Innovative Solutions & Support, Inc. Announces First Quarter Fiscal 2023 Financial Results

Innovative Solutions & Support, Inc.

EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC)  recently announced its financial results for the first quarter of fiscal year 2023, which ended December 31, 2022.

For the first quarter of fiscal 2023, net sales were $6.5 million compared to $6.7 million in the first quarter a year ago. Gross profit in the first quarter of 2023 was $3.7 million compared to $4.0 million in the first quarter of 2022. The Company reported net income of $0.7 million, or $0.04 per share in the first quarter, compared to $1.1 million, or $0.07 per share in the first quarter of fiscal 2022. The decrease in net income was driven by increases in general and administrative expenses, mainly attributable to non-cash, long-term incentive compensation and legal fees. IS&S generated $2.2 million in cash versus $1.4 million in the first quarter of fiscal 2022. Tax expense in the first quarter of fiscal 2023 was $0.2 million, compared to $0.3 million in the first quarter of fiscal 2022.

Shahram Askarpour, Chief Executive Officer of IS&S, said, “Overall, we continue to see solid demand in each segment of the business, including OEM, after-market and repairs, as we continue to generate strong cash flows. Looking forward, we are focused on driving organic and inorganic revenue growth as we work to increase our capacity utilization and operating leverage.”

The Company’s cash on hand increased to $19.4 million as of December 31, 2022, with $1.8 million generated from operating activities during the three months ended December 31, 2022. The Company continues to maintain its strong financial condition and flexibility with significant liquidity and no debt.

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New orders in the first quarter of fiscal 2023 were approximately $3.3 million, and backlog as of December 31, 2022 was $8.5 million, compared to backlog of $6.2 million as of December 31, 2021. Only purchase orders in hand from the Pilatus PC-24, Textron King Air and the KC-46A long-term programs are included in the total backlog. IS&S expects these programs to remain in production for approximately a decade and anticipates that they will continue to add to the total backlog incrementally.

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