EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC), a leading provider of avionics systems and products, recently reported its financial results for the fourth quarter and full fiscal year 2023, ending on September 30, 2023. The results showcased impressive growth, with net sales for Q4 reaching $13 million, up a notable 79% from $7.3 million in the same period a year ago.
The company’s net income for Q4 stood at $2.6 million, or $0.15 per share, marking increases of 63% and 67%, respectively, compared to $1.6 million, or $0.09 per share, in the fourth quarter of fiscal 2022. Gross profit for the quarter was $8.1 million, representing 62% of sales, maintaining the same profit margin percentage as the corresponding quarter in 2022.
The significant uptick in sales and earnings in Q4 primarily reflects the impact of the product lines acquired from Honeywell International, Inc., pursuant to an exclusive license and asset acquisition that closed in the third quarter of 2023.
Shahram Askarpour, CEO of IS&S, expressed satisfaction with the company’s fifth consecutive year of top and bottom-line growth, attributing it to one of the firm’s best quarters in recent history. The results included accelerated shipments of the acquired Honeywell products to offset potential delivery delays over the next two quarters as equipment and inventory are transferred to IS&S. Askarpour expressed confidence that the integration of Honeywell’s product lines will increase annual revenues by approximately 40% from pre-acquisition levels once operations are fully integrated in fiscal 2024.
For fiscal 2023, the company generated a cash flow of $2.1 million from operations. By the end of Q4, it had $3.1 million in cash reserves, which increased significantly to over $8 million by December 19, 2023, due to the collection of receivables and the sale of the company’s King Air aircraft.
New orders for Q4 came in at approximately $12.7 million, bringing the total for fiscal 2023 to $36.5 million. The company’s sales backlog as of September 30, 2023, stood at $13.5 million.
For the full fiscal year, total revenues were $34.8 million, up 26% from $27.7 million in fiscal 2022. Net income for fiscal 2023 was $6.0 million, or $0.35 per share, compared to $5.5 million, or $0.32 per share, in fiscal 2022.
Innovative Solutions & Support’s robust financial performance underscores its strategic growth initiatives and the successful integration of acquired product lines. As the company continues to leverage these strengths, investors can look forward to potentially higher returns in fiscal 2024.
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