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

[February 05, 2020]

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

Innovative Solutions & Support (News - Alert), Inc. ("IS&S" or the "Company") (NASDAQ: ISSC) today announced its financial results for the first quarter of fiscal 2020 ended December 31, 2019.

For the first quarter of fiscal 2020, the Company reported net sales of $4.5 million compared to net sales of $4.0 million in the first quarter a year ago. The Company reported net income of $328,000, or $0.02 per share, in the first quarter, compared to net income of $139,000, or $0.01 per share, in the first quarter of fiscal 2019.

Other notable recent accomplishments include:

The signing of a multi-year agreement with an aircraft manufacturer to supply the recently certified ThrustSense® auto-throttle as standard equipment on new aircraft production.
The Federal Aviation Administration (FAA) awarded a first-of-its-kind Supplemental Type Certificate (STC) for protection against one-engine-inoperative (OEI) catastrophic loss-of-control accidents.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, "The results for the first quarter of fiscal 2020 continue to reflect steady improvement in our financial performance as well as success qualifying new products and winning new orders. Shahram Askarpour and I will be available for questions after the formal portion of the earnings call is concluded."

At December 31, 2019, the Company had $22.2 million of cash on hand, little changed from fiscal year end September 30, 2019.

New orders in the first quarter of fiscal 2020 were $4.9 million and backlog as of December 31, 2019 was $6.3 million, a 47% increase from backlog of $4.3 million a year ago. 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.

Conference Call

The Company will be hosting a conference call on Thursday, February 6, 2020 at 10:00 a.m. ET to discuss these results, its 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. No conference ID is required. The call will also be carried live on the Investor Relations page of the Company website 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), auto-throttle 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


	December 31,			September 30,
		2019			2019
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	22,158,756		$	22,416,830
Accounts receivable, net		2,976,749			2,348,537
Contract asset		-			80,182
Inventories		4,672,463			4,470,694
Prepaid expenses and other current assets		686,614			642,049

Total current assets		30,494,582			29,958,292

Property and equipment, net		8,365,477			8,444,692
Other assets		255,226			154,041

Total assets	$	39,115,285		$	38,557,025

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable	$	977,636		$	1,079,073
Accrued expenses		1,414,045			1,110,918
Contract liability		33,586			29,231

Total current liabilities		2,425,267			2,219,222

Non-current deferred income taxes		129,651			129,651
Other liabilities		24,307			-
Total liabilities		2,579,225			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 December 31, 2019 and September 30, 2019	$	-		$	-

Common stock, $.001 par value: 75,000,000 shares authorized, 19,005,487 issued at December 31, 2019 and September 30, 2019		19,006			19,006

Additional paid-in capital		51,987,096			51,987,096
Retained earnings		5,898,495			5,570,587
Treasury stock, at cost, 2,096,451 shares at December 31, 2019 and September 30, 2019		(21,368,537	)		(21,368,537	)

Total shareholders' equity		36,536,060			36,208,152

Total liabilities and shareholders' equity	$	39,115,285		$	38,557,025


Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
(unaudited)

	Three months ended
	December 31,
	2019		2018

Net sales	$	4,511,428	$	3,977,650

Cost of sales		1,909,781		1,811,847

Gross profit		2,601,647		2,165,803

Operating expenses:
Research and development		666,615		596,372
Selling, general and administrative		1,703,274		1,473,416
Total operating expenses		2,369,889		2,069,788

Operating income		231,758		96,015

Interest income		78,870		21,552
Other income		17,280		21,854
Income before income taxes		327,908		139,421

Income tax expense		-		-

Net income	$	327,908	$	139,421

Net income per common share:
Basic	$	0.02	$	0.01
Diluted	$	0.02	$	0.01

Weighted average shares outstanding:
Basic		16,909,036		16,840,599
Diluted		17,081,578		16,840,599

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