ISSC delivered a robust top-line expansion in QQ2 2024, with total net revenues of $10.74 million, up 46.3% year over year, driven by the Honeywell-acquired product lines and a growing services mix. Gross margin declined to 52.0% in the quarter from 64.6% a year ago, reflecting higher material costs from the acquired inventory and initial integration inefficiencies, notably in Honeywell-related product lines. Management emphasized that margins are expected to recover as the integration progresses, inventory is burned off, and in-house subassemblies are brought online. Despite near-term gross margin pressure, ISSC generated solid operating leverage with operating income of $1.64 million (15.3% operating margin) and EBITDA of $2.13 million (about 19.8% EBITDA margin). Net income reached $1.21 million ($0.069 per share). The company also highlighted a healthy backlog of $10.4 million and new orders of approximately $6.6 million in the quarter, underpinned by Pilatus UMS, Textron standby instruments/autothrottle, and Boeing platforms (KC-46A, T-7). Management outlined a disciplined growth strategy—accelerated by acquisitions and modest organic growth—targeting further expansion in international markets and autonomous/ cockpit automation applications. The call also stressed ongoing Honeywell integration benefits and the potential to unlock recurring revenue and higher-margin subassembly manufacturing in-house by fiscal 2025. The key question for investors remains the pace of margin normalization and the degree to which synergies offset integration-related costs in the near term.