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$IMSC running on this bullish article:
http://seekingalpha.com/article/1753492-introducing-the-new-and-improved-implant-sciences?source=feed_f
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$IMSC - Introducing The New And Improved Implant Sciences
Seeking Alpha
Oct 18 2013, 08:06
For Implant Sciences (IMSC.PK), 2013 has proven to be the year where significant approvals, sales and achievements have led to a path of accelerated growth the company has been seeking for years. Put in words by the company's CEO Glen Boulduc on the last conference call to investors, he reiterates that Implant Sciences a year ago and Implant Sciences today are two differentiated companies. Taking a closer look, we will examine what warrants the CEO to make these claims and review looming catalysts in the near term that could be a potential boon to the company and corresponding stock price.
Sales Penetrate All Time Highs: The Best Year in the Company's History
With revenues exceeding $12 million (10-K), 2013 sales volume of Trace Detection systems has truly trumped the sales figures of any prior year (3.5x or 252% of last year's sales). This of course was manifested by several approvals and sales to new clients that the company realized over the course of the year. The increase in revenue is due primarily to a 225% increase in the number of QS-H150 handheld units sold, due largely to the shipment of the India Ministry of Defence order in the amount of $6 million, $848,000 in sales to agencies of the U.S. Government, increased sales into Africa, the Middle East and Japan, and increased domestic and international sales of the QS-B220 bench top units, which began shipping commercially in the third quarter of fiscal 2012. Though the figures are exemplary, as they give testimony to the worldwide adoption of the company's product, the immense potential for market saturation lies in the approvals Implant Science's received over the course of this year.
TSA Approvals Foreshadow Vast Market Opportunity
Strict regulations imposed by the TSA necessitate Trace Detection Equipment to have approvals and certifications to be purchased and used by government agencies and related bodies. A year ago, Implant Sciences had no approvals from the TSA, however to date; the company has two major approvals in hand with another pending approval well on its way. On January 15th of this year, the company received official notification from the U.S. Transportation Security Administration (TSA) that its Quantum Sniffer QS-B220 trace detection system will be added to the Approved Products section of the Air Cargo Screen Technology List (ACSTL) for Explosives Trace Detection (ETD) screening. The implications of the approval not only correspond to permitted use in the United States for air cargo screening, but also solidified and reinforced international governments and agencies that the technology is bona fide and certified which in turn drove and will continue to drive sales. On top of everything else, Implant Sciences became only the third manufacturer to currently have TSA approval for trace detection, being the only U.S owned and approved provider.
In addition to the TSA approval, the QS-B220 became certified by Service Technique de l'Aviation Civile (STAC) in France on October 1rst, marking the second major regulatory success for the company. STAC is a highly respected certification organization, and becoming certified opens the doors to the vast French aviation market. A number of other governments including French territories, several European Union member nations, and a select number of countries around the world look to STAC certification in their purchasing decisions. This will immediately allow the company to sell their product for passenger, cargo and baggage screening in Europe and several other countries around the world. Mentioned in the earnings call to investors, distributors told the company that the STAC certification was one of the catalysts they were looking for, and intentions have turned to plans to present at several European trade events in the fall to showcase the technology and its benefits to interested parties.
Potentially the most exciting pending approval ongoing is the TSA approval of the QS-B220 for use in passenger checkpoint and checked baggage screening applications. Announced in July, Implant Sciences received confirmation for successfully completing the Independent Testing and Evaluation (IT&E) by the TSA, land marking Implant Sciences as the only company to have ever passed IT&E using Ion Mobility Spectrometry (IMS), a non-radioactive source. To be included on the Qualified Products List or QPL the TSA requires a three step process. The first step called IT&E or Independent Test and Evaluation which is the laboratory based detection performance testing considered by many to be the most difficult process as evidenced by so very few products obtaining a passing grade. Although full disclosure pertaining to the specific results of the TSA's finding cannot be released, the CEO has stated that "We did not just pass the test, we nailed it". Following IT&E, products were tested at the TSA Systems Integration Facility also known as TSIF (the second step), located at Reagan International Airport, TSA operates the systems in a simulated aviation security environment before actually deploying them in airports for final testing. The last phase is operational, OT&E (Operational Test & Evaluation) where the equipment is used in an actual airport security setting to perform, live screening of passengers and baggage. Upon satisfactory completion of all three stages, the equipment is qualified for use in passenger check point and check baggage screening.
Given that the company has already realized approvals for the QS-B220 from both domestic and international parties (TSA and STAC) along with the completion of the first phase, the case can be made that the approval for the QS-B220 in passenger checkpoint and baggage screening is imminent. The implications of such an event will benefit both parties of the company and investors, as the approval would allow Implant Sciences to introduce and sell a revolutionary approved and patented product in every airport, government agency, and sporting venue nationwide. With a current $2 billion dollar explosives, weapons and contrabands, known as EWC detective market, Implant Sciences anticipates broadening their market share by recapitalization of currently deployed systems and by creating demand for their products which host tremendous advantages like: Low cost of ownership, unmatched ease-of-use and rapid low-cost deployment. In particular, it is estimated that approximately $300 million of this market is in trace detection equipment sales and is largely split between two companies, with Implant Sciences cutting a 4% piece of the pie ($12M in revenue). With all aforementioned approvals considered, and technological advantages over the competition, management has been quoted saying that their goal to capture at least one-third ($99M) of this market in the next couple years, a very attainable figure with all variables considered.
Is Implant Science's a Buy?
For Investors, an entry point at current oversold (RSI 33) level of $1.03 may appeal to some considering the impact of the last TSA approval had for the QS-B220 back on January 15th (QS-B220 approved for air cargo applications) where the price spiked from roughly $1.10 to over $1.60 on almost 4 million shares traded (approx. 30x average trading volume) illustrated on the chart below:
(click to enlarge)
Reasonably, if the QS-B220 does indeed become a TSA approved device (more likely than not) for passenger checkpoint and baggage screening, the trading will react in a similar way as the implications of this approval opens new doors with potential the company has never seen before. When looking back at Implant Sciences a year ago, we witness a company with an innovative technology with no approvals for market penetration. Fast forwarding to the present day, we can see why the CEO Glen Bolduc claims that the Implant Sciences of today is dissimilar from the one a year ago, as the company is now strategically positioned with approvals to penetrate niche markets not available to them before. With the government and related TSA agency back in action (delayed by the governments hiatus), the steps towards the TSA approval can now continue to get closer to realization.
Disclosure: I am long IMSC.PK.
http://seekingalpha.com/article/1753492-introducing-the-new-and-improved-implant-sciences?source=yahoo
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$EIPC - Enable IPC Update:
http://www.yesinternational.com/eipcinforelease10102013.htm
$EIPC - Enable IPC Update:
http://www.yesinternational.com/eipcinforelease10102013.htm
$EIPC - Enable IPC Update:
http://www.yesinternational.com/eipcinforelease10102013.htm
Possible 'dry run' of terrorism on U.S. flight
by BILL MCGINTY / NBC Charlotte
Posted on October 10, 2013 at 7:45 PM
Updated today at 8:44 PM
CHARLOTTE, N.C. -- A lot has changed in air travel since 9/11. The TSA was formed and most flights now contain armed Air Marshals to prevent hijackings.
But in a September security memo from the U.S Airlines Pilots Association, the chairman writes, “Bringing down an airliner continues to be the gold standard of terrorism,” and that “if anyone thinks that our enemies have ‘been there done that’ and are not targeting U.S. commercial aviation, -- think again.”
James Ray speaks for the U.S. Airlines Pilots Association and says, “The memo did come from our agency, and yes, it happened. The incident in question is real.”
Here is a direct quote from the body of the memo:
“A group of Middle Eastern males boarded in DCA. Shortly after takeoff, one got up and ran from his seat in coach towards the flight deck door. He made a hard left and entered the forward lav, where he stayed for a considerable length of time! While he was in there, the others got up and proceeded to move about the cabin, changing seats, opening overhead bins, and generally making a scene. They appeared to be trying to occupy and distract the flight attendants.”
The memo says an Air Marshal was on board and felt the movements were serious enough to get up and “make their presence known.” The pilot later demanded that the TSA give the plane a full inspection after landing, which they did.
The Transportation Security Administration wrote in an email that it “takes all reports of suspicious activity on board an aircraft seriously,” but they went on to say this matter required “no further investigation at this time.”
U.S. Airways likewise confirmed the Sept. 2nd incident from Regan National to Orlando on flight 1880. The airline responded Thursday to this story by writing,
“Four passengers on board US Airways Flight 1880 from DCA to MCO on Monday, Sept. 2 were detained by local law enforcement authorities upon arrival at MCO due to suspicious behavior during the flight. TSA performed a full security sweep of the aircraft before it departed for its next scheduled flight. The aircraft was cleared, and it departed on a slight delay as a result of the additional security precautions taken by US Airways and the TSA. While US Airways won’t discuss the details of security measures, its pilots, flight attendants and ground personnel work closely with each other and authorities to ensure a safe travel experience.”
U.S. Airlines Pilot Association spokesman, James Ray, says the flying public should not be concerned about these incidents because it shows how the security systems in place worked. Ray also said there is an abundant number of airline pilots who are armed in the cockpit and consider themselves the last line of defense. “If that door opens in an emergency like that, the attacker is going to get quite a surprise,” said Ray.
Pre-Solicitation Conference: Advanced Trace Explosives Detection
BAA Posted on October 9, 2013
Global Biodefense Department of Homeland Security, Science & Technology Directorate (DHS S&T) is hosting a Pre-Solicitation Conference on October 28, 2013 in Washington, D.C. for the Advanced Trace Detection Instrumentation and Methodologies BAA 13-03.
Under the Broad Agency Announcement (BAA), DHS S&T seeks trace instrumentation and methods to improve explosive detection capabilities. The BAA will be split into four primary components: retrofit of explosive trace detectors (ETDs); desktop ETDs; portable ETDs; and advanced explosive detection tools and methods, including signature analysis and data analytics, advanced contact sampling, and non-contact sampling.
A draft BAA will be made available prior to the pre-solicitation conference, with potential offerors invited to ask questions in advance to be addressed during the event.
Organizations with the skills and expertise for this effort are invited to attend, such as multi-disciplinary R&D teams from industry, universities, equipment manufacturers from various market sectors (e.g., TSA, Department of Defense, medical); national labs; third party algorithm innovators; and component manufacturers in the supply chain.
Advanced registration is required.
IMSC - Implant Sciences sales momentum builds:
Implant Sciences' QS-B220 Purchased for Air Cargo Screening by Hawaii-Based The Delivery People
WILMINGTON, Mass., Oct. 10, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, announced today that it has sold its TSA-approved QS-B220 explosives trace detector to The Delivery People for use in U.S. air cargo screening. The QS-B220 is the first explosives trace detector (ETD) system purchased by The Delivery People, a full service, asset-based transportation provider that is also a Certified Cargo Screening Facility (CCSF). Transportation and logistics companies with CCSF status are certified by the TSA to screen air cargo packages for explosives before they are loaded onto airplanes. CCSFs are required to use TSA-approved screening systems.
"The decision maker at The Delivery People was very familiar with ETDs. When compared with competing systems, based on a strong recommendation from a current customer, combined with the systems' favorable ease of use and low total cost of ownership, they selected the QS-B220," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones. "Customer adoption rates for the QS-B220 have significantly increased over the past quarter and we look forward to continued sales momentum in the near future."
About the QS-B220 Desktop Explosives Trace Detector
The QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and a patented inCal™ internal automatic calibration system, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to currently have product approval from the US Transportation Security Administration. Implant Sciences has developed proprietary technologies used in its commercial explosives and drugs 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, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received STAC certification and a Developmental Testing & 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 our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; 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, and our success will depend on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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.
Contact:
Implant Sciences Corporation
Company Contact:
Glenn Bolduc, CEO
978-752-1700
Investor Contact:
Laurel Moody
646-810-0608
http://finance.yahoo.com/news/implant-sciences-qs-b220-purchased-110000534.html
IMSC - Implant Sciences sales momentum builds:
Implant Sciences' QS-B220 Purchased for Air Cargo Screening by Hawaii-Based The Delivery People
WILMINGTON, Mass., Oct. 10, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, announced today that it has sold its TSA-approved QS-B220 explosives trace detector to The Delivery People for use in U.S. air cargo screening. The QS-B220 is the first explosives trace detector (ETD) system purchased by The Delivery People, a full service, asset-based transportation provider that is also a Certified Cargo Screening Facility (CCSF). Transportation and logistics companies with CCSF status are certified by the TSA to screen air cargo packages for explosives before they are loaded onto airplanes. CCSFs are required to use TSA-approved screening systems.
"The decision maker at The Delivery People was very familiar with ETDs. When compared with competing systems, based on a strong recommendation from a current customer, combined with the systems' favorable ease of use and low total cost of ownership, they selected the QS-B220," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones. "Customer adoption rates for the QS-B220 have significantly increased over the past quarter and we look forward to continued sales momentum in the near future."
About the QS-B220 Desktop Explosives Trace Detector
The QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and a patented inCal™ internal automatic calibration system, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to currently have product approval from the US Transportation Security Administration. Implant Sciences has developed proprietary technologies used in its commercial explosives and drugs 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, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received STAC certification and a Developmental Testing & 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 our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; 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, and our success will depend on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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.
