Good day, and welcome to the Innovative Solutions and Support Second Quarter 2021 Earnings Conference Call and Webcast. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Geoffrey Hedrick, Chairman and Chief Executive Officer. Please go ahead, sir. Good morning. This is Geoffrey Hedrick. Welcome to our conference call to discuss our performance for the second quarter of fiscal 2021, current business conditions, and outlook for the coming year. Joining me today is Shahram Askarpour, our President, and Rell Winand, our CFO. Before I begin, I'd like Rell Winand to read our safe harbor message. Rell Winand? Thank you, Geoff, and good morning, everyone. I would remind our listeners that certain matters discussed in the conference call today, including new products and operational and financial results for future periods, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse from those discussed, including other risks and uncertainties reflected in our company's 10-K, which is on file with the SEC and other public filings. Now I'll turn the call back to Geoff. Thanks, Rell. It was a stronger quarter with revenues up, margins up, cash flow positive, and a solid bottom-line profitability. In addition, new orders were strong, and we ended up the quarter with a sequentially increase in backlog. Over the past several years, we have implemented a strategy to establish a better balance of OEM and retrofit revenues from a more diversified set of products to reduce volatility and provide a broader foundation for our continued growth. These efforts continue to succeed. As the pandemic recedes, production contracts are now producing steady, predictable revenues from some of our largest names in aviation, Pilatus, Textron, and Boeing. Sales of our patented autothrottle continue to grow. Most recently, we announced that Textron had added our autothrottle as standard equipment to another of their new King Air aircraft, the King Air 260. In addition, we have been shipping to their global network of service centers for retrofit applications where pandemic has been slowing adoption. In its recent quarterly report, however, Textron indicated they expected the retrofit market to improve and could open a significant market opportunity that is multiple times that of the production market. The cooperation and relationship with Textron has been very strong and very rewarding. We believe that we could develop additional opportunities across their product portfolio. The success of our ThrustSense technology in general aviation is creating opportunities in other markets, such as the military, air transport, and several multi-engine aircraft. We currently are seeing interest from far beyond King Air. One reason for this interest is that we have the only autothrottle with LifeGuard that is easily retrofittable. This is appealing to owner-operators because it means they don't lose revenue and can use their aircraft and prevent loss of control. Currently in development is an autothrottle that will offer customers a simplified solution at lower costs. This will allow us to penetrate the lower end of the market, which is substantially larger than the turboprop that we sit at now. The same features that we offer in the turboprops, we now offer in turbofans or turbojets. As a result, we're seeing interest from multi-engine aircraft, much bigger airplanes, even with four turboprops. That they are asking us to supply an autothrottle, and we are looking at several military aircraft making the same requests. In addition to the growing interest to our autothrottle, there remains strong demand for our legacy products. For instance, cargo conversion upgrade activity remains strong and growing, leading to continued demand for our flat panel display technology and upgrades to existing systems such as synthetic vision, upgrades to Eclipse, and other source of future growth. One of the key advantages to our retrofit is it takes approximately 1/5 of the amount of time to modify an aircraft, meaning that they save 100,000 of dollars in lost revenues from the aircraft. With the first half of fiscal 2021 now completed, we feel we have made significant progress and are enthusiastic about the opportunities we expect to arise as concerns about air travel and global pandemic begin and continue to fade. While the ongoing global pandemic continues to present its challenges, we remain confident that there are, over the longer- term, unique capabilities and unparalleled price for performance advantages of our technology will strengthen our hand and our brand globally. I'd like to turn it over to Rell now for the details of the financials. Rell? Thank you, Geoff, and thank you all for joining us this morning. Looking at the second quarter, revenues were $5.1 million, up 5.9% from $4.8 million a year ago, primarily due to increased shipments of King Air autothrottle systems to our OEM customer. Gross margins for the quarter were 56.7%, improving as expected from both 47.5% in a year ago