EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC) recenlty announced its financial results for the second quarter and first six months of fiscal year 2022, which ended March 31, 2022.
For the second quarter of fiscal 2022, the Company reported net sales of $6.8 million, up 34% as compared to $5.1 million in the second quarter a year ago. The Company reported a 135% increase in net income to $1.4 million, or $0.08 per share, compared to the second quarter of fiscal 2021.
Shahram Askarpour, Chief Executive Officer, said, “The second quarter builds on our solid start to the year, with 34% revenue growth compared to the year ago quarter and second quarter gross margin expanding to 61%, our highest gross margin in six years. With operating expenses little changed from a year ago, this led to a 135% increase in net income and $1.9 million in positive cash flow, further strengthening our financial position.”
Mr. Askarpour added, “Our results reflect the strength of our long-term contracts with some of the world’s most respected OEMs, our position as a leader in supplying flat panel displays to the air cargo market and an overall firming in some of our end markets. As a result, orders in the quarter were up significantly from the first quarter and we grew our backlog.”
Cash Flow, New Orders and Backlog
The Company’s cash on hand increased to $11.6 million at March 31, 2022, from $8.3 million at the end the latest fiscal year end. Net cash flows from operating activities were $1.9 million in the second quarter.
New orders in the second quarter of fiscal 2022 were approximately $8.2 million and backlog as of March 31, 2022, was $7.5 million. Backlog increased from $6.2 million at the end of the first quarter of fiscal 2022. Backlog excludes potential future sole-source production orders from the Pilatus PC-24, Textron King Air and the KC-46A programs, which the Company expects to remain in production for a decade. The Company expects that these contracts will add to production sales already in backlog.
Six Months Results
Total sales for the six months ended March 31, 2022, were $13.5 million compared to $10.0 million for the six months ended March 31, 2021. For the six months ended March 31, 2022, the company reported net income of $2.6 million, or $0.15 per share, up from $849,000, or $0.05 per share for the first half of fiscal 2021.
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