Innovative Solutions And Support, Inc. · NASDAQ:ISSC
Innovative Solutions And Support — Needham 10th Annual Investor Conference (January 2008)
15 slides from Innovative Solutions And Support's conference presentation, Jan 10, 2008
Slide 1: Innovative Solutions & Support Needham 10th Annual Investor Conference
1 Innovative Solutions & Support NASDAQ: ISSC Needham 10th Annual Investor Conference
Slide 2: Safe Harbor Statement
Innovative Solutions & Support Proprietary Information 2 SAFE HARBOR STATEMENT This presentation includes forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and our actual experience may diffe
Slide 3: Company Description
Innovative Solutions & Support Proprietary Information 3 Company Description Leading Provider of air data equipment and advanced flight monitoring systems that measure and display critical flight information – especially Flat Panel Display Systems (FPDS, Cockpit/IP™) Started: 1988 NASDAQ: ISSC Marke
Slide 4: Flat Panel Displays: Current Focus
Innovative Solutions & Support Proprietary Information 4 • Aircraft industry completely shifting from traditional “steam gauge” to new electronic instrument displays • Flat panels are “The Standard” on new aircraft production • Obsolescence creating large retrofit opportunity • FPD Advantages • Flex
Slide 5: IS&S Flat Panel Displays
Innovative Solutions & Support Proprietary Information 5 Flat Panel Displays IS&S FPDs • Low Cost provider – Compelling economics – Less expensive upgrade to maintain • Shortest downtime to upgrade – Less than 3 days for B757/B767 retrofit • Operational savings – Dispatch relief – Simplified trainin
Slide 6: Existing Retrofit Contracts
Innovative Solutions & Support Proprietary Information 6 Flat Panel Displays Existing Retrofit Contracts • American Airlines • FedEx • Cessna Aircraft C-130 Before C-130 After • ABX Air • Boeing • Royal Air Force Retrofit contracts lead to follow on FPD sales with other operators
Slide 7: FPD Retrofit Programs
Innovative Solutions & Support Proprietary Information 7 FPD Retrofit Programs Flat Panel Displays Plan to ship approximately $15 Million of current backlog in FY08 Program Marshall Aerospace American Airlines DoD FedEX Pilatus PC12 Cessna Aircraft B737 Anticipated Shipments/Status 7 FPD Systems in
Slide 8: Eclipse Aviation Program Status
Innovative Solutions & Support Proprietary Information 8 Eclipse Aviation Program Status • December 06 – entered into a five-year agreement with Eclipse Aviation as the exclusive supplier of Primary Flight and Multi-Function FPDs • Eclipse announced orders exceeding 2,500 aircraft and • IS&S revenue
Slide 9: Market Opportunity
Innovative Solutions & Support Proprietary Information 9 Market Opportunity • Due to numerous advantages, large FPD retrofit market evolving: – Commercial (11,000 + units) $2.6 billion – Military (8,000 + units) $1.9 billion – Business Aviation (12,000 + units) $2.8 billion • OEM Market (e.g. Eclips
Slide 10: Production Readiness for FPD Market
Innovative Solutions & Support Proprietary Information 10 Positioned for Growth Production Readiness for FPD Market • Capital equipment in place and proven • Material assets in place and pipeline primed • Bill of materials on budget • Assembly labor minor part of cost base • Gross margin in line wit
Slide 11: Backlog Growth Driven by FPDS
Innovative Solutions & Support Proprietary Information 11 Backlog Growth Driven by FPDS Positioned for Growth Commercial 58% Military 15% Business Jet 27% Includes only 2 months of FPD System deliveries to Eclipse Aviation $63M or 90% FPDs $7M or 10% AD January 2008 Bookings: LMAC $0.8M FedEX $4.2M
Slide 12: FY2008 Sales Forecasted at > $40.0M
Innovative Solutions & Support Proprietary Information 12 Positioned for Growth FY2008 Sales Forecasted at > $40.0M Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 FY08 Total FY09 Total $4.7M > $6.0M > $12.0M > $16.0M > $40.0M > $60.0M $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 $Millions Air Data Equipmen
Slide 13: Balance Sheet
Innovative Solutions & Support Proprietary Information 13 Balance Sheet • Cash - $43.5 Million • Lawsuit settlement greater than $6 Million - FY08 • No Debt (except IDB) • Current ratio: 7.5 to 1.0 Positioned for Growth ISSC has a strong financial position
Slide 14: Summary
Innovative Solutions & Support Proprietary Information 14 Summary • Retrofit market leader in FPD Systems and Air Data Equipment • Low Cost provider with outstanding products and production resources at the ready • Experienced and accomplished management team • Cost, regulatory, efficiency pressures
Slide 15: Innovative Solutions & Support Proprietary Information 15
Innovative Solutions & Support Proprietary Information 15
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