EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC) reported a robust financial performance for the second quarter of fiscal 2024, ending March 31, 2024. Net sales surged to $10.7 million, marking a 46% increase from $7.3 million in the same period last year. The company posted a net income of $1.2 million, or $0.07 per share, matching the previous year’s earnings despite substantial growth.
The impressive sales and earnings for Q2 2024 were bolstered by product lines acquired from Honeywell International, Inc. during the third quarter of 2023. This acquisition has proven beneficial, although costs included $500,000 for amortization of customer relationships and other one-time non-recurring items related to the Honeywell deal. Excluding these one-time costs, profitability saw an uptick compared to the same quarter last year.
“The momentum of our business continued as we delivered double-digit sales growth,” said Shahram Askarpour, Chief Executive Officer of IS&S. “The second-quarter results were consistent with our expectations and driven by our focused execution. I also want to welcome Jeff DiGiovanni, who joined us last month as CFO and will be a key contributor to our long-term planning and strategy.”
During the first half of fiscal 2024, IS&S generated $4.4 million in positive cash flow, a notable achievement given the one-time expenses tied to the Honeywell acquisition and integration.
In Q2, new orders amounted to $6.6 million, with a backlog of $10.4 million as of March 31, 2024. The backlog only includes purchase orders in hand and excludes long-term programs with OEM customers like Pilatus PC-24, Textron King Air, Boeing T-7 Red Hawk, and the Boeing KC-46A. These long-term contracts are expected to sustain production and generate future sales. Additionally, products licensed from Honeywell do not typically enter the backlog due to their nature.
IS&S: Soaring Success and Strategic Prowess in Aerospace & Defense
IS&S’s strong financial results highlight the company’s successful integration of the Honeywell acquisition and its strategic focus on growth. The significant increase in net sales demonstrates effective execution and market demand for the company’s expanded product offerings.
For investors, the steady net income despite increased sales indicates efficient cost management. The positive cash flow further underscores the company’s financial health, positioning it well for future investments and growth initiatives.
The introduction of new CFO Jeff DiGiovanni signifies a strategic move to bolster long-term planning. His role will be crucial as IS&S continues to grow both organically through new product development and through further acquisitions.
From an industry perspective, IS&S’s performance suggests a strong market position in aerospace and defense. The exclusion of certain long-term program orders from the backlog yet expecting sustained production reflects confidence in ongoing demand and client reliability.
In conclusion, IS&S’s Q2 results signal robust growth and strategic agility, positioning the company for continued success. As they advance their long-term plans, investors and industry stakeholders will be keenly watching their next moves, anticipating further advancements and market expansion.
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