|By Marketwired .||
|November 14, 2012 05:47 PM EST||
WILMINGTON, MA -- (Marketwire) -- 11/14/12 -- Implant Sciences Corporation (OTCQB: IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, today announced financial results for the fiscal quarter ended September 30, 2012.
Revenues for the first quarter ended September 30, 2012, increased 37%, to $1.4 million, from $1.0 million for the comparable prior year period. Our net loss for the quarter ended September 30, 2012 was $12.7 million as compared with a net loss of $3.0 million for the comparable prior year period, an increase of $9.7 million. The increase in the net loss is primarily due to $9.3 million of stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded first quarter, Implant Sciences achieved a number of important strategic goals that we believe position the Company for long term growth, and we remain excited about our future prospects. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability. These include the following recent developments:
- Our QS-B220 Benchtop Explosives and Narcotics Trace Detector continued to progress through final independent validation testing with the Transportation Security Laboratory ("TSL") to qualify for placement on the Transportation Security Administration ("TSA") Air Cargo Screening Technology List.
- Continued to increase our geographic distribution with sales to Europe, Africa, Asia and the Middle East. Increased diversification of markets served in the recently ended quarter to include; banks, hotels, bomb squads, airports, sporting venues and the petroleum industry.
- Extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2013 and negotiated the conversion of $12 million of the line of credit to a convertible term note.
- Enhanced our technology team with the addition of Dr. Hacene Boudries and our sales team with the recruitment of two industry experienced sales managers; Nav Mosey, most recently Sales Manager for Rapiscan Systems and Jimmy Mo, former Director, Asia Pacific Sales and Marketing for GE Ion Track. Dr. Boudries was most recently with Morpho Detection Inc. where he was Director, Research & Technology, Chemical/Biological Detection & Chemical Sensing at Morpho Detection's Advanced Technology Programs. Previously, Dr. Boudries was Research and Development Manager in charge of Chemical/Biological Detection at General Electric Security.
- Achieved all of the technical requirements of our contract with the India Ministry of Defence and expect to complete the required modifications to our standard computer-based training in the near term.
Mr. Bolduc concluded, "We continue to expand our distribution network, under the leadership of Darryl Jones, which we believe will provide a solid foundation from which to build upon as we work to grow market share and revenues. We have much work ahead of ourselves, but remain excited about our future prospects."
Details for the quarter ended September 30, 2012 follow below.
Quarter Ended September 30, 2012 vs. September 30, 2011
- Revenues for the quarter ended September 30, 2012 were $1,415,000 as compared with $1,036,000 for the comparable prior year period, an increase of $379,000, or 36.6%. The increase in revenue is primarily due to a 36% increase in the number of QS-H150 handheld units sold during the three months ended September 30, 2012 and sales of our QS-B220 benchtop units, which we began shipping commercially in the third quarter of fiscal 2012, partially offset by a 9% decrease in average unit sell prices on sales our QS-H150 handheld units.
- Gross loss for the quarter ended September 30, 2012 was ($39,000) or (2.8%) of revenues as compared with gross margin of $399,000 or 38.5% of revenues for the comparable prior year period, resulting primarily from increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs and by the 9% decrease in the average unit sell prices on sales of our QS-H150 handheld units.
- Research and development expense for the quarter ended September 30, 2012 was $1,337,000 as compared with $819,000 for the comparable prior year period, an increase of $518,000 or 63.2%, due primarily to stock-based compensation recorded on the September 2012 officer and director option grants, increased payroll and related fringe benefit costs, partially offset by decreased contracted engineering.
- Selling, general and administrative expenses for the quarter ended September 30, 2012 were $10,131,000 as compared with $1,813,000 for the comparable prior year period, an increase of $8,318,000, or 458.8%, due primarily to stock-based compensation recorded on the September 2012 officer and director option grants, increased legal fees, increased payroll, related fringe benefits costs and travel expense resulting from the addition of sales personnel, partially offset by lower consulting fees due to the issuance of our common stock to certain consultants in the comparable prior year period.
- For the quarter ended September 30, 2012, other expense, net was $1,241,000 as compared with other expense, net of $839,000, for the comparable prior year period, an increase of $402,000, due primarily to a $401,000 increase in interest expense on higher borrowings under our credit facility with DMRJ.
- Our net loss for the quarter ended September 30, 2012 was $12,748,000 as compared with a net loss of $3,072,000 for the comparable prior year period, an increase of $9,676,000, or 315.0%. The increase in the net loss is primarily due to stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Additional information on the financial condition and results of operations can be found in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2012, filed with the Securities and Exchange Commission.
Company Conference Call
Management will host a webcast and conference call on Thursday, November 15, 2012 at 4:15 PM Eastern time to review the Company's first quarter ended September 30, 2012 financial results and operations. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 866-831-6243 within the U.S. or 617-213-8855 outside the U.S. and entering passcode 37799295. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available two hours after the call for one month by dialing: 888-286-8010 within the U.S. or 617-801-6888 outside the U.S. and entering passcode 64693774. The conference call will also be available live over the Internet at the investor relations section of Implant Sciences' website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences develops, manufactures, and sells sophisticated sensors and systems for Security, Safety, and Defense (SS&D) markets. The Company has developed proprietary technologies used in its commercial explosives and narcotics trace detection systems, which ship to a growing number of locations domestically and internationally. Implant Sciences' QS-H150 handheld explosives trace detector has received Qualified Anti-Terrorism Technology Designation and the Company's QS-B220 benchtop explosives and narcotics detector has received a Development Testing and Evaluation (DT&E) Designation by the U.S. Department of Homeland Security under the Support Anti-terrorism by Fostering Effective Technology Act of 2002 (the SAFETY Act). For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lender, DMRJ Group, by March 31, 2013; if we are unable to satisfy our obligations to DMRJ and to raise additional capital to fund operations, DMRJ may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; our explosives detection products and technologies (including any new products we may develop) may not be accepted by the TSA or by other U.S. government and law enforcement agencies or commercial consumers of security products; liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; our business could be harmed if our contract manufacturer is unable or unwilling to meet our volume and quality requirements; we may not be able to retain our management and key employees or to identify, hire and retain additional personnel as needed; the delisting of our common stock by the NYSE Amex has limited our stock's liquidity and has impaired our ability to raise capital; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.
