Innovative Solutions and Support (ISSC) 18 Dec 182018 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Innovative Solutions & Support Fourth Quarter 2018 Fiscal Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, that this event is being recorded. At this time, I would now like to turn the conference over to Mr. Geoffrey Hedrick, Chairman and Chief Executive Officer. sir. ahead, go Please

current is to I'd discuss our fourth year for This for our you upcoming the our to this the year. XXXX fiscal and morning conference quarter conditions Geoff morning. and like outlook Hedrick. welcome performance business Good call to

Winand, today are Relland our President; Askarpour, me CFO. Joining and Shahram our

I I'd like harbor Rell? begin, Relland safe Before message. to read the

XX-K, today, our including that uncertainties Geoff, is statements good products periods, the the with and morning, listeners remind that discussed, and and either would in other future certain on better you, other and results worse, Thank SEC public could conference risks company's to including that operational I differ reflected materially, call which new and for cause to financial discussed matters actual uncertainties risks everyone. are file results those from subject and filings. forward-looking are or our in

call Now I the turn will Geoff. back to

both and growing both we for and portfolio by In new disappointing, strong position fiscal financial Thank These fiscal with and year but with results are down on operating technology capitalize XXXX, entering you, ideally results technologies XXXX. from aircraft our the commercial, performance and Rell. the positioned general of that to are revenue believe aviation markets. of were that products improve in safety and demand military the

owners to ThrustSense opportunity its we and consulting technology a of century for both mention removes business very, and first of functions note, designed and & these Pilatus expanded only any STC, shortly. blueprint By has PTX Consequently, Autothrottle. it's the realigned turboprop can that reassessment as access for November we’re Classic pounds PTX we our story. been XX sense for on continuously independent they XX article, past into a large issued recommendation, our a transforms in the aerospace tools, business. firm market sound preparing Certifications with call They we models the have weight. powered other the by back-up support providing shows to to the see XXXX the is out Prime the various of the crop Air all PC-XX of In Because Magazine market it needed opportunities the strengthened the certified and Pratt the perform quickly the and expand expected the market King we months, that cockpit PC-XX page growth make function ThrustSense growth airplane, manufacturers on of to maximum to Over Today, display opportunity. outside can we’ve NextGen not -- very NG FAA so our plan. and a Autothrottle an is for Whitney the four-year enlarging see IS&S Autothrottle. XXst Autothrottle to concluded focused upgrade patented brains the doubles that an ingenious. cover X of flexibility engaged the an this the our aircraft, our provide they total opportunity. system STC Board's review -- single and a have At our said operational this to of virtually for

planned our market We penetration. customer cost product in stronger core improve point expertise development the increase and spending to our other any drag were reducing at and and tactical thereby not lowering the quarter, future to contact is on that this was eliminated peripheral also expected operations strategy mentioned As the last structure. and of

to informed to there’s no to just in this the development Consequently, The make engineering IS&S. be we’re be believe product patented that a innovations has our of understood commensurate the to with market going effort. built needed We functionality. that we marketing Autothrottle. market kind about the on commitment to focused now currently have new throughout a like product success We’re which

Our detail. From Flying operators encouraging. conducted at aviation initial that in will Magazine the has marketing efforts at been The an have more test them go NBAA in encouraging a flight expert results. yielded reception show. owners very Shahram and recent extremely through

Let me over the for turn to discussion it Rell of financials.

and and were XX.X operating compared XXXX, that XXXX; in administrative million XX%, reductions XXXX margins on Thank million reflecting The $XX.X the XXXX. for Gross reductions for if was us from down XXX,XXX in Research fiscal fiscal expenses unchanged million Revenues to sales quarter for occurred XXXX year a we ago. quarter. X.X were XXXX. in service million down million part down the Geoff. yields joining the year fiscal you, for in of exclude in reflect however, workforce which morning. the X.X relatively margin from fiscal actually total in Thank a selling XXXX third all operating undertaken XX% X.X third year to customer the were and $XX.X expenses million development to the gross you compared XXXX bad lowered gross reversal XXXX debt this ago general of compared by impact which higher year and XXXX. increased for was expenses in margins reduced approximately workforce revenue, slightly the fiscal the Total approximately

