PASSUR Aerospace Reports an Increase in Net Income of 9% to $2.9 Million for Fiscal Year 2012
STAMFORD, Conn., Jan. 30, 2013 /PRNewswire/ -- PASSUR® Aerospace, Inc (OTC: PSSR), a business intelligence software and solutions company, announced that net income increased 9% to $2,861,000 or $.36 per diluted share for the fiscal year ended October 31, 2012, compared to $2,634,000 or $.39 per diluted share in the fiscal year ended October 31, 2011. Included in net income for fiscal years 2012 and 2011 was an income tax benefit of $1,776,000, and $1,572,000, respectively.
Total Company revenue decreased 8% to $12,507,000 for the fiscal year ended October 31, 2012, compared to $13,609,000 in the fiscal year ended October 31, 2011, despite all-time record revenue of slightly over $10 million from the Company's North American airline, airport, and business aviation sector. Fiscal year 2012 revenue from this sector was about 7% above fiscal year 2011's level of approximately $9,500,000. For the first time, PASSUR customers include all eight of the top eight North American airlines.
Revenue from PASSUR's international, professional services, and government sector dropped approximately 43%, to about $2.4 million, compared to approximately $4.3 million in fiscal year 2011, as a result of the completion of a government contract and of a professional service engagement.
Operating profit for fiscal year 2012 decreased approximately 30% to $1,378,000, compared to $1,974,000 in fiscal year 2011. Income before taxes increased $23,000, or 2%, to $1,085,000 in fiscal year 2012, compared to $1,062,000 in the prior year.
PASSUR's major achievements and developments during fiscal year 2012 are summarized below. The Company:
- now sells to all eight of the largest North American airlines.
- announced a significant contract with a major airline for a system-wide implementation of all the major modules of PASSUR® Integrated Traffic Management (PITM). PITM is a web hosted integrated business intelligence platform that targets key constraints through the entire lifecycle of the flight, to optimize fuel costs and emissions, schedule integrity, and the passenger experience.
- significantly expanded contracts for PASSUR® Integrated Traffic Management (PITM) with deployments at three major airlines and a major airport.
- significantly expanded the Company's Collaborative Decision-Making (CDM) program into business social media and industrial social networking, to leverage new social media technologies, and new protocols in collaboration, communication, and information sharing, including:
- launched and significantly expanded the Airport Information Network (AIN), which addresses the industry's need for more effective, coordinated, and collaborative responses to diversions and tarmac delays by consolidating PASSUR®'s Tarmac Delay, Diversion Management, and field condition capabilities onto a single, national aviation industry platform. At the close of fiscal year 2012, AIN had more than 100 participating airports, 8 major airlines, and more than 500 individual aviation professional users. AIN is directly tied to the new international CDM program launched with our partner, the International Air Transport Association (IATA).
- expanded the PASSUR® National Airport Network of Field Condition Reporting to more than 20 airports. The program consolidates field condition reporting for all participating airports onto a single screen, adds new levels of automation, and is available to, and accessed by, airline system operation centers in the U.S. and internationally.
- expanded the reach and deployment of the PASSUR® Landing Fee Management program, the industry's leading platform for the collaborative management of landing fees among airports and airlines, using independent, standardized, and automated processes.
- increased the Company's intellectual property portfolio. PASSUR was awarded five new patents from November 1, 2011 to October 31, 2012. During the same period, the Company filed an additional four patent applications, all relating to improved business intelligence or predictive analytics. The Company currently owns sixteen issued patents, and has an additional seventeen patent applications pending with the United States Patent Office.
- launched an international collaborative traffic management program with IATA, the IATA Tactical Operations Portal (ITOP). This new platform will provide airlines worldwide the ability to minimize same-day air traffic constraints in the U.S., access critical information about U.S. operations, and receive expert traffic management support and updates on the U.S. National Airspace (NAS) – all on a single, live, collaborative portal. ITOP is linked live to AIN, providing member access to the North American airline and airport community in real time. The link to AIN on ITOP, along with providing visibility to U.S. operations for international carriers on PITM, is part of the initial phase of the Company's broader international strategy.
- launched its Platform Strategy, which creates the technical and business structure to incorporate solutions and products from partner companies into PASSUR®'s Traffic Management Solutions, and provides domestic and international sales opportunities.
