EX-99.1 2 a05-13301_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Press Release

Innovative Solutions & Support, Inc. Announces 49% Increase in 3rd Quarter Net Income.

 

Exton, PA.—(BUSINESS WIRE)—July 20, 2005—Innovative Solutions & Support, Inc. (NASDAQ:ISSC-news) today announced the following results for the 3rd quarter and for the Fiscal Year-To-Date Periods ended June 30, 2005:

 

Q3 FY 2005

 

*

Sales

up 39% to $17.1 million.

*

Net income

up 49% to $4.9 million.

*

EPS, diluted(1)

up 50% to $0.27 a share

 

 

Year-To-Date FY2005

 

*

Sales

up 74% to a record $55.1 million

*

Net Income

up 132% to a record $17.4 million

*

EPS, diluted(1)

up 126% to a record $0.95 a share

*

Cash Flow

Record $17.4 million

*

Backlog

$13.7 million

 

(1)          EPS numbers reflect the recent 3 for 2 common stock split that became effective on July 8, 2005.

 

Please refer to the accompanying schedules highlighting our Statement of Operations and Balance Sheet.

 

A Company spokesperson commented: “In the past three quarters we experienced very strong demand for our Air Data equipment as the mandatory compliance date of January 20, 2005 for Domestic Reduced Vertical Separation Minimum (DRVSM) passed. As expected, demand for our Air Data equipment continued beyond the compliance date because of as many as 3,700 delayed DRVSM installations. According to a January 10, 2005 article in Aviation Week & Space Technology magazine, ‘only 6,100 business jets or 62% of the eligible fleet have been outfitted’.”

 

“As a result of the DRVSM opportunities discussed above, third quarter results were supported by continued demand for DRVSM products well after the mandatory implementation date of January 20, 2005. This contributed to record sales and record earnings per share of $55.1 million and $0.95 per share, respectively for the year-to-date results. Also, as expected, the third quarter reflected diverse orders for the Flat Panel product that provides optimism for a strong transition into FY06.”

 


 

The company will host a conference call tomorrow morning, July 21, 2005 at 10:00 am local time (EST) to discuss these results, our business outlook and the expansion of Flat Panel Display System opportunities including recent new Flat Panel orders. Please call in to participate at (888) 792-8459. Also, our web site (www.innovative-ss.com) will carry the conference call live and have it available for subsequent listening for a period of 30 days.

 

Headquartered in Exton, PA. Innovative Solutions & Support, Inc. (www.innovative-ss.com) is a systems integrator engaged in the design, manufacture and marketing of Air Data,  Flight Information Computers, Engine and Fuel Measurement and Control Computers, Flat Panel Display Systems and advanced monitoring systems that measure and display critical flight information.  This includes data relative to aircraft separation, airspeed and altitude as well as fuel and instrument measurements.

 

Certain matters contained herein that are not descriptions of historical facts are “forward-looking” (as such term is defined in the Private Securities Litigation Reform Act of 1995).  Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflects management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

Contact Mr. James Reilly at (610) 646-9800

 


 

Innovative Solutions and Support, Inc.
Statement of Operations
(unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

June 30,

 

June 30,

 

 

 

2004

 

2005

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

12,269,653

 

$

17,101,620

 

$

31,688,276

 

$

55,081,445

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

4,056,372

 

5,846,912

 

11,200,624

 

17,806,327

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

8,213,281

 

11,254,708

 

20,487,652

 

37,275,118

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

1,363,143

 

1,501,475

 

3,861,311

 

4,321,474

 

Selling, general and administrative

 

2,090,357

 

2,489,287

 

5,600,461

 

6,821,682

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

4,759,781

 

7,263,946

 

11,025,880

 

26,131,962

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

116,110

 

543,857

 

345,985

 

1,255,431

 

Interest expense

 

(31,197

)

(48,796

)

(94,201

)

(127,930

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

4,844,694

 

7,759,007

 

11,277,664

 

27,259,463

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

1,559,086

 

2,860,294

 

3,810,625

 

9,894,108

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

3,285,608

 

$

4,898,713

 

$

7,467,039

 

$

17,365,355

 

 

 

 

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

$

0.27

 

$

0.43

 

$

0.97

 

Diluted

 

$

0.18

 

$

0.27

 

$

0.42

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

17,499,959

 

17,909,270

 

17,296,491

 

17,814,504

 

Diluted

 

17,941,119

 

18,360,921

 

17,801,727

 

18,314,568

 

 


 

Innovative Solutions and Support, Inc.
Balance Sheet
(unaudited)

 

 

 

September 30, 2004

 

June 30, 2005

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

$

65,867,167

 

$

83,219,709

 

Accounts receivable

 

5,003,100

 

7,510,876

 

Inventories

 

5,191,628

 

3,660,592

 

Deferred income taxes

 

984,111

 

984,111

 

Prepaid expenses

 

665,276

 

1,344,642

 

Total current assets

 

77,711,282

 

96,719,930

 

 

 

 

 

 

 

Property and equipment, net

 

9,620,231

 

9,378,576

 

 

 

 

 

 

 

Other assets

 

137,114

 

128,114

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

87,468,627

 

$

106,226,620

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current portion of note payable

 

$

100,000

 

$

100,000

 

Current portion of capitalized lease obligation

 

7,257

 

7,257

 

Accounts payable

 

1,696,247

 

409,418

 

Accrued expenses

 

4,754,641

 

3,683,789

 

Deferred revenue

 

526,023

 

735,463

 

Total current liabilities

 

7,084,168

 

4,935,927

 

 

 

 

 

 

 

Note payable

 

4,235,000

 

4,235,000

 

Capitalized lease obligation

 

20,681

 

15,035

 

Deferred revenue

 

261,934

 

209,081

 

Deferred income taxes

 

411,857

 

411,857

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

Common stock

 

13,515

 

18,027

 

Additional paid-in capital

 

48,712,289

 

41,699,407

 

Retained earnings

 

37,342,940

 

54,702,286

 

Treasury stock

 

(10,613,757

)

—

 

Total shareholders’ equity

 

75,454,987

 

96,419,720

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

87,468,627

 

$

106,226,620