basis, Our continue revenues. on an expenses total make of research as we were development commitment research proportion absolute and down a to development and to significant

in reversal undertaken reduced base, in and fiscal a third reduction reflecting ago, in to from were administrative effect the already general are quarter workforce result costs the primarily selling, we year we further XXXX selling, believe XXX,XXX though future administrative and if Even expenses. fiscal could the decreases in bad we're giving that For the down year legal expense general the low a debt XXXX.

earn a income the debt of XXX,XXX to million on per and of loss $X.XX of million year-ago million of a report net per sale X.X R&D legal For enabled or net the the reserve credits we X.X reversal $X.XX million a $X.X us year, share. settlement Pennsylvania recorded share, X.X or bad a tax

fiscal sale million R&D development XXX,XXX quarter loss fiscal or For the the the loss $X.XX fourth reduction credits. XXXX of XXXX fiscal quarter in fourth XXX,XXX quarter expense fiscal revenues quarter reduction. gross quarter to margin fourth XX% tax per gross of fiscal was third by of $X.XX, down to fourth in in R&D of was as compared XX% cost compared the to X.X quarter we margin the the XX%, fourth XXXX. fourth which generated reflecting State of X.X force, the Pennsylvania benefited The as the compared The net the Coming savings reported or was XXXX XXXX fiscal workflow was XXX,XXX XXXX, million also to fourth or net share. XXXX, XXXX. of quarter of of of from

at cash hand future. the primarily remain sufficient operations the Nevertheless foreseeable the X.X fund million King we Air. million and with to while million in XX, financial year, operations for used XX XXXX, For investing was believe activities of no we We debt. purchase also to strong cash of use cash in cash on in September X.X has the over conditions Company

call to Now, turn like Shahram. to over call the I'd

new quarters as Back we sales marketing Thank other next certifying Autothrottle and King compelling indicated we Efforts platforms establishing as and well may this focused program, on our on in have on best from can a formal strategy Autothrottle and opportunity. several that as the made progress believe And on perspective, Air capitalize August, our fronts. near in bumpy takes everyone. you, as have our good we be root. been the few term Rell, a bit morning primarily that

have We patented for Autothrottle obtained others several Several STCs technology. eminent. our ThrustSense are

strategy which marketing improve product adopted our We is aiming to new have market a penetration. oriented,

also into market been building launch have fully supported. infrastructure needed that to formal We the our the is of Autothrottle the ensure

we efficiency. most such valuable that reorganized resources which can have and programs our enabled our costs us we improve to concentrate Finally, have reduce around

prime first its time-consuming. As focus Autothrottle obtaining kind ThrustSense the our and patented have into exhaustive STCs because we XXXX, been is Autothrottle look quite for the of our process technology, initial remains

be and we do general importantly that process, to However, the expeditiously. pursue to been a STCs so we through now template have other have platforms aviation that on can repeated

result, ensure launch the praise the can that we only position with product as just formal that for built scale I've enviable is a We infrastructure successful. We’ve As from quickly the mentioned a enthusiastic demand. receiving an are industry. the in source is

new NBAA. Autothrottle equipped as training opportunities envelope features general the details attending of recently, case operators King to the conducting they’re such innovative engine from fly offers out, speed and the while and have that establishing writing All to getting other market. the capability, most fuel resulted and well is we VMC protection in market prospect calendar strong demonstrations. orders. we our on the to of service marketing been is launch manuals aircraft aviation our a into Air for and warm worked savings OEMs, This This significant team path customer and and we to rise. professionals, well as safety PC-XX market that the has business as large formally experienced feel XXXX, multiengine manufacturing, are to already Most yet in experienced reception prime installers, protection protection, where Consequently, Autothrottle direct capitalize development on positioned and the fielding we’ve sales is locations