For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2012 and its Quarterly Report on Form 10-Q for the period ended September 30, 2012. The Company assumes no obligation to update the information contained in this press release.
Implant Sciences Corporation Condensed Consolidated Balance Sheets September 30, June 30, 2012 2012 (Unaudited) (Audited) ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 2,000 $ 84,000 Restricted cash and investments 1,294,000 1,274,000 Accounts receivable-trade, net of allowances of $20,000 167,000 182,000 Inventories, net 3,527,000 3,193,000 Prepaid expenses and other current assets 917,000 809,000 ------------- ------------- Total current assets 5,907,000 5,542,000 Property and equipment, net 234,000 220,000 Restricted cash and investments 312,000 312,000 Other non-current assets 126,000 162,000 ------------- ------------- Total assets $ 6,579,000 $ 6,236,000 ============= ============= LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Senior secured convertible promissory note $ 3,184,000 $ 3,224,000 Second senior secured convertible promissory note 12,000,000 - Senior secured promissory note 1,000,000 1,000,000 Line of credit 17,245,000 26,231,000 Current maturities of obligations under capital lease 24,000 24,000 Payable to Med-Tec 28,000 30,000 Accrued expenses 4,988,000 4,360,000 Accounts payable 2,634,000 2,654,000 Deferred revenue 1,046,000 1,081,000 ------------- ------------- Total current liabilities 42,149,000 38,604,000 Long-term liabilities: Long-term obligations under capital lease, net of current maturities 33,000 33,000 ------------- ------------- Total long-term liabilities 33,000 33,000 ------------- ------------- Total liabilities 42,182,000 38,637,000 ------------- ------------- Commitments and contingencies: Stockholders' deficit: Common stock; $0.10 par value; 50,000,000 shares authorized; 42,278,540 and 42,267,995 at September 30, 2012 and 39,163,540 and 39,152,995 at June 30, 2012 shares issued and outstanding, respectively 4,228,000 3,916,000 Preferred stock; no stated value; 5,000,000 shares authorized Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 142,667 shares issued and outstanding at September 30, 2012 and 164,667 shares issued and outstanding at June 30, 2012, respectively (liquidation value $1,141,000 and $1,317,000, respectively) 237,000 274,000 Additional paid-in capital 92,590,000 83,436,000 Accumulated deficit (132,270,000) (119,522,000) Deferred compensation (315,000) (432,000) Treasury stock, 10,545 common shares, at cost (73,000) (73,000) ------------- ------------- Total stockholders' deficit (35,603,000) (32,401,000) ------------- ------------- Total liabilities and stockholders' deficit $ 6,579,000 $ 6,236,000 ============= ============= Implant Sciences Corporation Condensed Consolidated Statements of Operations (Unaudited) For the Three Months Ended September 30 ---------------------------- 2012 2011 ------------- ------------- Revenues $ 1,415,000 $ 1,036,000 Cost of revenues 1,454,000 637,000 ------------- ------------- Gross (loss) margin (39,000) 399,000 ------------- ------------- Operating expenses: Research and development 1,337,000 819,000 Selling, general and administrative 10,131,000 1,813,000 ------------- ------------- Total operating expenses 11,468,000 2,632,000 ------------- ------------- Loss from operations (11,507,000) (2,233,000) ------------- ------------- Other income (expense), net: Interest income - 1,000 Interest expense (1,241,000) (840,000) ------------- ------------- Total other income (expense), net (1,241,000) (839,000) ------------- ------------- Net loss $ (12,748,000) $ (3,072,000) ============= ============= Net loss per share, basic and diluted $ (0.31) $ (0.10) ============= ============= Weighted average shares used in computing net loss per common share, basic and diluted 40,980,218 31,950,218 ============= =============
For further information contact:
Implant Sciences Corporation
President and CEO
To support developers and operations professionals in their push to implement DevOps principles for their infrastructure environments, ProfitBricks, a provider of cloud infrastructure, is adding support for DevOps tools Ansible and Chef. Ansible is a platform for configuring and managing data center infrastructure that combines multi-node software deployment, ad hoc task execution, and configuration management, and is used by DevOps professionals as they use its playbooks functionality to autom...
Sep. 5, 2015 03:00 AM EDT Reads: 143
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the ...
Sep. 5, 2015 03:00 AM EDT
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Sep. 5, 2015 02:00 AM EDT Reads: 458
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Sep. 5, 2015 01:30 AM EDT Reads: 994
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Sep. 5, 2015 01:15 AM EDT Reads: 609
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Sep. 5, 2015 01:00 AM EDT Reads: 410
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and e...
Sep. 5, 2015 01:00 AM EDT Reads: 253
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Sep. 4, 2015 11:00 PM EDT Reads: 581
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Sep. 4, 2015 09:30 PM EDT Reads: 543
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Sep. 4, 2015 07:00 PM EDT Reads: 1,668
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Sep. 4, 2015 06:45 PM EDT Reads: 458
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Sep. 4, 2015 06:00 PM EDT Reads: 283
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Sep. 4, 2015 05:30 PM EDT Reads: 510
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Sep. 4, 2015 04:15 PM EDT Reads: 535
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Sep. 4, 2015 04:00 PM EDT