Innovative Solutions & Support, Inc. Announces Fourth Quarter and Fiscal Year 2018 Financial Results
EXTON, Pa.--(BUSINESS WIRE)--Dec 17, 2018--Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) ( ISSC ) today announced its financial results for the fourth quarter and full fiscal year 2018, ended September 30, 2018.
Revenues for fiscal 2018 were $13.9 million compared to $16.8 million in fiscal 2017. The Company reported a net loss of $3.7 million or ($0.22) per share for fiscal 2018 compared to net income of $4.6 million or $0.27 per share for fiscal 2017. Net income in 2017 included a substantial decrease in general and administrative expense due to a $3.6 million reversal of a bad debt reserve, and $4.9 million of other income, comprised primarily of $4.1 million from the favorable settlement of a lawsuit and $0.7 million as a result of the sale of Pennsylvania State R&D tax credits.
Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “Despite the disappointing financial results, fiscal 2018 was a year of considerable investment and extensive effort into the development and maturation of our new product, the ThrustSense® Autothrottle which we believe opens up a virtually untapped market opportunity. We now have the only patented technology of its kind that is lauded by aviation trade publications, which agree that the many benefits of an IS&S ThrustSense® Autothrottle and the ability to function in the Pratt & Whitney PT6A powered airplane creates a significant market opportunity for this product. FAA STCs have been obtained for both the Pilatus PC-12 Classic and PC-12 NG and an STC for the King Air is expected shortly. We have established a sales and marketing program for the formal launch of the ThrustSense® Autothrottle in calendar year 2019. Consequently, we believe we are entering the new year well-positioned to quickly capitalize on the sales potential of this new technology.”
For the fourth quarter of fiscal 2018, the Company reported revenues of $3.6 million compared to $4.2 million for the fourth quarter of fiscal 2017. The Company reported a fourth quarter fiscal 2018 net loss of $414,000, or ($0.02) per share, reflecting substantial cost savings due to the third quarter fiscal 2018 reduction in force partially offset by $200,000 of non-recurring consulting expense. The fourth quarter 2017 net loss of $186,000, or $(0.01) per share benefited from the sale of Pennsylvania State R&D tax credits.
At September 30, 2018, the Company had $20.4 million of cash on hand.
New orders for fiscal 2018 were $14.4 million and backlog as of September 30, 2018 was $3.6 million. Backlog excludes potential future sole-source production orders, the Pilatus PC-24, and the KC-46A, both of which the Company expects to remain in production for over a decade. The Company expects that these contracts will add to production sales already in backlog.
Shahram Askarpour, President of IS&S, added, “Over the past year we have been making preparations to ensure that the launch of our Autothrottle is fully supported, including a new product-oriented marketing strategy which should help accelerate market penetration. More broadly, we are concentrating our resources around our most valuable programs, which has enabled us to reduce overall costs and improve overall efficiency. With several STCs already obtained or imminent for our patented ThrustSense® Autothrottle, we have developed a well-defined template for efficiently expanding this technology to other models and manufacturers, opening up a market with attractive growth characteristics. The upcoming year will provide the opportunity to begin leveraging the investment and infrastructure we have created to roll this technology out to the general aviation market, where we believe a product of this capability has been sorely lacking.”
The Company will be hosting a conference call on Tuesday, December 18, 2018 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 3275752. 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.
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CONTACT: Innovative Solutions & Support, Inc.
Chief Financial Officer
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: TECHNOLOGY HARDWARE TRANSPORT AIR MANUFACTURING AEROSPACE
SOURCE: Innovative Solutions & Support, Inc.
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PUB: 12/17/2018 04:30 PM/DISC: 12/17/2018 04:31 PM