EXHIBIT 99
Innovative Solutions and Support Reports Third Quarter Earnings
Malvern, PA, August 10, 2000 - Innovative Solutions and Support, Inc. (NASDAQ:
ISSC) today announced revenue and net income for its third quarter of fiscal
2000, which ended June 30, 2000.
Revenue for the three months ended June 30, 2000 was $10.1 million, up 47.3% as
compared to the three months ended June 30, 1999 of $6.8 million. For the nine
months ended June 30, 2000, revenue was $23.7 million, an increase of 50.0% over
the $15.8 million recorded for the nine months ended June 30, 1999.
Net income was $2.2 million or $0.22 per diluted share for the three months
ended June 30, 2000 as compared to $1.5 million or $0.16 per diluted share for
the three months ended June 30, 1999. Net income for the nine month period ended
June 30, 2000 was $4.6 million or $0.47 per diluted share compared to net income
of $2.8 million or $0.31 per diluted share for the nine month period ended June
30, 1999.
Innovative Solutions and Support, Inc. designs, manufactures and sells flight
avionics products, which are used in the operation of aircraft. ISSC's products
include flight information computers, electronic displays and advanced
monitoring systems that measure and display critical flight information,
including air data, such as airspeed and altitude, and engine and fuel data.
ISSC's website address is www.innovative-ss.com.
Certain matters discussed in this news release, including operating and
financial results for future periods, are forward-looking statements that are
subject to risks and uncertainties that could cause actual results to materially
differ, either better or worse, from those projected. Further discussions of
risk factors are also available in the Company's prospectus filed with the SEC.
Innovative Solutions and Support, Inc.
Statements of Operations
(Unaudited)
Three months ended Nine months ended
June 30, June 30,
1999 2000 1999 2000
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Revenues $6,849,415 $10,091,429 $15,763,366 $23,650,216
Cost of Sales 3,166,894 4,361,126 7,861,772 10,761,005
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Gross profit 3,682,521 5,730,303 7,901,594 12,889,211
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Research and development 521,379 910,878 1,399,299 2,268,180
Selling, general and administrative 813,142 1,391,747 2,016,295 3,441,607
------------------------------- -------------------------------
Operating income 2,348,000 3,427,678 4,486,000 7,179,424
------------------------------- -------------------------------
Interest income (expense) 19,229 78,863 (11,548) 214,174
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Income before income taxes 2,367,229 3,506,541 4,474,452 7,393,598
Income tax expense 889,784 1,350,018 1,681,835 2,770,658
------------------------------- -------------------------------
Net Income $1,477,445 $2,156,523 $2,792,617 $4,622,940
------------------------------- -------------------------------
Net Income per Common Share
Basic $ 0.22 $ 0.30 $ 0.41 $ 0.66
Diluted $ 0.16 $ 0.22 $ 0.31 $ 0.47
Weighted Average Shares Outstanding
Basic 6,765,791 7,180,240 6,740,493 7,049,122
Diluted 9,338,343 9,834,129 9,098,829 9,765,930
Innovative Solutions and Support, Inc.
Balance Sheet
(Unaudited)
As of As of
September 30, 1999 June 30, 2000
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 4,638,607 $ 2,962,902
Accounts receivable 3,413,771 7,725,991
Inventories 3,496,773 3,863,676
Prepaid and other 89,634 336,047
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Total current assets 11,638,785 14,888,616
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Property and equipment, net 745,190 3,927,656
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Other assets 228,214 338,756
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TOTAL ASSETS $12,612,189 $19,155,028
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $888,052 $2,356,472
Current portion of capitalized lease obligation 23,831 20,760
Accrued expenses 1,385,143 1,457,494
Deferred revenue 784,707 167,975
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Total current liabilities 3,081,733 4,002,701
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Deferred revenue 549,420 561,438
Capitalized lease obligation 45,764 34,245
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Total liabilities 3,676,917 4,598,384
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SHAREHOLDERS' EQUITY:
Preferred stock 177 177
Common stock 6,766 7,180
Additional paid-in capital 8,749,376 9,747,394
Retained earnings 178,953 4,801,893
---------------- ------------
Total shareholders' equity 8,935,272 14,556,644
---------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,612,189 $19,155,028
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