Contact:
Implant Sciences Corporation
Company Contact:
Glenn Bolduc, CEO
978-752-1700
Investor Contact:
Laurel Moody
646-810-0608
http://finance.yahoo.com/news/implant-sciences-qs-b220-purchased-110000534.html
IMSC - Implant Sciences sales momentum builds:
Implant Sciences' QS-B220 Purchased for Air Cargo Screening by Hawaii-Based The Delivery People
WILMINGTON, Mass., Oct. 10, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for homeland security and defense markets, announced today that it has sold its TSA-approved QS-B220 explosives trace detector to The Delivery People for use in U.S. air cargo screening. The QS-B220 is the first explosives trace detector (ETD) system purchased by The Delivery People, a full service, asset-based transportation provider that is also a Certified Cargo Screening Facility (CCSF). Transportation and logistics companies with CCSF status are certified by the TSA to screen air cargo packages for explosives before they are loaded onto airplanes. CCSFs are required to use TSA-approved screening systems.
"The decision maker at The Delivery People was very familiar with ETDs. When compared with competing systems, based on a strong recommendation from a current customer, combined with the systems' favorable ease of use and low total cost of ownership, they selected the QS-B220," stated Implant Sciences' Vice President of Sales and Marketing, Dr. Darryl Jones. "Customer adoption rates for the QS-B220 have significantly increased over the past quarter and we look forward to continued sales momentum in the near future."
About the QS-B220 Desktop Explosives Trace Detector
The QS-B220 uses Ion Mobility Spectrometry (IMS) to rapidly detect and identify trace amounts of a wide variety of military, commercial, and homemade explosives. With significantly lower maintenance requirements than competing systems, the QS-B220 can be deployed for a much lower total cost of ownership than other approved products. Featuring a radioactive material-free design, push-button maintenance and diagnostics, and a patented inCal™ internal automatic calibration system, the QS-B220 brings new levels of performance and convenience to desktop trace detection users with unsurpassed ease of use.
About Implant Sciences
Implant Sciences is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the third ETD manufacturer, and the sole American-owned company, to currently have product approval from the US Transportation Security Administration. Implant Sciences has developed proprietary technologies used in its commercial explosives and drugs 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, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received STAC certification and a Developmental Testing & 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 our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; 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, and our success will depend on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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.
Contact:
Implant Sciences Corporation
Company Contact:
Glenn Bolduc, CEO
978-752-1700
Investor Contact:
Laurel Moody
646-810-0608
http://finance.yahoo.com/news/implant-sciences-qs-b220-purchased-110000534.html
Interesting slideshow on the world ETD market:
http://www.slideshare.net/Visiongain/slideshare-world-explosive-trace
$CONX: Corgenix Medical - Record 2013. Look For Another Record In 2014.
Q4 2013 Financial Results
Corgenix Medical (CONX) reported financial results for the fiscal fourth quarter and full-year ending June 30, 2013. While revenue was slightly below our estimate, the top-line miss was almost entirely offset by a much stronger than anticipated gross margin, the net result being a bottom-line number in-line with our estimate. And while the Q4 revenue number was marginally lower than our estimate, it did represent single-digit yoy growth and was more than enough to push CONX to another record revenue year. The financial improvement in fiscal 2013 was not just confined to revenue as CONX generated $275k in net income and $710k in cash from operations, substantially better than the $623k loss and $604k cash from operations (the latter which benefitted from a $682k drawdown in inventory during 2012) posted in 2012.
Revenue
Importantly, 2013 was a record year for CONX despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
Q4 revenue of $2.4 million was down 4% sequentially, up about 3% yoy and about 7% lower than our $2.6 million estimate. Q4 results were very similar to the previous two quarters relative to the difference to our estimates. With revenue missing our number by about 7% each quarter but the difference almost completely offset by stronger than modeled gross margin. Management's focus on improvement to manufacturing processes is clearly paying dividends in the form of wider gross margins, which widened from 42.4% in fiscal 2012 to 44.8% in 2013 (with some of this improvement also likely a result of significantly greater services-related revenue). Meanwhile, the miss on revenue has also been fairly consistent over the last few quarters and largely tied to lower than expected AspirinWorks sales - with the introduction of the automated version (which has suffered through ongoing delays) now slated for fiscal 2014 (ending 6/30/2014), we expect aggregate AspirinWorks revenue to show much more meaningful growth in the current fiscal year compared to the relatively very disappointing 6% eked-out increase during 2013.
International sales, which were very strong during the first half of the year (+29% yoy), retreated 13% yoy in the second half. Largely contributing to this was an AspirinWorks stocking order in <_st13a_place _w3a_st="on">China earlier in the year - as the inventory is burned through and approvals/reimbursement is gained in additional territories throughout that country, we would expect international sales to benefit. For the full-year, international sales increased about 10%.
Domestic sales were also up about 10% for the full-year with an 111% increase in contract manufacturing revenue providing most of the catalyst and benefitting from the recent agreement with diaDexus to manufacture that company's cardiovascular PLAC test as well as CONX's ongoing relationship with BG Medicine. We think contract manufacturing will continue to be a significant driver of total revenue during 2014 as CONX continues to aggressively market this business and scores additional customers, including recent agreements with Eli Lilly (expected to begin to contribute within the next 2 - 3 months) and EDP Biotech.
GM / Operating Expenses / Net Income
As noted, management's efforts to control costs and improve processes have borne fruit in the forms of wider gross margins and meaningful improvement to operating margins and net income. Gross margin improvement was fairly consistent throughout fiscal 2013 (Q1: 42.6%, Q2: 43.1%, Q3: 47%, Q4: 46.8%) and ending the year at 44.8%, compared to 42.4% in 2012. Operating expenses as a % of revenue has also shown meaningful improvement, falling from 43.4% in 2012 to just 41.9% in 2013. Management noted on the call that further improvement in GM and operating expenses remains a priority - the successes from which will push more of the anticipated revenue growth to the bottom line.
Q4 net income and EPS were ($32)k and $0.00, in-line with our $24k and $0.00 estimates. For the full-year CONX posted net income and EPS of $275k and $0.01, meaningfully improved from ($623)k and ($0.01) in 2012.
We currently model 2014 revenue of $11.2 million (+10%). We estimate 2014 net income and EPS of $574k and $0.01.
Cash
CONX exited fiscal 2013 with $2.0 million in cash and equivalents, up slightly from $1.9 million at the end of Q3. For the year, cash flow from operating activities was an inflow of $710k. In early September CONX swapped its revolving credit facility with one with a more favorable interest rate and terms. The balance sheet remains very healthy.
Operational Update / Upcoming Milestones
> In May 2013 CONX announced agreement with Eli Lilly (LLY) for development of companion diagnostic related to LLY's oncology platform. CONX noted on the Q4 call that launch is expected by calendar year-end. We expect more details to released on the collaboration at that time, or potentially earlier. Expect to see a contribution from this relationship throughout fiscal 2014. CONX recently noted a renewed focus on companion diagnostics - this deal with LLY would be the initial major foray via a strategic partnership. Companion diagnostics could eventually become a meaningful part of the overall business
> In July 2013 CONX announced contract manufacturing agreement with EDP Biotech for that company's ColoMarker blood-based colorectal cancer test. EDP website indicates the test could be CE Marked in near-term. We think this could also potentially contribute to contract manufacturing revenue during the current year, although currently unclear as to how meaningful a revenue opportunity this is, particularly as the test is not currently FDA approved.
> Expanding the capabilities of the contract manufacturing and services business in order to bring in additional contracts and customers is a high priority for CONX. These efforts are clearly already paying off. We anticipate additional customer wins over the near-to-mid term.
> Continue progress on development and clinical trials of infectious disease products with collaboration partners including Tulane University. Lassa virus rapid test CE Marked in May. Expect to bring other infectious disease products to market in near future
> Submit 510k for Hyaluronic Acid (HA) test to FDA within the next 30 days - this has experienced ongoing delays but management indicated on the Q4 call that they are confident in hitting this timeline.
> Automated AspirinWorks Test FDA submission within next 60 days (potentially earlier) - similar to HA submission, this has been delayed but management seems confident this new submission timeline will be met.
> Investigating ancillary applications for AspirinWorks biomarker - may have utility in other clinical applications - working with scientists and physicians throughout the world on this. Could eventually lead to clinical trials.
> AtherOx - have made significant progress in overcoming obstacles to be able to manufacture the product - these have largely been cleared. Expect to begin add'l studies in coming quarter(s) and simultaneously talking to potential collaborators for the product. Management remains committed to the product and believes it could eventually be their biggest product ever. Expect several development milestones to be met in the coming quarters and if all goes right, FDA filing could potentially happen sometime in 2014.
> Expect regular flow of regulatory filings for new products as well as new product launches. Much of this will be related to ELITech agreement.
> China / <_st13a_country-region _w3a_st="on">India - beef up distribution and continue to roll out AspirinWorks in China and soon India. Bring other (existing and pipeline) products to these Asian markets. Expect <_st13a_place _w3a_st="on">Asia to be a big opportunity for near and long-term growth. AspirinWorks roll-out in <_st13a_place _w3a_st="on">China has been and will continue to be methodical and preceded by gaining requisite approvals/reimbursement in designated area of the country. We expect China-related sales to be a more substantial overall contributor to AspirinWorks sales in fiscal 2014.
> U.S. market - continue to expand the customer base through new product introductions and sales efforts. Recently introduced Skylab instrument already starting to pay dividends by bringing in new customers. Skylab and AspirinWorks remains the company's major focus for the <_st13a_place _w3a_st="on">U.S. Direct sales efforts, clinical studies and published manuscripts should help drive further awareness of AspirinWorks over the near-to-mid-term.
Maintaining Outlook / Price Target
CONX turned in another record year in fiscal 2013 with revenue up 10% and turned in positive net income and cash flow. This was despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements (including those with EDP Biotech and Eli Lilly) should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
We currently model 2014 revenue, net income and EPS of $11.2 million (+10%), $574k (+106%) and $0.01. We remain big believers in Corgenix and management's ability to deliver ever-improving financial results and build long-term shareholder value.
We continue to value CONX based on our comp valuation methodology which values the shares at approximately $0.60/share. We maintaining our Outperform rating on the stock.
See below for free access to our full report on CONX which includes our valuation methodology and financial model.
A copy of the latest research report can be downloaded here >> Corgenix Medical Report
Please visit SCR.Zacks.com for additional information on our research and coverage universe, and Subscribe to receive our articles and reports emailed directly to you each morning.
http://finance.yahoo.com/news/conx-record-2013-look-another-110000841.html
$CONX: Corgenix Medical - Record 2013. Look For Another Record In 2014.
Q4 2013 Financial Results
Corgenix Medical (CONX) reported financial results for the fiscal fourth quarter and full-year ending June 30, 2013. While revenue was slightly below our estimate, the top-line miss was almost entirely offset by a much stronger than anticipated gross margin, the net result being a bottom-line number in-line with our estimate. And while the Q4 revenue number was marginally lower than our estimate, it did represent single-digit yoy growth and was more than enough to push CONX to another record revenue year. The financial improvement in fiscal 2013 was not just confined to revenue as CONX generated $275k in net income and $710k in cash from operations, substantially better than the $623k loss and $604k cash from operations (the latter which benefitted from a $682k drawdown in inventory during 2012) posted in 2012.
Revenue
Importantly, 2013 was a record year for CONX despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
Q4 revenue of $2.4 million was down 4% sequentially, up about 3% yoy and about 7% lower than our $2.6 million estimate. Q4 results were very similar to the previous two quarters relative to the difference to our estimates. With revenue missing our number by about 7% each quarter but the difference almost completely offset by stronger than modeled gross margin. Management's focus on improvement to manufacturing processes is clearly paying dividends in the form of wider gross margins, which widened from 42.4% in fiscal 2012 to 44.8% in 2013 (with some of this improvement also likely a result of significantly greater services-related revenue). Meanwhile, the miss on revenue has also been fairly consistent over the last few quarters and largely tied to lower than expected AspirinWorks sales - with the introduction of the automated version (which has suffered through ongoing delays) now slated for fiscal 2014 (ending 6/30/2014), we expect aggregate AspirinWorks revenue to show much more meaningful growth in the current fiscal year compared to the relatively very disappointing 6% eked-out increase during 2013.
International sales, which were very strong during the first half of the year (+29% yoy), retreated 13% yoy in the second half. Largely contributing to this was an AspirinWorks stocking order in <_st13a_place _w3a_st="on">China earlier in the year - as the inventory is burned through and approvals/reimbursement is gained in additional territories throughout that country, we would expect international sales to benefit. For the full-year, international sales increased about 10%.
Domestic sales were also up about 10% for the full-year with an 111% increase in contract manufacturing revenue providing most of the catalyst and benefitting from the recent agreement with diaDexus to manufacture that company's cardiovascular PLAC test as well as CONX's ongoing relationship with BG Medicine. We think contract manufacturing will continue to be a significant driver of total revenue during 2014 as CONX continues to aggressively market this business and scores additional customers, including recent agreements with Eli Lilly (expected to begin to contribute within the next 2 - 3 months) and EDP Biotech.
GM / Operating Expenses / Net Income
As noted, management's efforts to control costs and improve processes have borne fruit in the forms of wider gross margins and meaningful improvement to operating margins and net income. Gross margin improvement was fairly consistent throughout fiscal 2013 (Q1: 42.6%, Q2: 43.1%, Q3: 47%, Q4: 46.8%) and ending the year at 44.8%, compared to 42.4% in 2012. Operating expenses as a % of revenue has also shown meaningful improvement, falling from 43.4% in 2012 to just 41.9% in 2013. Management noted on the call that further improvement in GM and operating expenses remains a priority - the successes from which will push more of the anticipated revenue growth to the bottom line.
