PASSUR® Aerospace Announces Q2 Revenue Increase and Results tor the Second Quarter Ended April 30, 2018

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Jun 20, 2018, 08:01 ET

STAMFORD, Conn., June 20, 2018 /PRNewswire/ -- PASSUR® Aerospace, Inc. (OTC: PSSR), a global leader in digital operational excellence, announced revenues of $3,502,000 for the three months ended April 30, 2018, compared with $3,424,000 for the same period in fiscal year 2017, an increase of $78,000, or 2%.

The increase in total revenues for the three months ended April 30, 2018 was primarily related to an increase in consulting revenue of $74,000. For the six months ended April 30, 2018, revenues totaled $7,015,000, compared with $7,039,000 for the same period in fiscal year 2017, a decrease of $24,000, or less than 1%. The decrease in total revenues for the six months ended April 30, 2018, was mainly due to a decrease in subscription revenue of $109,000, which was partially offset by an increase in consulting revenue of $89,000, when compared to the same period in 2017. The decrease in subscription revenue of $109,000, for the six months ended April 30, 2018, was primarily due to lost revenue from expired contracts, partially offset by revenue from new contracts.

PASSUR continues to invest in new software development, sales and marketing, and business leaders needed to achieve its projected future strategic and growth objectives. These new investments are expected to cost approximately $2 million on an annualized basis and target several important growth areas, including PASSUR's new Business Intelligence Group.

As a result of this increase in operating expenses, not yet offset by anticipated increased revenue, the Company incurred significant losses. For the three months ended April 30, 2018, the Company incurred a net loss of $1,024,000, or $0.13 per diluted share, compared with a net loss of $71,000, or $0.01 per diluted share for the same period in fiscal year 2017. For the six months ended April 30, 2018, the Company incurred a net loss of $2,191,000, or $0.28 per diluted share, compared with a net loss of $122,000, or $0.02 per diluted share for the same period in fiscal year 2017.

"PASSUR continues to position itself to lead in the digitization of aviation operations," said Jim Barry, President & CEO. "Commercial aviation worldwide is expected to nearly double in the next 20 years, and an important way to help facilitate that growth in demand and the resulting increase in complexity is through advanced digital operations, which is at the core of our investments in people, technologies, and product," continued Mr. Barry.

Business highlights during the quarter:

PASSUR announced that Dallas/Fort Worth International Airport (DFW) contracted with PASSUR for a new, collaborative solution, PASSUR Regional Diversion Manager (PASSUR RDM™). PASSUR 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. RDM displays the most relevant, real-time information from over 20 airports in the DFW region and provides an instantaneous information exchange between all users. This new capability enables airports and their airlines to make the best advance decisions on whether an aircraft should divert to a different airport, and if so, which airport is best prepared to receive the aircraft. DFW went live with RDM during the third quarter of fiscal year 2018.
During the second quarter, PASSUR completed and deployed its Surface Management System, including PASSUR Surface Surveillance Technology, for one of the largest U.S. airlines, a long-time PASSUR customer, at another major U.S. airport. This is the fifth successful deployment for this major U.S. airline. The Surface Management System went live during the third quarter of fiscal year 2018.
During the second quarter, a major U.S. airline, another long-time PASSUR customer, contracted for PASSUR's Flight Prediction Solution for its entire U.S. system. PASSUR XETA provides precise arrival times to enable better turn times, decisions about connections, gate allocations, schedule adjustments, crew allocations, and many other arrival time-dependent decisions. Their entire U.S. system deployment went live at the end of the second quarter of fiscal year 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, at more than 60 airport customers, (including the top 30 North American airports), by hundreds of 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.

Contact:	Media:	Investor Relations:
	Ron Dunsky	Louis J. Petrucelly
	SVP Marketing and New Business Development	SVP & Chief Financial Officer
	(203) 989-9197	(203) 622-4086
	[email protected]	[email protected]

PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS

	April 30, 2018		October 31, 2017
	(unaudited)
Assets
Current assets:
Cash	$	369,408	$	275,146
Accounts receivable, net	1,773,720		1,359,447
Prepaid expenses and other current assets	367,047		251,689
Total current assets	2,510,175		1,886,282

PASSUR Network, net	5,837,776		6,004,367
Capitalized software development costs, net	9,095,420		8,893,414
Property and equipment, net	699,431		852,147
Other assets	161,361		169,635
Total assets	$	18,304,163	$	17,805,845

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,038,380	$	984,369
Accrued expenses and other current liabilities	1,354,751		1,273,170
Deferred revenue, current portion	4,086,551		2,824,885
Total current liabilities	6,479,682		5,082,424

Deferred revenue, long term portion	440,240		470,831
Notes payable - related party Other Liabilities	4,725,000 56,351		3,800,000 -
Total liabilities	11,701,273		9,353,255

Total stockholders' equity	6,602,890		8,452,590
Total liabilities and stockholders' equity	$	18,304,163	$	17,805,845

PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2018		2017		2018		2017

Revenues	$	3,501,842	$	3,423,781	$	7,015,329	$	7,039,337

Cost of expenses:
Cost of revenues	2,026,121		1,567,313		4,265,421		3,249,087
Research and development expenses	149,163		186,372		303,829		413,852
Selling, general, and administrative expenses	2,276,284		1,888,449		4,497,113		3,706,983
	4,451,568		3,642,134		9,066,363		7,369,922

Loss from operations	$	(949,726)	$	(218,353)	$	(2,051,034)	$	(330,585)

Interest expense - related party	70,088		40,050		135,800		81,450
Other Loss	4,506		5,221		4,506		5,221
Loss before income taxes	(1,024,320)		(263,624)		(2,191,340)		(417,256)
Benefit for income taxes	-		(192,325)		-		(295,390)
Net loss	$	(1,024,320)	$	(71,299)	$	(2,191,340)	$	(121,866)

Net loss per common share - basic	$	(0.13)	$	(0.01)	$	(0.28)	$	(0.02)
Net loss per common share - diluted	$	(0.13)	$	(0.01)	$	(0.28)	$	(0.02)

Weighted average number of common shares outstanding - basic	7,696,091		7,692,913		7,696,091		7,691,534
Weighted average number of common shares outstanding - diluted	7,696,091		7,692,913		7,696,091		7,691,534