ISSC - Earnings call transcript Q4 2019 | Innovative Solutions and Support, Inc.

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Operator

Good morning, and welcome to Innovative Solutions and Support's Fourth Quarter 2019 Earnings Conference Call. All participants will be in 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 like to turn the conference over to Chairman and CEO, Geoffrey Hedrick. ahead. go Please

Geoffrey Hedrick

XXXX, is this this our I'd to year. fiscal like for outlook and Good the for to Geoff our you coming year full and morning fourth discuss business conference welcome conditions the our morning, quarter Hedrick. current call performance to

Joining Relland our me Askarpour, CFO. and are President; Shahram today our Winand,

I Thanks. begin, harbor safe message. I'd Before like the Rell to read

Relland Winand

XX-K, today, our including that uncertainties and is statements good products periods, the the with and morning, listeners remind that discussed, and Geoff, either would in other future certain on better you, other and results worse Thank SEC, public could conference risks company's to including that operational I differ reflected materially call which new and for cause to financial discussed matters actual uncertainties risks everyone. are file results those from subject and filings. forward-looking are or our in

back Now I'll call the turn to Geoff.

Geoffrey Hedrick

and controls This finish significant I over revenue, operating XX% us third initiated quarter marketing in strong metrics and fiscal a operating our fiscal increase with to XXXX. well record the a key from Thanks, all ago Rell. Fiscal growing XXXX sequentially year. revenues results quarter year showed The cash significant focus of from a and enabled company's in financial as cost both year, reflect this improvements results fiscal flow this XXXX.

to and intend the in by PC-XX for to quarter the will XXXX of technologies disciplined Pilatus XXXX, only of portion in the commercial, best aviation the includes innovation increase in military core and general a to aircraft orders their from results that commitment our I expect XXXX. production successful XX% they both with than get designs they orders from quarterly attribute fiscal better And and to more our the we markets. the We production these indicated leverage have they deliver in years. ended XX intake new very highest two of and a annual in

Driven utility over well of maintenance ongoing repair displays this expanded panel to margins growth year. sales as our contribution systems, and by of of production gross as XX% the operation flat our we management

revenues believe Our focus many has higher company we which products a production built. investment is why to companies foundation developing It been have new like primary in the the is we ourselves, other proportion and has compared development. research of in

we computer funded opportunistic new and sales international developed to domestic such development believe has in data for air open we're aircraft, production potential. Navy So being as both which contracts the

innovation on Our a adopted focus more is markets products. promising in why we fewer, but strategy and have investing of a

address With more that the we of aircraft and have developed we STCs products aircraft. that to for patented is single ThrustSense Auto-throttle market over have be One is X,XXX secured estimated a promising technology twin-engine Auto-throttle. both a

aircraft. feature Loss The FAA’s breakthrough catastrophic to is milestone function control technology major major on mitigation Auto-throttle of market certified certification of engine out this Auto-throttle. of accidents a mitigation situations mitigate of -- engine and out certification service loss multiengine is and the uncontrolled a the this and of safety is control a

humbled to So save two technology over principally been us complete, certification because special it separate new to before. done has potential it's which required that a years FAA We're never bring took lives. to this

to operator. only owner cost but not to can and time, more we're effective, reduce and which helps developing operational to aircraft order In make methods reduce the get sooner, the aircraft installation also costs means the ThrustSense

to is existing Right now our to plan large additional in aircraft the STCs pursue retrofit on with continue market fleets.

Auto-throttles. of an expressed revenues. additional believe Expanding number our stability interest in business to talking OEM a provide should in also We our OEMs our are of we

function its the for opportunity to increase enhancements. adding by We market see a large and new ThrustSense continue we

in the quarters build Auto-throttle have for quarter solid improvement an bookings revenues business. we our time foundation eight So a sequentially the seventh and fourth in to in up