Q4 net income and EPS were ($32)k and $0.00, in-line with our $24k and $0.00 estimates. For the full-year CONX posted net income and EPS of $275k and $0.01, meaningfully improved from ($623)k and ($0.01) in 2012.
We currently model 2014 revenue of $11.2 million (+10%). We estimate 2014 net income and EPS of $574k and $0.01.
Cash
CONX exited fiscal 2013 with $2.0 million in cash and equivalents, up slightly from $1.9 million at the end of Q3. For the year, cash flow from operating activities was an inflow of $710k. In early September CONX swapped its revolving credit facility with one with a more favorable interest rate and terms. The balance sheet remains very healthy.
Operational Update / Upcoming Milestones
> In May 2013 CONX announced agreement with Eli Lilly (LLY) for development of companion diagnostic related to LLY's oncology platform. CONX noted on the Q4 call that launch is expected by calendar year-end. We expect more details to released on the collaboration at that time, or potentially earlier. Expect to see a contribution from this relationship throughout fiscal 2014. CONX recently noted a renewed focus on companion diagnostics - this deal with LLY would be the initial major foray via a strategic partnership. Companion diagnostics could eventually become a meaningful part of the overall business
> In July 2013 CONX announced contract manufacturing agreement with EDP Biotech for that company's ColoMarker blood-based colorectal cancer test. EDP website indicates the test could be CE Marked in near-term. We think this could also potentially contribute to contract manufacturing revenue during the current year, although currently unclear as to how meaningful a revenue opportunity this is, particularly as the test is not currently FDA approved.
> Expanding the capabilities of the contract manufacturing and services business in order to bring in additional contracts and customers is a high priority for CONX. These efforts are clearly already paying off. We anticipate additional customer wins over the near-to-mid term.
> Continue progress on development and clinical trials of infectious disease products with collaboration partners including Tulane University. Lassa virus rapid test CE Marked in May. Expect to bring other infectious disease products to market in near future
> Submit 510k for Hyaluronic Acid (HA) test to FDA within the next 30 days - this has experienced ongoing delays but management indicated on the Q4 call that they are confident in hitting this timeline.
> Automated AspirinWorks Test FDA submission within next 60 days (potentially earlier) - similar to HA submission, this has been delayed but management seems confident this new submission timeline will be met.
> Investigating ancillary applications for AspirinWorks biomarker - may have utility in other clinical applications - working with scientists and physicians throughout the world on this. Could eventually lead to clinical trials.
> AtherOx - have made significant progress in overcoming obstacles to be able to manufacture the product - these have largely been cleared. Expect to begin add'l studies in coming quarter(s) and simultaneously talking to potential collaborators for the product. Management remains committed to the product and believes it could eventually be their biggest product ever. Expect several development milestones to be met in the coming quarters and if all goes right, FDA filing could potentially happen sometime in 2014.
> Expect regular flow of regulatory filings for new products as well as new product launches. Much of this will be related to ELITech agreement.
> China / <_st13a_country-region _w3a_st="on">India - beef up distribution and continue to roll out AspirinWorks in China and soon India. Bring other (existing and pipeline) products to these Asian markets. Expect <_st13a_place _w3a_st="on">Asia to be a big opportunity for near and long-term growth. AspirinWorks roll-out in <_st13a_place _w3a_st="on">China has been and will continue to be methodical and preceded by gaining requisite approvals/reimbursement in designated area of the country. We expect China-related sales to be a more substantial overall contributor to AspirinWorks sales in fiscal 2014.
> U.S. market - continue to expand the customer base through new product introductions and sales efforts. Recently introduced Skylab instrument already starting to pay dividends by bringing in new customers. Skylab and AspirinWorks remains the company's major focus for the <_st13a_place _w3a_st="on">U.S. Direct sales efforts, clinical studies and published manuscripts should help drive further awareness of AspirinWorks over the near-to-mid-term.
Maintaining Outlook / Price Target
CONX turned in another record year in fiscal 2013 with revenue up 10% and turned in positive net income and cash flow. This was despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements (including those with EDP Biotech and Eli Lilly) should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
We currently model 2014 revenue, net income and EPS of $11.2 million (+10%), $574k (+106%) and $0.01. We remain big believers in Corgenix and management's ability to deliver ever-improving financial results and build long-term shareholder value.
We continue to value CONX based on our comp valuation methodology which values the shares at approximately $0.60/share. We maintaining our Outperform rating on the stock.
See below for free access to our full report on CONX which includes our valuation methodology and financial model.
A copy of the latest research report can be downloaded here >> Corgenix Medical Report
Please visit SCR.Zacks.com for additional information on our research and coverage universe, and Subscribe to receive our articles and reports emailed directly to you each morning.
http://finance.yahoo.com/news/conx-record-2013-look-another-110000841.html
$CONX: Corgenix Medical - Record 2013. Look For Another Record In 2014.
Q4 2013 Financial Results
Corgenix Medical (CONX) reported financial results for the fiscal fourth quarter and full-year ending June 30, 2013. While revenue was slightly below our estimate, the top-line miss was almost entirely offset by a much stronger than anticipated gross margin, the net result being a bottom-line number in-line with our estimate. And while the Q4 revenue number was marginally lower than our estimate, it did represent single-digit yoy growth and was more than enough to push CONX to another record revenue year. The financial improvement in fiscal 2013 was not just confined to revenue as CONX generated $275k in net income and $710k in cash from operations, substantially better than the $623k loss and $604k cash from operations (the latter which benefitted from a $682k drawdown in inventory during 2012) posted in 2012.
Revenue
Importantly, 2013 was a record year for CONX despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
Q4 revenue of $2.4 million was down 4% sequentially, up about 3% yoy and about 7% lower than our $2.6 million estimate. Q4 results were very similar to the previous two quarters relative to the difference to our estimates. With revenue missing our number by about 7% each quarter but the difference almost completely offset by stronger than modeled gross margin. Management's focus on improvement to manufacturing processes is clearly paying dividends in the form of wider gross margins, which widened from 42.4% in fiscal 2012 to 44.8% in 2013 (with some of this improvement also likely a result of significantly greater services-related revenue). Meanwhile, the miss on revenue has also been fairly consistent over the last few quarters and largely tied to lower than expected AspirinWorks sales - with the introduction of the automated version (which has suffered through ongoing delays) now slated for fiscal 2014 (ending 6/30/2014), we expect aggregate AspirinWorks revenue to show much more meaningful growth in the current fiscal year compared to the relatively very disappointing 6% eked-out increase during 2013.
International sales, which were very strong during the first half of the year (+29% yoy), retreated 13% yoy in the second half. Largely contributing to this was an AspirinWorks stocking order in <_st13a_place _w3a_st="on">China earlier in the year - as the inventory is burned through and approvals/reimbursement is gained in additional territories throughout that country, we would expect international sales to benefit. For the full-year, international sales increased about 10%.
Domestic sales were also up about 10% for the full-year with an 111% increase in contract manufacturing revenue providing most of the catalyst and benefitting from the recent agreement with diaDexus to manufacture that company's cardiovascular PLAC test as well as CONX's ongoing relationship with BG Medicine. We think contract manufacturing will continue to be a significant driver of total revenue during 2014 as CONX continues to aggressively market this business and scores additional customers, including recent agreements with Eli Lilly (expected to begin to contribute within the next 2 - 3 months) and EDP Biotech.
GM / Operating Expenses / Net Income
As noted, management's efforts to control costs and improve processes have borne fruit in the forms of wider gross margins and meaningful improvement to operating margins and net income. Gross margin improvement was fairly consistent throughout fiscal 2013 (Q1: 42.6%, Q2: 43.1%, Q3: 47%, Q4: 46.8%) and ending the year at 44.8%, compared to 42.4% in 2012. Operating expenses as a % of revenue has also shown meaningful improvement, falling from 43.4% in 2012 to just 41.9% in 2013. Management noted on the call that further improvement in GM and operating expenses remains a priority - the successes from which will push more of the anticipated revenue growth to the bottom line.
Q4 net income and EPS were ($32)k and $0.00, in-line with our $24k and $0.00 estimates. For the full-year CONX posted net income and EPS of $275k and $0.01, meaningfully improved from ($623)k and ($0.01) in 2012.
We currently model 2014 revenue of $11.2 million (+10%). We estimate 2014 net income and EPS of $574k and $0.01.
Cash
CONX exited fiscal 2013 with $2.0 million in cash and equivalents, up slightly from $1.9 million at the end of Q3. For the year, cash flow from operating activities was an inflow of $710k. In early September CONX swapped its revolving credit facility with one with a more favorable interest rate and terms. The balance sheet remains very healthy.
Operational Update / Upcoming Milestones
> In May 2013 CONX announced agreement with Eli Lilly (LLY) for development of companion diagnostic related to LLY's oncology platform. CONX noted on the Q4 call that launch is expected by calendar year-end. We expect more details to released on the collaboration at that time, or potentially earlier. Expect to see a contribution from this relationship throughout fiscal 2014. CONX recently noted a renewed focus on companion diagnostics - this deal with LLY would be the initial major foray via a strategic partnership. Companion diagnostics could eventually become a meaningful part of the overall business
> In July 2013 CONX announced contract manufacturing agreement with EDP Biotech for that company's ColoMarker blood-based colorectal cancer test. EDP website indicates the test could be CE Marked in near-term. We think this could also potentially contribute to contract manufacturing revenue during the current year, although currently unclear as to how meaningful a revenue opportunity this is, particularly as the test is not currently FDA approved.
> Expanding the capabilities of the contract manufacturing and services business in order to bring in additional contracts and customers is a high priority for CONX. These efforts are clearly already paying off. We anticipate additional customer wins over the near-to-mid term.
> Continue progress on development and clinical trials of infectious disease products with collaboration partners including Tulane University. Lassa virus rapid test CE Marked in May. Expect to bring other infectious disease products to market in near future
> Submit 510k for Hyaluronic Acid (HA) test to FDA within the next 30 days - this has experienced ongoing delays but management indicated on the Q4 call that they are confident in hitting this timeline.
> Automated AspirinWorks Test FDA submission within next 60 days (potentially earlier) - similar to HA submission, this has been delayed but management seems confident this new submission timeline will be met.
> Investigating ancillary applications for AspirinWorks biomarker - may have utility in other clinical applications - working with scientists and physicians throughout the world on this. Could eventually lead to clinical trials.
> AtherOx - have made significant progress in overcoming obstacles to be able to manufacture the product - these have largely been cleared. Expect to begin add'l studies in coming quarter(s) and simultaneously talking to potential collaborators for the product. Management remains committed to the product and believes it could eventually be their biggest product ever. Expect several development milestones to be met in the coming quarters and if all goes right, FDA filing could potentially happen sometime in 2014.
> Expect regular flow of regulatory filings for new products as well as new product launches. Much of this will be related to ELITech agreement.
> China / <_st13a_country-region _w3a_st="on">India - beef up distribution and continue to roll out AspirinWorks in China and soon India. Bring other (existing and pipeline) products to these Asian markets. Expect <_st13a_place _w3a_st="on">Asia to be a big opportunity for near and long-term growth. AspirinWorks roll-out in <_st13a_place _w3a_st="on">China has been and will continue to be methodical and preceded by gaining requisite approvals/reimbursement in designated area of the country. We expect China-related sales to be a more substantial overall contributor to AspirinWorks sales in fiscal 2014.
> U.S. market - continue to expand the customer base through new product introductions and sales efforts. Recently introduced Skylab instrument already starting to pay dividends by bringing in new customers. Skylab and AspirinWorks remains the company's major focus for the <_st13a_place _w3a_st="on">U.S. Direct sales efforts, clinical studies and published manuscripts should help drive further awareness of AspirinWorks over the near-to-mid-term.
Maintaining Outlook / Price Target
CONX turned in another record year in fiscal 2013 with revenue up 10% and turned in positive net income and cash flow. This was despite delays in certain regulatory approvals and product launches that had been expected to make a contribution during the year but now are expected to initially benefit fiscal 2014. These new product introductions, along with anticipated continued growth from the likes of AspirinWorks, an expanded presence internationally including in <_st13a_country-region _w3a_st="on">China and newly consummated contract manufacturing and services agreements (including those with EDP Biotech and Eli Lilly) should set the stage for another record revenue year in 2014. Management has also made clear that they intend to continue to be focused on controlling operating expenses and ongoing process improvements which should benefit gross and operating margins. We think top-line growth and bigger operating margins can result in net income more than doubling in 2014 from that generated in fiscal 2013.
We currently model 2014 revenue, net income and EPS of $11.2 million (+10%), $574k (+106%) and $0.01. We remain big believers in Corgenix and management's ability to deliver ever-improving financial results and build long-term shareholder value.
We continue to value CONX based on our comp valuation methodology which values the shares at approximately $0.60/share. We maintaining our Outperform rating on the stock.
See below for free access to our full report on CONX which includes our valuation methodology and financial model.
