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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950116-04-003472.txt : 20041118
<SEC-HEADER>0000950116-04-003472.hdr.sgml : 20041118
<ACCEPTANCE-DATETIME>20041117183951
ACCESSION NUMBER:		0000950116-04-003472
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20041117
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20041118
DATE AS OF CHANGE:		20041117

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INNOVATIVE SOLUTIONS & SUPPORT INC
		CENTRAL INDEX KEY:			0000836690
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				232507402
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31157
		FILM NUMBER:		041153351

	BUSINESS ADDRESS:	
		STREET 1:		420 LAPP RD
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6108899898

	MAIL ADDRESS:	
		STREET 1:		420 LAPP ROAD
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>eightk.txt
<DESCRIPTION>8-K
<TEXT>
<PAGE>

================================================================================
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE

                         SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 17, 2004


                     INNOVATIVE SOLUTIONS AND SUPPORT, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        PENNSYLVANIA                  0-31157                  23-2507402
- ----------------------------      ----------------         ------------------
(State or other jurisdiction      (Commission File          (I.R.S. Employer
      of Incorporation)               Number)              Identification No.)



                                  ------------


                             720 PENNSYLVANIA DRIVE
                              EXTON, PENNSYLVANIA         19341
                --------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (610) 646-9800
               --------------------------------------------------
              (Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))


================================================================================

<PAGE>


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

         On November 17, 2004, Innovative Solutions & Support, Inc. issued a
press release announcing its financial results for its fourth quarter and fiscal
year ended September 30, 2004. A copy of that press release along with the press
release financial schedules are attached as Exhibit 99.1 to this report and
incorporated herein by reference.

         The information in this report (including Exhibit 99.1) is being
furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange
Act") or otherwise subject to the liabilities of that section, nor shall it be
deemed to be incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act.





<PAGE>


                                    SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                         Innovative Solutions & Support, Inc.



Date: November 18, 2004                  By: /s/ James J. Reilly
                                            ----------------------------------
                                                 James J. Reilly
                                                 Chief Financial Officer



<PAGE>


                                  EXHIBIT INDEX

Exhibit No.                Description
- -----------                -----------
  99.1                     Press Release dated November 17, 2004 announcing
                           financial results for the fourth quarter and fiscal
                           year ended September 30, 2004.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99-1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<PAGE>

Press Release

INNOVATIVE SOLUTIONS & SUPPORT, INC. ANNOUNCES EPS GROWTH OF 127% TO A RECORD
$1.00/SHARE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004.

Exton, PA.--(BUSINESS WIRE)--November 17, 2004--Innovative Solutions & Support,
Inc. (NASDAQ:ISSC-news) today announced the following results for the 4th
quarter and fiscal year ended September 30, 2004:

     Q4 FY 2004
     o Sales                            up 43% to a record $14.4 million.
     o Net income                       up 59% to a record $4.5 million.
     o EPS, diluted                     up 61% to a record $0.37 a share
     o Released Backlog                 up 47% to a record $35.4 million
     o Cash Flow from Operations        up 188% to record $7.0 million
     o Cash Flow                        Record $7.2 million or $0.59 a share

     Fiscal Year 2004
     o Sales                            up 64% to a record $46.1 million
     o Net Income                       up 115% to a record $11.9 million
     o EPS, diluted                     up 127% to a record $1.00 a share
     o Cash Flow from Operations        up 165% to a record $16.1 million
     o Cash Flow                        Record $17.1 million or $1.41 a share

Please refer to the accompanying schedules highlighting our Statement of
Operations and Balance Sheet.

Geoffrey S.M. Hedrick, Chairman and CEO, commented: "The demand for our Air Data
equipment has materialized as anticipated and is expected to continue beyond the
FAA's RVSM compliance date of January 20, 2005. Continued demand for the
replacement of obsolete and troublesome equipment will augment the significant
number of installations on aircraft that missed the FAA compliance date."

The General Aviation market (business jets) currently represents the largest
demand for RVSM solutions. In this market, Innovative Solutions is a leading
supplier of Air Data equipment with certified solutions for Falcon, Cessna
Citation, Learjet, Gulfstream, Sabreliner, Raytheon King Air, Beechjet,
Westwind, Hawker and Challenger business aircraft. The Company also has
certified solutions for a wide variety of commercial air transport aircraft
including DC-8's, DC-9's, B-707's, B-727's and B-737's, and Military aircraft
including A-10's, KC-135's, RC-135's and C-130's.

At September 30, 2004 the Company's backlog of released business reached a
record $35.4 million. This reflects a 47% increase from the September 30, 2003
backlog of $24.1 million. In addition the Company has an additional $10 million
in follow-on options for release in subsequent periods that has not yet been
recognized in firm backlog.

<PAGE>

Along with our sales increase, the Company increased its investment in
Engineering & Product Development by $1.4 million or 42% in the year. This
investment was substantially linked to the issuance of the Cockpit/IP(TM) TSO
certification received on July 2nd from the FAA. Further, this continued level
of investment would support new Flat Panel and Air Data System development and
follow-on product introductions in calendar 2004 and 2005.