Let me over turn on financials. it to discussion Rell for

Relland Winand

Thank you morning. us and for you, this joining thank Jeff, all

quarter of generate the $X.X of sales $X.X ago. growth company fourth XX% fourth in net fourth revenues consecutive increase the is the growth a from last XXXX a third quarter. of the of revenue and we the eight million, the XX% quarter quarter seventh That our reported million For growth, revenue follows year quarter in have in achieved sequential

are strong us another several to led customer costs steady in our from increases service Margins product revenue, lower better and due leverage gross had which our years. material fixed quarter sales mix. costs benefiting gross very revenue and which XX.X% We to of strong margin to manufacturing a the in quarterly product margin enabled best has

In longer company and benefited warranty the the reduced reflecting in ending. incurred that also warranty required for term quarter, costs from warranty were being both addition, reduced reserves costs periods

decrease a same Total from from fourth expenses Total were for the also of ago. operating a year of third expenses are down XXXX fiscal sequentially million, quarter the the operating $XXX,XXX $X quarter. quarter

which Research narrow of development than our new and the our in ago, were a less product quarter efforts fewer, on year new development more reflecting is expenses promising $XXX,XXX, but that technologies. to strategy

normalized the XXXX, fourth and rate. Selling, this fiscal late in expenses Since general reduction of down fiscal and the in in have general current administrative quarter's $XXX,XXX the expenses at quarter quarter administrative workforce approximately were XXXX. from

quarter, quarter, our of of Benefit, our utilization the a small $XXX,XXX other balances. Tax the tax primarily fourth the income, Income available cash from interest loss earned some reflecting we we In In recorded carryforwards. of in

$X.XX income quarter of a net net doubling quarter of The In from most fourth $X its million, reported income $XXX,XXX, the share. fourth $X.XX of company just per last year months or reported three several nearly share. or profitable we net in loss per quarter years, with ago our

share, net share $X.X year, full or significant XXXX. XXXX for from looking per XX% of company for XXXX. $X.XX a $X.XX $X.X were revenues from million total of million, per Quickly or the a net fiscal the The million, reported $XX.X million at for $XX.X results year improvement up fiscal income loss

that and of XXXX We for operations at flow believe had We generated financial the of in on XXXX, future. We million hand believe fund has company the million positive is company the free. a in September to cash company foreseeable the sufficient remains debt $XX.X $X fiscal position. strong over XX, cash cash

Now to I'd like to turn over the call Shahram.

Shahram Askarpour

Thank you. Good everyone. Rell. morning

cash in Geoff months our ThrustSense key into we opportunity good of quarter, earnings Year, the the Many over latest in to performance Auto-throttle. revenue, XX drove increase But in we margins, financial As the reiterated, had our headed are cases led all believe success factors the which our improving. significant that technology, and holding and New fourth of our year-over-year flow. greatest the growth lies some last in pace metrics our

of on as our and to let engine take enhance of we minute general appreciation certified have both provide we as so elaborate twin on developing aviation value on additional existing to So now additional are of the better a believe features in strongly that aircraft. working single We our comments And why STCs some a this well me auto-throttles. technology. STCs,

is this the by first has the feature which Small Three organizations VMCA come mitigation Included the Office, no acceptable most our in Evaluation and being proprietary separate had within of Aircraft technologies valuable. Small before, the safety the reference Certification Standard FAA is system. certification certification Group terms critical means and background our evaluating Branch had to Airplane develop for to technology. Aircraft consult, catastrophic when to new believe our been never VMCA of And kind is mitigation the proprietary the since The far done STC. of mitigation FAA technology, loss in control our

by loss With the for published announcement an me demonstrations and fatal engine directional condition of and control during by out the IS&S expert condition, media to have our made mitigate industry supporting articles technology. caused various the

recent appreciate about for the aircraft especially us STC this receipt prospects installed of in can you has greatly why types. the all multiengine auto-throttle Consequently, excited

we this auto-throttle feature programs, standby unit recent Previously, the is in as of half auto-throttle the our valuable on making reducing time time instrument had STC. VMCA installation the we're functionality including improvements new and performs we auto-throttle While as installation well. biggest importance by other mitigation the almost our emphasized have the King our of part within cut same that Air of

some auto-throttle auto-throttle we our negotiations aircraft. in final production their is note of with inclusion for equipment on the standard A that OEMs as in are

