Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Q4 2023 Results Conference Call December 21, 2023 10:00 AM ET
Company Participants
Shahram Askarpour - CEO
Rell Winand - CFO
Conference Call Participants
Theodore O'Neill - Litchfield Hills Research
John Moran - Robotti & Co.
Andrew Rem - Odinson Partners
Doug Ruth - Lenox Financial Services
Operator
Welcome to the Innovative Solutions & Support Fourth Quarter and Year End Fiscal 2023 Financial Results Conference Call [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Shahram Askarpour, CEO. 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 fourth quarter and full year fiscal 2023, current business conditions and outlook for the coming year. Joining me is Rell Winand, our CFO. Before we begin, I'd like Rell to provide cautionary statements about forward-looking information.
Rell Winand
Thank you, Shahram, and good morning, everyone. I would remind our listeners that certain statements made and matters discussed in the conference call today, including those about new products and operational and financial results for future periods contain forward-looking information. The forward-looking statements are subject to assumptions, risks and uncertainties that could cause actual results to differ materially, either better or worse from those discussed. I specifically call our listeners' attention to our disclaimer regarding forward-looking statements at the end of the earnings release, which was included in a Form 8-K filed yesterday, which disclaimer, along with other public filings referred in it describes these assumptions, risks and uncertainties. I also remind our listeners that plans and expectations we express speak only as of today's date and listeners should not place undue reliance on any forward-looking statements. Now I'll turn the call back to Shahram.
Shahram Askarpour
Thank you, Rell. I will begin today with remarks on our performance in the fiscal fourth quarter and full year 2023, followed by comments on our long term growth plan and strategy, including the recent Honeywell products purchased and licensed. I will then turn the call back to Rell, who will take us through the financials. For the quarter, revenues were up 79% with net income increasing 63% from a year ago. Our fiscal year 2023 results were driven by continued organic growth in our production contracts and aftermarket sales, as well as the full quarter of Honeywell product sales, which we acquired at the end of June. As anticipated, the Honeywell products supported our strong margins, which were up sequentially from the third quarter and similar to a year ago. We have also continued to generate strong cash flow, which contributed to reduce the borrowings used for our June acquisitions. This strong fourth quarter led to our fifth consecutive year of revenue growth, strong cash flow and another increase in the full year earnings. Our cash has also enabled further paydown of our borrowings in the current quarter despite the heavy onetime significant expenses incurred for auditing fees, legal expenses and cost of hiring and training new technical personnel in relation to the acquired products.