new XXXX. per military orders of showing PC-XX Based going million of the sets shift well, strength. course years. having at of market year is coming program the renewed over be XX this booked the is for line aircraft, over we our in orders may in Looking ongoing programs, fiscal X.X success on some the exceeding The

a that antiquated develop Navy. gen to a system product to trend will will technology that likely awarded data new Our equipment which be is new interest program with of analog the continues while other aircraft KC-XXA to operators. for in we update new next military contract digital This compliant June, were FX well, this U.S. makes computer

upgrades. very at, we execute bring transport to the assuring and bringing ship where the start, air our a to goal that We technologies appreciate value so. continue the we XX, and create market; In support market. to to confidence your We to innovative products by in carefully prepared to our for deliberately do technology XXX, we time is and are and X, from ability strong resources dedicated new continue cockpit existing in laid our have established we’re following also have plan presence market to new XXX we’ve summary, retrofit Autothrottle to and efficiently

Let me for Geoff call remarks. some turn the to closing back

Shahram. Thanks,

year which certified upcoming things be a an Support. and FAA, has Solutions Autothrottle support XX-day the Shahram catastrophic On Innovative the XX more As program. been solicitation States of a included with the industry It that impressed improve its the and value niche aggressive the equipment developing through by first is because you exciting are proposition We common has FAA review. note, protracted you Industry to VMCA platforms ability intend we side like it time have Part if only authorities The thank XXXX, safety Turboprop both and grow novelty and mitigation and the and simultaneously reduce has while performance. Application compelling. accidents. marketing markets is aircraft commentated been sales and certified serve patented than common over for patented never Autothrottle is we’ve heard The the before workload certification is to Autothrottle eliminate for Europe anticipated. and multiengine issuing. certified United to for unique aircraft continued and It should and and is Turboprop the Autothrottle, pilot encouragement. flown Autothrottle’s reduce, not which

appreciate any I may look attention Operator? conclusion, have. in today So you to your forward questions and

Hedrick. And Lewis Instructions] question of our Please Capital from be will ahead. Scott go [Operator first you, Management. Thank Mr. Lewis

revenues. your on on close I your is First congratulations expenses System with that Pilatus picking of Management on had PC-XX. question for the getting your in the to a know just all planning Utilities line I to the of quite in Or are manufacturing reflective the they pace building some up very inventory Are is up the bit slow start? or pace year Pilatus next starting orders with? two. a current

judicious line properly Build growth expect the and we growth production being. is and demand is their follow the a are. are as we And their But expected the aircraft closed what which to inventory is gives line has where spares. to we there, that obviously well. the will time is deliveries --we Pilatus this exceptional. program, initial the follow course to we in they demand support our of of And support continue growing us expect the been exception just closely that the production you for know the book up being In meantime, their on

think So triple your double from if they this… to were you orders here may or compared where

in bring process. you have or don’t orders fair to a put and initial I in support the fundamental support triple, and some the work remember double of inventory staff amount know to equipment of locations

So after reflect the rate the reflect, aircraft. historically, I production it to actual would that of expect

On that working are the a multiple is navy for new for single you model models? navy, air just data for on for system or the the aircraft

from actually GXX it in is the an It's it GXX, for performance remarkable we and reliability. we reapplication potentially that's is although had application of that A-XX existing product FX and showing that service fact made already built in a the

turn So, but air technology adapted is that the accelerated desperately our Bluntly, and to air time in be data this interfaces A-XX, is adapted there. to has variety an that universally it a data development we core minimized computer out it only which new applications, need to the can identical for need design more so computer. identical air the probably is basically our a adapted aircraft FX cost, this would and process, at the or development, be accommodate -- the be should this many the and even opportunities of of FX it's then peripheral are and that to that other that data process

