Innovative Solutions & Support Inc. (NASDAQ:ISSC) Q3 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:00 am ET

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Innovative Solutions & Support Inc. (NASDAQ:ISSC) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Innovative Solutions and Support Third 2020 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Mr. Geoffrey Hedrick, Chairman and Chief Executive Officer. Please go ahead.

Executive
Geoffrey S. M. Hedrick

Good morning. This is Geoff Hedrick. Welcome to our conference call to discuss our performance for the third quarter of fiscal 2020, current business conditions, and our outlook for the coming year. Joining me is Shahram Askarpour, our President and Relland Winand, our CFO.

Before I begin, I would like Rell to read the safe harbor message. Rell?

Executive
Relland Winand

Thank you, Geoff, 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 are 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 Geoff.

Executive
Geoffrey S. M. Hedrick

Thank you, Rell. Three years ago, I announced that we would change our approach to the market by focusing only on products in which we had both the performance and technologically driven price advantage. The resulting trending of our operating performance seems to vindicate our change in direction. In the third quarter we experienced a historical strong growth quarter with revenues up 28% quarter-over-quarter and 30% from a year ago. We generated sequential revenue growth in seven of the last eight quarters.

In addition, revenues this quarter including production deliveries to our newest OEM customer Textron. We are pleased to be supplying Textron, our ThrustSense autothrottle with LifeGuard protection on the new King Air 360 twin turboprop production aircraft. We intend to build on this relationship in our joint pursuit of retrofit and upgrade of the very large fleet of King Air's, expanding the number of production aircraft to include a ThrustSense autothrottle as standard equipment and upgrade existing fleets.

The Company has the industry's first FAA Supplemental Type Certificate for its groundbreaking and patented ThrustSense autothrottle system with LifeGuard protection on 10 years 200s and 300s with Rockwell's ProLine 21 avionics. The full regime autothrottle ThrustSense system with LifeGuard VMCa protection is available for immediate retrofit and promoted at Textron service centers, as well as all King Air maintenance facilities. This LifeGuard feature can offer protection against catastrophic upsets with the loss of an engine if the pilot fails to maintain adequate air speed.

Excuse me for a second. In the process, we have overcome and continued to overcome many challenges, most notably the coronavirus pandemic. We remain focused in protecting our employees, partners and customers and remain ever vigilant as it is -- as to its potential effect on our end markets, supply chain and other aspects of our business. To this date, the impact has been immaterial. I am extremely proud of our team and their ability