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Innovative Solutions & Support, Inc. Announces Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 201

^{Published on 2010-12-08 17:20:34 - Market Wire}
 

EXTON, Pa.--([ BUSINESS WIRE ])--Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced financial results for the fourth quarter and year ended September 30, 2010.

For the fourth quarter of 2010, the Company reported earnings of $1.3 million, or $0.07 per diluted share, a significant improvement from fourth quarter 2009 earnings of $585,000, or $0.03 per diluted share. For the fourth quarter of 2010, revenues were $7.5 million, down slightly from $7.9 million in the comparable year ago quarter. For the quarter, the Company also reported a 63.4 percent gross profit margin, which is up significantly compared to recent periods, while also generating $2.9 million in cash flow from operations.

Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. said, aOur results in the fourth quarter were consistent with our third quarter, as anticipated, and completed a strong second half of the year in which revenues were up over 50% and net income was up almost $5 million compared to the first half of the year. As a result, despite challenging industry conditions, we achieved our goals of profitability and positive cash flow for the year. We are entering our new year with increased product functionality and more extensive relationships in each of our commercial air transport, general aviation and military markets, which serve as a strong foundation from which to capitalize on an emerging recovery in the overall aviation industry. a

At September 30, 2010, the company had $40.9 million of cash on hand, which is up over $5 million from September 30, 2009, while having no long term debt. Released backlog was $32.3 million at the end of fiscal 2010. Backlog does not include all of the revenue opportunity inherent in many of the companya™s contracts with customers.

For the year, the Company reported net income of $748,000, or $0.04 per diluted share, on revenues of $25.3 million. Earnings were driven by a 54.4 percent gross margin, an increase from the 51.3 percent gross margin recorded in fiscal 2009. For the year, cash flow from operations was $5.6 million, a 6% increase from $5.3 million in fiscal 2009. Net income was $5.0 million, or $0.30 per diluted share, on revenues of $36.7 million in the fiscal year ended September 30, 2009.

Mr. Hedrick, concluded, aOur ability to move seamlessly between the military, commercial air transport and general aviation markets has enabled us to remain profitable despite the severe recession experienced by our end markets. After a weak start to the year, we have stabilized our business for the short-term, while continuing to invest in our products and organization to capitalize on our industrya™s strong long-term growth prospects. The widespread adoption of Flat Panel Display technology clearly indicates that aircraft operators see the value of improved cockpit performance, and we have been adding new functionality to our products to maintain our leading industry position and open new markets. Recent economic weakness has delayed new orders, as well as shipments from our existing backlog, throughout this past year. However, as the economy recovers and air travel rebounds, operators will find it increasingly attractive to install upgrades that improve the safety, reliability and efficiency of their aircraft. This should create opportunity for us to strengthen our market position.a

Business Outlook

For the fiscal year ending September 30, 2011, the Company expects revenue and earnings will improve although the markets remain uncertain.

Conference Call

The Company will be hosting a conference December 9, 2010 at 10:00 AM local time 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: 888-487-0361. The conference ID# is 8838002. 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 ]) design, manufactures, and markets flight information computers, electronic displays, and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation (RVSM), airspeed, and altitude, as well as engine and fuel data measurements.

Certain matters contained herein that are not descriptions of historical facts 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.

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