A copy of the latest research report can be downloaded here >> Corgenix Medical Report
Please visit SCR.Zacks.com for additional information on our research and coverage universe, and Subscribe to receive our articles and reports emailed directly to you each morning.
http://finance.yahoo.com/news/conx-record-2013-look-another-110000841.html
Major Media Coverage:
Explosive trace detector gets French approval
Published: Oct. 2, 2013 at 12:46 PM
WILMINGTON, Mass., Oct. 2 (UPI) -- A U.S.-made desktop explosives trace detector has been approved for use by France, opening the door for marketing opportunities throughout Europe.
Certification of Implant Sciences Corporation's QS-B220 was given by Service Technique de l'Aviation Civile (STAC) and follows its approval this year by the U.S. Transportation Security Agency for air cargo screening.
"This is a very significant achievement and milestone for Implant Sciences," said company President and Chief Executive Officer Glenn Bolduc. "STAC is a highly respected certification organization, and becoming certified opens the large French aviation market to us.
"A number of other governments, including French territories, several European Union member nations, and a select number of countries around the world look to STAC certification in their purchasing decisions."
The QS-B220 uses ion mobility spectrometry to detect and identify trace amounts of explosives.
It features a radioactive material-free design, push-button maintenance and diagnostics, and a patented in internal automatic calibration system.
"As a STAC-certified explosive trace detector (ETD) with a non-radioactive source, the QS-B220 proves again that Implant Sciences is the new standard in trace detection," said Darryl Jones, Implant Sciences' vice president of sales and marketing. "Regulations on equipment containing radioactive materials are much stricter in France and other European nations than in the U.S., and we believe that there is a significant market opportunity for us with airports and other security customers that may have been reluctant to purchase competing ETD devices with a radioactive ion source."
© 2013 United Press International, Inc. All Rights Reserved.
Read more: http://www.upi.com/Business_News/Security-Industry/2013/10/02/Explosive-trace-detector-gets-French-approval/UPI-96011380732400/print#ixzz2gcowRNwz
NBC News said the FBI is involved and there is a person of interest in custody.
Le détecteur de traces d'explosifs QS-B220 de la société Implant Sciences obtient l'homologation du STAC en France
-- Cette homologation très respectée permet d'ouvrir les portes d'un large marché prometteur en matière de contrôle de sûreté dans les aéroports à travers l'Europe.
WILMINGTON, Massachusetts, 1 octobre 2013 /PRNewswire/ -- Implant Sciences Corporation (OTCQB : IMSC), fournisseur de solutions de haute technologie en matière de systèmes et de capteurs pour les marchés de la défense et de la sécurité intérieure, a annoncé aujourd'hui que sa solution de détection de traces d'explosifs (ETD) QS-B220, déjà approuvée par la TSA, venait d'être homologuée par le Service Technique de l'Aviation Civile (STAC) en France. Grâce à cette homologation, le QS-B220 peut désormais être commercialisé et déployé afin de contrôler les passagers, le fret, les cabines et les bagages et ainsi détecter la présence d'explosifs au sein des aéroports partout en France. Il s'agit de la deuxième réussite réglementaire majeure pour le QS-B220 après avoir obtenu en janvier 2013 l'approbation de l'Administration américaine pour la sécurité des transports (TSA) dans le cadre du contrôle du fret aérien.
(Photo : http://photos.prnewswire.com/prnh/20131001/NY89580)
« Il s'agit d'une étape et d'une réussite très importantes pour Implant Sciences. Le STAC est un organisme d'homologation très respecté. Ainsi, l'obtention de cette certification nous ouvre les portes du large marché français de l'aéronautique. Plusieurs autres gouvernements, y compris les territoires français, de nombreux pays membres de l'Union européenne et un certain nombre de pays à travers le monde, prennent en compte l'homologation du STAC lors de leur décision d'achat », a déclaré Glenn Bolduc, Président et PDG d'Implant Sciences. « Il s'agit d'une nouvelle étape dans notre projet visant à augmenter nos parts de marché à l'échelle mondiale et à consolider davantage la place d'Implant Sciences parmi les principaux fabricants de solutions ETD dans le monde ».
« En tant que solution ETD homologuée par le STAC et dotée d'une source non-radioactive, le QS-B220 démontre encore une fois que la société Implant Sciences représente la nouvelle norme en matière de détection de traces d'explosifs », a observé Darryl Jones, Vice-président des ventes et du marketing chez Implant Sciences. « La réglementation relative aux équipements contenant des substances radioactives est beaucoup plus sévère en France et dans d'autres pays européens qu'aux États-Unis. Ainsi, nous pensons qu'il existe un important marché notamment avec les aéroports et d'autres clients issus du secteur de la sécurité qui ont hésité à acheter des appareils ETD concurrents dotés d'une source d'ions radioactifs ».
À propos du détecteur de traces d'explosifs QS-B220
Le dispositif QS-B220 utilise la spectrométrie de mobilité ionique (SMI) afin de détecter et d'identifier rapidement des quantités infimes de divers types d'explosifs (militaires, commerciaux ou de fabrication artisanale). Grâce à des besoins d'entretien bien moins importants que d'autres systèmes concurrents, le QS-B220 peut être déployé pour un coût total de possession bien moins élevé que celui d'autres produits homologués. Grâce à l'absence de substance radioactive mais aussi la présence d'un bouton-poussoir pour l'entretien et le diagnostic, ainsi qu'un dispositif interne d'étalonnage automatique breveté inCal™, le QS-B220 propose aux utilisateurs de solutions de détection de traces d'explosifs un niveau de performance et de confort inédit ainsi qu'une facilité d'utilisation inégalée.
À propos d'Implant Sciences
Implant Sciences est le leader en matière de technologies de détection de traces d'explosifs (ETD) de nouvelle génération. En janvier 2013, la société est devenue le troisième fabricant de solutions ETD et la seule société américaine à bénéficier actuellement de l'homologation de la TSA (Administration américaine pour la sécurité des transports) pour ses produits. Implant Sciences a développé des technologies brevetées qui sont utilisées dans le cadre de ses systèmes commerciaux de détection de traces de médicaments ou d'explosifs ; systèmes expédiés vers un nombre croissant de sites nationaux et internationaux. Le détecteur mobile de traces d'explosifs QS-H150 d'Implant Sciences a été reconnu en tant que Qualified Anti-Terrorism Technology (technologie anti-terrorisme qualifiée). Et, en plus d'obtenir l'homologation de la TSA dans le cadre du contrôle du fret aérien, la solution QS-B220 de la société a notamment obtenu l'appellation Developmental Testing & Evaluation (DT&E) (évaluation et essais de mise au point) par le Département américain de la sécurité intérieure en vertu de la loi de 2002 « Support Anti-terrorism by Fostering Effective Technology Act » (SAFETY). Pour obtenir de plus amples renseignements à propos de la société et de ses solutions, veuillez consulter le site Web de la société à l'adresse www.implantsciences.com.
Déclaration de limitation de responsabilité
Le présent document peut contenir certaines « déclarations prévisionnelles » telles que définies par la loi Private Securities Litigation Reform Act de 1995. De telles déclarations prévisionnelles se fondent sur les attentes actuelles de la direction et sont sujettes à des risques et incertitudes qui peuvent avoir pour conséquence une différence sensible entre les résultats réels de la société et les déclarations contenues dans ce document. Ces risques et ces incertitudes comprennent, sans pour autant s'y limiter, le risque de devoir rembourser l'intégralité de nos dettes auprès de notre créancier garanti, DMRJ Group, d'ici le 31 mai 2014. Dans l'éventualité où nous serions incapables de nous acquitter de nos obligations auprès de DMRJ, mais aussi d'obtenir une réserve de capital supplémentaire afin de financer nos opérations, DMRJ pourrait saisir nos actifs, ce qui entraînerait la faillite de notre entreprise ; nous continuons de connaître d'importantes pertes d'exploitation, ce qui signifie que notre activité pourrait ne jamais devenir rentable ; notre cabinet d'experts comptables inscrit indépendant a exprimé des doutes importants quant à notre capacité à poursuivre en tant qu'entreprise en activité ; il se pourrait que nos solutions et technologies de détection d'explosifs (y compris toutes les nouvelles solutions que nous pourrions élaborer) ne soient pas acceptées par l'Administration pour la sécurité des transports (TSA), ou bien n'importe quel autre gouvernement (américain ou étranger), organismes chargés de l'application de la loi ou encore par les consommateurs des solutions de sécurité. Les risques relatifs, entre autres, à la politique et l'économie dans le cadre des ventes et opérations internationales pourraient affecter nos ventes ; les recours en responsabilité relatifs à nos produits ou à notre gestion des substances dangereuses pourraient nuire à notre réputation ainsi qu'avoir un effet négatif important sur nos résultats financiers ; notre activité commerciale est soumise à une vive concurrence ; nos marchés sont soumis à de rapides changements technologiques et notre réussite dépendra de notre capacité à développer et proposer de nouveaux produits ; il se pourrait que nous ne puissions pas maintenir en poste des cadres et des salariés essentiels ainsi qu'identifier, embaucher et garder des membres du personnel supplémentaires selon les besoins ; il se pourrait que nous ne puissions pas défendre nos brevets et d'autres droits de propriété intellectuelle ou bien encore fonctionner sans porter atteinte aux droits de propriété de tiers. Il existe d'autres risques et incertitudes décrits dans les documents déposés auprès de la Securities and Exchange Commission, comme par exemple, nos formulaires les plus récents : 10-K, 10-Q et 8-K. Ces déclarations sont fondées sur les attentes et hypothèses actuelles de la direction, des attentes et hypothèses qui pourraient différer sensiblement de celles évoquées dans les déclarations prévisionnelles.
Contact :
Implant Sciences Corporation
Personne de la société à contacter :
Glenn Bolduc, PDG
+1-978-752-1700
ou
Contact pour les investisseurs :
Laurel Moody
+1-646-810-0608
SOURCE Implant Sciences Corporation
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$IMSC - Implant Sciences' CEO Discusses F4Q 2013 Results http://seekingalpha.com/article/1721842-implant-sciences-ceo-discusses-f4q-2013-results-earnings-call-transcript?source=iphoneportfolioapp_email
$IMSC - Implant Sciences' CEO Discusses F4Q 2013 Results http://seekingalpha.com/article/1721842-implant-sciences-ceo-discusses-f4q-2013-results-earnings-call-transcript?source=iphoneportfolioapp_email
$IMSC - Implant Sciences' CEO Discusses F4Q 2013 Results http://seekingalpha.com/article/1721842-implant-sciences-ceo-discusses-f4q-2013-results-earnings-call-transcript?source=iphoneportfolioapp_email
Aiming for $100 Million in revenues in a few years. I repeat!
$IMSC - Implant Sciences is on the runway and ready for take-off! Very bullish conference call after hours.
$IMSC - Implant Sciences is on the runway and ready for take-off! Very bullish conference call after hours.
$IMSC - Implant Sciences is on the runway and ready for take-off! Very bullish conference call after hours.
$IMSC - Implant Sciences is on the runway and ready for take-off! Very bullish conference call after hours.
Great call Molecule!!
$IMSC - Implant Sciences Reports FY 2013 Revenues Increase 253% to $12.0 million
WILMINGTON, Mass., Sept. 30, 2013 /PRNewswire/ -- Implant Sciences Corporation (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 and fiscal year ended June 30, 2013.
Revenues for the fourth quarter ended June 30, 2013 increased 335%, to $2.4 million, from $0.6 million for the comparable prior year period. Our net loss for the quarter ended June 30, 2013 was $5.5 million as compared with a net loss of $4.4 million for the comparable prior year period, an increase of $1.1 million. The increase in the net loss is primarily due to $1.6 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, increased operating expenses and increased interest expense.
Revenues for the year ended June 30, 2013 increased 253%, to $12.0 million, from $3.4 million for the comparable prior year period. Our net loss for the year ended June 30, 2013 was $27.4 million as compared with a net loss of $14.6 million for the comparable prior year period, an increase of $12.8 million. The increase in the net loss is primarily due to $13.9 million of stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $1,928,000 in the quarter ended June 30, 2013, compared to a loss of $2,550,000 in the comparable prior year period and a loss of $6,948,000 for the year ended June 30, 2013, compared to a loss of $8,057,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded fourth quarter and fiscal year, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
In January 2013, our QS-B220 Desktop Trace Detector successfully completed independent validation testing with the Transportation Security Laboratory (the "TSL"), the testing body of the Transportation Security Administration (the "TSA"), and was accepted into the "Approved" section of the TSA's Air Cargo Screening Technology List.
In July 2013, the QS-B220 successfully completed Independent Testing and Evaluation with the TSL and is currently in testing at the TSA Systems Integration Facility for qualification on the TSA's Qualified Product List for passenger checkpoint and checked baggage screening.
We have received preliminary notification that the QS-B220 has been certified by the Service Technique de l'Aviation Civile ("STAC"), the French civil aviation authority.
We continued global distribution of our QS-H150 handheld with sales to Japan, Africa, Asia, the Middle East, Europe and to a U.S. Government agency.
We achieved growing sales of our QS-B220 to customers including the U.S. Government and several domestic and international freight forwarders.
During fiscal 2013, we filed three patent applications with and received two patents from the U.S. Patent and Trademark Office.
In June 2013, we opened American Implant Sciences Shanghai Representative Office, a marketing office in Shanghai, China, which better positions us to collaborate with our in-country distributors, identify new distributors and enhance our understanding of the Chinese market.
We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, and negotiated the conversion of $24 million of the line of credit to convertible term notes, increasing availability under the $23 million line of credit."