that And at of our as life-saving. believe We to strong for technology while remains a this potentially pilot demand business when base mentioned, lead our reduces only comes workload, of be the are efforts not would the these previously business, solid. investing that growth it time performance a to believed in we is but heavily auto-throttle

increasing demand most to Just quickly recognized reviewing in expects That programs, should what at running as been Pilatus results, year aircraft has a memory. of around has of aircraft recent fairly program launches next been the the XX year. to successful jump driving the this level one meet current XX to healthy deliver support new quickly PC-XX for the in

a believe this contract, demand since long-term backlog. in is generate we of years value our multiple of that fraction only for units, Again, ultimate a thousands and will which is span

portfolio we our experiencing for technology. steady cockpit air are commercial the and transport XX demand market, of In Boeing XXX

As believe in remaining of CRT support the due service. we I displays for the impart mentioned last quarter, to setting sun

shelf, that these flying of for the therefore international operators these to continue distribution rely making are more the to of channels support off to on we that of Many be our typically them and owners the aircraft and domestic Many close tend are upgrades smaller MRO products channels. profitable. sales

our to military data engineering the The Navy production air being orders been The to develop continues forward awarded new anticipate computer Navy new us completed. new received. retrofit program has We contract F-X KC-XX will fleet the be a to U.S. production market, computer. order F-X data as with are a

the fourth in XXth, best highest backlog years, the quarter our we had two and at in orders in September years. year-end were three New

as equipment steady also continues it equipment more field and seen maintain a grow. to the revenue, that maintenance need flow support and to follows continues have in to company the repair that of ship We they

for the closing me Jeff, some turn Let back to remarks. call

Geoffrey Hedrick

Thank virtually as you, an entirely new of Shahram. XXXX year a Fiscal creating year financial progress, strong as well performance, encouraging market. a was

and we market. to a a a As previously maturing auto-throttle approach very -- we taking discussed, measured approach are in deliberate

is same the in technology cash new to mitigation we're that a market. has to to this for sure leveraging time generate event the our committed a currently profits the opportunity emerging and technologies existing At success. make awarded really evolution for provide certification greatest pivotal we VMCA new time our of The need and

market believe over invest this will cultivate We continue needed resources as and to investment be to the rewarded. time,

the to I'll over turn operator.

Operator

Thank question you. Our David Davis & comes from [Operator Instructions] Thompson, of first Company. Campbell

David Campbell

a substantially Thanks morning projected profitable And quarter. again. having beginning for production Good take PC-XX such at I you're good increase for the to year. everybody. be next

of in that backlog any that $X the of Now million. is

Geoffrey Hedrick

none. Virtually

David Campbell

none. Virtually

is So, though some other KC-XX the backlog for for applications? the and contracts military

Geoffrey Hedrick

Right.

calendar the has remarkably from We have fiscal we're offset long time -- been But the in a probably our remember there's we've PC-XX in seen not program of [indiscernible] PC-XX year. there. is year lot a is long time. most and successful to have stream done it. fortunate on a a program continuous ongoing a planned and an and to be The a job. for support KC-XX we And much continue revenue pretty great

David Campbell

however from Great. it FAA, did you The from you have is in received the revenues the approval right? -- add quarter auto-throttle but that

Geoffrey Hedrick

STCs but of the and a number for an being engine sadly most about most up a recently, one received business event. significant This is out, catastrophic multiengine important which mitigating the ends aircraft. We've

part. that has best we optimistic are coming year. that because and will it So, And production the calendar approved go works probably is into this the FAA

David Campbell

manufacturers? what you're that principally original equipment Is with negotiating

Geoffrey Hedrick

Yes. which We’ve of markets has end sadly OEMs is in of a application any had, applicable a been it. you cause military can to control also that engine that there condition typically. an It well. the doesn't well of in a could expressed to commercial as have as It loss interest multiengine aircraft, expect have and single number out

It has So works thorough really it's approved it showed they FAA judgment and anyway, that's and -- for. and investigated. there very the good what and

requires this said they and is certification is technology new great deal before it a As approved. of review

David Campbell

be manufacturers business should of And for aircraft? primarily this

Geoffrey Hedrick

What down mean to there maintain makes too military as to or thrust difficult is slows as lift a transport. rolls to the an Any airplane. on what extremely our to system allow and It broad throttle is airplane. -- anticipates little aircraft, from. applicable does its when when airplane folding. it’s condition the happens an was it's I to And the air of of over back or number the much aircraft does engine No flight out crew modifications control it it that well recover

David Campbell

And the Right? of is none this in backlog.

