Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced its financial results for the third quarter of fiscal 2012, ended June 30, 2012.
Three Month Results
For the third quarter, the Company reported revenue of $6.1 million, a small increase compared to the third quarter of fiscal 2011. The Company reported third quarter 2012 net income of $260,000, or $0.02 per diluted share, compared to a net loss of $79,000, or $(0.00) per diluted share, in the same quarter a year ago.
Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. (“ISSC”), said, “I am pleased to report revenue growth and positive earnings for the third quarter. More important, during the quarter we achieved progress on our various customer-funded Engineering Modification and Development (“EMD”) programs. These are important programs that can lead to additional production orders while opening up large, new OEM growth markets for us. While our focus on these programs during the quarter led to a shift in product mix and the expected decrease in gross margins, we grew revenues during the quarter and achieved our profit objectives. As a result, our balance sheet remains solid, providing us with a strong financial position from which to pursue our strategic initiatives. As these programs are completed in our upcoming fiscal year, we look forward to a period of new product introductions and growth opportunities to augment our existing product portfolio.”
At June 30, 2012, the Company had $41.8 million of cash on hand, compared to $42.6 million cash balance at the beginning of the fiscal year, October 1, 2011. The Company remains virtually free of debt. During the third quarter of the current fiscal year the Company used cash of $132,000 to repurchase Company stock and $1.2 million to fund operations. Backlog was approximately $23.0 million at June 30, 2012, compared to $25.5 million at March 31 2012. Backlog at June 30, 2012 excludes potential future production sales related to the present customer-funded EMD contracts but does include the first year production of the Advanced Electronic Monitoring and Control System.