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and independent validation testing for passenger checkpoint screening, along with achieving STAC certification, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. The influx of industry talent that we have recruited over the past twelve months increases our ability to innovate new technologies, build new products, and grow our market share and revenues. We remain excited about our future prospects."
Details for the quarter and fiscal year ended June 30, 2013 follow below.
Quarter Ended June 30, 2013 vs. June 30, 2012
Revenues for the quarter ended June 30, 2013 were $2,402,000 as compared with $552,000 for the comparable prior year period, an increase of $1,850,000, or 335.1%. The increase in revenue is due primarily to increased shipments into, Africa, the Middle East, Mexico and China, resulting in a 130% increase in the number of QS-H150 handheld units sold, increased domestic and international sales of our QS-B220 desktop units, and increased sales of parts and supplies during the quarter ended June 30, 2013, as compared to the comparable prior year period, partially offset by a 2.2% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the quarter ended June 30, 2013 was $697,000 or 29.0% of revenues as compared with gross margin of $53,000 or 9.6% of revenues for the comparable prior year period. The increase in gross margin is primarily the result of increased unit sales of our QS-H150 and QS-B220, increased manufacturing overhead absorption, partially offset by increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs and increased warranty costs due to the increase in units sold, as compared to the comparable prior year period.
Research and development expense for the quarter ended June 30, 2013 was $1,233,000 as compared with $815,000 for the comparable prior year period, an increase of $418,000 or 51.3%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended June 30, 2013 were $3,515,000 as compared with $2,522,000 for the comparable prior year period, an increase of $993,000, or 39.4%. The increase in selling, general and administrative expenses is due primarily a $1,325,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased travel expense resulting from the addition of sales personnel, partially offset by decreased consulting fees due to the issuance of common stock to certain consultants in the comparable prior year period and decreased legal costs.
For the quarter ended June 30, 2013, other expense, net was $1,493,000 as compared with other expense, net of $1,100,000, for the comparable prior year period, an increase of $393,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the quarter ended June 30, 2013 was $5,544,000 as compared with a net loss of $4,384,000 for the comparable prior year period, an increase of $1,160,000, or 26.5%. 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.
Year Ended June 30, 2013 vs. June 30, 2012
Revenues for the year ended June 30, 2013 were $12,017,000 as compared with $3,406,000 for the prior year, an increase of $8,611,000 or 252.8%. The increase in revenue is due primarily to a 225% increase in the number of QS-H150 handheld units sold, due primarily to the shipment of the India Ministry of Defence order, $848,000 in sales to agencies of the U.S. Government, increased sales into Africa, the Middle East and Japan, increased domestic and international sales of our QS-B220 desktop units, which we began shipping commercially in the third quarter of fiscal 2012 and, increased sales of parts and supplies during the year ended June 30, 2013, as compared to the comparable prior year period, partially offset by an 4.9% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the year ended June 30, 2013 was $3,429,000 or 28.5% of revenues as compared with gross margin of $999,000 or 29.3% of revenues for the prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, costs incurred to support the India Ministry of Defence order, increased warranty costs, increased manufacturing personnel costs, and by the decrease in the average unit sell prices on sales of our QS-H150 handheld units in the year ended June 30, 2013, as compared to the prior year period.
Research and development expense for the year ended June 30, 2013 was $4,754,000 as compared with $3,180,000 for the prior year period, an increase of $1,574,000 or 49.5%. The increase in research and development expense is due primarily to a $923,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by a decrease in contracted engineering.
Selling, general and administrative expenses for the year ended June 30, 2013 were $20,630,000 as compared with $8,575,000 for the prior year period, an increase of $12,055,000, or 140.6%. The increase in selling, general and administrative expenses is due primarily to a $12,172,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, an increase in payroll, related benefit costs and travel expense resulting from the addition of sales personnel and increased sales commissions, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased selling expenses due to the opening of our Shanghai representative office, increased participation at industry trade shows and an increase in demonstration units provided to our sales force, increased in bank fees related to the extension of letters of credit issued under our agreement with the India Ministry of Defence, and increased in legal fees and costs incurred to increase our authorized shares, partially offset by decreased consulting fees due to the issuance of our common stock to certain consultants in the prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the year ended June 30, 2013, other expense, net was $5,399,000 as compared with other expense, net of $3,880,000, for the prior year period, an increase of $1,519,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the year ended June 30, 2013 was $27,354,000 as compared with $14,636,000 for the prior year, an increase of $12,718,000, or 86.9%. 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 due to higher borrowings under our credit facility with DMRJ.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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, 2014; 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 Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; 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; our business is subject to intense competition; our markets are subject to rapid technology change and our success will depend on our ability to develop and introduce new products; we may not be able to retain our management and key employees or identify, hire and retain additional personnel as needed; we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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 period ended June 30, 2013. The Company assumes no obligation to update the information contained in this press release.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
Implant Sciences Corporation
Consolidated Balance Sheets
June 30,
June 30,
2013
2012
ASSETS
Current assets:
Cash and cash equivalents
$ 80,000
$ 84,000
Restricted cash and investments
433,000
1,274,000
Accounts receivable-trade, net of allowances of $0 and $20,000, respectively
1,216,000
182,000
Inventories, net
2,145,000
3,193,000
Prepaid expenses and other current assets
395,000
809,000
Total current assets
4,269,000
5,542,000
Property and equipment, net
395,000
220,000
Restricted cash and investments
312,000
312,000
Other non-current assets
122,000
162,000
Total assets
$ 5,098,000
$ 6,236,000
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Senior secured convertible promissory note
$ 3,184,000
$ 3,224,000
Senior secured promissory note
1,000,000
1,000,000
Second senior secured convertible promissory note
12,000,000
-
Third senior secured convertible promissory note
12,000,000
-
Line of credit
12,403,000
26,231,000
Current maturities of obligations under capital lease
62,000
24,000
Payable to Med-Tec
19,000
30,000
Accrued expenses
6,754,000
4,360,000
Accounts payable
2,026,000
2,654,000
Deferred revenue
109,000
1,081,000
Total current liabilities
49,557,000
38,604,000
Long-term liabilities:
Long-term obligations under capital lease, net of current maturities
89,000
33,000
Total long-term liabilities
89,000
33,000
Total liabilities
49,646,000
38,637,000
Commitments and contingencies:
Stockholders' deficit:
Common stock; $0.001 par value; 200,000,000 shares authorized; 57,655,594 and 57,645,049 at
June 30, 2013 and 50,000,000 shares authorized; 39,163,540 and 39,152,995 shares issued and
outstanding at June 30, 2012
58,000
39,000
Preferred stock; $0.10 par value; 5,000,000 shares authorized
Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 16,167
shares issued and outstanding at June 30, 2013 and 164,667 shares issued and outstanding
at June 30, 2012, respectively (liquidation value $129,000 and $1,317,000, respectively)
27,000
274,000
Series H Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series I Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series J Convertible Preferred Stock, no stated par value; 6,000 shares authorized,
no shares issued and outstanding
-
-
Additional paid-in capital
103,937,000
87,313,000
Accumulated deficit
(146,876,000)
(119,522,000)
Deferred compensation
(1,621,000)
(432,000)
Treasury stock, 10,545 common shares, at cost
(73,000)
(73,000)
Total stockholders' deficit
(44,548,000)
(32,401,000)
Total liabilities and stockholders' deficit
$ 5,098,000
$ 6,236,000
Implant Sciences Corporation
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Revenues
$ 2,402,000
$ 552,000
$ 12,017,000
$ 3,406,000
Cost of revenues
1,705,000
499,000
8,588,000
2,407,000
Gross margin
697,000
53,000
3,429,000
999,000
Operating expenses:
Research and development
1,233,000
815,000
4,754,000
3,180,000
Selling, general and administrative
3,515,000
2,522,000
20,630,000
8,575,000
Total operating expenses
4,748,000
3,337,000
25,384,000
11,755,000
Loss from operations
(4,051,000)
(3,284,000)
(21,955,000)
(10,756,000)
Other income (expense), net:
Interest income
-
1,000
2,000
4,000
Interest expense
(1,493,000)
(1,101,000)
(5,401,000)
(3,884,000)
Total other expense, net
(1,493,000)
(1,100,000)
(5,399,000)
(3,880,000)
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Net loss per share, basic and diluted
$ (0.10)
$ (0.12)
$ (0.56)
$ (0.43)
Weighted average shares used in computing net loss
per common share, basic and diluted
56,306,327
37,484,662
49,124,942
34,242,719
Implant Sciences Corporation
Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA")
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Interest expense, net
1,493,000
1,100,000
5,399,000
3,880,000
Income taxes
-
-
-
-
Depreciation
26,000
18,000
84,000
72,000
Stock-based compensation
1,583,000
57,000
13,908,000
257,000
Warrants issued to non-employees
214,000
142,000
696,000
467,000
Common stock issued to consultants
300,000
517,000
319,000
1,903,000
Adjusted EBITDA (1)
$ (1,928,000)
$ (2,550,000)
$ (6,948,000)
$ (8,057,000)
(1) Adjusted EBITDA is defined as net loss plus interest expense, net of interest income, income taxes, depreciation, stock-based compensation, fair value of warrants issued to non-employees and the fair value of common stock issued to consultants. EBITDA is commonly used in the technology industry, and we present Adjusted EBITDA to enhance your understanding of our financial performance. We use Adjusted EBITDA as an internal performance measurement and believe that it provides investors and analysts with a measure of operating results unaffected by differences in capital structures and capital investment among otherwise comparable companies and improves comparability of results of operations. Management uses this supplemental measure to evaluate performance over a period of time and to analyze underlying trends in the Company's business and to establish operational goals and forecast that are used in allocating resources. We expect to compute our non-GAAP financial measure, using the same consistent method from quarter to quarter and year to year.
While we believe that Adjusted EBITDA is a useful measure for investors, it is not a measurement presented in accordance with United States generally accepted accounting principles, or GAAP. You should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operations, or any other performance measures calculated in accordance with GAAP. In addition, Adjusted EBITDA has inherent material limitations as a performance measure. It does not include interest expense, but because we have borrowed money, interest expense is a necessary element of our costs. In addition, Adjusted EBITDA does not include depreciation. Since we have capital assets, depreciation expense is a necessary element of our costs. Adjusted EBITDA does not include stock-based compensation, which is a necessary element of our costs since we issue stock awards to employees as an important incentive to maximize overall company performance and as a benefit of employment with the company. Adjusted EBITDA does not include the fair value of warrants issued to non-employees, which is a necessary element of our costs since we have issued warrants to non-employees and as part of our financing strategy. Finally, Adjusted EBITDA does not include the fair value of common stock issued to consultants, which is a necessary element of our costs since we have issued shares of our common stock in lieu of cash payments to consultants we have retained. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
$IMSC - Implant Sciences Reports FY 2013 Revenues Increase 253% to $12.0 million
WILMINGTON, Mass., Sept. 30, 2013 /PRNewswire/ -- Implant Sciences Corporation (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 and fiscal year ended June 30, 2013.
Revenues for the fourth quarter ended June 30, 2013 increased 335%, to $2.4 million, from $0.6 million for the comparable prior year period. Our net loss for the quarter ended June 30, 2013 was $5.5 million as compared with a net loss of $4.4 million for the comparable prior year period, an increase of $1.1 million. The increase in the net loss is primarily due to $1.6 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, increased operating expenses and increased interest expense.
Revenues for the year ended June 30, 2013 increased 253%, to $12.0 million, from $3.4 million for the comparable prior year period. Our net loss for the year ended June 30, 2013 was $27.4 million as compared with a net loss of $14.6 million for the comparable prior year period, an increase of $12.8 million. The increase in the net loss is primarily due to $13.9 million of stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $1,928,000 in the quarter ended June 30, 2013, compared to a loss of $2,550,000 in the comparable prior year period and a loss of $6,948,000 for the year ended June 30, 2013, compared to a loss of $8,057,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded fourth quarter and fiscal year, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
In January 2013, our QS-B220 Desktop Trace Detector successfully completed independent validation testing with the Transportation Security Laboratory (the "TSL"), the testing body of the Transportation Security Administration (the "TSA"), and was accepted into the "Approved" section of the TSA's Air Cargo Screening Technology List.
In July 2013, the QS-B220 successfully completed Independent Testing and Evaluation with the TSL and is currently in testing at the TSA Systems Integration Facility for qualification on the TSA's Qualified Product List for passenger checkpoint and checked baggage screening.
We have received preliminary notification that the QS-B220 has been certified by the Service Technique de l'Aviation Civile ("STAC"), the French civil aviation authority.
We continued global distribution of our QS-H150 handheld with sales to Japan, Africa, Asia, the Middle East, Europe and to a U.S. Government agency.
We achieved growing sales of our QS-B220 to customers including the U.S. Government and several domestic and international freight forwarders.
During fiscal 2013, we filed three patent applications with and received two patents from the U.S. Patent and Trademark Office.
In June 2013, we opened American Implant Sciences Shanghai Representative Office, a marketing office in Shanghai, China, which better positions us to collaborate with our in-country distributors, identify new distributors and enhance our understanding of the Chinese market.
We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, and negotiated the conversion of $24 million of the line of credit to convertible term notes, increasing availability under the $23 million line of credit."
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and independent validation testing for passenger checkpoint screening, along with achieving STAC certification, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. The influx of industry talent that we have recruited over the past twelve months increases our ability to innovate new technologies, build new products, and grow our market share and revenues. We remain excited about our future prospects."
