Couple of observations:
1) The sales announced this week amounting to more than $1.2 million are as significant for what they indicate about the future as they do about the present, in my opinion. Each press release mentioned the critical role recent certifications played in winning these contracts, which suggests to me the role they will play in the future. I doubt very much if we would have earned a half million dollar contract from one of Latin America’s leading airlines without the TSA blessing. In fact, I can’t recall a sale in the past couple of years to any organization in Latin America. As to three quarters of a million dollars in sales to Asia, you don’t have to be Dick Tracy to surmise that the two certifications we achieved from China played a prominent part in earning the business.
2) These sales are evidence of an environment that is changing, and for the better. Many on this board complain about the slow pace of sales, forgetting that key certifications have been earned recently, and that it takes time to translate certifications into sales. Implant achieved TSA qualification on August 28 of last year, the latest China certification on September 4, and European Union (ECAC) October 6. I’ve come around to the view – no doubt always obvious to Dr. Jones and his staff -- that certifications aren’t just "nice to have," but a virtual REQUIREMENT to close business and grow the company. Without them, we were like the proverbial guy who arrives at a gun fight with a knife. The guns were held by Smiths and Morpho, two large, entrenched competitors with long established relationships. We were … well, an almost bankrupt little guy with a rubber knife. Who could take us seriously? When the governments of the U. S. and China proclaim that they take Implant seriously, and prove it with significant orders, others pay attention.
3) There’s misinformation and often downright juvenile tantrums cluttering this board. Buzz, for example, used to be a positive, informative member of the blog. Now, he keeps referring to “Clams” McGann and attributing base motives to the way the CEO manages. I liked Glenn, too, but he’s gone, and McGann’s style is just different, not worse. McGann is quiet, in my opinion, because he doesn’t want to over-promise, which was a criticism of the previous CEO. All I care about is results. McGann has been CEO for less than three months. Give him a chance! (I know, I know, we're all tired of waiting!) HateCastro is another poster who thinks management’s primary goal is to screw retail investors. One of his major issues is the fact that management hasn’t shared with him the value of the TSA contract. Perhaps it’s because the TSA said not to, perhaps there are competitive reasons for not doing so. It’s really irrelevant. We HAD TO HAVE the TSA contract, even if we gave the dam systems away. It is THE largest, most visible contract in ETD history, and the whole world was watching. It’s a very competitive industry. I’m just happy that management was savvy enough to price our systems to win. It’s that simple. Win! As to the whine about management not putting its own money into IMSC stock, that’s also irrelevant. It’s not for me to tell them where to put their money. It’s enough that they work hard and effectively for the company. For me, the key question is, is there alignment between management’s and investors’ goals. Overall, there is. Management will be compensated best when their options are in the money. As I recall, most execs have options at $1.41. If I were in their shoes, I sure as hell would be working to get the share price to $1.50, $2, $3 and above. Most of us on this board would be happy with $2 and above. Especially above.
4) Bob Liscouski, too, promised a “new direction” along with McGann when he became executive vice president. Posters have castigated him because the rebranding and other marketing initiatives he promised haven’t been realized to date. He’s been on the job just a couple of months, and creating and implementing a marketing program take time. And money, which we don’t have a lot of. Like McGann, let’s be reasonable as to how quickly this ship can be turned in a “new direction.” Liscouski also was tapped to help Dr. Jones close business based on his reputation as a security expert who held a high position at the Department of Homeland Security. I for one would like him to put most of his effort there, and perhaps the Latin America contract indicates that that is exactly what he is doing. I can say from experience that bringing in the big guns when trying to close a sale can be very, very effective.
5) Implant has overcome many obstacles to get to where we are today. Morpho in particular has done everything it can to derail us. The ONLY reason it protested the TSA contract was to slow us up with the hope we’d go bankrupt. In fact, the GAO report on the protest states that Morpho did not even qualify to enter a protest because it came in third in the TSA evaluation. The company that came in second – presumably Smiths – would have gotten the contract if the protest was upheld. As the GAO report dismissing the protest says, “even if Morpho’s allegations challenging the award to ISC are correct, Offerer A, rather than Morpho, would be in line for issuance of the delivery order. Thus we therefore conclude that Morpho is not an interested party for purposes of maintaining its remaining protest allegations.” I don’t know why the GAO even processed the protest when Morpho wasn’t eligible. And I wonder if we could sue, as it was clearly an invalid action taken to hurt us, not to win the contract, for which it couldn’t compete according to GAO rules. Let me close on a positive note. The wins announced this week, the global certifications, the GAO’s curt dismissal of the Morpho protest and its highlight of Morpho’s continuing failure to fix its false alarm problems indicate that the environment in which Implant operates is changing. Much work remains to be done, but the uphill slog is just about over, and we now operate on a playing field that is much more favorable to us than it was a year ago. I think the future of ETD belongs to Implant Sciences.
AI