Geoffrey Hedrick

I road. the But None doesn’t take by can of it's orders can a attest we the work, the We you. it's a tell in It's we've long I it backlog. certification. to been way. lot. when tested And have until don't it exciting that

David Campbell

This that not does right? equipment, not -- -- is this the use is not PC-XX is

Geoffrey Hedrick

The right that own PC-XX, similarly. focused now And PC-XX a does airplane. has its Turboprop that's something aircraft. on turbofan we're system mitigation

David Campbell

Okay.

Geoffrey Hedrick

because It the thing, same the technology. on mitigation -- we doesn't do have patents this but patents on some pending

David Campbell

right. Right,

this fiscal for from So, is know be. that far point XXXX at up XXXX, as revenues you is this what they're to program of the right? really if out But concerned don't as are going successful

Geoffrey Hedrick

on little Depends revenue technology. is true. it production. the know because and out future, That's in truth guess all significant a how into we're there timing opportunity again optimistic, well, profit I the swings new is, the But fast it's exact is we uncertain a

David Campbell

-- are you take can't not And the Right. from business competition you?

Geoffrey Hedrick

is I taken else doing years get have to a say. tell never and I it that certified patents nobody two can us number patents we’re only never pending. that. there's and It's we of what you doing. say I

that So that can run off make fevers work I we it do job, other if than say our to only we'll like happen. and our butts

if have we opportunity. wonderful do So, a them, we

David Campbell

the and All Jeff Rell. I appreciate you and right. Well help. very thank much Shahram

Geoffrey Hedrick

All right, you. thank

Operator

comes Marema Our of question Pareto George Venture. next from

George Marema

gentlemen. Thank go-to-market understand the had the you, questions regarding Hi, the of to auto-throttle. cadence this. trying good some I morning. on I'm better

one it ready ready we now? more today do need for or it is is So to or sale clearance go

Geoffrey Hedrick

for is It sale ready very today.

a We in the installations. should which couple be have improvements, developed production included believe we of

it's install yes But sell we so. improvements, within go we implemented ready which we a and the it. and can expect and So answer a today of Yes, it have will couple month is no. or to

track, on it's accurate So the I guess, more is explanation.

George Marema

on and it of MROs what's go how stuff the of for to or me trying aftermarkets you the talk to -- in lot market through to And going OEM then walk on the Is Is mostly go-to-market strategy? I cadence the a this XXXX, cadence of OEMs. the hear are more you're the your on it?

Geoffrey Hedrick

expanding manufacturers, have And an production States. very was expressed existing United actually [ph] aircraft. production to Europe market that. equipment market look for sustained you where in strong we're and to intended the bigger designed Well, that retrofit years enormous application, talking them have it their manufacturers next and And the there's is that like. would had in We've once look equipment But about implementing OEM much for than XX even continues interest. them in unit we're in - and

when we certified it, it after we been the So do go as installers. we've pursuing and aftermarket through FPOs

there of where systems. the And in for the It's loss cases And on military very military the have auto-throttle typically be depending aircraft previous of has half the MROs, competitive a effective. feature cost is It's aircraft systems this you some or third cost through control added installers. mitigation. may it kind of

George Marema

MROs for have XXXX? So placing have yet that orders started this for

Geoffrey Hedrick

It certified. became days had They we four haven't haven't, it ago. because literally certified

that we knew any in So it and they gets that -- VMCA STC until were the can't knew auto-throttle, airplane. an sell install we but we we on -- mitigation the could working

-- new it's the quickly it’s markets been so done be before. something And never will

have So don't historical we any reference.

