Article: Innovative Solutions & Support, Inc. Announces Financial Results for the 1st Quarter Ended December 31, 2006.

EXTON, Pa. -- Innovative Solutions & Support, Inc. (NASDAQ:ISSC) today announced results for the 1st quarter ended December 31, 2006.

Sales in the first quarter of FY 2007 were $3.4 million. This compared with sales of $5.4 million in the first quarter of FY 2006.

Gross margin percentages were 41% in this year's first quarter and 50% in last year's first quarter. The lower margin this year was the result of lower sales in the current quarter as opposed to last year.

In this year's first quarter, the Company incurred a $(1.1) million net loss or $(0.07) per fully diluted share as opposed to a break even position in the first quarter of FY 2006.

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