Mon, Dec 30, 10:15 PM (189 days ago)
Innovative Solutions and Support, Inc. (ISSC) reported significant growth for the fiscal year ending September 30, 2024, achieving net sales of $47.2 million, a 36% increase from $34.8 million in 2023. The company’s net income rose to $7.0 million, up 16% from $6.0 million the previous year. Key drivers included a 7% increase in product sales and an 88% surge in service sales, largely attributed to acquisitions from Honeywell, which added $74.3 million in backlog. Operating expenses increased to $16.3 million due to higher R&D and SG&A costs, but gross margins decreased to 55% from 61.3%. ISSC’s strategic focus on commercial growth and acquisitions, including three significant agreements with Honeywell, positions it well for future expansion. However, risks include reliance on a limited customer base, supply chain disruptions, and regulatory compliance challenges. The company maintains a strong financial condition, with a current ratio of 4.77 and significant liquidity through a $35 million revolving credit facility. Overall, ISSC is well-positioned for continued growth in the aerospace sector.