Revenue during the quarter plunged 46.27 percent to $4.65 million from $8.66 million in the previous year period. Gross margin for the quarter contracted 1763 basis points over the previous year period to 50.53 percent. Total expenses were 35.84 percent of quarterly revenues, down from 77.22 percent for the same period last year. This has led to an improvement of 4138 basis points in operating margin to 64.16 percent.

Operating income for the quarter was $2.99 million, compared with $1.97 million in the previous year period.

Geoffrey Hedrick, chairman and ehief executive officer of IS&S, said, “We are pleased with the $7.75 million settlement and the end of the distraction of the lawsuit with Delta. We obtained a Federal Aviation Administration (FAA) Supplemental Type Certification (STC) and delivered the first of our PC12 flight deck, further expanding our product portfolio. We contracted with one of the world’s leading MROs, Lufthansa Technik, dramatically expanding our worldwide distribution network. These are both strong contributors to our future growth. The new STC’d PC-12 NextGen Flight Deck, is fully integrated with our Turbo Prop Autothrottle. This is a first of its kind a product for which we have an STC pending, and for which there are strong growth expectations. We believe the steady progress we are achieving is further solidifying our ability to provide the best price-for-performance solutions to the impending demands from the implementation of NextGen mandates.”

Cash conversion cycle (CCC) has decreased to 141 days for the quarter from 148 days for the last year period. Days sales outstanding went up to 133 days for the quarter compared with 86 days for the same period last year.

Days inventory outstanding has decreased to 85 days for the quarter compared with 142 days for the previous year period. At the same time, days payable outstanding went down to 77 days for the quarter from 80 for the same period last year.