ISSC - Earnings call transcript Q2 2020 | Innovative Solutions and Support, Inc.

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Operator

Good day and welcome to Innovative Solutions and Support Second Quarter 2020 Earnings Conference Call and Webcast. 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 now like to turn the call over to Geoffrey Hedrick, Chairman and Chief Executive Officer. sir. ahead go Please

Geoffrey Hedrick

our is to Welcome the discuss year conditions, of This coming our second morning conference fiscal and business current call our XXXX, for Geoff morning. the this year. Hedrick. to quarter outlook Good performance for

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

like to the begin, Harbor Safe I Before Rell message. I would read Thanks.

Relland Winand

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

Geoff. the I'll back to Now, call turn

Geoffrey Hedrick

reshaping many coronavirus of the our of way is and the lives live we dedicated The pandemic work employees IS&S. including

As the our as country. safely throughout open as obligations and the such keep safety our have as to that military, who markets meet the crucial our needed to managed to are nation's essential, in cargo increasingly deemed getting which are vital air role operations includes security that to playing business well carriers, are the customers, we as an medical supplies

the health our as to our of actions recognize we and immediate impact early well-being took aggressive challenges and the the to remedial And protect employees, to minimize and on. well our our steps our as partners, customers, business. families, We

complied have the IS&S been work, have personal come new heroes. team rewarding. safety these members of of results and The the All my to procedures efforts with have XXX%

strong the has by business months resulted The generated nearly which seven period cost increased the in revenue flow $XX in million of the of have last were in growth years. new and backlog highest These quarters fluctuations quarter strongest impacted in growth. one past generated a We quarter. sequential cash in has the we revenue sixth and quarter-over-quarter three to margins

to subsequent them rebound expect We prior levels quarters. the in

-- will our Autothrottle OEM general in OEI Autothrottle and would second of We represent major to aviation deliver years we production contract OEM a OEM has major the deliver which of quarter, market. in protection the FAA will the production six this been Certification culminating development, The adoption into upset the production. with quantities

production and market of an inserts aviation terms The and excellent opportunity both us in provides an excellent, and general OEM believe Autothrottle, further retrofits. a market we into

a where market, In revolutionary aircraft ThrustSense Autothrottle and of a life specifically, military especially competitive charter the multi-engine is this operators, upset unique a aircraft, patented source is compelling in saving, VMCa Autothrottle differentiator protection. that travel,

years the a would aircraft more was about that critical that XX XX comment refer always fatalities I they that engine. or fact single of Currently, made the sense. used multi-engine having Never than to pilot as I to

person an proud every of lives. although -- We we've doing IS&S we four you I'm people one that we doing well a engineer, we're today now done -- today, lose FAA will save what four why, what here were by very told that. that -- here and days, what understand is

meet panel are healthcare from converting Interest industry they display air especially expand needs, the growing remains our have light aircraft, to in current the of into cargo for the been strong in flat industry, to which the installing shipping technology, pandemic. operators capacity

have appear those as many second well affected to safeguard results have end as our been impacted suggest today, operators are by that employees not Certainly our there our our others. not today us around significantly efforts and to quarter markets

an with any added interested pandemic risk. impact one recognize it's might this the future can how but are quarters. investors No in understand and say we we But future certainty,

connectors. for Our seen as supply some have of our -- disruptions minor we certain though significant such chain, supply have supply in experienced chain not disruptions, we

FAA We process. could FAA slow are shelter-in-place the still under on officially order starting can trials is approval other potentially before dependent a the we officially which -- and the start

some new being to those onset, And meetings to Also, our to are new important the business is rescheduled and we the due we're working on are hard receiving orders. mentioned satisfy demonstrations meet pandemic. the thing and that obligations orders

by In COVID-XX growing and in the help the during Program are CARES period. Protection demand this are result -- Federal the uncertainty fact, the hiring to as meet to adequate pandemics, to originally actively Paycheck we liquidity a of under Act. participate we We decided created

our been has the creates and since the for that requirements SBA further by loan. certain Treasury of regarding guidance of However, uncertainty PPP time issued loan the qualification application, our Department additional

greater Out loan. of funds. is the that the the will caution, of guidance, light to it the have PPP This in of need that that repay for a abundance we new prudent resource companies for concluded have other free-up

as has future. that over the the are half year can The trajectory year rest we upward as well of the an of well into gone continue we first optimistic and the