quarter and 52.7% in the previous first quarter. The improvement reflected reduced material costs due to product mix, partially offset by higher labor costs. Total operating expenses for the second quarter of fiscal 2021 were $23.4 million, up a marginal 2.1% from a year ago and down 1.8% from the preceding first quarter of fiscal 2021. We continue to emphasize tight operating cost control, and we believe current quarterly operating expense levels will be maintained for the balance of the year. Research and development expense decreased from the year ago quarter, but primarily the result of a higher proportion of efforts focused upon product development programs that were allocated to cost of sales in the quarter. Research and development expense was almost 14% of quarterly revenues, which is a reflection of our strong commitment to innovation and new product development. Selling, general, and administrative expenses were up 4.6% from the year ago quarter as a result of an increase in payroll-related benefits, partially offset by reduced trade show expense. For the quarter, we generated net income of $609,000, a 39% increase from 438 in the year ago quarter. The company remains in a strong financial position with cash on hand of $6 million at March 31st, 2021. Our cash position is net of nearly $20 million of dividends dispersed in the fourth quarter of calendar 2020, bolstered by approximately $600,000 of positive cash flow from operations in the second quarter. We anticipate being operating cash flow positive for the full year. The company is debt-free. Consequently, we believe the company has sufficient cash to fund operations for the foreseeable future. Now I'd like to turn the call over to Shahram. Thank you, Rell, and good morning, everyone. The solid financial results that Geoff and Rell described are a testimony to our brand recognition, our business model that focuses on both OEM production and retrofit opportunities, and the diversity and high quality of our customer base. This quarter, we saw strong performance in our OEM production contracts, which have generally proven to be less sensitive to the influence of the pandemic. For instance, Textron recently noted that virtually every model of jet and turboprop they have is seeing strong activity. Adding interest in the acquisition of new jets was still largely driven by personal travel, but corporate aviation departments are starting to come alive. This is not only encouraging news for our Textron business, but also for our Pilatus PC-24 business as well. We believe these programs, as well as our KC-46 contract with Boeing for the U.S. Air Force to run for several years, offering a stable foundation of predictable recurring revenues from which to build. Geoffrey briefly mentioned our development of a more easily retrofitted autothrottle. We are working on a single-button, simple operation autothrottle that will offer lower cost installation. The single button faces a high-resolution OLED display that occupies minimal cockpit space. It can be installed in multiple aircraft with different cockpit layouts, and its generic nature will significantly reduce the time and expense of obtaining FAA certification on multiple platforms. Autothrottle remains a top priority of our research and development budget. The retrofit market is experiencing some weakness as the pandemic curtails travel, while also creating some degree of caution among buyers. Nevertheless, we are having retrofit success in the air cargo market, where the growth of online shopping continues to drive strong cargo conversion activity. Once again, shipments of flat panel display systems for 757 and 767 remain robust. With many of over 1,000 operational 757 and 767s still available for cargo conversion, we expect to see our flat panel display business remain strong. On the military market, as Geoff noted, our KC-46 program remains on track, and we remain optimistic that the air data computer developed for the U.S. Navy can penetrate foreign military markets once limits on international travel and other similar restrictions are lifted. New orders in the second quarter of fiscal 2021 were $7.6 million, and backlog as of March 31st, 2021, was $6.7 million, up $2.5 million on a sequential basis from $4.2 million on December 31st, 2020. We continue to aggressively pursue growth opportunities in both the production and retrofit markets. However, as has been previously noted, safety protocols throughout our industry, from those at the FAA to those restricting travel to certain countries, to individual companies' in-person meeting restrictions, remain a headwind. As these restrictions are lifted, we believe there is a growing market of owners and operators interested in adopting our autothrottle technology. Before turning the call back to Geoff, let me quickly note the effort of our employees to integrate new safety protocols to our standard operating procedures and how this has enabled us to maintain productivity