Revenue during the quarter surged 98.29 percent to $6.22 million from $3.14 million in the previous year period. Gross margin for the quarter expanded 3354 basis points over the previous year period to 54.41 percent. Operating margin for the quarter period stood at positive 8.78 percent as compared to a negative 91.94 percent for the previous year period.

Operating income for the quarter was $0.55 million, compared with an operating loss of $2.88 million in the previous year period.

Geoffrey Hedrick, chairman and chief executive officer of Innovative Solutions & Support, Inc. said, "Fiscal 2016 was a year of significant improvement, returning to positive growth in revenues, profits and cash flow, while also positioning ISSC to capitalize on emerging opportunities expected to arise with the approach of new NextGen mandates. We believe our strategy is sound and is working as we transformed the nature of our revenue over the past year so that we now generate over 90% of our revenue from profitable production contracts. The transformation of the air traffic control system, often referred to as the “NextGen mandates”, holds great promise, as it is expected to yield significant improvements to both aircraft safety and performance. Over the past year, we have significantly increased our commitment to internally developed new products and are expanding our distribution channels in order to further penetrate this market. "