By a News Reporter-Staff News Editor at Journal of Engineering -- Innovative Solutions & Support, Inc. ("IS&S") (NASDAQ: ISSC) announced its financial results for the first quarter of fiscal 2014 ended December 31, 2013.
For the first quarter, the Company reported revenue of $11.1 million, a 70 percent increase compared to first quarter fiscal 2013 revenues of $6.5 million. The Company reported first quarter 2014 net income of $1 million, or $0.06 per diluted share, compared to net income of $318,000, or $0.02 per diluted share, in the same quarter a year ago.
Geoffrey Hedrick, Chairman and Chief Executive Officer of Innovative Solutions & Support, Inc., said, "Our performance in the first quarter continues our recent success in increasing both revenue and net income. As we anticipated, gross margins grew sequentially from the 2013 fourth fiscal quarter because of the increase in production volumes. Disciplined expense management contributed to our eighth consecutive profitable quarter."
At December 31, 2013, the Company had $15.8 million of cash on hand, down slightly from cash of $16.4 million at the fiscal September 30, 2013 year end. Cash used in operating activities was $222,000 in the quarter. The Company remains debt-free.
Orders for the quarter were $7.0 million, and backlog at December 31, 2013 was $86.7 million. The backlog includes work associated with a large contract with Delta Airlines which the Company expects to begin production deliveries this fiscal year. Backlog excludes most of the potential future sole-source production orders from products in development under the Company's EDCs, including the Eclipse 550, the Pilatus PC-24, and the KC-46A, all of which the Company expects to remain in production for a decade following completion of the development phases. These sole source contracts will add to the production revenues from the existing backlog.
Shahram Askarpour, President of IS&S, added, "We are strengthening our production and engineering organizations to accommodate our higher level of activity. In the first quarter, we achieved a step increase in both production and engineering. We generated revenue growth of 42% from deliveries of our hardware and software products compared to the fourth quarter of fiscal 2013. As our development projects enter their production phases, we anticipate that customers will order products at prices that will enable us to report gross margins consistent with those that we have earned historically. As we complete these major EDCs, we expect to achieve a more balanced revenue mix that will create long-term value for our shareholders."
Keywords for this news article include: Engineering, Innovative Solutions & Support Inc.
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