without jeopardizing their health, safety, or well-being. I'd like to turn the call back to Geoff for some closing remarks at this time. Thanks, Shahram. The second quarter was another quarter in which we achieved the objectives we believe best build shareholder value, revenue growth, profitability, and positive cash flow. The second half improved sequentially from the first half, a solid start to the fiscal year. Backlog also rose. All signs of healthy growing business. In the second half of calendar 2020, we distributed nearly $20 million in dividends, showing our commitment to rewarding our loyal shareholders. We remain optimistic about Innovative Solutions and Support future, and we thank you for the ongoing support, encouragement, and audience today. Operator, please turn this over for questions. Thank you. We will now begin the question- and- answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. And at this time, we'll pause momentarily to assemble our roster. Again, to ask a question, please press star then one. And the first question will come from George Marima with Pareto Ventures. Please go ahead. Yeah, good morning, Geoff. Thanks for taking the call. A couple things. I wanted to ask you on the new orders for Q1, did a lot of this come from the Boeing, sort of the cargo retrofits, or was it a lot of OEM orders? Let me have Shahram answer that in specifics. The distribution generally was more uniform than even we had anticipated. Shahram, can you comment, please? Sure. Yes. we received new OEM orders from Textron, Pilatus, as well as Boeing. Yeah. As well as on the cargo market, we had strong retrofit orders. Yeah. That's Q2. You said Q1. He meant Q2. Oh, yeah, the current quarter. Yeah, this quarter. I think he meant Q2 of 2021. Yeah. Yes. What's rewarding is the demand at Amazon continues. Yeah. Okay. Yeah, I just want to see how heavy it was. Because I know on the OEM business, like the King Airs, they only produced seven planes in Q1, but that's their seasonal low quarter. It just goes up sharply from here into the fourth quarter. I'm talking about calendar quarters now. Yes, I just want to see the flavor of the ordering there on how it came. Also, I was excited to see in your press release about your new low-cost product, which sounds like that is going to address the piston engine market, correct? Bingo. I'm sorry, what? I said bingo. I'm sorry. Bingo. Okay, yeah. That's what I thought. Okay. What we believe is, it turns out the technology turned out to be ideal. We were able to reduce our cost probably in half or better, and to produce a simpler, lower cost installation. We see this as a broad application to a lot of the Textron product lines, and also, a very easy retrofit. It reduces the retrofit time in less than half. Oh, wow. Okay. It's cool. It's a very good product. Yeah, it's very nice. the new product can also be applied to the King Air platforms as well? Yeah. Yeah. You could put it in a King Air. The question is, do you want it? Well, what it does is, it allows you to operate the auto throttle far more simply. There's no setting of numbers or anything else. You push a button on and off, basically. it makes it much- Yeah simpler to operate. the real advantage to it is that, it will provide a very fast retrofit time. Yeah. Well, I'm also excited about the piston market because, as you know, that's a huge market. How about the B58? They made 8,500 of those, and they still have common problems with all twins that we have a solution for. We think it's going to be a very good product for us and for Textron. Textron has been remarkably supportive. We're delighted. About how long do you think until this becomes available on the market for retrofits and all that? It'll be soon. It'll be soon. Okay. Actually, I can't. This is an engineering program at the same time. It's pretty much done, actually. We're in flight test now, but, like everything, as soon as you give it a date, you know you're going to slip it, so. Yeah I'm being a little cautious. you're thinking 2021, though, it sounds like. Absolutely. Yeah. In terms of the retrofits, what is the cadence going on right now, and what do you anticipate? Well, I guess this new product will change the inflection on that, you predict, but, what's the current cadence of the retrofits? It's a sort of a steady progression. As more and more people install it, they feel more comfortable with it, et cetera. Most importantly, remember, auto throttles were always considered, especially when we got started, people said, "What the hell do I need an auto throttle for? I don't need a cruise control. I want to fly my airplane." Well, our most recent product, which is tied to the one button, literally means that you can fly the airplane just like you always did, except it provides a background safety, so that you get the effect of FADEC engine and safety controls that have never been seen before. It's the ideal situation. It's for the pilot that says, "I still want to fly