Let boring Rell details. turn financial it over me to for really some

Relland Winand

engineering million, and you development product this service the increased second quarter for There the over a XX% all Thank joining $X.X million revenue, for thank demand, -- quarter. morning. quarter with of as associated XXXX us quarter in contract. fiscal first were of increase as Geoff be Revenues you, to continues for customer $X.X the reflecting which over revenue increased well XXXX was FX

and margins in were to we as We to return production an down quarter expect fully XX.X%. achieved warranty margins product ahead for these demands. as as last recently costs quarter the well levels from up of ago expense future normalize. year stamp That as labor a mix, Gross to higher expenses is increase due

from ago, change the normalized fiscal were year and the experiencing. are for a expenses operating remain down despite Total that first second stable of revenue quarter the growth XXXX we little relatively $X.X from so million, expenses quarter

funded expense as is from up goods ago contrast in amount in slightly was expense R&D development of increase is a an funded charged R&D reflecting and the across which year sold. incurred which is Research internally the

has funded significantly the R&D With development the wind been down of contract, reduced. FX

administrative work hard and unchanged, control. Selling, keep to expenses general cost under were as essentially we

and income signed taxable a preceding loss. an which year provision, the to two line to the the The Interest of economic each $XX,XXX Act Coronavirus operating in rates. is tax CARES law. benefit added losses allowing to due loss Act the has carry $XXX,XXX into this the A less quarter, decrease mostly Due from Act Securities which little backs amends back last resulted recognize CARES been interest other the to the of loss quarter. back quarter, than we net carry in aid loss carry the released for the taxable years or bottom

$X.XX share more first per year than quarterly net doubled in $X.XX ago quarter well quarter. sequential as or a reported $XXX,XXX same income the the We $XXX,XXX or per improvement as share of from

year, half first income than the twice that XXXX. half the of first So net more the of fiscal is of

strong future. to The positive and that company operating fund March remains from debt. quarter. the operations financial a $XXX,XXX foreseeable sufficient flow believe the cash activities We company hand had of At no the and of generated has cash XX, in cash $XX.X we on in for million XXXX,

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

Shahram Askarpour

first important, certainly morning, everyone. and It challenging Thank you, good and exciting has months. six Rell,

explained, over director. open shelter Pennsylvania's we the in course Geoff place of As as and remained an essential have business,

employees. was of priority the health first safety Our our and

a swiftly to maximizing plan workforce. So Federal the we met and State acted productivity and our that guidelines, beyond enact went of while

week but Additionally, with shift, shifts, production off, one crews on, week April, each during paid into were one weeks. month both split of the two different for

the believe significantly Although, as taken, short quarter results impacted. a not this term was productivity of we will overall reduced measures of result be

We requirements. up meet are are now we increasing production delivery our fact, currently in deadlines, meeting to the hiring staff to and

in Jeff, start this expect the of is technology units over from shifting Autothrottle from an we a encouraging heard to general aviation industry. As overthrow our order. This endorsement production again, leader

in the seems aircraft. mitigation technology this mentioned to ability incorporating our want And capitalize to past, to into OEMs it by have advantage the competitive we As engine a incorporate the Autothrottle the production advantage new provides aircraft. tangible twin on VMCa in

prospective of selling Autothrottle. lifesaving protection technology it point mitigation a offers as It offers twin for buyers our And great VMCa is part to standard engine aircraft. rollover potentially a

anticipating shipments. ramp up, a throughout while year be orders We a big a production it not beginning and fact believe It an orders is Autothrottle shaping have potential. of influx the of in we up of may been significant be to

quarter program are of Pilatus is Once two quickly those approximately PC-XX a deliveries again, reviewing year. for the driving results. remains current appeal The deliver of on to our only There's which enhanced. aircraft backlog, in carried this program's, track XX

revenue You our believe potential. backlog can our why understand understates greatly future we