Details for the quarter and fiscal year ended June 30, 2013 follow below.
Quarter Ended June 30, 2013 vs. June 30, 2012
Revenues for the quarter ended June 30, 2013 were $2,402,000 as compared with $552,000 for the comparable prior year period, an increase of $1,850,000, or 335.1%. The increase in revenue is due primarily to increased shipments into, Africa, the Middle East, Mexico and China, resulting in a 130% increase in the number of QS-H150 handheld units sold, increased domestic and international sales of our QS-B220 desktop units, and increased sales of parts and supplies during the quarter ended June 30, 2013, as compared to the comparable prior year period, partially offset by a 2.2% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the quarter ended June 30, 2013 was $697,000 or 29.0% of revenues as compared with gross margin of $53,000 or 9.6% of revenues for the comparable prior year period. The increase in gross margin is primarily the result of increased unit sales of our QS-H150 and QS-B220, increased manufacturing overhead absorption, partially offset by increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs and increased warranty costs due to the increase in units sold, as compared to the comparable prior year period.
Research and development expense for the quarter ended June 30, 2013 was $1,233,000 as compared with $815,000 for the comparable prior year period, an increase of $418,000 or 51.3%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended June 30, 2013 were $3,515,000 as compared with $2,522,000 for the comparable prior year period, an increase of $993,000, or 39.4%. The increase in selling, general and administrative expenses is due primarily a $1,325,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased travel expense resulting from the addition of sales personnel, partially offset by decreased consulting fees due to the issuance of common stock to certain consultants in the comparable prior year period and decreased legal costs.
For the quarter ended June 30, 2013, other expense, net was $1,493,000 as compared with other expense, net of $1,100,000, for the comparable prior year period, an increase of $393,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the quarter ended June 30, 2013 was $5,544,000 as compared with a net loss of $4,384,000 for the comparable prior year period, an increase of $1,160,000, or 26.5%. 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.
Year Ended June 30, 2013 vs. June 30, 2012
Revenues for the year ended June 30, 2013 were $12,017,000 as compared with $3,406,000 for the prior year, an increase of $8,611,000 or 252.8%. The increase in revenue is due primarily to a 225% increase in the number of QS-H150 handheld units sold, due primarily to the shipment of the India Ministry of Defence order, $848,000 in sales to agencies of the U.S. Government, increased sales into Africa, the Middle East and Japan, increased domestic and international sales of our QS-B220 desktop units, which we began shipping commercially in the third quarter of fiscal 2012 and, increased sales of parts and supplies during the year ended June 30, 2013, as compared to the comparable prior year period, partially offset by an 4.9% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the year ended June 30, 2013 was $3,429,000 or 28.5% of revenues as compared with gross margin of $999,000 or 29.3% of revenues for the prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, costs incurred to support the India Ministry of Defence order, increased warranty costs, increased manufacturing personnel costs, and by the decrease in the average unit sell prices on sales of our QS-H150 handheld units in the year ended June 30, 2013, as compared to the prior year period.
Research and development expense for the year ended June 30, 2013 was $4,754,000 as compared with $3,180,000 for the prior year period, an increase of $1,574,000 or 49.5%. The increase in research and development expense is due primarily to a $923,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by a decrease in contracted engineering.
Selling, general and administrative expenses for the year ended June 30, 2013 were $20,630,000 as compared with $8,575,000 for the prior year period, an increase of $12,055,000, or 140.6%. The increase in selling, general and administrative expenses is due primarily to a $12,172,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, an increase in payroll, related benefit costs and travel expense resulting from the addition of sales personnel and increased sales commissions, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased selling expenses due to the opening of our Shanghai representative office, increased participation at industry trade shows and an increase in demonstration units provided to our sales force, increased in bank fees related to the extension of letters of credit issued under our agreement with the India Ministry of Defence, and increased in legal fees and costs incurred to increase our authorized shares, partially offset by decreased consulting fees due to the issuance of our common stock to certain consultants in the prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the year ended June 30, 2013, other expense, net was $5,399,000 as compared with other expense, net of $3,880,000, for the prior year period, an increase of $1,519,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the year ended June 30, 2013 was $27,354,000 as compared with $14,636,000 for the prior year, an increase of $12,718,000, or 86.9%. 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 due to higher borrowings under our credit facility with DMRJ.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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, 2014; 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 Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; 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; our business is subject to intense competition; our markets are subject to rapid technology change and our success will depend on our ability to develop and introduce new products; we may not be able to retain our management and key employees or identify, hire and retain additional personnel as needed; we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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 period ended June 30, 2013. The Company assumes no obligation to update the information contained in this press release.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
Implant Sciences Corporation
Consolidated Balance Sheets
June 30,
June 30,
2013
2012
ASSETS
Current assets:
Cash and cash equivalents
$ 80,000
$ 84,000
Restricted cash and investments
433,000
1,274,000
Accounts receivable-trade, net of allowances of $0 and $20,000, respectively
1,216,000
182,000
Inventories, net
2,145,000
3,193,000
Prepaid expenses and other current assets
395,000
809,000
Total current assets
4,269,000
5,542,000
Property and equipment, net
395,000
220,000
Restricted cash and investments
312,000
312,000
Other non-current assets
122,000
162,000
Total assets
$ 5,098,000
$ 6,236,000
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Senior secured convertible promissory note
$ 3,184,000
$ 3,224,000
Senior secured promissory note
1,000,000
1,000,000
Second senior secured convertible promissory note
12,000,000
-
Third senior secured convertible promissory note
12,000,000
-
Line of credit
12,403,000
26,231,000
Current maturities of obligations under capital lease
62,000
24,000
Payable to Med-Tec
19,000
30,000
Accrued expenses
6,754,000
4,360,000
Accounts payable
2,026,000
2,654,000
Deferred revenue
109,000
1,081,000
Total current liabilities
49,557,000
38,604,000
Long-term liabilities:
Long-term obligations under capital lease, net of current maturities
89,000
33,000
Total long-term liabilities
89,000
33,000
Total liabilities
49,646,000
38,637,000
Commitments and contingencies:
Stockholders' deficit:
Common stock; $0.001 par value; 200,000,000 shares authorized; 57,655,594 and 57,645,049 at
June 30, 2013 and 50,000,000 shares authorized; 39,163,540 and 39,152,995 shares issued and
outstanding at June 30, 2012
58,000
39,000
Preferred stock; $0.10 par value; 5,000,000 shares authorized
Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 16,167
shares issued and outstanding at June 30, 2013 and 164,667 shares issued and outstanding
at June 30, 2012, respectively (liquidation value $129,000 and $1,317,000, respectively)
27,000
274,000
Series H Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series I Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series J Convertible Preferred Stock, no stated par value; 6,000 shares authorized,
no shares issued and outstanding
-
-
Additional paid-in capital
103,937,000
87,313,000
Accumulated deficit
(146,876,000)
(119,522,000)
Deferred compensation
(1,621,000)
(432,000)
Treasury stock, 10,545 common shares, at cost
(73,000)
(73,000)
Total stockholders' deficit
(44,548,000)
(32,401,000)
Total liabilities and stockholders' deficit
$ 5,098,000
$ 6,236,000
Implant Sciences Corporation
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Revenues
$ 2,402,000
$ 552,000
$ 12,017,000
$ 3,406,000
Cost of revenues
1,705,000
499,000
8,588,000
2,407,000
Gross margin
697,000
53,000
3,429,000
999,000
Operating expenses:
Research and development
1,233,000
815,000
4,754,000
3,180,000
Selling, general and administrative
3,515,000
2,522,000
20,630,000
8,575,000
Total operating expenses
4,748,000
3,337,000
25,384,000
11,755,000
Loss from operations
(4,051,000)
(3,284,000)
(21,955,000)
(10,756,000)
Other income (expense), net:
Interest income
-
1,000
2,000
4,000
Interest expense
(1,493,000)
(1,101,000)
(5,401,000)
(3,884,000)
Total other expense, net
(1,493,000)
(1,100,000)
(5,399,000)
(3,880,000)
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Net loss per share, basic and diluted
$ (0.10)
$ (0.12)
$ (0.56)
$ (0.43)
Weighted average shares used in computing net loss
per common share, basic and diluted
56,306,327
37,484,662
49,124,942
34,242,719
Implant Sciences Corporation
Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA")
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Interest expense, net
1,493,000
1,100,000
5,399,000
3,880,000
Income taxes
-
-
-
-
Depreciation
26,000
18,000
84,000
72,000
Stock-based compensation
1,583,000
57,000
13,908,000
257,000
Warrants issued to non-employees
214,000
142,000
696,000
467,000
Common stock issued to consultants
300,000
517,000
319,000
1,903,000
Adjusted EBITDA (1)
$ (1,928,000)
$ (2,550,000)
$ (6,948,000)
$ (8,057,000)
(1) Adjusted EBITDA is defined as net loss plus interest expense, net of interest income, income taxes, depreciation, stock-based compensation, fair value of warrants issued to non-employees and the fair value of common stock issued to consultants. EBITDA is commonly used in the technology industry, and we present Adjusted EBITDA to enhance your understanding of our financial performance. We use Adjusted EBITDA as an internal performance measurement and believe that it provides investors and analysts with a measure of operating results unaffected by differences in capital structures and capital investment among otherwise comparable companies and improves comparability of results of operations. Management uses this supplemental measure to evaluate performance over a period of time and to analyze underlying trends in the Company's business and to establish operational goals and forecast that are used in allocating resources. We expect to compute our non-GAAP financial measure, using the same consistent method from quarter to quarter and year to year.
While we believe that Adjusted EBITDA is a useful measure for investors, it is not a measurement presented in accordance with United States generally accepted accounting principles, or GAAP. You should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operations, or any other performance measures calculated in accordance with GAAP. In addition, Adjusted EBITDA has inherent material limitations as a performance measure. It does not include interest expense, but because we have borrowed money, interest expense is a necessary element of our costs. In addition, Adjusted EBITDA does not include depreciation. Since we have capital assets, depreciation expense is a necessary element of our costs. Adjusted EBITDA does not include stock-based compensation, which is a necessary element of our costs since we issue stock awards to employees as an important incentive to maximize overall company performance and as a benefit of employment with the company. Adjusted EBITDA does not include the fair value of warrants issued to non-employees, which is a necessary element of our costs since we have issued warrants to non-employees and as part of our financing strategy. Finally, Adjusted EBITDA does not include the fair value of common stock issued to consultants, which is a necessary element of our costs since we have issued shares of our common stock in lieu of cash payments to consultants we have retained. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
$IMSC - Implant Sciences Reports FY 2013 Revenues Increase 253% to $12.0 million
WILMINGTON, Mass., Sept. 30, 2013 /PRNewswire/ -- Implant Sciences Corporation (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 and fiscal year ended June 30, 2013.
Revenues for the fourth quarter ended June 30, 2013 increased 335%, to $2.4 million, from $0.6 million for the comparable prior year period. Our net loss for the quarter ended June 30, 2013 was $5.5 million as compared with a net loss of $4.4 million for the comparable prior year period, an increase of $1.1 million. The increase in the net loss is primarily due to $1.6 million of stock-based compensation recorded on option grants to our directors and officers in September 2012, increased operating expenses and increased interest expense.
Revenues for the year ended June 30, 2013 increased 253%, to $12.0 million, from $3.4 million for the comparable prior year period. Our net loss for the year ended June 30, 2013 was $27.4 million as compared with a net loss of $14.6 million for the comparable prior year period, an increase of $12.8 million. The increase in the net loss is primarily due to $13.9 million of stock-based compensation recorded on the September 2012 officer and director option grants, increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based compensation, warrants issued to non-employees and common stock issued to consultants ("Adjusted EBITDA"), which is reconciled to net income in this press release, calculated in accordance with U.S. generally accepted accounting principles, were a loss of $1,928,000 in the quarter ended June 30, 2013, compared to a loss of $2,550,000 in the comparable prior year period and a loss of $6,948,000 for the year ended June 30, 2013, compared to a loss of $8,057,000 in the comparable prior year period.
Glenn D. Bolduc, President and CEO of Implant Sciences, commented, "During our recently concluded fourth quarter and fiscal year, Implant Sciences achieved a number of important strategic goals that we believe position the Company for consistent and sustainable growth. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability." The following are some of our recent developments:
In January 2013, our QS-B220 Desktop Trace Detector successfully completed independent validation testing with the Transportation Security Laboratory (the "TSL"), the testing body of the Transportation Security Administration (the "TSA"), and was accepted into the "Approved" section of the TSA's Air Cargo Screening Technology List.
In July 2013, the QS-B220 successfully completed Independent Testing and Evaluation with the TSL and is currently in testing at the TSA Systems Integration Facility for qualification on the TSA's Qualified Product List for passenger checkpoint and checked baggage screening.
We have received preliminary notification that the QS-B220 has been certified by the Service Technique de l'Aviation Civile ("STAC"), the French civil aviation authority.
We continued global distribution of our QS-H150 handheld with sales to Japan, Africa, Asia, the Middle East, Europe and to a U.S. Government agency.
We achieved growing sales of our QS-B220 to customers including the U.S. Government and several domestic and international freight forwarders.
During fiscal 2013, we filed three patent applications with and received two patents from the U.S. Patent and Trademark Office.
In June 2013, we opened American Implant Sciences Shanghai Representative Office, a marketing office in Shanghai, China, which better positions us to collaborate with our in-country distributors, identify new distributors and enhance our understanding of the Chinese market.