George Marema

Okay.

given I activity. up of So would lot and pent on the recent the a expect crashes demand

Geoffrey Hedrick

it The I matures believe. see an get, almost really about we become. and delighted the big older our I opportunities and until prudent do work But to if it. and we more hard I job need humbling. It's I'm initially as think excited just

George Marema

you. thank Okay,

Geoffrey Hedrick

you. Thank

Operator

Our next Clemens Van question comes Co. from Charlie of & Pine

Charlie Pine

see is Hi. And good pay off year. hard on on and great wonderful congratulations delighted starting to first And The of congratulations morning, everyone. a to it. a all, turnaround work quarter.

Geoffrey Hedrick

rewarding a job. it's great and the can Thank team as and been done you imagine for But have Shahram you very that.

So innovative show to we're been new able able technology, been develop business. We've while reasonable the really produce some we've profit to in and delighted. some growth

guess. pleased, we need to we're So keep I up, it

Charlie Pine

it hopefully rewarding in years. the next of Well, be even will couple more

Geoffrey Hedrick

We hope so.

Charlie Pine

-- developments more a little and recent to I bit couple a with scratch the the have on Okay. want questions this surface auto-throttle. of the I on

understood answer December engine guess your is on you that from Xth, to correct? out previous So I just got the certification that I the question

Geoffrey Hedrick

Monday.

Charlie Pine

Monday.

Okay.

Geoffrey Hedrick

trends [ph], long between a trust me. been time It’s

Charlie Pine

has for Okay. been. Yes, you it release press anticipate out separate that? putting a Do

Geoffrey Hedrick

of We for do will respect release have first will. because timing, we the be the approved. which great we we SEC we Obviously, because thought and

Charlie Pine

totally I understand. Okay,

actually little into thing few The a have said there's Air. to the other aircraft King that bit a really going little confused I'm and like point I start it you guess get talks to you're that be this done about, to miffs where the putting to

in actually and of like to revenue So, It happen do sound first installs? it's the June this to do it actually see to Geoff, to when January some quarter? the But think March we'll to believe that start the you be doesn't start to going do pushed really some you'll some the recognize is you into in going or get quarter. back current of quarter

Geoffrey Hedrick

quarter. Well this anything, the we not but… do Because to don’t for sure have time

Charlie Pine

get I that. Yeah,

Geoffrey Hedrick

would that of to start second quarter calendar next first and in or to initialization We year, the the expect market start quarter.

Shahram Askarpour

[indiscernible] because start mean… to Going there slow, the installation. in I

Charlie Pine

I'm Shahram, I can hear say you again, please. didn’t that that can sorry say you it,

Geoffrey Hedrick

I And the that to in all have that delivered lead-time. the explaining schedule you on yet months. you was of three to is to [indiscernible] get to unless the time aircraft six have typically with equipment installer that have

accepted So those per delays are market built se equipment. of into the the

Charlie Pine

Okay.

few begin So with than to we though ramp over idea will factor installs that quarters see fairly the in should though slow XXXX. the a deliberate next we and

Geoffrey Hedrick

that is climate of I have you importantly momentum it. as believe generate this just behind those this And programs watch to Yes. it one will --

more exponential be it and And rather growth foresee than see you'll so it proceeds rapidly linear. test will the as more

Charlie Pine

was in guess getting are the with STC the uptake any you that that? the the you PC-XX about what I ThrustSense, got What installs

Geoffrey Hedrick

well. with starting we're that as Yes,

focus most looking our now let at have of well. areas multiengine. is number to airplanes -- both new you is know We're to look primarily because are So aircraft just right new a multiengine going

aircraft for probably protection, you over temperature check make offers engine engine you're an okay. sure important to just both it the about $XXX,XXX as talking But which is it's

really so things they obvious quantified, advantages. like pay off that So can be safety precisely and performance

Charlie Pine

Alright.

Finally, with to what for, aircraft my I'd that? last get clarified, you computer memory what's you thing the that the what was can contract the navy -- against like the refresh have particular

Geoffrey Hedrick

F-X.

