Implant Sciences [IMSC]

3Q14               3Q13              

Sales                            $2.7M              $1.3M

Net Inc.                       ($4.9M, 0.08)  ($5.3M, 0.10)

The net loss narrowed due to a $1 million reduction in stock-based compensation expense, higher sales and gross margin. Revenue more than doubled on a 1,050% increase in shipments of the QS-B220 desktop explosive trace detector for infrastructure protection and air cargo screening , mainly to customers in Europe and Asia , and a 73% increase in shipments of the QS-H150 handheld explosive trace detector, mainly to Latin America. The QS-H150 remains the company’s best selling product. Glenn Bolduc, Implant’s president and CEO, tells investors that the company’s international business is on track but that it still needs to “unlock” its potential with the U.S. government, which means getting the Transportation Security Administration (TSA) to certify the QS-B220 for use in secondary screening of checked baggage and at airport security checkpoints. The TSA is conducting an operational test and evaluation of the QS-B220 and Bolduc says that while Implant isn’t privy to test data, there haven’t been any deficiencies that would prevent the system from passing and ultimately being added to the qualified products list. He also says that the company is increasing its production ramp up in anticipation of a number of large orders that are expected in the coming months.