Gowshi Sri's questions to INNOVATIVE SOLUTIONS & SUPPORT (ISSC) leadership • Q4 2024
Question
Inquired about the company's military strategy, including drivers for market share gains, management of long sales cycles, and the target revenue mix. He also asked about technology synergies between military and commercial products and the potential impact of Boeing's production issues on the retrofit market.
Answer
The company's military growth is a result of a strategic shift started three years ago. They are managing longer sales cycles by investing in infrastructure like a new ERP system and enhanced facility security. While they aim for a balanced one-third mix across military, business aviation, and air transport, recent acquisitions will temporarily skew revenue towards military. Their strategy is to develop core technology (like the UMS2 with AI) adaptable for all sectors. They confirmed that issues with new aircraft production are beneficial for their retrofit and maintenance business.