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<SEC-DOCUMENT>0000950116-05-000215.txt : 20050120
<SEC-HEADER>0000950116-05-000215.hdr.sgml : 20050120
<ACCEPTANCE-DATETIME>20050120085007
ACCESSION NUMBER:		0000950116-05-000215
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050119
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20050120
DATE AS OF CHANGE:		20050120

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:		05537664

	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): JANUARY 19, 2005


                     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 January 19, 2005, Innovative Solutions & Support, Inc. issued a
press release announcing its financial results for its first quarter ended
December 31, 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: January 20, 2005                    By: /s/ James J. Reilly
                                              ---------------------------------
                                              James J. Reilly
                                              Chief Financial Officer



<PAGE>


                                  EXHIBIT INDEX

Exhibit No.                Description
- -----------                -----------
   99.1                    Press Release dated January 19, 2005 announcing
                           financial results for the first quarter ended
                           December 31, 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 RECORD 1ST QUARTER FULLY DILUTED
EPS GROWTH OF 264% TO $0.51/SHARE FOR THE THREE MONTHS ENDED DECEMBER 31, 2004.

Exton, PA.--(BUSINESS WIRE)--January 19, 2005--Innovative Solutions & Support,
Inc. (NASDAQ:ISSC-news) today announced the following record results for the 1st
quarter ended December 31, 2004:

         Q1 FY 2005
         o Sales              up 123% to a record $19.0 million.
         o Net income         up 285% to a record $6.2 million.
         o EPS, diluted       up 264% to a record $0.51 a share
         o Backlog            up 39% to a record $36.2 million
         o Cash Flow          Record $7.5 million


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

A Company spokesperson commented: "In the 1st quarter we experienced strong
demand for our Air Data equipment as compliance for Domestic Reduced Vertical
Separation Minimum (DRVSM) approaches its effective date of January 20, 2005. We
also expect demand for our Air Data equipment beyond the compliance date as a
result of delayed DRVSM installations. According to a January 10, 2005 article
in Aviation Week & Space Technology magazine, 'only 6,100 business jets or 62%
of the eligible fleet have been outfitted'. Beyond DRVSM, we expect on going
demand for the replacement of aged, obsolete and troublesome Air Data
equipment."

The General Aviation market (business jets) currently represents the largest
demand for DRVSM 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 December 31, 2004 the Company's backlog reached a record $36.2 million. This
reflects a 39% increase from the December 31, 2003 backlog of $26 million.

The company will host a conference call tomorrow morning, January 20, 2005 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.
<PAGE>

Headquartered in Exton, PA. Innovative Solutions & Support, Inc.
(www.innovative-ss.com) designs, manufactures and markets Air Data flight
information computers, Flat Panel display systems and advanced monitoring
systems that measure and display critical flight information. This includes data
relative to aircraft separation, airspeed and altitude as well as 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 & SUPPORT, INC.
                                 BALANCE SHEET
<TABLE>
<CAPTION>
                                                                       ACTUAL                   ACTUAL
                                                                  SEPTEMBER 30, 2004       DECEMBER 31, 2004
                                                                  ------------------       -----------------
<S>                                                                      <C>                       <C>
                            ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                         $ 65,867,167             $ 73,340,686
  Accounts receivable                                                  5,003,100                5,196,164
  Inventories                                                          5,191,628                5,543,742
  Deferred income taxes                                                  984,111                  984,111
  Prepaid expenses                                                       665,276                  580,648
                                                                    ------------             ------------
     Total current assets                                             77,711,282               85,645,351
                                                                    ------------             ------------

Property and equipment, net                                            9,620,231                9,552,118
                                                                    ------------             ------------

Other assets                                                             137,114                  134,114
                                                                    ------------             ------------

TOTAL ASSETS                                                        $ 87,468,627             $ 95,331,583
                                                                    ============             ============

             LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of note payable                                      $ 100,000                $ 100,000
  Current portion of capitalized lease obligation                          7,257                    7,257
  Accounts payable                                                     1,696,247                1,347,804
  Accrued expenses                                                     4,754,641                6,381,509
  Deferred revenue                                                       526,023                  523,732
                                                                    ------------             ------------
     Total current liabilities                                         7,084,168                8,360,302
                                                                    ------------             ------------

  Note payable                                                         4,235,000                4,235,000
                                                                    ------------             ------------
  Capitalized lease obligation                                            20,681                   18,819
                                                                    ------------             ------------
  Deferred revenue                                                       261,934                  244,316
                                                                    ------------             ------------
  Deferred income taxes                                                  411,857                  411,857
                                                                    ------------             ------------

SHAREHOLDERS' EQUITY:
  Common stock                                                            13,515                   13,536
  Additional paid-in capital                                          48,712,289               49,125,767
  Retained earnings                                                   37,342,940               43,535,743
  Treasury stock                                                     (10,613,757)             (10,613,757)
                                                                    ------------             ------------
     Total shareholders' equity                                       75,454,987               82,061,289
                                                                    ------------             ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                          $ 87,468,627             $ 95,331,583
                                                                    ============             ============
</TABLE>

<PAGE>
                      INNOVATIVE SOLUTIONS & SUPPORT, INC.
                            STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED
                                                              DECEMBER 31,
                                                 -------------------------------------
                                                        2003                 2004
                                                 -------------------------------------
<S>                                                   <C>                <C>
Revenues                                              $ 8,523,336        $ 18,978,804

Cost of Sales                                           3,481,411           6,182,143
                                                 -------------------------------------

Gross profit                                            5,041,925          12,796,661
                                                 -------------------------------------

Research and development                                1,009,275           1,271,531
Selling, general and administrative                     1,640,620           2,028,467
                                                 -------------------------------------

Operating income                                        2,392,030           9,496,663
                                                 -------------------------------------

Interest income                                           112,671             283,250
Interest expense                                          (31,855)            (39,738)
                                                 -------------------------------------

Income before income taxes                              2,472,846           9,740,175

Income tax expense                                        865,496           3,547,372
                                                 -------------------------------------

Net Income                                            $ 1,607,350         $ 6,192,803
                                                 -------------------------------------

Net Income per Common Share
     Basic                                                 $ 0.14              $ 0.52
     Diluted                                               $ 0.14              $ 0.51

Weighted Average Shares Outstanding
     Basic                                             11,412,614          11,835,138
     Diluted                                           11,776,015          12,180,275
</TABLE>

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