which market, portfolio tracksuit XXX demand In is Boeing technology, into transport primarily aircraft from we experiencing traditional and the air commercial claims. steady the cargo for market, of cockpit converting cargo are XXX

under production we U.S. In were for militaries market. This a computer contract the has but we the the FX military into been retrofit hoping FX is data flying Navy to development. foreign fleet with many market, sales expand the the the global awarded recently that

remains almost are us at program KC-XX an million, production the on quarter new The roughly also $X.X track. Our in quarter orders end. second backlog $X giving million

pandemic feeling is are and demos later. areas to Coronavirus meetings out of are the getting Throughout pushed where the in that the prospect effect we July and

work contracts, customer In committed total revenue and also the demand and to were only a contribution of book contract experience in our from long of backlog. a term service, you backlog people continue for from generated addition shift steady recorded from the to intercooler is fraction

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

Geoffrey Hedrick

with the you, achieved over prior Well, current positioned as confident Thank difficult We're has particularly degree term. progress forecast real longer it make prosper conditions to well certainty. future of sales we've the that to today Shahram. a

turn operator now. want lines it for questions-and-answers the for I Thank over to you.

you. Thank

session. question-and-answer the Instructions] begin now will We [Operator

question Davis Please the & will Company. with Campbell ahead. And first from Thompson go David come

David Campbell

good morning, Hey, everybody.

Geoffrey Hedrick

How you morning. Good doing?

David Campbell

for good you Thank news. the all

Geoffrey Hedrick

We're time. a happy time. you. good an It's to been It's to give interesting

David Campbell

Yes. It surely is.

Geoffrey Hedrick

I a sent in commercial to just downturn massive is with air hard somebody XX% down transport, to guess, We Wichita. out believe. Especially

on I there said, only think airplane. XX about were people he the

the in the in and and ventilating on ankles breather. woman that was wrist -- was taped plastic whether with wrapped flights, of there one for her a said, he Although, completely

David Campbell

She want to take chances. didn't any

Geoffrey Hedrick

But don't have to with and charter distributed boarding enough had about people control business as the a of as ticket. back them eight you charters to number is a we eight our Beach, Palm one, people the when could going citation the you. jets, hell you the what And airplane interest from some bring XXX was two, up. it passenger number same example, in in friends was class show the down price first passengers, speaks with of an where and are to there's interestingly on be And that more in flying lot among

of sort foot even So market. the that it's actually we We're door. in that delighted in interesting our strengthening a we've that may see established

way, Just revenue to the be ongoing David, next and -- our if what year, some the by revenue of be will the ongoing equal equal call look year total just looking, that'll type some three production production programs, programs, OEM last at we to last revenue I those at I did be year, programs. in will the programs street their three end

it's on looks problem. -- -- it's successful on spectacularly The we're a It is problem promising. So very

David Campbell

to will Yes. wanted a taxes. the CARES just though, tax back I benefit provided us know only that. about The the question Well, of second tax that's quarter Thanks normal the rate? third Act go for in fiscal sort technical to quarter. quarter the some I comments. the the ask

Relland Winand

the Act the in and Right. haven't well. quarters, the had going we past tax forward have expense. I mean, Cares any is yes, really done of We effect

that I don't expense. So expect

Geoffrey Hedrick

The truth period quarter, in this past quarter this periodic attended mitigate the fluctuations is costs. David, to

but level we coming out upturn of this margin. kind be in and expect goes there, quarter, they what both So it volume will

for against So all a works rather balance will us It with it us. out change. than

David Campbell

charges pre-tax and the fourth any there So quarters, in shouldn't assuming there's income taxes? be third for

Geoffrey Hedrick

Yes. Yes.

