Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q3 2023 Earnings Conference Call August 10, 2023 10:00 AM ET

Company Participants

Shahram Askarpour - Chief Executive Officer

Mike Linacre - Chief Financial Officer

Conference Call Participants

Tim Moore - EF Hutton

Operator

Good day and welcome to Innovative Solutions & Support Third Quarter Fiscal 2023 Financial Results Call. [Operator Instructions] Please note that this event is being recorded. I’d now like to turn the conference over to Mr. Shahram Askarpour, CEO. Please go ahead, sir.

Shahram Askarpour

Good morning. This is Shahram Askarpour, Chief Executive Officer of Innovative Solutions & Support. Welcome to our conference call to discuss our performance for the third quarter of fiscal 2023, current business conditions and outlook for the coming year. Joining me is Mike Linacre, our CFO.

Before we begin, I’d like Mike to read the Safe Harbor statement.

Mike Linacre

Thank you, Shahram and good morning, everyone. I would remind our listeners that certain matters discussed in the conference call today, including new products and operational and financial results for future periods are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse from those discussed, including the impact of the Honeywell product line license and asset acquisition and other acquisitions as well as other risks and uncertainties reflected in our company’s 10-K, which is on file with the SEC and other public filings.

Now I will turn the call back to Shahram.

Shahram Askarpour

Thank you, Mike. I will begin today with remarks on our performance in the fiscal third quarter of 2023, followed by comments on our long-term growth plan and strategy, including the recent acquisitions from Honeywell. I will then turn the call over to Mike, who will take us through the financials.

Revenues in the third quarter increased 15% to $8 million and were also up sequentially from the second quarter. This improvement was driven by the steady contribution of our production contracts and the growth in revenue from our aftermarket products, including our King Air Autothrottle and flat panel displays for the air cargo market. We are also generating revenues from new programs or services, including our new autothrottle installation services and ThrustSense Autothrottle for the Beechcraft King Air 200 and 300 aircraft, with this new STC has opened a new market of potentially 700 additional aircraft. Margins were also up from a year ago, which led to another strong quarter of bottom line results. All in all, financial performance that continues to illustrate steady, profitable growth.