Innovative Solutions & Support, Inc. Announces First Quarter Fiscal 2019 Financial Results

EXTON, Pa.–(BUSINESS WIRE)–Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC)
today announced its financial results for the first quarter of fiscal
2019 ended December 31, 2018.

For the first quarter of fiscal 2019 the Company reported net sales of
$4 million compared to net sales of $3.1 million in the first quarter a
year ago. The Company reported net income of $139,000, or $0.01 per
share, compared to a net loss of $882,000, or ($0.05) per share, in the
first quarter of fiscal 2018.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said,
The results for the first quarter of fiscal 2019 reflect last year’s
re-sizing of the Company and the increase in orders. Shahram and I will
be available for questions after the formal earnings call is concluded.”

At December 31, 2018, the Company had $20.3 million of cash on hand,
consistent with fiscal year end September 30, 2018.

New orders in the first quarter of fiscal 2019 were $4.7 million and
backlog as of December 31, 2018 was $4.3 million, up from backlog of
$3.6 million at September 30, 2018. 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 7,
2018 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: 877-883-0383
and enter the PIN Number 5787878. The call will also be carried live on
the Investor Relations page of the Company web site at

About Innovative Solutions & Support, Inc.

Headquartered in Exton, Pa., Innovative Solutions & Support, Inc. (
is a systems integrator that designs and manufactures flight guidance
and cockpit display systems for Original Equipment Manufacturers (OEM’s)
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.

Innovative Solutions and Support, Inc.
Consolidated Balance Sheets
  December 31,
  September 30,


Current assets
Cash and cash equivalents $ 20,341,618 $ 20,390,713
Accounts receivable, net 3,219,069 3,449,893
Inventories 4,295,988 4,280,108
Prepaid expenses and other current assets 630,331 544,234
Total current assets 28,487,006 28,664,948
Property and equipment, net 8,719,249 8,786,737
Other assets 173,178 181,993
Total assets $ 37,379,433   $ 37,633,678  


Current liabilities
Accounts payable $ 1,039,720 $ 1,529,792
Accrued expenses 1,749,688 1,463,021
Contract liability 166,517 356,801
Total current liabilities 2,955,925 3,349,614
Non-current deferred income taxes 129,617 129,594
Total liabilities   3,085,542     3,479,208  
Commitments and contingencies (See Note 6)
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, 2018 and
September 30, 2018

$ $

Common stock, $.001 par value: 75,000,000 shares authorized,
18,937,050 issued at December 31, 2018 and September 30, 2018

18,937 18,937
Additional paid-in capital 51,783,779 51,783,779
Retained earnings 3,859,712 3,720,291

Treasury stock, at cost, 2,096,451 shares at December 31, 2018 and
September 30, 2018

(21,368,537 ) (21,368,537 )
Total shareholders’ equity 34,293,891 34,154,470
Total liabilities and shareholders’ equity $ 37,379,433   $ 37,633,678  
Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
  Three months ended
December 31,
2018   2017
Net sales $ 3,977,650 $ 3,087,984
Cost of sales   1,811,847   1,593,268  
Gross profit 2,165,803 1,494,716
Operating expenses:
Research and development 596,372 923,721
Selling, general and administrative   1,473,416   1,622,555  
Total operating expenses 2,069,788 2,546,276
Operating income (loss) 96,015 (1,051,560 )
Interest income 21,552 9,624
Other income   21,854   21,431  
Income (loss) before income taxes 139,421 (1,020,505 )
Income tax expense (benefit)     (138,886 )
Net income (loss) $ 139,421 $ (881,619 )
Net income (loss) per common share:
Basic $ 0.01 $ (0.05 )
Diluted $ 0.01 $ (0.05 )
Weighted average shares outstanding:
Basic   16,840,599   16,783,129  
Diluted   16,480,599   16,783,129  


Innovative Solutions & Support, Inc.
Relland Winand
Financial Officer

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