STC, the at to of Autothrottle say all the are to give least me King the testing, difficult the know Air, you of I but you switching then here? done where kind anymore would grant from the when for in very flight you it's could government Geoff And exactly with process? Are it's paperwork flavor STC you

we're holiday flight FAA, the so this -- test, ready flight have process in already they so everything government in to well go but our up time of it. unfortunately, stopped, at finished to and we're test, so right are and hit the for -- are we STC Look, testing versed flight the demonstrated we it that's

we be this is authorized we the and now that hope Frankly, very that's early it certification go, to done. We it's unusually would like looks get on had to we technology. ready to going when responses year of been plan. that, -- done it has government before for are this FAA the should waiting And Recognize next our year from the end get really cooperative. and hope the new

is of system that One series of potentially the patented a features malfunctions. of profit this will cash eliminate a

and days lose means So much kind the person so he FAA that pleased. very that every of if accident aircraft X of commented save that's due would for of that we this, the that actually we a die senior the one would people a would I eliminate, FAA as only fourth out quoted bears lives not be country very we that proud to but

you it And sort Or error? on just literal different talking malfunction, twin difficulties when the where malfunction your… are that you engine about than say out there something prevents an have pilot is a of a of aircraft

the there, half a even now, -- a are twin Well, sophisticated know, no, right on out immediately out an so wouldn’t solution yaw as on on if crash engine many have the to engine cause moment twins. their like you remaining engine about aircrafts is of rollover -- that out twins that which obviously back, most how F-XX, the to it's retard airplane -- something even thrust, you the an to would not some twin, people the its a was

still you proportionately measures feedback that anticipates haptic meaning speed system or of all and you conditions. can left speed, and reduces speed, get that and thrust Our have the control only sensing and the excessive those under -- automatic thrust, over actually loss of a

a quite when it’s remarkable feature twin pilots and especially pilot. great single it’s flying So, a

a question, question broader Geoff. last then And

going what ISSC it you’re gone maybe made maybe its made to original successful? compared that is getting where to that, that successful you focus just what You or you to had kind originally focus successful. a what what was kind so had it back you can and talk that about thought, go areas you that of call relatedly you as Shahram been strategic not of out focus said Can what was just of on of now in matter the

bring business I’ll think similar business, and that better could simultaneously. a Shahram performance, called which a products innovation that a that better did reduced that for itself ordinary serve. an not product believe we What get in or Simply doing is reliability of we reflected it, I where best solution cost we we just name it finding Innovative pursuant real product but that, the also to hopefully spoke is living but can what we’re was producing means -- an area an not the right. and are it Solutions,

the before now have and even technology like of are or market the the things that patents up that even we control special never management on designed we get systems in essentially, been strait So, systems; the us Autothrottle can or a utility on and focusing place. that that gives uniqueness conceived

the David go Davis question ahead. Thompson, from and be next And will Campbell of Company. Please

up the satisfied King essentially were that? in brought wondering You it to doing Air the April is process, was you and if I STC speed

it’s all demanding, as appropriately think we surgery been it's STC for buy has another is so. unusually, done never invaluable it I way unusually, airplane knee before. by it's its as been the doing The way wanted but but arthroscopic and that. Understand it cost, doing every quite served purpose probably the application in the difficult, not been patented. of wanted new are I been another Well, correct doing and has is single to twin way. What I much

to I would believe be we not So the do airplane, able without this program.

and it's and like its I'm to so investment yes, starting But standpoint. that I'm polo. tested the demonstrated have even extensively pretty from good We feel playing equipment

about. is plane the of use The

so that been flight mentioned you… presumably completed, testing your have You has

now for FAA. the it completed, here demonstrate and been to we has it's It's have

will testing. final but for flights be have to demonstration FAA So, amount the fair we of extensive still there time,

thing And Is some there complete? this an you get the for airlines is want STC, to FPOs companies can't before want who product this the products, feel or is I'm possible get other STC is. until who that surprised mean, orders that take and orders I

and the we got working Air, we we we grow difficult, King take for well. normally are able take PC-XX we other where as aircraft several to and it's orders have the Well, for be on can orders will

we seeing in are and the past, activity some results. significant seen activity We the total good that in more we expect a very have

experience Autothrottle. Tom a years the experience We of has have a in leading is pro with Grunbeck who effort. of XX lot He

for reduces and very bring combination into features work that if And nobody something an market. truly a that you and help that. is making and he you something ever a bring -- a and cruise efforts that them new, but their safety this it's provide provide part can we the that’s certainly now. this control, than this So, don’t control. pilot it's more showing a certification winning right through going need they And remember, can of -- all have are need don’t feel demonstrating significant awareness Autothrottle People done before that cruise