David Campbell

because be for what Well, the these flat probably And using rest planes the cargo. some passenger The panels time. Okay, growth passenger stay about that's the they'll cargo likely business? of to down conversion market the in great. for continue will market

Geoffrey Hedrick

David. observation, you and of The anybody got might myself five because an isn't Europe very a apprehensive That's carrier, have I sevens which six or I it, and of you airplanes, don't expect there mean, specifically very, think whole included airline to or a traveling. several markets for to carry don't -- years, hell reality, So accurate good. a and sevens, very need now because about be people, no going large to you're

going redundant, down it's carriers. to the to so So is obvious thing be you those package that areas convert

you more is rely other the even or heavily and up to ordering, use can on XX far just online alike. that expect getting The I has it. or learned area, in last people Amazon thing the I’m to people understand certainly in and we've this And are three it. four getting about in see that that months I that use I last, XX% gone by deliveries

nice. Very

they can and -- fleet service. to committed over XX to was of at Amazon presently the to committed more a are we several they’re So it’s they’re essentially operation. I mean, look aggressive from they be very would six cargo take Amazon more to And all expect sevens, them converted reasonable could a which think on their they’re probably aircraft, and up that I own now, airplanes, action that in the but of obviously, that lot charter, and build and hundred five be sevens --

David Campbell

technology… sevens that sevens and these all old have me to It's amazing six five

Geoffrey Hedrick

defensive airplane. very airplanes five in sevens, news. were there airplanes same really of and are the a that was -- the That sevens sevens substantially good six at sevens five were it six production the the were sevens five time, sort digital advanced. the time, a analog three other was sevens, Well, Literally, at they were

cargo. and schedule a box and transitionary space of of a moving that's of they’re a very a so The has lot a were they way they’ve airplane and got So lot efficient seven move to life six packages. -- lot of

David Campbell

and Right. much, Thank you very good…

Geoffrey Hedrick

car want hour. was I’ll you drive deliveries the to a and that. now, in want I you morning, you mean, tell something store, Why do I when look well start would to say, to your mask. at and this deliver it -- you wearing I an can't they looking

carried I'm So away. get to sorry anyway,

You go ahead.

David Campbell

No. building for I'm to thanks job, for thanks just the And And I'll the soon. saying good comments. such talk doing Thank business. you a you.

Geoffrey Hedrick

your ahead. Thank for Go you support.

Operator

come go Frederick, Our investor. [Operator next Please question from Instructions] will Michael ahead.

Unidentified Analyst

morning, everyone. Good

Geoffrey Hedrick

morning. Good

Unidentified Analyst

the a call. I question, from Good morning. a Hey. have last question follow-up

way the on able You new Or maybe back? haven't that quarter? been next to pushed partner is Is yet. still OEM for announce the that been schedule

Geoffrey Hedrick

The I is simple answer don't know.

Unidentified Analyst

Okay.

Relland Winand

to Up the…

Geoffrey Hedrick

right. divulge it I that that's in any to I to certain say. a nothing things. have affect agreements be you. blunt under business But mean, obligations with doesn't we us little our dramatic allow is really about would And And there's it don't odd, very way. you're It all. And

Unidentified Analyst

be And you… honest I’ll Yeah. with

Geoffrey Hedrick

we’ll Hopefully, understand that it is to senses, odd. see. And don't come their

Unidentified Analyst

out but is, it's hard And to not be honest I'll you; Yes. with really figure it who anyway.

Geoffrey Hedrick

But I…

Unidentified Analyst

any more. question Yes. I had I anyhow, won't you. say another for But

about? had three the programs. you that just tanker OEM new that two OEM? PC-XX, the said the You Is and Are Or we OEMs… talking

Geoffrey Hedrick

it is. That's what Yes. Yes. exactly

Unidentified Analyst

Okay.

Geoffrey Hedrick

they're and to solid No, rate. success that's been accommodate has a spectacular as manufacturing it And they an tankers exactly much adapting keep what their is. we're the airplane, programs. the our PC-XX the raising brakes, double as Obviously, as all solid,

feature significant that the their real cooperation for we world, is OEM So that talk in the to their third we're for quite stronger. that frankly, with And aircraft is will be safety lifesaver, this them the so. and pleased a unique don't realization a and the be and we about more support couldn't aircraft

Unidentified Analyst

fantastic. That's fantastic. That's

Geoffrey Hedrick

pointers. nice business. prospect the -- It’s And got we've I of of good a think lot

Unidentified Analyst

Great. Great.

-- you last just had said exceed, end you year the you three year's by quick, that OEM next thought So that say, the programs that of you would revenues? real

Geoffrey Hedrick

right. That's

Unidentified Analyst

Okay.

quarters The one quick we two and backlog, something are right. on one going delivered --- question. what So, and… one quick that's -- the the something next qualification what's Great, backlog to to more And that all that's yes, or in make assume be and the then then great. for to so

Geoffrey Hedrick

the see to are reflect their separately. XX OEM program would The put an make be Boeing give obviously standard. only of we thing at orders XX only purchase double next potential just backlog you the the remember think took larger. they they a the on kind you They��ll equipment orders backlog six-month did say example. -- of, those our as that period. airplane, six-month let's business only it next total a of years a agree so group years, and It's orders over really don’t I total ever may doesn't for basic period over the all purchase if six-month Any magnitude release the the standard, of interim that. will release the in

Unidentified Analyst

to essentially make order? But backlog, you saying need the it Okay. purchase you're a

Geoffrey Hedrick

a are Is yeah. defined schedule. with payback orders These sound right? that right, Its

Unidentified Analyst

And ballpark, I talking mean, that. how about much time we’re

Although, we months? many delivered over how

Geoffrey Hedrick

I can't answer that. I don't know.

Unidentified Analyst

All right.

Okay.

right. Well, All Okay. great report. guys,

Just great. it. Appreciate care. Take doing

Geoffrey Hedrick

support. your for Thanks

Operator

go with Ventures. question Marema will George Please next Our Pareto come from ahead.

George Marema

new morning, was orders, fantastic of versus new is out markets? good That how Autothrottle on guys. market in the was Hey, the much business new follow-up sense, today. general, Approximately this this for the OEM number how retrofit performing just a order of Autothrottle auto retrofit that. And To

Geoffrey Hedrick

the and lot -- getting a the been King Well, business so for really now starting to Air now. doing We're of blossom interest. is we've We well. as Autothrottle PC-XX doing we're

is the there's airplanes. you there's than market opportunities, just orders So X,XXX the at of of roughly that retrofit the And that's other working total now OEM To business. airplanes one dying looking where over built huge. airplane, they idea, in a magnitude some X,XXX opportunity we're probably we're so of over larger on gives

a being And airplane. lifesaver has and to control gone a this Autothrottle multi-engine cruise a from

sadly Addison, warehouse is scenario roll-on you're the we where the over on that saw generally aware the of into back news, not and Texas scenario. on uncommon terminal airplane As its an just enough, the

been that. Our system has certified to prevent

George Marema

Autothrottle? additional guys discussion this you with in OEMs Right. autosense Are on

Geoffrey Hedrick

Yes, we are.

George Marema

Okay.

that new correct? some the the from business, of orders, Autothrottle assuming on I'm So is that

Geoffrey Hedrick

is very all the this months. couple also no, happening it’s in last -- Look

it of I our of able hard. pretty premature, conditions, the -- think all well. about that's It's, and and refining things going we what keep under and understand our have is future. work the think, crap we'll to other could pandemic and down as been business we just trying So We're Hopefully, think light we maturing adverse to the kind on. keep pleased If to are means say it your relevance? In expand grow heads were just going. that toward I

George Marema

Okay.

in into couple half of you of and of year, into you to zone do the look longer..? you've the the back out margins product As in normal terms gross this last year stay or expect mix sort in years next you had do any see this

Relland Winand

the with things margin fixed go gross the and It are will Remember, around bunch while, million building returned to I over profit sensitive that, the them. I to that of in you $XX up. don't again, and year idea should associated we million that be need are that is There tax. expanded did do cash, therefore do Obviously expect $XX go costs XX% to gives been of net margins up. but that that don't and remember volume. like how an a after

George Marema

right. Okay, you. already. Thank All

Geoffrey Hedrick

Thank you.