- completed a major professional service engagement, which helped launch new solutions for PASSUR® Surface Management. The new surface management program, which was first sold in fiscal year 2011, will be marketed in the future, both internationally and as an additional product for its North American airline, airport, and business aviation sector. The Company filed several patents for this new product.
- introduced the integration and display of Automatic Dependent Surveillance – Broadcast (ADS-B) into its PASSUR® PITM solution. ADS-B is a cornerstone technology of NextGen, the FAA's plan for a complete modernization of the air traffic control system, and is an important enhancement to PASSUR®'s international expansion program. The use of ADS-B in PASSUR® supplements an extensive, existing array of surveillance technologies processed and integrated in the PASSUR® suite of solutions, which are "fused" to provide a seamless flight and airspace visualization capability, as part of PASSUR®'s Independent Surveillance Network.
"We continue to experience growth in our core commercial markets," said Jim Barry, PASSUR Aerospace's President & CEO. "We are proud that revenue from our North American airline, airport, and business aviation sector reached a record level last year. We are also particularly pleased to announce that, for the first time, all eight of North America's top airlines are contracting with PASSUR. This is a major achievement for the company and testimony to the value of our new PASSUR Integrated Traffic Management platform and, we believe, its positive impact on our customers' overall system reliability as well as cash flow. Finally, our continued investment in collaborative industrial social networks introduces the PASSUR platform to a worldwide community of aviation professionals – the next generation of PASSUR customers."
"We believe our customers can, using PASSUR's unique product suite, address costs and problems previously thought unsolvable, by leveraging Big Data, collaborative platforms, industrial social networks, and smart decision support technology," said G.S. Beckwith Gilbert, PASSUR Aerospace Chairman of the Board.
About PASSUR Aerospace, Inc.
PASSUR Aerospace, Inc. is a business intelligence company that provides predictive analytics built on proprietary algorithms and the concurrent integration and simultaneous mining of multiple databases. We believe PASSUR is the industry standard in business intelligence dashboards and predictive analytics for aviation organizations. PASSUR serves dozens of airlines (including the top eight North American airlines), approximately 60 airport customers (including 22 of the top 30 North American airports), and approximately 200 corporate aviation customers, as well as the U.S. government. PASSUR's system provides coast-to-coast coverage and is driven by proprietary, patented, business intelligence software, which is powered by a unique North American network of 155 passive radars, company owned. Supplementary, detailed coverage is also provided at 98 of the top 100 North American airports. Other PASSURs are located in Europe and Asia. Flight tracks are updated between 1 and 4.6 seconds, thereby making available a system, which is user-friendly and useful for decision-making. Visit PASSUR Aerospace's website at www.passur.com for updated products, solutions, and news.
The information provided in this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's future plans, objectives, and expected performance. The words "believe," "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "objective," "seek," "strive," "might," "likely result," "build," "grow," "plan," "goal," "expand," "position," or similar words, or the negatives of these words, or similar terminology, identify forward-looking statements. These statements are based on assumptions that the Company believes are reasonable, but are subject to a wide range of risks and uncertainties, and a number of factors could cause the Company's actual results to differ materially from those expressed in the forward-looking statements referred to above. These factors include, without limitation: the ability of the Company to sell data subscriptions from its PASSUR Proprietary Surveillance Network and to make new sales of its PASSUR and other product lines (due to potential competitive pressure from other companies or other products); the current uncertainty in the aviation industry due to terrorist events, the continued war on terrorism, changes in fuel costs, airline bankruptcies and consolidations; economic conditions; future changes in governmental regulation and the impact that such changes in regulation will have on the Company's business; the Company's ability to attract and maintain the personnel necessary to sell, manufacture, and service its products; the Company's ability to adequately protect its intellectual property; the Company's ability to secure future financing; the Company's ability to maintain the continued support of its significant shareholder and the risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which relate only to events as of the date on which the statements are made and which reflect management's analysis, judgments, belief, or expectation only as of such date. The Company undertakes no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. Readers are advised, however, to consult any further disclosures we make on related subjects in our Forms 10-K, 10-Q, and 8-K.
James T. Barry
President & CEO
SOURCE PASSUR Aerospace, Inc.