PASSUR® Aerospace Announces 12% Revenue Increase and Results for the Third Quarter Ended July 31, 2018
STAMFORD, Conn., Sept. 21, 2018
STAMFORD, Conn., Sept. 21, 2018 /PRNewswire/ -- PASSUR® Aerospace, Inc. (OTC: PSSR), a global leader in digital operational excellence, announced revenues of $3,716,000 for the three months ended July 31, 2018, compared with $3,332,000 for the same period in fiscal year 2017, an increase of $384,000, or 12%. For the nine months ended July 31, 2018, revenues totaled $10,731,000, compared with $10,371,000 for the same period in fiscal year 2017, an increase of $360,000, or 3%.
"We are seeing positive results from our recent investments, which justify their continuance," said Jim Barry, President and CEO. "Global airlines, airports, and service providers need digital operational solutions that help deliver greater value to their customers. PASSUR's objective is to deliver unique comprehensive solutions from our proven suite of cloud-based products and operational consulting."
Our total revenues for the three months ended July 31, 2018 increased, as compared to the same period in 2017, primarily due to an increase in subscription revenue of $267,000 and consulting revenue of $117,000. Our total revenues for the nine months ended July 31, 2018 increased, as compared to the same period in 2017, primarily due to an increase in subscription revenue of $158,000 and consulting revenue of $206,000. The increase in subscription revenue, for the three and nine months ended July 31, 2018, was primarily due to new contracts closed during fiscal year 2018 and net incremental revenue recognized during the periods in fiscal 2018 related to new contracts closed during fiscal year 2017.
We strive to be continuously profitable, but, to provide long term value to our customers and shareholders, we must continue to invest in our future. To optimize our long term objectives, we are working to scale our business to meet anticipated future demand for our offerings. We have already entered into agreements and partnerships with several major companies and are working to implement others. These future partnerships, if successful, could expand our product offerings, increase our potential customer base, particularly in the international market, and provide additional resources to fuel our growth. The cost and timing of our increased investments in operational excellence have enabled the Company to build the capability to more quickly scale to accommodate future global customer demand, but these investments, and others, increased costs of revenue and caused a reduction in gross profit margins.
For the three months ended July 31, 2018, the Company incurred a net loss of $2,677,000, or $0.35 per diluted share, compared with a net loss of $598,000, or $0.08 per diluted share for the same period in fiscal year 2017. For the nine months ended July 31, 2018, the Company incurred a net loss of $4,868,000, or $0.63 per diluted share, compared with a net loss of $720,000, or $0.09 per diluted share for the same period in fiscal year 2017. Contributing to the operating losses for both the three and nine months ended July 31, 2018, were non-cash charges aggregating approximately $1,476,000, associated with an increase in the reserve for slow moving PASSUR Network parts and supplies as well as write-offs certain Network systems, and software.
Below are some business highlights during the quarter:
- Signed a contract with an additional international airline. A fast-growing overseas airline contracted with PASSUR to help identify and implement the improvements needed to successfully execute the airline's strategic growth plan, leveraging the expertise of PASSUR's Business Intelligence and Solution Architect teams.
- Signed a contract with DLA Piper LLP, as part of its engagement with the Port Authority of New York & New Jersey, to be its sole industry advisor in connection with an investigation conducted and delivered by former U.S. Department of Transportation Secretary and Senior Policy Advisor at DLA Piper Ray LaHood into the events at JFK Airport during and following the winter storm of Thursday, January 4, 2018.
- Deployed PASSUR Regional Diversion Manager (PASSUR RDM™), the first product of its kind, with Dallas/Fort Worth International Airport (DFW), 21 surrounding regional airports, and airline stakeholders. RDM utilizes PASSUR's extensive network of airlines, airports, as well as other key aviation stakeholders to minimize the impact of major weather events and resulting diversions.
- Signed a contract with another major airport to purchase PASSUR RDM in September, 2018.
About PASSUR® Aerospace, Inc.
PASSUR Aerospace (OTC: PSSR) a global leader in digital operational excellence, provides predictive analytics and decision support technology for the aviation industry, primarily to improve the operational performance and cash flow of airlines and the airports where they operate. PASSUR Aerospace's information solutions are used at the five largest North American airlines, by more than 60 airport customers and used at the top 30 North American airports, by over one hundred business aviation customers, and by the U.S. government. PASSUR owns and operates the largest commercial passive radar network in the world that provides aircraft position updates every 1 to 4.6 seconds, powering a proprietary database that is accessible in real-time and delivers timely and accurate information and solutions via PASSUR's industry leading algorithms and business logic included in its products. PASSUR, Airwayz, NextGen2 and NextGen3 are trademarks or registered trademarks of PASSUR Aerospace, Inc. in the U.S. All other companies and product names of those companies contained herein may be trademarks of their respective holders.
Visit PASSUR Aerospace's website at www.passur.com for updated products, solutions, and news.
PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
July 31, 2018
October 31, 2017
Accounts receivable, net
Prepaid expenses and other current assets
Total current assets
PASSUR Network, net
Capitalized software development costs, net
Property and equipment, net
Liabilities and stockholders' equity
Accrued expenses and other current liabilities
Deferred revenue, current portion
Total current liabilities
Deferred revenue, long term portion
Notes payable - related party
Total stockholders' equity
Total liabilities and stockholders' equity
PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
Cost of expenses:
Cost of revenues
Research and development expenses
Selling, general, and administrative expenses
Loss from operations
Interest expense - related party
Loss before income taxes
Provision/(benefit) for income taxes
Net loss per common share - basic
Net loss per common share - diluted
Weighted average number of common shares outstanding - basic
Weighted average number of common shares outstanding - diluted
Louis J. Petrucelly
SVP Marketing and New Business Development
SVP & Chief Financial Officer
SOURCE PASSUR Aerospace