BOSTON (Thomson Financial) - Shares of Innovative Solutions & Support Inc.
hit a 19-month low Thursday following the Exton, Pa.-based monitoring systems
manufacturer's wider-than-expected fourth-quarter loss of $4 million, or 24
cents a share.
Included in the loss was $1.5 million in legal expenses related to an
intellectual property defense and $1.5 million in engineering-related costs.
Analysts polled by Thomson Financial, on average, expected a loss of 10
cents a share.
"Revenue of $5.1 million, an 11.8% increase year-over-year, was below our
estimate of $6.5 million and the Street consensus expectation of $6.2 million,"
Northland Securities said in a note to clients.
The firm cut its rating on Innovative Solutions to underperform from
outperform and reduced its 2008 earnings estimate to 2 cents a share from 55
cents a share. Analysts, on average, estimate 2008 earnings of 48 cents a share,
according to Thomson Financial.
The stock dropped to as low as $11.60 before paring some of its losses to
change hands at $12.03, down about 12% on the day.
Greg Saulnier
gs/jw
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