Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q4 2022 Earnings Conference Call December 14, 2022 4:30 PM ET

Company Participants

Michael Linacre - Chief Financial Officer

Shahram Askarpour - Chief Executive Officer

Conference Call Participants

Operator

Greetings and welcome to the Innovative Solutions and Support, Inc. Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Michael Linacre, Chief Financial Officer. Thank you, Michael. You may begin.

Michael Linacre

Thank you operator and good afternoon everyone. I would remind our listeners that certain matters discussed in the conference call today, including information about 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 other risks and uncertainties reflected in our company's 10-K, which is on file with the SEC and other public filings.

Now, I'll turn it over to our CEO, Shahram Askarpour.

Shahram Askarpour

Thank you, Mike and good afternoon everyone. I will begin today with remarks on our performance in fiscal 2022 followed by comments on the upcoming year and our long-term growth strategy. I will then turn the call over to Mike who will take us through the details.

Fiscal 2022 marked a strong year of financial performance, revenues up 20.4% with 27.7 million compared to fiscal 2021. Higher revenue compared to the prior year was attributed [for underlying] [ph] end market support in commercial aviation, general aviation, and defense end-markets.

During the year, we delivered on several programs, which included the [indiscernible] program, commercial air transport cockpit [conversion] [ph] programs, our Pilatus PC-24, Textron King Air Autothrottle, and the KC-46A. [Indiscernible] higher sales were driven by broad-based success across our portfolio products.

As we have stated in the past, our winning formula starts with excellent products in attractive growing markets. This effort is supported by more than 500 cockpit upgrades in 757, 767, and 737 platforms combined with a rapidly growing presence in general aviation.

Turning to our gross profit. We increased gross profit to 60.7 million in 2022, an increase of over 30%, compared to fiscal 2021. We significantly outpaced our revenue growth during the period as we gained operating leverage on higher overall sales. As a percentage of sales, gross margin increased 406 basis points, 60.1%. For the full-year, operating expenses achieved leverage with a decrease as a percent of sales 34.1% in 2022, compared to 38.5% in 2021.