We extended the maturity of our credit agreements with DMRJ Group LLC through March 31, 2014, and negotiated the conversion of $24 million of the line of credit to convertible term notes, increasing availability under the $23 million line of credit."
Mr. Bolduc concluded, "Our continued progress with the TSA, in achieving acceptance onto the air cargo screening technology list and independent validation testing for passenger checkpoint screening, along with achieving STAC certification, are very significant achievements which we believe establish our credibility as the next generation explosives technology in the competitive global trace explosives industry. The influx of industry talent that we have recruited over the past twelve months increases our ability to innovate new technologies, build new products, and grow our market share and revenues. We remain excited about our future prospects."
Details for the quarter and fiscal year ended June 30, 2013 follow below.
Quarter Ended June 30, 2013 vs. June 30, 2012
Revenues for the quarter ended June 30, 2013 were $2,402,000 as compared with $552,000 for the comparable prior year period, an increase of $1,850,000, or 335.1%. The increase in revenue is due primarily to increased shipments into, Africa, the Middle East, Mexico and China, resulting in a 130% increase in the number of QS-H150 handheld units sold, increased domestic and international sales of our QS-B220 desktop units, and increased sales of parts and supplies during the quarter ended June 30, 2013, as compared to the comparable prior year period, partially offset by a 2.2% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the quarter ended June 30, 2013 was $697,000 or 29.0% of revenues as compared with gross margin of $53,000 or 9.6% of revenues for the comparable prior year period. The increase in gross margin is primarily the result of increased unit sales of our QS-H150 and QS-B220, increased manufacturing overhead absorption, partially offset by increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, increased manufacturing personnel costs and increased warranty costs due to the increase in units sold, as compared to the comparable prior year period.
Research and development expense for the quarter ended June 30, 2013 was $1,233,000 as compared with $815,000 for the comparable prior year period, an increase of $418,000 or 51.3%. The increase in research and development expense is due primarily to increased payroll and related benefit costs, stock-based compensation recorded on the September 2012 officer and director option grants, partially offset by decreased contracted engineering.
Selling, general and administrative expenses for the quarter ended June 30, 2013 were $3,515,000 as compared with $2,522,000 for the comparable prior year period, an increase of $993,000, or 39.4%. The increase in selling, general and administrative expenses is due primarily a $1,325,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, increased travel expense resulting from the addition of sales personnel, partially offset by decreased consulting fees due to the issuance of common stock to certain consultants in the comparable prior year period and decreased legal costs.
For the quarter ended June 30, 2013, other expense, net was $1,493,000 as compared with other expense, net of $1,100,000, for the comparable prior year period, an increase of $393,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the quarter ended June 30, 2013 was $5,544,000 as compared with a net loss of $4,384,000 for the comparable prior year period, an increase of $1,160,000, or 26.5%. 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.
Year Ended June 30, 2013 vs. June 30, 2012
Revenues for the year ended June 30, 2013 were $12,017,000 as compared with $3,406,000 for the prior year, an increase of $8,611,000 or 252.8%. The increase in revenue is due primarily to a 225% increase in the number of QS-H150 handheld units sold, due primarily to the shipment of the India Ministry of Defence order, $848,000 in sales to agencies of the U.S. Government, increased sales into Africa, the Middle East and Japan, increased domestic and international sales of our QS-B220 desktop units, which we began shipping commercially in the third quarter of fiscal 2012 and, increased sales of parts and supplies during the year ended June 30, 2013, as compared to the comparable prior year period, partially offset by an 4.9% decrease in average unit sell prices on sales of our QS-H150 handheld units.
Gross margin for the year ended June 30, 2013 was $3,429,000 or 28.5% of revenues as compared with gross margin of $999,000 or 29.3% of revenues for the prior year period. The decrease in gross margin is primarily the result of increased manufacturing overhead spending due to stock-based compensation recorded on the September 2012 officer and director option grants, costs incurred to support the India Ministry of Defence order, increased warranty costs, increased manufacturing personnel costs, and by the decrease in the average unit sell prices on sales of our QS-H150 handheld units in the year ended June 30, 2013, as compared to the prior year period.
Research and development expense for the year ended June 30, 2013 was $4,754,000 as compared with $3,180,000 for the prior year period, an increase of $1,574,000 or 49.5%. The increase in research and development expense is due primarily to a $923,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and increased payroll and related benefit costs, partially offset by a decrease in contracted engineering.
Selling, general and administrative expenses for the year ended June 30, 2013 were $20,630,000 as compared with $8,575,000 for the prior year period, an increase of $12,055,000, or 140.6%. The increase in selling, general and administrative expenses is due primarily to a $12,172,000 increase in stock-based compensation recorded on the September 2012 officer and director option grants and warrants to purchase shares of our common stock, an increase in payroll, related benefit costs and travel expense resulting from the addition of sales personnel and increased sales commissions, the imposition of liquidated damages of $298,000 under our contact with the India Ministry of Defence, due to delayed shipment, increased selling expenses due to the opening of our Shanghai representative office, increased participation at industry trade shows and an increase in demonstration units provided to our sales force, increased in bank fees related to the extension of letters of credit issued under our agreement with the India Ministry of Defence, and increased in legal fees and costs incurred to increase our authorized shares, partially offset by decreased consulting fees due to the issuance of our common stock to certain consultants in the prior year period and the $295,000 benefit recognized as a result of the litigation settlement with Fulong.
For the year ended June 30, 2013, other expense, net was $5,399,000 as compared with other expense, net of $3,880,000, for the prior year period, an increase of $1,519,000. The increase was primarily due to increased interest expense on higher borrowings under our credit facility with DMRJ.
Our net loss for the year ended June 30, 2013 was $27,354,000 as compared with $14,636,000 for the prior year, an increase of $12,718,000, or 86.9%. 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 due to higher borrowings under our credit facility with DMRJ.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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, 2014; 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 Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; 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; our business is subject to intense competition; our markets are subject to rapid technology change and our success will depend on our ability to develop and introduce new products; we may not be able to retain our management and key employees or identify, hire and retain additional personnel as needed; we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others: and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our 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 period ended June 30, 2013. The Company assumes no obligation to update the information contained in this press release.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
Implant Sciences Corporation
Consolidated Balance Sheets
June 30,
June 30,
2013
2012
ASSETS
Current assets:
Cash and cash equivalents
$ 80,000
$ 84,000
Restricted cash and investments
433,000
1,274,000
Accounts receivable-trade, net of allowances of $0 and $20,000, respectively
1,216,000
182,000
Inventories, net
2,145,000
3,193,000
Prepaid expenses and other current assets
395,000
809,000
Total current assets
4,269,000
5,542,000
Property and equipment, net
395,000
220,000
Restricted cash and investments
312,000
312,000
Other non-current assets
122,000
162,000
Total assets
$ 5,098,000
$ 6,236,000
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Senior secured convertible promissory note
$ 3,184,000
$ 3,224,000
Senior secured promissory note
1,000,000
1,000,000
Second senior secured convertible promissory note
12,000,000
-
Third senior secured convertible promissory note
12,000,000
-
Line of credit
12,403,000
26,231,000
Current maturities of obligations under capital lease
62,000
24,000
Payable to Med-Tec
19,000
30,000
Accrued expenses
6,754,000
4,360,000
Accounts payable
2,026,000
2,654,000
Deferred revenue
109,000
1,081,000
Total current liabilities
49,557,000
38,604,000
Long-term liabilities:
Long-term obligations under capital lease, net of current maturities
89,000
33,000
Total long-term liabilities
89,000
33,000
Total liabilities
49,646,000
38,637,000
Commitments and contingencies:
Stockholders' deficit:
Common stock; $0.001 par value; 200,000,000 shares authorized; 57,655,594 and 57,645,049 at
June 30, 2013 and 50,000,000 shares authorized; 39,163,540 and 39,152,995 shares issued and
outstanding at June 30, 2012
58,000
39,000
Preferred stock; $0.10 par value; 5,000,000 shares authorized
Series G Convertible Preferred Stock, no stated value; 650,000 shares authorized, 16,167
shares issued and outstanding at June 30, 2013 and 164,667 shares issued and outstanding
at June 30, 2012, respectively (liquidation value $129,000 and $1,317,000, respectively)
27,000
274,000
Series H Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series I Convertible Preferred Stock, no stated par value; 15,000 shares authorized,
no shares issued and outstanding
-
-
Series J Convertible Preferred Stock, no stated par value; 6,000 shares authorized,
no shares issued and outstanding
-
-
Additional paid-in capital
103,937,000
87,313,000
Accumulated deficit
(146,876,000)
(119,522,000)
Deferred compensation
(1,621,000)
(432,000)
Treasury stock, 10,545 common shares, at cost
(73,000)
(73,000)
Total stockholders' deficit
(44,548,000)
(32,401,000)
Total liabilities and stockholders' deficit
$ 5,098,000
$ 6,236,000
Implant Sciences Corporation
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Revenues
$ 2,402,000
$ 552,000
$ 12,017,000
$ 3,406,000
Cost of revenues
1,705,000
499,000
8,588,000
2,407,000
Gross margin
697,000
53,000
3,429,000
999,000
Operating expenses:
Research and development
1,233,000
815,000
4,754,000
3,180,000
Selling, general and administrative
3,515,000
2,522,000
20,630,000
8,575,000
Total operating expenses
4,748,000
3,337,000
25,384,000
11,755,000
Loss from operations
(4,051,000)
(3,284,000)
(21,955,000)
(10,756,000)
Other income (expense), net:
Interest income
-
1,000
2,000
4,000
Interest expense
(1,493,000)
(1,101,000)
(5,401,000)
(3,884,000)
Total other expense, net
(1,493,000)
(1,100,000)
(5,399,000)
(3,880,000)
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Net loss per share, basic and diluted
$ (0.10)
$ (0.12)
$ (0.56)
$ (0.43)
Weighted average shares used in computing net loss
per common share, basic and diluted
56,306,327
37,484,662
49,124,942
34,242,719
Implant Sciences Corporation
Earnings Before Interest, Taxes, Depreciation and Stock-Based Compensation ("Adjusted EBITDA")
(Unaudited)
For the Three Months Ended
For the Year Ended
June 30,
June 30,
2013
2012
2013
2012
Net loss
$ (5,544,000)
$ (4,384,000)
$ (27,354,000)
$ (14,636,000)
Interest expense, net
1,493,000
1,100,000
5,399,000
3,880,000
Income taxes
-
-
-
-
Depreciation
26,000
18,000
84,000
72,000
Stock-based compensation
1,583,000
57,000
13,908,000
257,000
Warrants issued to non-employees
214,000
142,000
696,000
467,000
Common stock issued to consultants
300,000
517,000
319,000
1,903,000
Adjusted EBITDA (1)
$ (1,928,000)
$ (2,550,000)
$ (6,948,000)
$ (8,057,000)
(1) Adjusted EBITDA is defined as net loss plus interest expense, net of interest income, income taxes, depreciation, stock-based compensation, fair value of warrants issued to non-employees and the fair value of common stock issued to consultants. EBITDA is commonly used in the technology industry, and we present Adjusted EBITDA to enhance your understanding of our financial performance. We use Adjusted EBITDA as an internal performance measurement and believe that it provides investors and analysts with a measure of operating results unaffected by differences in capital structures and capital investment among otherwise comparable companies and improves comparability of results of operations. Management uses this supplemental measure to evaluate performance over a period of time and to analyze underlying trends in the Company's business and to establish operational goals and forecast that are used in allocating resources. We expect to compute our non-GAAP financial measure, using the same consistent method from quarter to quarter and year to year.
While we believe that Adjusted EBITDA is a useful measure for investors, it is not a measurement presented in accordance with United States generally accepted accounting principles, or GAAP. You should not consider Adjusted EBITDA in isolation or as a substitute for net income, cash flows from operations, or any other performance measures calculated in accordance with GAAP. In addition, Adjusted EBITDA has inherent material limitations as a performance measure. It does not include interest expense, but because we have borrowed money, interest expense is a necessary element of our costs. In addition, Adjusted EBITDA does not include depreciation. Since we have capital assets, depreciation expense is a necessary element of our costs. Adjusted EBITDA does not include stock-based compensation, which is a necessary element of our costs since we issue stock awards to employees as an important incentive to maximize overall company performance and as a benefit of employment with the company. Adjusted EBITDA does not include the fair value of warrants issued to non-employees, which is a necessary element of our costs since we have issued warrants to non-employees and as part of our financing strategy. Finally, Adjusted EBITDA does not include the fair value of common stock issued to consultants, which is a necessary element of our costs since we have issued shares of our common stock in lieu of cash payments to consultants we have retained. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
$CONX 0.20 - Corgenix Medical announces record revenues and net income for the year
DENVER--(BUSINESS WIRE)--
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal year Form 10-K and reported financial results. The report disclosed that the Company’s operating results have continued to advance for the fiscal year ended June 30, 2013. Some of the key results in the report are as follows:
Total revenues for the year were $10,187,805, a record for the Company, and 9.7% over the prior year.
Operating income was $296,385 for the year, a $782,593 improvement over the prior year.
EBITDA amounted to $700,651 for the current year, versus a negative $87,690 for the prior year.
“We are very pleased with the record results we reported this morning, which included strong revenue, EBITDA and earnings growth from the continuing strong demand for our services and products worldwide,” Douglass Simpson, Corgenix’ President and Chief Executive Officer, commented. “Our Contract Manufacturing sector in particular continues to contribute greatly to this growth, plus we are also seeing increased demand for our unique diagnostic products.”