Charlie Pine

Yes, you F-X. say the

Geoffrey Hedrick

correct. That's

Charlie Pine

data been correctly, correctly? Okay. has development And air that that at if heard that I that -- Is this you hear did computer you I said point. completed

Shahram Askarpour

speakers] so. tests that [multiple correct, flight That’s

Geoffrey Hedrick

for retrofit waiting ahead waiting start now do so a We've may We're and go as know that the it. we to We're it's lot to you a program. not more for made prepared know. of

computers various We X,XXX over of have years. the probably types made

something it’s the and So program. probably it’s reasons the new, won but of -- we one

Charlie Pine

I see when that for well of get to that's orders. great. expecting a such? you indicated think be What reasonable that you're you What timeframe production about would receipt

Geoffrey Hedrick

I And want and a up that get to I before, seeing thesis early take we said speculate. et trained, we influx installers of production to stretch next we there lined many it. of I it we get started, that got it's As year out. limit are start Remember how would have don't times the lead can orders. a cetera of but lot hope mean so all would

and we commented build Shahram slowly from started there. As

Charlie Pine

to very once results pleased what's to for couple providing again, sure And, this Well see listening. looking over going this the Okay. that other you are to for occurring we're I'm to really years. be additional year forward color me and and the of much next to people thank

off somebody get take. will let I else So and

Geoffrey Hedrick

to that glad your now and Thank I color. interest here correct? I’m you know provide for I'm Am I

Charlie Pine

colorful now. get too Don't

Geoffrey Hedrick

will ahead. I Go be do always colorful.

Operator

Goldman a Our next Erwin [ph], Private question Investor. comes from

Unidentified Analyst

me? I'm guy, morning. old the remember Good you

Geoffrey Hedrick

yes. Yes,

keep I moving [indiscernible], -- doing you understand. You keep

Unidentified Analyst

the out hospital Actually I and rehab. a am I'm in of just

Geoffrey Hedrick

sorry hope recovering and to well. I hear I am that, you're but

Unidentified Analyst

working about are Thank you. level. I've been curious the How and we always are employment hiring? many people

Geoffrey Hedrick

We're But I many hiring and people. won't you tell hiring. how we're

Unidentified Analyst

Okay.

quarters, we any think Auto The not not we I of got Thrust thing, expect correct? is answered, yet. do questions a And other have to sold number for that the

Geoffrey Hedrick

that's correct. not No,

sold auto-throttles have of PC-XX number the markets. a We to

Unidentified Analyst

good. very did, You

Geoffrey Hedrick

optimize has being important the throughput product time an an And we’re do that. The installers continue spending have the up installation, trying evolution, ends to been which limited because issue a to now capacity.

if we it takes the So in install and a put at we can can more higher obviously. to rate, time, reduce

its we function. to and Secondly, to find continue improvements enhancements

good the So, as already add we've we will the installation those FAA, problems. channel. the up guess, start I installed and And in field, results opening an approval But, we've well. then no latest additional very by gotten

number In improvement number true strong of in aircrafts aircraft addition we're some a aircraft a larger workload. what that of can aircraft, and new going to we is safety look and different provide, really much a aircraft, at

Unidentified Analyst

understand All the Pilatus notified right. My for next last increase is production extremely question for of quarters, is, I them, to successful? as couple aircraft you the

Geoffrey Hedrick

always Pilatus a It a yes. PC-XX, job. On airplane, struck has it’s wonderful done great

we As bought XXXX. PC-XX you in a know,

extremely been the the a with wonderful I've So PC-XX and aircraft support. airplane. happy is

Unidentified Analyst

Okay.

Geoffrey Hedrick

in production which year-over-year, And they’ve announced by is towards increase XX% their pretty remarkable.

Unidentified Analyst

extremely All you you right. hope guys thank you. I to very of a giving okay? such next… exuberant, And doing for job thank future want I us congratulate I So Geoff, a much. such and wonderful

Geoffrey Hedrick

glad [Indiscernible] you're make thank out. you're phone I sure the to yourself. to all right? next on want you. call, I'm So hear

Unidentified Analyst

I the All hope Meeting. right. Annual you. thank to see next you I at

Geoffrey Hedrick

forward one. will Look to That be great.

Unidentified Analyst

Thank you.

Geoffrey Hedrick

Bye-bye.

Operator

[Operator Instructions].