Operator

Investor. [ph], Our will go from Goldman next come ahead. question Please Roger

Unidentified Analyst

I'm Thank Good you. morning. an And investor.

it rate got That's questions, interest course, on getting business? of guys investor banking environment? cash a good but do months of low results are was interesting brother something the You -- any dad, you are you died and I sheet report. long-term sister now cash. a in for and your investors got a you good a knew ago and and to balance there and of who the A there you and much very out a the a with a guys question my opportunities lot he in question, of and thank couple lot about my Are quick theoretical

Geoffrey Hedrick

that two government the keep had Well, loan when it alive. was at to a in reminded to industry that money looking It I'm about serendipitous, time felt the we're it Federal to that. seconds.

cash have would out they flow wouldn't so and business. go And of

that had and in reserved needed is business place. Our

any So I for. make will apologies

Unidentified Analyst

you wasn't to. I expecting No,

Geoffrey Hedrick

that. other company how equation. we're use into the has we look thing. ongoing The in one the to will will that And we going at now generate transitioned that cash and change a future position, Yes, best believe

that. will So, we would… at look I

Unidentified Analyst

mean-- I

Geoffrey Hedrick

get enjoyed I but me, XX, your he If of you to I jazz. The so a in him right, was my net saying company guys, and third remember going. I always got remember worth still I

Unidentified Analyst

January That's basically with he me Executor all died don't right. in sell and you I'm the basically stuff. peacefully me, that his But told dare marbles told

Geoffrey Hedrick

a is He good man.

Unidentified Analyst

Yes, thank you. Thank you.

Geoffrey Hedrick

How was he? old

Unidentified Analyst

his XX all with marbles.

Geoffrey Hedrick

and Jersey? marbles the came with all in from XX [indiscernible] his he

Unidentified Analyst

use way, correct. in That's thank wasn't there's how I the going of in family. Well, except By Anyway, runs be bargains cash specific asking so much. out the you to terms hopefully anything for lots the there. of you

in a King to companies this of values lot dropping cash as becomes and Asset are of having know be to going environment, you those--

Geoffrey Hedrick

are obviously we mindful. And

Unidentified Analyst

you asking disclose but not it. just to I'm wanted anything, comment to on

Geoffrey Hedrick

think we constantly. we're discussed Trust me, Roger, it okay. I

Unidentified Analyst

for Okay. That's enough good me.

Geoffrey Hedrick

with the money? doing you So are anyway… What

Unidentified Analyst

to Now, actually, North. forward and in okay. Well, chartering That's on. your winter we're I'm how about meeting you. Beach spot looking is in We're Palm comment the getting

Geoffrey Hedrick

it. a do sensible It's way to

Unidentified Analyst

Yes.

Geoffrey Hedrick

land [Indiscernible] International in Philadelphia and you have actually don't fact… in even to

Unidentified Analyst

right Well, Westchester. we're into going to fly

Geoffrey Hedrick

If places kind you Westchester are land that can you right the in like airplane, of and in with...

Unidentified Analyst

into Actually, Westchester. we're right going

Geoffrey Hedrick

You here? our plans know

Unidentified Analyst

Where?

Geoffrey Hedrick

York New or HPN Westchester, Westchester PA.

Unidentified Analyst

Okay. Well, I'll come visit you.

Geoffrey Hedrick

New or Where in you York Pennsylvania?

Unidentified Analyst

we're No, Palm Beach. in Massand Western in summer winter

Geoffrey Hedrick

Okay.

Unidentified Analyst

good life. Pretty

Geoffrey Hedrick

in grew good have Westchester Anyway, I Yes. day. up County. you a

Unidentified Analyst

Okay.

Geoffrey Hedrick

family. we're enjoy with your and doing you And work our

Unidentified Analyst

thank is Well, and Great. come. yet the you to best

Geoffrey Hedrick

you. Bet

Operator

from The come ahead. Blackwell. with will next go Rudd question Please Steve

Steve Rudd

Hi, guys.

I'm production hear very the quarter up the how you per this of correctly, that delivering I about into as have. call. well work if everybody's we units can talking things talked units, this on rent remember quantities Autothrottle many are about coming for are to organizing the We to as voice you And and and happy grateful $XX,XXX so units First, quarter?

Geoffrey Hedrick

of dozen. Couple

Steve Rudd

A couple dozen? of

Geoffrey Hedrick

Yes.

