Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced its financial results for the fiscal 2011 third quarter ending June 30, 2011.
For the third quarter, the Company reported revenue of $6.0 million. Gross margins in the quarter were a strong 52.9%. For the quarter, the Company had a modest operating loss and a net loss of ($78,980) or $0.00 per fully diluted share. Cash flow from operations in the quarter was $0.2 million. For the third quarter of 2010, the Company reported revenues of $7.8 million and net income of $1.4 million, or $0.08 per diluted share.
Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. said, “Results in the quarter reflect a continued high level of investment in product development and a steady operating performance in a very challenging and uneven market, demonstrating the strength of our strategy to build products capable of serving the general aviation, military/defense and commercial air transport markets. Through the first nine months of the year, we have not only grown revenues and improved overall financial performance, but also have made significant progress introducing new products and adding new customers. Our resilient and flexible organization has enabled us to strike a balance between the need to maintain financial discipline in the near term while simultaneously investing to strengthen our product portfolio and improve our competitive position. Margins remain healthy. Research and development investment levels have been maintained to further advance our technology. Despite the continuing weakness in some of our end markets and delays in contract awards, we are seeing an improvement in order intake. Our order book grew in the quarter and order intake for the quarter was almost equal to that of the first two quarters combined. We are confident that the introduction of our Flight Management System and the opening of the B737 market are indicative of the growing interest in the innovative technical approaches that have characterized our Company’s products and will contribute to long term revenue growth. We will discuss new orders more fully in our conference call tomorrow.”