Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced financial results for the fourth quarter and year ended September 30, 2011.
For the fourth quarter of 2011, the Company reported earnings of $12,000, or $0.00 per diluted share, compared to fourth quarter 2010 earnings of $1.3 million, or $0.07 per diluted share. For the fourth quarter of 2011, revenues were $6.5 million compared to $7.5 million in the comparable year ago quarter. During the quarter, the Company generated $406,000 in cash flow from operations. Revenues, net income and diluted earnings per share all improved on a sequential basis compared to the third quarter of fiscal 2011.
Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc., said, “Results in the fourth quarter improved from the third quarter and enabled us to achieve a third consecutive profitable year. Although earnings for the year were modest, we were able to generate $2.3 million in operating cash, which provides the financial strength to fuel our growth strategy. Through steady investment in research and development, we are able continually to enhance the functionality of our existing products and broaden our technology platform to capitalize on evolving market opportunities. End markets have been weak, but our investment has generated results in the form of broadened product and service offerings as well as applicability to additional aircraft platforms.
“Our Flat Panel Display System is gaining greater industry recognition for its innovative low-cost, high-quality technology. This recognition is rapidly translating into new and increasing interest from operators around the world who support our strategy by funding development of additional applications and solutions that leverage our unique technologies.”Mr. Hedrick cited the following accomplishments, which are transforming the business and enlarging Innovation Solutions & Support’s market opportunity:
- Successful implementation of an Integrated Flight Management System, which, as a result of enthusiastic owner reception, enabled our customer, Eclipse Aerospace, to sell all available installation slots of their Avio IFMS completion program through March of 2012;
- Further penetration of the OEM market, culminating in the selection by Eclipse Aerospace to provide an advanced avionics suite for the production model Eclipse 550, a multi-year agreement with the potential to generate revenues in excess of $25 million;
- Entrance into the Systems Integration and Cockpit Avionics market through a $5 million contract to upgrade B737-400 aircraft by leveraging the Company’s successful Integrated Flight Management System;
- Geographic market expansion with EASA, the European Aviation Safety Agency, issuing an STC supplemental type certificate for the Company’s Cockpit/IP ® flat panel systems for the Boeing 757-200 and -300 and the Boeing 767-300 aircraft.