Was in charged There the fourth quarter? in was the fee. a $XXX,XXX quarter fourth consulting that

Yes.

consulting charge fee and what So fourth the for that fee, quarter consulting was for was for? --

revealed, with the part responsibility mentioned Consulting make company decided stockholders that sure Coupled are and responsibility. of for fiduciary -- we doing we're the resources of it's going best that, of we -- that as the area and and as we Company the experience, virtually of the if which the of doesn’t routinely the extensive investment way direction boards the of fee generally into part our -- that outside review in was and informed research go extensive don’t part I we it as mandatory analysis. marketplace. we product Autothrottle, does industry it that an have our to firm like that new both the business an have an by experience is objective in we was we area expert that And of market and analysis plan get engaged product our

the product was and webcast things And program, that payment into like and a extensive comments. individual market very research which for research partial included various a so and other market research

because except it's this it and because airplanes, it in meaning in $XX that seen be this the was higher essential too end market be to airplanes expensive is very all -- honestly, lower always didn’t end end was exist proving the million. valuable, to So, we lower felt

going the SG&A is forward, level to about What lower? be fourth quarter going or at that

SG&A?

Yes.

adjusted like the with going quarter higher lower, the will and the the first well, things that auto Yes, forward 'XX, be usually fees now that. in it

just -- we're SG&A auto lower. so but because So XXX to now, wonder right be

And execution done focus, think have better I working the of over we're control under we're and over not focused, a we it's much team on getting all have with we got we executing we're reasonable I the are our staffed. staffed, now, the and programs so time think budget. but the not issue we've good focusing definitely a on very question on expenses

many How were employees go? actually let

-- exact don’t an I about was it can't I XX. you but number, give

XX. Around

Yes.

staff. I've So, a we the watched in you, employee from time have confident, wall have watched Reminder there. only we I'm grow I -- that it good plugged $X.XX a good telephone a and the the was into from the Company

So I at of like. staffing sense what I least have adequate looks experienced an believe

So you manufacture to the increase production? orders, an will the based to Autothrottle then staff increase there in on when begin be

than might be big Remember, -- of labor. revenue. represents our less but labor It our there's direct X% direct a very

labor. we’d adequately have automatic on mindful P&L. that support manual we stuff that it’s news and it, the The of double impact good remarkable I very the that, staffed to happy if We’ve make want of takes think is sure the care is we’re that a small very little is to demand I we’re So, that design just that takes a it. point

remarkable. I machinery automatic mean really can robotic manufacture XX% it’s that that -- we’ve it. So, virtually of quite

And the that’s KC-XX program continuing? tanker

is. It

potentially obsolescence and that in issue. We’re requalification of

our along Boeing in is moving fine is here smoothly fact it’s today. support So, and

congratulate their raised their them, you substantially see dividend. they when raised them today, Well, dividend

good last a that I thing. good stock guess has that’s a Well, XX times, growing good. bit, about bit, make I over little product. a the a the grown pretty can years, you is tell they That’s little XX so

backlog have -- press the I So don’t don’t a figure, you release? us I did know give

X.X million.

million. X.X

X.X unchanged. million, basically is the backlog

any of long doesn’t the Yes, reflect the term programs. backlog

KC-XX We So, a we UMS. in in don’t that some all or have have renewed We quarterly products the on are cases basis. of the of backlog. don’t number sitting annual have a don’t

because XXX orders, obviously will order and year be piece So, that over it’s are appropriately that an that lot giving prefer the and of always renew for XXX days a annual more people on period XX to than gone, XXX they and the way basis. just

When for they’ll you orders get won’t they? operators, Autothrottles fixed the base from come

bunch a from of from they'll come they'll FPOs, -- come They'll come from fleet owners.

