Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q3 2022 Earnings Conference Call August 11, 2022 10:00 AM ET

Company Participants

Shahram Askarpour - Chief Executive Officer

Mike Linacre - Chief Financial Officer

Conference Call Participants

John Moran - Robotti & Co.

David Campbell - Thompson Davis & Company

Craig Rose - Axiom

Operator

Good morning and welcome to the Innovative Solutions & Support Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the call over to Shahram Askarpour. Please, go ahead.

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 2022 and business conditions and outlook for coming years.

Joining me is Mike Linacre, our new CFO who joined us in July upon Rell's retirement. We are excited to welcome Mike to IS&S. Mike not only has extensive financial experience in manufacturing environment, but he also has a strong track record of driving results.

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 and 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 the call back to Shahram.

Shahram Askarpour

Thank you, Mike. In the third quarter, we continued our steady growth with revenues up 12% and operating income up 41%, ending the quarter with over $14 million of cash and no debt. Together with our strong first half, this is one of the best first nine months in many years.

The business continues to deliver attractive returns and generate significant free cash flow, as we grow revenues and generate operating leverage. As I have stated before, our winning formula starts with excellent products in attractive growing markets, including our award-winning autothrottle and our flat panel displays for a cargo conversions.