At September 30, 2012, the Company had $43.0 million of cash on hand and no debt. During the fourth quarter of the current fiscal year the Company used cash of approximately $107,000 to repurchase 31,221 shares of Company stock at an average cost of $3.44 per share.
Backlog was approximately $19.7 million at September 30, 2012, compared to $23.0 million at June 30, 2012, and $27.5 million at September 30, 2011. For the year, new orders of $28.2 million exceeded sales of $24.6 million. Backlog at September 30, 2012 was net of $11.4 million of order reductions primarily by American Airlines. We expect backlog to improve in the future because of potential future sole source production sales resulting from the present customer-funded Engineering Modification and Development (“EMD”) contracts.
Full Year Fiscal 2012 Results
Revenues for the fiscal year ended September 30, 2012 were $24.6 million compared to $25.7 million for the twelve months ended September 30, 2011. Net income was $3.0 million, or $0.18 per share, for fiscal 2012 compared to $0.7 million, or $0.04 per share for the twelve months ended September 30, 2011. Of the reported net income and earnings per share, $2.4 million and $0.15, respectively, resulted from the reversal of the income tax valuation allowances that were discussed above. Cash flow from operating activities was $1.4 million for the twelve months ended September 30, 2012 compared to $2.3 million for the prior year. During fiscal 2012, the Company used $798,000 of cash to repurchase 211,722 shares of its stock at an average cost of $3.77 per share.Shahram Askarpour, President of ISSC, commented, “The profitability and positive cash flow generated in fiscal 2012 has provided us with additional resources to continue our development efforts and to leverage our expanding portfolio of products to gain share in our commercial air transport, military and general aviation markets. Eclipse Aerospace, Inc. has already placed an initial production order for one of our new products, our advanced avionics suite for their Eclipse 550 jet. In addition, we announced two new products that we are confident will be well received, our NextGen Cockpit/IP® II flight deck for business and general aviation aircraft, and our Integrated Multifunction Standby Unit for a variety of fixed wing aircraft and helicopters. Together with the progress that we are making in the development of our new System Integration and Cockpit Avionics, we continue to build our reputation for improving aircraft performance with dependable, high-quality products that offer owners an exceptional value proposition.”