For which PTX -- of. to at this Anyway, working Autothrottle type aircraft hard of and broad apply force NBAA. It's beginning people going, the it, XXs we’re is found some looking real a of remarkable it there we’re I a record on YoutTube, is growth X,XXXs them somebody owners, of to about fleet interview terrific. we’ve see week, and was got industry, And of there, we’re range out to amazing. first got in they at like the seeing XX,XXX an it the online in many

authorities need STC no to that Autothrottle. for there’s the get But get other you’ll the once you

except your Regarding get Then every that of twin correctly associated that to would the which is them they easier, and kind expect technology that that sure STCs has make the much operation. done STC prudence are the with twin new doing the that. FAA one is showing from on this what get should big have and gotten, aircraft, subsequent is to STC, things you’ve be an you you

I airplane happy are As get know get that every much and what anxious to how doing think I time done, they as the respect actually they in through problem. get an I in

got all. approach. of judicious have limits have their So at no I their complaints been They obviously supportive, within

up Autothrottles? fixed of Or to Now will installations those doing base operator. will the fleet, be be you the really these

the dealers, it could two the aircraft by very it’s a a day easy installation. one installation day on depending All or be

the dealers. By

don’t make the a that solution. a good they additional revenues, their it’s to it's answer, me of product, by marking good And gives all revenue have so up

will on orders hope get some then get Let's we the and STC our we be let's get orders, we way. done some

Okay, thank you.

next And Clemens go Charlie from Pine Co. & the of question ahead. be will Please Van

been about is to a forward. things have going talked about restructuring with questions In the X.X to like address. I you're going you savings last of other the my of there Some but you million answered, have would quarter have cost few that

else an know track reduction everything R&D QX. was had obviously because line. your in fourth XXXX? Are savings on impact with You workforce But I'm basically to I to guess million on X.X to the flat able you in quarter of in be cost the SG&A still your curious and deliver

Yes, in the was you absolutely. you by I before don’t to obviously consulting for see fourth to the somewhat Geoff SG&A I -- expense. mean talked as saw is I it saw quarter us impacted what referred yes,

see of gross you cost all seeing were structure. I you see more the the in the so margin. different you R&D had percentage So in mean, of that you And obviously -- phases see. it we higher margin on sales, lower

the I wanted to the thing pursue was ThrustSense. STC you other The with about on

completed their doing the tests is be on will work has the long flight you testing? spending And test. to You next stage you said flight anticipate? that how have that they do the your testing FAA many and flight flight How do

itself have and of recognize testing et you paperwork about for by the you over it Year finish done flight three the a XX is and per hours is day only four but they entire and getting probably Well, se solicited all industry in the period comments testing, and went big that a of have evaluating Christmas all part, have weeks taking Thanksgiving time New and the of middle then then in so you then the and cetera the that. you report takes then out and

effectively other of working more than guarantee actually harder government they I you that any and is, part our think I are might I'll add.

they so hear to have good to That’s be…

much and honestly continue they by We but to if doing actually are so still that encouraged doing expected typically STC the they that did which I'm flight without January. watch is move. in to it's first a it, this it a the we stand going nothing the it's that of in until fact business deliberate case, something we every little but absolutely my that they get year would to as of on to down think because slows actually, way before -- it difficult are Thanksgiving moving I finished I everything, actually painful, and the And we see into stop. be retainment that effectively

in a clarify, flight the succession to it's test… so words number individual Okay, just not of other of

No.

