John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Innovative Solutions & Support Is Overlooked With A Significant Near-Term Catalyst

Company overview

Innovative Solutions & Support (NASDAQ:ISSC) supplies flight information computers, electronic displays and advanced monitoring systems to the civil, military, business and commercial markets.

A false start before rapid growth

Although ISSC jumped 22% after releasing earnings last month, it has since given back almost two-thirds of the gains, providing an attractive entry point.

In the mrq, revenue increased 70% to $11.1 million driven primarily by higher display shipments for retrofit programs and customer support of its engineering development programs while operating income increased 266%. These results are even more impressive considering that 37% of revenue was invested in product development.

Management expects continued top and bottom line growth in FY14 during the transition from...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details