Michael from [ph], Private Investor. comes a question Fredrik next Our

Unidentified Analyst

question has about units. of contribution that area appear over of going we or a They to the just display for can had last forward? I XX the gentlemen. been the far? years year And a company's driver of How from the driver much panel flat the morning, that so. the Good sales growth main main so be expect

Shahram Askarpour

was of also driver big growth year. a last PC-XX

We transport the panels this near least. the that side expect the at for from flat future air revenues of level would at stay that the

Unidentified Analyst

any over? been requires for be to is installing it this once installation? turned every does upgrade that Or the this Is something often you've a life I How just business quite of software know mean, repeat a is in installation? these while. it on there Okay. what a And while? I need

Shahram Askarpour

an airplane remarkable were at the and many installed That's we looked for get airline American example. we've -- without And actually seen, hours failures, Once failures. things one getting remarkable. once in any which XXX,XXX it is meantime the going fleet, of over gets we between of they years

OEM And repeat so displays. industry. air buying by business in transport and our the ours competitors those to is very one despite name referenced just they is for in of the they tend system this and we And other We've provide long airplane. coming people of a the and good why have because solution our the to our get buy same retrofit history. But people quality

Geoffrey Hedrick

And our focus towards transport, minimizing the cost and take time to example. commercial a install an equipment, if air you as

to Our three a are it of in XX matter system much And of sits or four as the day. basic competitive an of $XX,XXX on $XX,XXX delay an loses all of systems somewhere days. the order equipment. becomes depending an aircraft more cost as impact installs on than when the from airplane revenue the days, virtually magnitude ground, the The of installation a

Unidentified Analyst

them of idea ThrustSense you the installers talk valuable in gen. once of something And pretty once play world the I can leaving world is than how go -- you still now, be, this busy little if one bit this the of mandates would a much more and most that give of general the just FAA of installations behind? into any like we're for next year. sort an But great. to question Okay, that right quick are think well, with

Geoffrey Hedrick

[ph] through potentially. same play enables ADSP ability the in the service performance. the base of is put position, do aircraft is required its trying controlled increasing very navigational The next keep very for That goes aircraft We more with well is in them to aircraft to becoming to timing flight number it or defined. provide our and huge what of have aircraft very, able demand the ThrustSense That been over an to gen as airspace. and carefully a

of is military And in been and in systems the cases the and XX necessity performance for proven was It's in we aircraft. the It first years system auto-throttle ago proven compute. management invaluable. in flight did commercial those many

gen. [indiscernible] that put demand that demand I additional believe will anyway, have will -- an next on So in ThrustSense. it

Unidentified Analyst

that great. an cost will purchase And you certified the is quick make that newly that much STC. auto auto with in material package? of other question, overall a additional purchase just will the let that Great, I'll part the And thrusters as one will goes more go. thrust? words, In -- be How change the of existing of an the

Shahram Askarpour

new saying your STC the for increase cost understand I is to installations. going the If of that VMCA, question, the you’re

Unidentified Analyst

Not actual the cost of the but installation, purchase? cost the of

Shahram Askarpour

yes, So, to had that that option. an we I believe mean, potentially take going strategy we a But option. is not pricing everybody as that to offer

Unidentified Analyst

Okay.

Geoffrey Hedrick

It's it's not it have. right Texas thing you -- there've twins piston even and need And neighborhood. [ph] is a even places applicable cost nice like increase, when Hawaii. huge obviously to but a actions, this very to Sadly in like recently been most they went down in our

you that engine, you if what engine with it well that single within end out up you to have is keep but the risk, up. a understood exactly speed cause don't know was, You the an

the don't speed can You up. badly. keep end It

Unidentified Analyst

that like have of that's one what -- Texas least sounded The what anyway. happened could've Yes. certainly been at because or

luck. right your good and gentlemen. you So for time all Thank

Geoffrey Hedrick

for you interest end the Thank guess, your of it. I Thanks welcome. today. attending. I appreciate everybody's that's You're interest. for

Operator

earnings the and This concludes Support question-and-answer quarter Innovative presentation. thank concludes the Solutions session call. for attending & fourth XXXX you today's We

may disconnect. You now

Innovative Solutions and Support (ISSC) 12 Dec 192019 Q4 Earnings call transcript