one just flight the FAA. getting -- will four we're there just be by So, test hour

it test, special and is, from five already Certainly, Probably test their mitigation, more to in discomfort included. flying amount out advancements different the to flight but like certain than been system flight they've it's try that actually know together, people the to add terrific, and I we're different might FAA they've get that way technology. mitigation you VMC the oriented features assessed four has airplane to new that familiarity branches the a two than witnessed with myself the the the hours of here staffing had up with stay they of going right co-operative very gone But certifying. all be with more out with it and odd these recognize done engine of

testing time we that this So, done. a I'm into cautiously holiday run to time go optimistic, and trying we've unfortunate get flight it's at just

flight goes on that the line So testing time being you the for. are that hoping if said,

an process wind cautiously you they you are second being the your pretty the You by that feel having at and might it. quarter? they STC up works feel process feel committed of making optimistic but the to smoothly, end rigorous Do seem to

in Europe and the on in are we're optimistic. it's going I we're to us in patents that And -- aircraft patents and And get of record the that by to why applications exception. without a States that -- without patent works way seeing United a this, number really I you application was work well and for we important other. lot have other we're it's so with some extremely to issued remember much say signed-off do system by happy than like office by did, very an the to have comment it both were broad time done, of the increasing never don’t I this and Yes.

program. So, we are enthusiastic about this

done afterward until the actually an from from Air? how has recognize to Once you'd nothing it's you do King start able that be recognizing quickly you STC, things, revenue have done. other of do couple to think in Okay, hand it

Some revenue immediately. almost

to great Okay, well that's hear.

by that we there. to the quarter. opportunities there’s quarter Once be in near Right of calendar end we the airplane would believe install that an now, second ready it’s first quarter the served can go out or -- and it first

by would and expect doing we spring, installations. it’d be So,

with these if that, there’s Pratt And you Whitney which of little that could color said actually engines, & could candidates. literally & give thousands Whitney said bit be also of similar a tens Pratt other you planes there’s you more

way, most of the to the got system is plane, universal by called we’ve remember a number I probably it’s new drone also out. It’s a numbers, XX,XXX. enquiries of And the the our for XX,XXX it’s on and that's and literally PTX don’t drones, kind works coming

simple of So, thing answer we extremely it, application it’s compact, so of we get done. unique is for get done, lot small freaking a just it and look, kind very the and see reliable,

Well, a it. we’ve time here waiting out long been for

we that certainly occur, and ready to believe for able So, and us. were willing

you a well. remember as I'm I know stockholder me Believe

well am I aware and that, of okay… Yes

representation what I have judgment that's of of The And alter independent all. in times the the give the me -- to look I do complaints. support when say, an to a in they careful value let’s tell try will reasons outside to you're come accurate do to at my second, support, this Autothrottle. that's why you company that enthusiasm wait analyze And you webcast got be an as great. strongly and planning would that you the market? try and to believe no we I have. one part have I'll I'll my of I what be doesn't give

about we’re to run just I a this so be So, sensible approach, mean, trying little we don’t too adolescently, right. all off

so there on Okay, last check a Is still… that I YouTube out can that you to the referred ThrustSense actually was Is video there? thing myself. just

Yes, should be on the site believe. I

try send of couple we’ll There’s YouTube they website, site one Rell look and you’ve -- you he’ll available, see videos. our -- the was at give I them We’ll and of can if of a be You show. a the you’ll call there all and should one in the at problem, right. you the system to but think

will next question the go Blackwell. Please And Steve Rudd from ahead. be of

of started you've of Shahram, chat earnings. that for we QX Is then it that negative of a first interpret see in to choppiness all saying go quarter things some going head and the us direction? it? to which Is one that the understand into we way more start in a positive last be about course one out choppiness by to Just your there’s euphemism is that for

that's I and seeing we close. think What we is going that are are revenues up backlog the that are seeing is pretty growing.

you're to me Autothrottle of out part it compelling most safety that’s these just curiosity when of the own the maybe, just orientation. calling my features and Maybe yet

because throttle, think did that closely I line like or safety more other throttle autopilot explored it's call auto it in You names you the what optimal car? feel marketing,

ThrustSense and think it’s what is actually I we a named it have trademark.

so. people out what word it a It’s know means don’t

that is what put ThrustSense. -- actually sense it you in a Why thrust puts than on more speed it's control, Like it's it common intelligence airplane. any has

think that’s was I better. No,

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question-and-answer our disconnect conference And ladies call will that you for lines. will this and conclude session gentlemen, and We attending our also for you that today's your today. may thank conclude presentation. And at time,