The company will host a conference call tomorrow morning, November 18, 2004 at
10:00 am local time (EST) to discuss these results and our business outlook.
Please call in to participate at (888) 792-8459. Also, our web site
(www.innovative-ss.com) will carry the conference call live and have it
available for subsequent listening for a period of 30 days.

Headquartered in Exton, PA. Innovative Solutions & Support, Inc.
(www.innovative-ss.com) designs, manufactures and markets Air Data flight
information computers, flat panel displays and advanced monitoring systems that
measure and display critical flight information. This includes data relative to
aircraft separation, airspeed and altitude as well as engine and fuel
measurements.

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 differ
materially, either better or worse, from those discussed including other risks
and uncertainties reflected in the Company's prospectus and Form 10-K annual
report on file with the SEC.

Contact Mr. James Reilly at (610) 646-9800

<PAGE>
                     INNOVATIVE SOLUTIONS AND SUPPORT, INC.
                                 BALANCE SHEET
<TABLE>
<CAPTION>
                                                                               ACTUAL                   ACTUAL
                                                                         SEPTEMBER 30, 2003       SEPTEMBER 30, 2004
                                                                         ------------------       ------------------
<S>                                                                              <C>                      <C>
                            ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                               $   48,789,744           $   65,867,167
  Accounts receivable                                                          6,955,207                5,003,100
  Inventories                                                                  2,840,648                5,191,628
  Deferred income taxes                                                          673,134                  984,111
  Prepaid expenses                                                               660,430                  665,276
                                                                          --------------           --------------
     Total current assets                                                     59,919,163               77,711,282
                                                                          --------------           --------------

Property and equipment, net                                                    9,548,491                9,620,231
                                                                          --------------           --------------

Other assets                                                                     408,971                  137,114
                                                                          --------------           --------------

TOTAL ASSETS                                                              $   69,876,625           $   87,468,627
                                                                          =======================================

             LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of note payable                                         $      100,000           $      100,000
  Current portion of capitalized lease obligation                                      -                    7,257
  Accounts payable                                                               578,306                1,696,247
  Accrued expenses                                                             3,146,409                4,754,641
  Deferred revenue                                                                98,036                  526,023
                                                                          --------------           --------------
     Total current liabilities                                                 3,922,751                7,084,168
                                                                          --------------           --------------

  Note payable                                                                 4,235,000                4,235,000
                                                                          --------------           --------------
  Capitalized lease obligation                                                         -                   20,681
                                                                          --------------           --------------
  Deferred revenue                                                               332,407                  261,934
                                                                          --------------           --------------
  Deferred income taxes                                                          328,177                  411,857
                                                                          --------------           --------------

SHAREHOLDERS' EQUITY:
  Common stock                                                                    13,081                   13,515
  Additional paid-in capital                                                  46,248,224               48,712,289
  Retained earnings                                                           25,410,742               37,342,940
  Treasury stock                                                             (10,613,757)             (10,613,757)
                                                                          --------------           --------------
     Total shareholders' equity                                               61,058,290               75,454,987
                                                                          --------------           --------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                $   69,876,625           $   87,468,627
                                                                          =======================================
</TABLE>

<PAGE>
                     INNOVATIVE SOLUTIONS AND SUPPORT, INC.
                             STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED              TWELVE MONTHS ENDED
                                                          SEPTEMBER 30,                   SEPTEMBER 30,
                                               ------------------------------------------------------------------
                                                       2003            2004             2003            2004
                                               ------------------------------------------------------------------
<S>                                                 <C>             <C>              <C>             <C>
Revenues                                            $10,103,904     $14,411,501      $28,168,752     $46,099,777

Cost of Sales                                         3,593,590       4,462,484       11,346,057      15,663,108
                                               ------------------------------------------------------------------

Gross profit                                          6,510,314       9,949,017       16,822,695      30,436,669
                                               ------------------------------------------------------------------

Research and development                                952,702         949,844        3,376,849       4,811,156
Selling, general and administrative                   1,560,020       1,967,499        5,890,362       7,567,959
                                               ------------------------------------------------------------------

Operating income                                      3,997,592       7,031,674        7,555,484      18,057,554
                                               ------------------------------------------------------------------

Interest income                                         118,640         186,760          582,023         532,745
Interest expense                                        (29,922)        (33,817)        (131,602)       (128,018)
                                               ------------------------------------------------------------------

Income before income taxes                            4,086,310       7,184,617        8,005,905      18,462,281

Income tax expense                                    1,271,022       2,719,459        2,464,715       6,530,084
                                               ------------------------------------------------------------------

Net Income                                          $ 2,815,288     $ 4,465,158      $ 5,541,190     $11,932,197
                                               ------------------------------------------------------------------

Net Income per Common Share
     Basic                                             $   0.24        $   0.38         $   0.45        $   1.03
     Diluted                                           $   0.23        $   0.37         $   0.44        $   1.00

Weighted Average Shares Outstanding
     Basic                                           11,739,659      11,809,797       12,261,084      11,600,253
     Diluted                                         12,007,643      12,146,104       12,495,774      11,952,120
</TABLE>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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