my airplane, but I would like all those safety features." This does both. Okay. My last question is, in terms of supply chain, of getting product to make your product, is that okay right now, or are you having a lot of problems with that? You mean trying to get parts? Yeah. Yeah. Look, I've been through this over the years, but I think, it'll work out. We have a couple of choke points that we're monitoring carefully, but I'm not overly concerned. Okay. so far, you've been able to make product and ship product, it sounds like. Oh, yeah. We're doing that now. Yeah. Remember, we also have inventory in. It's not a simple answer, but in general, that's an accurate one. Yeah. Okay. Thank you, Geoff. Thanks. The next question will come from Michael Frederick, Investor. Please go ahead. Morning, gentlemen. Congratulations on the quarter, the new products. I had a question for you about the turbo fan market. Are you guys finding that your auto throttles are actually displacing existing FADEC-like auto throttles that are on the marketplace? No, you wouldn't replace a FADEC auto throttle. What our auto throttle does is it puts the FADEC attributes, like protection against over temperature, over speed in a turbo fan, over torque in a turbo prop. It provides those safety controls and prevents you from these horrendous damage you can do to turbo props easily get a half a million dollars worth of damage in literally a couple of seconds. This prevents that. That's why you have it. You have it, even more importantly, to prevent loss of control accidents, where allowing the airplane to get too slow, you lose control, and it's catastrophic. Our auto throttle has got a patented feature that prevents that. Those are the strengths of it, but we're not going to replace FADEC. Remember, about 80% of all the engines out there are non-FADEC. Okay. Now, the big engines, we're obviously not going to go after the big air transport engines because they're all FADEC. we can provide similar operation in a non-FADEC engine. You're saying that most existing turbo fans are not FADEC. Most existing turbo props. Now, I don't know about turbo fans, but I'm going to tell you that it wouldn't surprise me that there's a significant number, if not a high percentage, of turbo fans that are non-FADEC. Got it. Another question for you, Geoffrey, is on the new product, when we're talking about piston planes like Cessna and whatnot, I know there are all different levels of pilot certification, like some people can only fly during the day, others have instrumentation approvals and everything. Would the implementation of auto throttle actually help accelerate a pilot's ability to move up that chain? Actually, we don't look at it that way. I'll tell you how we do look at it. Primarily, the system was conceived to take the workload off of the pilot, which is important. Remember, even though you're taking the workload off of it, you still got to be prepared and capable of managing it without the thing operating. You don't gain a great deal there. Where you do gain, we believe, is a safety feature which is unique to our technology. We're the only people in the world that provide proportional mitigation of slowing airspeed, loss of control. You only have to look at the Addison crash to see what happens to an airplane when it gets too slow, and that's why people are strongly warned against it. In our case, we have something that actually proportionately controls the power on the engines to keep the flight path stable. Understood. Geoffrey, just ballpark, do you have any idea what percentage of the piston market is actually dual props as opposed to just single prop planes? No. I mean, I would be- I know you can't, but you're I can tell you there's an awful lot of piston twins. Twins, right. Okay. A lot. that's where you're more applicable to the twins, correct? Well, no, we're applicable to everything. I mean, the single engines, we started with the PC-12, and it does a great job there. It manages the airplane in a way that most operators marvel when they see the airplane take off because it sounds like a single when it takes off, whether it's single or twin. Now, the twin, the advantage we have with the twin is this patented loss of control accident, and nobody's done anything about it for 100 years. The problem existed 100 years ago, but nobody had a solution. We did. We finally came up with one, and it doesn't cost a lot. That's the good news. Yeah, you guys certainly cracked the code. Well, that's all I have for you, Geoff. Congratulations. Hopefully, all this mania will get behind us soon, and you guys will be back to full speed. Yeah, well, I appreciate that. Yeah, we're working at it, and we have a good team. The team works well. I'm proud of them. I know you do. I've been with you for a while. Well, keep going, okay? Take care. Thanks. This concludes our question- and- answer session, as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect. Thank you, gentlemen. Thanks.