Mr. Simpson went on to say, “We fully expect this new fiscal year will demonstrate further expansion of our business worldwide, including our efforts in Contract Services and Companion Diagnostics. In terms of global distribution, we established a foothold in China in fiscal 2013, and are now well positioned to expand our presence in this important market, not only with the expected growth of AspirinWorks®, but with our other proprietary products and technologies as well.”
Corgenix management expects fiscal 2014 to be even stronger than the past year, with meaningful improvements in total revenues, net income and EBITDA.
Fiscal 2013 Conference Call Details
Corgenix invites all those interested in hearing management’s discussion of fiscal year results to join a shareholders conference call today, Monday, September 30, 2013, at 4 p.m. EDT (2 p.m. MDT). Interested parties can join the call by dialing (866) 952-1906. International participants may access the call by dialing +1 785 424 1825. The conference code is “CORGENIX.” A replay will be available for 30 days following the call by dialing (800) 283-4593 for U.S. participants and +1 402 220 0872 for international participants.
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com (Corporate website) and www.corgenix.net (Contract Services website).
Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are inherently uncertain, are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic reports filed with the Securities and Exchange Commission, and in the Company’s subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation or intend to publicly update or revise any forward-looking statements.
SUMMARY OF FINANCIAL HIGHLIGHTS
CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES
OPERATIONAL DATA
Fiscal Year Ended Fiscal Year Ended
June 30, 2013 June 30, 2012
Total revenues
$10,187,805
$9,289,358
Gross profit $4,563,533 $3,934,363
Total operating expenses $4,267,148 $4,420,571
Operating income (loss) 296,385 ($486,208)
Net income (loss) 275,462 ($603,702)
EBITDA $700,651 ($87,690)
Basic earnings (loss) per share $0.01 ($0.01)
Diluted earnings (loss) per share $0.01 ($0.01)
Weighted average shares outstanding-Basic 49,145,446
44,864,021
Weighted average shares outstanding-Diluted 51,233,360
44,864,021
SUMMARY BALANCE SHEET DATA
(in thousands)
June 30, 2013 June 30, 2012
Cash $ 1,957 $ 1,249
Working capital 4,554 3,645
Total assets 6,733 6,263
Long-term debt 346 472
Total stockholders’ equity 5,421 4,626
Contact:
Corgenix Medical Corp.
Company Contact:
William Critchfield, 303-453-8903
Senior VP of Operations and Finance and CFO
wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, 303-623-1190 x 230
Vice President, Public Relations Supervisor
dan@armadamedical.com
$CONX 0.20 - Corgenix Medical announces record revenues and net income for the year
DENVER--(BUSINESS WIRE)--
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal year Form 10-K and reported financial results. The report disclosed that the Company’s operating results have continued to advance for the fiscal year ended June 30, 2013. Some of the key results in the report are as follows:
Total revenues for the year were $10,187,805, a record for the Company, and 9.7% over the prior year.
Operating income was $296,385 for the year, a $782,593 improvement over the prior year.
EBITDA amounted to $700,651 for the current year, versus a negative $87,690 for the prior year.
“We are very pleased with the record results we reported this morning, which included strong revenue, EBITDA and earnings growth from the continuing strong demand for our services and products worldwide,” Douglass Simpson, Corgenix’ President and Chief Executive Officer, commented. “Our Contract Manufacturing sector in particular continues to contribute greatly to this growth, plus we are also seeing increased demand for our unique diagnostic products.”
Mr. Simpson went on to say, “We fully expect this new fiscal year will demonstrate further expansion of our business worldwide, including our efforts in Contract Services and Companion Diagnostics. In terms of global distribution, we established a foothold in China in fiscal 2013, and are now well positioned to expand our presence in this important market, not only with the expected growth of AspirinWorks®, but with our other proprietary products and technologies as well.”
Corgenix management expects fiscal 2014 to be even stronger than the past year, with meaningful improvements in total revenues, net income and EBITDA.
Fiscal 2013 Conference Call Details
Corgenix invites all those interested in hearing management’s discussion of fiscal year results to join a shareholders conference call today, Monday, September 30, 2013, at 4 p.m. EDT (2 p.m. MDT). Interested parties can join the call by dialing (866) 952-1906. International participants may access the call by dialing +1 785 424 1825. The conference code is “CORGENIX.” A replay will be available for 30 days following the call by dialing (800) 283-4593 for U.S. participants and +1 402 220 0872 for international participants.
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com (Corporate website) and www.corgenix.net (Contract Services website).
Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are inherently uncertain, are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic reports filed with the Securities and Exchange Commission, and in the Company’s subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation or intend to publicly update or revise any forward-looking statements.
SUMMARY OF FINANCIAL HIGHLIGHTS
CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES
OPERATIONAL DATA
Fiscal Year Ended Fiscal Year Ended
June 30, 2013 June 30, 2012
Total revenues
$10,187,805
$9,289,358
Gross profit $4,563,533 $3,934,363
Total operating expenses $4,267,148 $4,420,571
Operating income (loss) 296,385 ($486,208)
Net income (loss) 275,462 ($603,702)
EBITDA $700,651 ($87,690)
Basic earnings (loss) per share $0.01 ($0.01)
Diluted earnings (loss) per share $0.01 ($0.01)
Weighted average shares outstanding-Basic 49,145,446
44,864,021
Weighted average shares outstanding-Diluted 51,233,360
44,864,021
SUMMARY BALANCE SHEET DATA
(in thousands)
June 30, 2013 June 30, 2012
Cash $ 1,957 $ 1,249
Working capital 4,554 3,645
Total assets 6,733 6,263
Long-term debt 346 472
Total stockholders’ equity 5,421 4,626
Contact:
Corgenix Medical Corp.
Company Contact:
William Critchfield, 303-453-8903
Senior VP of Operations and Finance and CFO
wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, 303-623-1190 x 230
Vice President, Public Relations Supervisor
dan@armadamedical.com
$CONX 0.20 - Corgenix Medical announces record revenues and net income for the year
DENVER--(BUSINESS WIRE)--
Corgenix Medical Corporation (CONX), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal year Form 10-K and reported financial results. The report disclosed that the Company’s operating results have continued to advance for the fiscal year ended June 30, 2013. Some of the key results in the report are as follows:
Total revenues for the year were $10,187,805, a record for the Company, and 9.7% over the prior year.
Operating income was $296,385 for the year, a $782,593 improvement over the prior year.
EBITDA amounted to $700,651 for the current year, versus a negative $87,690 for the prior year.
“We are very pleased with the record results we reported this morning, which included strong revenue, EBITDA and earnings growth from the continuing strong demand for our services and products worldwide,” Douglass Simpson, Corgenix’ President and Chief Executive Officer, commented. “Our Contract Manufacturing sector in particular continues to contribute greatly to this growth, plus we are also seeing increased demand for our unique diagnostic products.”
Mr. Simpson went on to say, “We fully expect this new fiscal year will demonstrate further expansion of our business worldwide, including our efforts in Contract Services and Companion Diagnostics. In terms of global distribution, we established a foothold in China in fiscal 2013, and are now well positioned to expand our presence in this important market, not only with the expected growth of AspirinWorks®, but with our other proprietary products and technologies as well.”
Corgenix management expects fiscal 2014 to be even stronger than the past year, with meaningful improvements in total revenues, net income and EBITDA.
Fiscal 2013 Conference Call Details
Corgenix invites all those interested in hearing management’s discussion of fiscal year results to join a shareholders conference call today, Monday, September 30, 2013, at 4 p.m. EDT (2 p.m. MDT). Interested parties can join the call by dialing (866) 952-1906. International participants may access the call by dialing +1 785 424 1825. The conference code is “CORGENIX.” A replay will be available for 30 days following the call by dialing (800) 283-4593 for U.S. participants and +1 402 220 0872 for international participants.
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com (Corporate website) and www.corgenix.net (Contract Services website).
Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are inherently uncertain, are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic reports filed with the Securities and Exchange Commission, and in the Company’s subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation or intend to publicly update or revise any forward-looking statements.
SUMMARY OF FINANCIAL HIGHLIGHTS
CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES
OPERATIONAL DATA
Fiscal Year Ended Fiscal Year Ended
June 30, 2013 June 30, 2012
Total revenues
$10,187,805
$9,289,358
Gross profit $4,563,533 $3,934,363
Total operating expenses $4,267,148 $4,420,571
Operating income (loss) 296,385 ($486,208)
Net income (loss) 275,462 ($603,702)
EBITDA $700,651 ($87,690)
Basic earnings (loss) per share $0.01 ($0.01)
Diluted earnings (loss) per share $0.01 ($0.01)
Weighted average shares outstanding-Basic 49,145,446
44,864,021
Weighted average shares outstanding-Diluted 51,233,360
44,864,021
SUMMARY BALANCE SHEET DATA
(in thousands)
June 30, 2013 June 30, 2012
Cash $ 1,957 $ 1,249
Working capital 4,554 3,645
Total assets 6,733 6,263
Long-term debt 346 472
Total stockholders’ equity 5,421 4,626
Contact:
Corgenix Medical Corp.
Company Contact:
William Critchfield, 303-453-8903
Senior VP of Operations and Finance and CFO
wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, 303-623-1190 x 230
Vice President, Public Relations Supervisor
dan@armadamedical.com
$IMSC - Implant Sciences To Announce Fourth Quarter And Fiscal 2013 Financial Results On September 30, 2013
Company to Host Earnings Call on Monday, September 30th at 4:15 PM EDT
WILMINGTON, Mass., Sept. 27, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, will be host a webcast and conference call on Monday, September 30, 2013 at 4:15 p.m. to discuss the financial results for the fourth quarter and fiscal year ended June 30, 2013. These results will be released before the market opens on that day. The webcast link and call-in information are shown below.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
$IMSC - Implant Sciences To Announce Fourth Quarter And Fiscal 2013 Financial Results On September 30, 2013
Company to Host Earnings Call on Monday, September 30th at 4:15 PM EDT
WILMINGTON, Mass., Sept. 27, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, will be host a webcast and conference call on Monday, September 30, 2013 at 4:15 p.m. to discuss the financial results for the fourth quarter and fiscal year ended June 30, 2013. These results will be released before the market opens on that day. The webcast link and call-in information are shown below.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
$IMSC - Implant Sciences To Announce Fourth Quarter And Fiscal 2013 Financial Results On September 30, 2013
Company to Host Earnings Call on Monday, September 30th at 4:15 PM EDT
WILMINGTON, Mass., Sept. 27, 2013 /PRNewswire/ -- Implant Sciences Corporation (IMSC), a high technology supplier of systems and sensors for the homeland security market and related industries, will be host a webcast and conference call on Monday, September 30, 2013 at 4:15 p.m. to discuss the financial results for the fourth quarter and fiscal year ended June 30, 2013. These results will be released before the market opens on that day. The webcast link and call-in information are shown below.
Company Conference Call
The Company will host a webcast and conference call on Monday, September 30, 2013 at 4:15 PM Eastern time to review the fourth quarter and fiscal year ended June 30, 2013 financial results. Following the Company's prepared remarks there will be a Q&A session. The call can be accessed by interested parties by dialing: 877-299-4454 within the U.S. or 617-597-5447 outside the U.S. and entering passcode 57378790. 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 approximately 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 26384817. The conference call will also be available live over the Internet at the "Webcasts" page of 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 is the leader in next generation Explosives Trace Detection (ETD) technology. In January 2013, the Company became only the fourth ETD manufacturer, and the sole American-owned company, to receive product approval from the US Transportation Security Administration. 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 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation and, in addition to receiving TSA approval for air cargo screening, the Company's QS-B220 has also received a Developmental Testing & 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.
For further information contact:
Implant Sciences Corporation
Glenn Bolduc, President and CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
This after-hours sour grapes news release by Smiths Detection is not going to earn any brownie points with the TSA:
Statement by Smiths Detection about TSA Award of Contract for AT-2 Passenger Screening Systems
September 27, 2013, 4:36 p.m. ET
ENGLEWOOD, Md.--(BUSINESS WIRE)--Today the Transportation Security Administration (TSA) announced its decision to award a contract for Advanced Technology 2 (AT-2) X-ray scanners. Mal Magginis, the president of Smiths Detection, which had competed for that contract, issued the following statement about the TSA announcement:
"Smiths Detection very strongly disagrees with the TSA's selection in its Advanced Technology 2 (AT-2) X-Ray scanner program. TSA's decision disregarded better detection capabilities that would have provided safer air travel and at a longer-term value for taxpayers' money.
"TSA's decision ignored its own stated needs for higher levels of detection capability, which the agency itself has deemed critical to ensuring the safety of air travellers. The decision also minimizes the future cost of ownership and the time and investment needed to ensure detection of new and emerging threats. Smiths Detection equipment already has the capability of detecting these threats, and represents the best value solution to TSA's needs, now and in future, considering total cost of ownership.
"We are also very concerned that TSA is awarding this contract to the same manufacturer who it recently moved to debar from federal contracting and significantly scrutinized for a lack of acceptable business quality and compliance management. If past performance is a factor in this decision, as TSA has stated, it is difficult to understand the choice they have made."
5IMSC - Implant Sciences in ETD deal with Brazilian logistics co.:
http://finance.yahoo.com/news/global-brazilian-logistics-company-selects-110000376.html