PASSUR™ Aerospace Announces Results for the Second Quarter Ended April 30, 2017

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Jun 13, 2017, 09:20 ET

STAMFORD, Conn., June 13, 2017 /PRNewswire/ -- PASSUR™ Aerospace, Inc. (OTC: PSSR), a business intelligence, predictive analytics, and big data company, announced revenues of $3,424,000 for the three months ended April 30, 2017, compared with $3,809,000 for the same period in fiscal year 2016, a decline of $385,000, or 10%.

For the six months ended April 30, 2017, revenues totaled $7,039,000, compared with $7,245,000 for the same period in fiscal year 2016, a decline of $206,000, or 3%, of which, $155,000 resulted from a decline in non-recurring revenue.

The decline in revenues for the three months and six months ended April 30, 2017, was due in part to the non-renewal of a customer contract, which the Company believes will be offset by revenues from new contracts expected to be acquired during fiscal year 2017, on an annualized run-rate basis, and a decline in non-recurring revenue.

For the three months ended April 30, 2017, the Company incurred a net loss of $38,000, or $0.00 per share, compared with net income of $122,000, or $0.02 per diluted share. For the six months ended April 30, 2017, the Company incurred a net loss of $295,000, or $0.04 per share, compared with a net income of $147,000, or $0.02 per diluted share. Contributing to the Company's net loss for both the three and six months ended April 30, 2017, was the reduction in revenue as well as an increase in operating expenses due to the hiring of additional personnel to pursue near-term revenue opportunities, and the development of its next generation of product offerings.

"We remain focused on our core strategy: to deliver greater predictability to airlines and airports, gate to gate, by mitigating the disruptions and constraints that create an estimated annual cost of $30 billion in system-wide inefficiencies," said Jim Barry, PASSUR President and CEO. "We continue to invest in our Integrated Traffic Management platform to bring together all industry stakeholders onto a common operating platform of best practices and predictive decision support to achieve significant cost savings and expanded system capacity for the industry."

About PASSUR™ Aerospace, Inc.
PASSUR™ Aerospace is a leading business intelligence company, providing 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 by the largest five North American airlines, used at all the top 30 North American airports, and by more than 200 corporate aviation customers, as well as the U.S. government. Over 125 airlines and over 60 airports worldwide use PASSUR products.

PASSUR Aerospace owns and operates the largest commercial passive radar network in the world which updates flight tracks every 1 to 4.6 seconds, powering a proprietary database that is accessible in real-time and delivers timely, accurate information and solutions via PASSUR's industry-leading algorithms and business logic included in its products.

Visit PASSURAerospace's website at www.passur.com for updated products, solutions, and news.

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.

This press release contains forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions, and are identified by words such as "will", "expects", "estimates", "projects", "anticipates", "believes", "intends", "plans", "may", "pending", "continues", "should", "could" and other similar words. All statements other than statements of historical fact are considered to be forward-looking statements and such forward-looking statements, including statements of management's expectations and beliefs, are based on preliminary information and assumptions and expectations of future events. The Company cannot and does not guarantee that such information, assumptions, and expectations are accurate or will be realized. These forward-looking statements are not guarantees of future performance or results, and should be evaluated in light of important risk factors, assumptions, and uncertainties that could cause the Company's results to differ in material respects, including those related to customer needs, budgetary constraints, competitive pressures, the success of airline trials, the profitable use of the Company's owned PASSURs located at major airports, the Company's maintenance of above average quality of its product and services, as well as potential regulatory changes. Further information regarding some of the factors that could affect the Company's results and cause those results to vary materially from those currently anticipated is contained on Forms 10-K - including under the heading entitled "Risk Factors", 10-Q, and other reports filed with the Securities and Exchange Commission. In addition, undue reliance should not be placed on the Company's forward-looking statements. Any forward-looking statement made by the Company in this press release speaks only as of the date on which we made it. Except as required by law, the Company disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events, or other developments.

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

PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS

	April 30, 2017	October 31, 2016
	(unaudited)
Assets
Current assets:
Cash	$1,842,105	$1,523,655
Accounts receivable, net	1,291,975	1,073,498
Deferred tax assets, current	418,889	418,889
Prepaid expenses and other current assets	399,719	217,410
Total current assets	3,952,688	3,233,452

PASSUR Network, net	5,918,106	5,739,753
Capitalized software development costs, net	8,616,778	8,263,533
Property and equipment, net	1,001,391	1,187,158
Deferred tax assets, non-current	1,358,400	1,250,833
Other assets	192,619	208,755
Total assets	$21,039,982	$19,883,484

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$681,019	$356,387
Accrued expenses and other current liabilities	804,820	936,272
Deferred revenue, current portion	4,049,087	3,140,292
Total current liabilities	5,534,926	4,432,951

Deferred revenue, long term portion	517,871	423,346
Notes payable - related party	2,700,000	2,700,000
Total liabilities	8,752,797	7,556,297

Commitment and contingencies

Total stockholders' equity	12,287,185	12,327,187
Total liabilities and stockholders' equity	$21,039,982	$19,883,484

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

	Three Months Ended		Six Months Ended
	April 30,		April 30,
	2017	2016	2017	2016

Revenues	$3,423,781	$3,809,402	$7,039,337	$7,244,882

Cost and expenses:
Cost of revenues	1,534,126	1,620,138	3,224,135	3,132,625
Research and development expenses	186,372	226,104	413,852	409,513
Selling, general, and administrative expenses	1,888,449	1,727,133	3,706,983	3,360,634
	3,608,947	3,573,375	7,344,970	6,902,772

(Loss)/Income from operations	$(185,166)	$236,027	$(305,633)	$342,110

Interest expense - related party	40,050	43,900	81,450	97,567
Other Loss	(5,221)	-	(5,221)	-
(Loss)/Income before income taxes	(230,437)	192,127	(392,304)	244,543
(Benefit)/Provision for income taxes	(192,325)	69,992	(97,641)	97,834
Net (loss)/income	$(38,112)	$122,135	$(294,663)	$146,709

Net (loss)/income per common share - basic	$(0.00)	$0.02	$(0.04)	$0.02
Net (loss)/income per common share - diluted	$(0.00)	$0.02	$(0.04)	$0.02

Weighted average number of common shares outstanding - basic	7,692,913	7,677,755	7,691,534	7,669,078
Weighted average number of common shares outstanding - diluted	7,692,913	7,718,942	7,691,534	7,711,104