Steve Rudd

Okay.

be would significant revenue. a that then impact on So

Geoffrey Hedrick

so. hope I

Steve Rudd

than sounded and different That about… we what right. all are numbers had my Okay,

Geoffrey Hedrick

-- been To pleased we're be speak. in It's simulators couple that well. hold a they'll has the the built a people way. good within the themselves starting and partner committed of aircraft months. training and being be are even we program such They're as just I'm customer a is along even of for honestly, I'm great. our really exceedingly And terrific that

So well. along the moving program very is

Steve Rudd

Okay.

revenue more? could incremental the So or as much be million as $X

Geoffrey Hedrick

going that. not we're estimate We don't to really,

Steve Rudd

I math. was just my trusting

Geoffrey Hedrick

marbles a right of moving we now. lot best do The there's of a lot thing can

Steve Rudd

right. All

Geoffrey Hedrick

trying We're together. keep them to

Steve Rudd

Okay.

Geoffrey Hedrick

like opportunities the we'll we'd and think make try general to explain realizing those focused, opportunities. to work to we hard of best what is just out We're

Steve Rudd

our be so note run Okay. in incremental a $X.X higher this take a XX.X% I'm than I running to Fair those our going should this margins million than for on average higher sales, were than in. are up that of I gross we're of our that. sales, assuming that Autothrottle with bit base Autothrottle, It margins enough. that didn't incremental think -- they quarter, this that for higher given gross a quarter for XX.X margin be greater we're we

Geoffrey Hedrick

Honestly, when you get in gross margins in the XX%, XX% range.

want a But to you hell to them expect you grow don't times target, a had very fast. can over You a were we've of that the business and lot try a probably get you're more run not that going business if with XX%. as to

it's the you sort density last levels. of of those get disappears So into curve, the when -- it's

Steve Rudd

makes That Okay. sense.

Geoffrey Hedrick

The those maintain Heidi Fleiss. that of only can margins kind you is people

Steve Rudd

won't among who All in I'm and too more in right. a I won't Too way. not Me Too any take -- those Me go are much I movement for negative that

remarkable the about Care comment. talk let's So Act,

tax Let's the I the Act. because that the Care about talk get blew the of that we're benefits to past somehow me. on magnitude What going benefit is

Relland Winand

the Yes, carry just benefit for was was back. the biggest us

so, forward. only you losses was a carry year change the law go -- law you ago into carry you couldn't can we’ve As in signed or remember, back

exact to the do to whatever allowed was new carry So companies it is this March, late back losses. but March, date

I the was cash, years, I Now, mean, assumed for us point a two we're fiscal right? since

Steve Rudd

Correct.

Relland Winand

back the is company some that's another loss from way So of the company, so it. and funding can benefit cash carry get the file you we received some it. If

Now we just..

Steve Rudd

expect the amount What's that you're should refund, to back get right? talking dollar we as for

Relland Winand

$XXX,XXX about Is refund. Yes.

Steve Rudd

take to of good. in get prior income it years, take the very have accounting into restate do that? point view, gets, we an then with from or we that happens we to And Okay, that what

Relland Winand

benefit thing, in the see It’s our P&L. No, a in a tax no. QX, of $XXX,XXX you'll now so

Steve Rudd

Okay.

is for, So was we or the view, to the or that point include that presentation, it roughly that it'll that'll number that it talked the us number amount? as us, new two corrected. order point. press release, None it just about take I new Autothrottle of Very stated of give just dozen good. is in give from that order just does number a had The we that nice a what

Geoffrey Hedrick

It include. doesn't

Relland Winand

doesn't It it include

Steve Rudd

I'm It say sorry, again. does include. it

Relland Winand

doesn't Autothrottle. It include

Steve Rudd

Okay.

unit's the chatted we includes it So just about?

Relland Winand

Yes.

Steve Rudd

Okay. All of good right, of and off you all employees yourselves take care hats to terrific. your Listen, and you.

doing. saving of the you're we You're what appreciate lives and in really, really business

Geoffrey Hedrick

Thank you support. your for

Geoffrey Hedrick

guess attention that today. wraps for you Thank up. and I you for our your for company. you coming it Thank supporting thank

Operator

conference Thank you for now has The presentation. today's concluded. attending

You may now disconnect

Innovative Solutions and Support (ISSC) 14 May 202020 Q2 Earnings call transcript