult as a result of the current economic climate. We will provide additional commentary during our earnings conference call.

The Company will be hosting a conference call Thursday, July 29, 2010 at 10:00 AM EDT 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: 888-220-8474. The conference ID# is 1410569. 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, Pennsylvania, Innovative Solutions & Support, Inc. ([ www.innovative-ss.com ]) is a systems integrator engaged in the design, manufacture and marketing of Flat Panel Display Systems, Air Data equipment, Flight Information Computers, Engine and Fuel Measurement and Control Computers, and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation, airspeed and altitude as well as fuel and instrument measurements.

Certain matters contained herein are aforward-lookinga (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 Companya™s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflects managementa™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.