IS&S Takes $6 Million Hit On Loss Of Eclipse Work | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.01.24

Airborne-Unlimited-04.16.24

Airborne-FlightTraining-04.17.24 Airborne-Unlimited-04.11.24

Airborne-Unlimited-04.12.24

Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
www.airborne-live.net

Thu, Nov 20, 2008

IS&S Takes $6 Million Hit On Loss Of Eclipse Work

Company Still Posts Profit, Thanks To Legal Settlement

Innovative Solutions & Support announced this week its financial results for the fourth quarter and year ended September 30... and while the news was mostly positive, the woes of one client in particular strained the company's resources in 2008.

Net sales for the fourth quarter of 2008 were $10.2 million, up 100% from $5.1 million in the fourth quarter of the previous year. The Company reported fourth quarter 2008 net income of $7.6 million, or $0.45 per fully diluted share, which includes the receipt of a $17 million legal settlement, compared to a fourth quarter 2007 net loss of $4.0 million.

IS&S states fourth quarter 2008 results also include approximately $6 million in charges associated with the suspension of production on a "large, general aviation OEM contract" -- referring to struggling planemaker Eclipse Aviation, for which IS&S is the primary partner on the Avio NG avionics suite.

"This has been a transitional period for ISSC with the successful production ramp on a number of our contracts offset by the untimely suspension of a large, general aviation OEM contract," said Geoffrey Hedrick, IS&S Chairman and Chief Executive Officer. "Results in the fourth quarter reflect the financial impact of the actions we undertook based upon our assessment of the current risks associated with this customer."

IS&S was signed in March 2007 to handle systems integration for Eclipse's Avio NG avionics package, one month after Eclipse terminated its prior agreement with Avidyne. The new suite was initially comprised of IS&S displays, with systems from Chelton Flight Systems, Garmin International, Honeywell, and PS Engineering, Inc.

As ANN has reported, Eclipse is on the ropes as it desperately fights to secure needed funding to stay in business. The company was only able to meet last week's payroll thanks to a last-minute bridge loan. 

According to the company, the $6 million aggregate charge represents a $4.1 million increase in the allowance for "doubtful" accounts, and a $1.9 million increase in reserve for "obsolete inventory"... code words for the distinct possibility Eclipse will fold, leaving IS&S with a large unpaid bill and a number of proprietary Avio NG units that can't be fitted to any other aircraft.

IS&S' core business is the supply of flat-panel display screens to manufacturers of business and commercial aircraft. 

FMI: www.innovative-ss.com

Advertisement

More News

ANN's Daily Aero-Linx (04.16.24)

Aero Linx: International Business Aviation Council Ltd IBAC promotes the growth of business aviation, benefiting all sectors of the industry and all regions of the world. As a non->[...]

Aero-News: Quote of the Day (04.16.24)

"During the annual inspection of the B-24 “Diamond Lil” this off-season, we made the determination that 'Lil' needs some new feathers. Due to weathering, the cloth-cove>[...]

Airborne 04.10.24: SnF24!, A50 Heritage Reveal, HeliCycle!, Montaer MC-01

Also: Bushcat Woes, Hummingbird 300 SL 4-Seat Heli Kit, Carbon Cub UL The newest Junkers is a faithful recreation that mates a 7-cylinder Verner radial engine to the airframe offer>[...]

Airborne 04.12.24: SnF24!, G100UL Is Here, Holy Micro, Plane Tags

Also: Seaplane Pilots Association, Rotax 916’s First Year, Gene Conrad After a decade and a half of struggling with the FAA and other aero-politics, G100UL is in production a>[...]

Airborne-Flight Training 04.17.24: Feds Need Controllers, Spirit Delay, Redbird

Also: Martha King Scholarship, Montaer Grows, Textron Updates Pistons, FlySto The FAA is hiring thousands of air traffic controllers, but the window to apply will only be open for >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC