Innovative Solutions & Support, Inc. (NASDAQ: ISSC) today announced its financial results for the third quarter of fiscal 2013, ended June 30, 2013.
Three Months Results
For the third quarter, the Company reported revenue of $8.8 million, a 43 percent increase compared to third quarter of fiscal 2012 revenues of $6.1 million. The Company reported third quarter 2013 net income of $307,000, up from $260,000 in the same quarter last year, and earnings per diluted share of $0.02 in both years. Results for the third quarter of fiscal 2013 reflect a $0.03 per share charge for a previously disclosed non-recurring human resources legal matter.
Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc. (“ISSC”), said, “In the quarter, we announced officially the award of the Utilities Management System (“UMS”) contract for the development and multi-year production in support of the new Pilatus PC-24 business jet. This Pilatus award represents our third recent Original Equipment Manufacturer (“OEM”) program, each of which will provide ongoing production over a number of years. Our ‘performance for price’ value proposition continues to create market opportunities for us. We expect that our current profitability, an increasing backlog, and future production under these OEM contracts will create long term shareholder value.”
Mr. Hedrick added, “The Company continues to grow revenues, profit, and backlog. Our ongoing investment in product development is key to expanding our revenue and profit. We are fortunate to have our customers contribute to that investment. The customer contribution is intended to mitigate our substantial engineering development expense of approximately 35% of revenues. Low margin Engineering Development Contracts (“EDC”) are intended to support our product development, but they have the immediate effect reducing our historical gross margin percentages.”
At June 30, 2013, the Company had $16.6 million of cash on hand, up slightly from $16.3 million at March 31, 2013, although down from a year ago as a result of a special cash dividend of $25 million paid to shareholders in December 2012. Cash from operating activities was $670,000 in the quarter. The Company remains free of debt.