PASSUR™ Aerospace Announces Revenue Increase of 19% in Fiscal Year 2016

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Jan 10, 2017, 08:09 ET

STAMFORD, Conn., Jan. 10, 2017 /PRNewswire/ -- PASSUR™ Aerospace, Inc. (OTC: PSSR), a business intelligence, predictive analytics, and big data company, announced total revenue for Fiscal Year ("FY") 2016, ending October 31, 2016, was $14.9 million, an increase of 19%, compared with $12.5 million in FY 2015, as a result of significant new business from our largest airline customers. Income from operations for FY 2016 was $1.2 million, an increase of 34% compared with $0.9 million for FY 2015. Net income for FY 2016 was $435,000, or $0.06 per diluted share, an increase of 56%, compared with $279,000, or $0.04 per diluted share, for the prior fiscal year.

Financial and Business Highlights:

Total revenue for the fourth quarter of FY 2016 was $3.8 million, an increase of 15%, compared with $3.3 million in the same period in FY 2015. Income from operations for the fourth quarter of FY 2016 was $0.5 million, compared with $0.1 million for the same period in FY 2015. Net income was $107,000, or $0.01 per diluted share, for the fourth quarter of FY 2016, compared with a net loss of $36,000, or $0.00 per diluted share, for the same period in FY 2015.
Since the start of FY 2016, the Company has received contracts from two of the largest U.S. airlines to install PASSUR's new Surface Management System, including PASSUR Surface Surveillance Technology, at seven airports. Three installations were completed in FY 2016. The remaining four installations will be completed during FY 2017.
In January 2016, the Company won a competitive bid from RTCA (Radio Technical Commission for Aeronautics) to provide to the FAA-Industry Joint Analysis Team ("JAT") of the NextGen Advisory Committee the aviation industry's first dashboard for reporting on and analyzing air transportation system performance improvements attributable to the deployment of key NextGen capabilities.
In September 2016, the Company announced a partnership with AirMap, the leading drone airspace management platform. The partnership will make real-time data about manned aircraft flights from PASSUR's commercial passive radar and ground-based flight surveillance network available to the hundreds of drone innovators and app developers who use AirMap's developer platform.
During FY 2016, the Company expanded its airport-airline collaborative network by including six new airports. This real-time platform provides close coordination and information sharing between airlines and airports, used to manage complex or disrupted operations and to reduce costs and passenger inconvenience.

During FY 2016, the Company launched several new products as well as enhancements to existing products:

PASSUR Intelligent Query (P-IQ), which supports airlines and airports in determining their most important operational objectives for efficiency gains, revenue optimization, and cost savings on a daily basis, then automatically provides alerts, which identify real time actions to help achieve the customer's goals.
A new release of ATC Portal, with enhanced automatic updating of arrival and departure demand at an airport, enables airlines and airports to proactively anticipate disruptions and make adjustments to minimize costs and passenger disruptions.
A new release of PASSUR's flagship flight, airport, and airspace visualization solution, Web Tracker, provides greater flexibility and speed to customers and enables them to customize their screens to reflect specific operating environments, workflow requirements, and key operational and business metrics.
Releases of new versions of PASSUR Departure Metering and Sequencing at multiple airports enable airlines to prioritize high-value flights, reduce the number of aircraft waiting to take off, and sequence arrivals and departures to most efficiently use gates consistent with their most critical business and operational priorities.
During FY 2016, the Company was awarded two new patents. The Company now has twenty-three patents, with sixteen additional patents pending.

Jim Barry, PASSUR President and CEO, said, "We're pleased with these results. Our team has done a great job during fiscal year 2016. In the coming year we will continue to seek out and capitalize on opportunities to further improve our performance. We continue to develop new ways to provide our customers with even more value, thereby further validating PASSUR's role as an important, trusted, and innovative solutions provider to our customers and to our 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 world-wide 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 PASSUR Aerospace'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.

PASSUR Aerospace, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS

	October 31, 2016	October 31, 2015
	(unaudited)
Assets
Current assets:
Cash	$1,523,655	$925,508
Accounts receivable, net	1,073,498	1,234,986
Deferred tax assets, current	418,889	551,671
Prepaid expenses and other current assets	217,410	157,930
Total current assets	3,233,452	2,870,095

PASSUR Network, net	5,739,753	5,902,751
Capitalized software development costs, net	8,263,533	7,684,603
Property and equipment, net	1,187,158	1,353,532
Deferred tax assets, non-current	1,250,833	1,658,557
Other assets	208,755	239,861
Total assets	$19,883,484	$19,709,399

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$356,387	$880,819
Accrued expenses and other current liabilities	936,272	977,900
Deferred revenue, current portion	3,140,292	2,680,244
Total current liabilities	4,432,951	4,538,963

Deferred revenue, long term portion	423,346	197,336
Notes payable - related party	2,700,000	3,500,000
Total liabilities	7,556,297	8,236,299

Commitment and contingencies

Total stockholders' equity	12,327,187	11,473,100
Total liabilities and stockholders' equity	$19,883,484	$19,709,399

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

		Three Months Ended		Twelve Months Ended
		October 31,		October 31,
		2016	2015	2016	2015

Revenues	$ 3,820,504		$ 3,308,473	$ 14,892,495	$ 12,538,059

Cost and expenses:
Cost of revenues	1,597,447		1,629,834	6,377,104	5,433,122
Research and development	184,972		170,759	826,227	724,683
Selling, general, and administrative expenses	1,534,636		1,399,481	6,481,260	5,478,454
	3,317,055		3,200,074	13,684,591	11,636,259

Income from operations	$ 503,449		$ 108,399	$ 1,207,904	$ 901,800

Interest expense - related party	41,400		53,667	183,333	224,542
Income before income taxes	462,049		54,732	1,024,571	677,258
Income tax expense	355,411		90,944	589,923	397,994
Net income	$ 106,638		$ (36,212)	$ 434,648	$ 279,264


Net income per common share - basic	$ 0.01		$ (0.00)	$ 0.06	$ 0.04
Net income per common share - diluted	$ 0.01		$ (0.00)	$ 0.06	$ 0.04

Weighted average number of common shares outstanding - basic	7,690,199		7,653,199	7,679,696	7,648,612
Weighted average number of common shares outstanding - diluted	7,752,980		7,771,325	7,730,566	7,775,474

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]