Implant Sciences [IMSC]
1Q15 1Q14
Sales $1.8M $1.2M
Net Inc. ($5.4M, 0.08) ($6M, 0.10)
Losses declined on the 60% increase in sales, lower stock-based compensation expense and a decrease in operating expenses. Research and development expenses rose 4% to nearly $1.3 million. A nearly 350% increase in the number of handheld QS-H150 explosives trace detectors (ETDs) sold drove the top line gain, due to increased shipments to customers in China and Africa. Implant also reported higher sales of parts and supplies. The sales increases were partially offset by declines in the average unit prices of the QS-H150 and the benchtop QS-B220 ETD. The big news for Implant came after the close of the quarter, a potential one-year $162M indefinite delivery, indefinite quantity contract with the Transportation Security Administration to supply QS-B220s for aviation security screening at U.S. airports (See story this issue). Prior to the win, TSA had only purchased ETDs for passenger and baggage screening from Smiths Detection and Safran Group’s Morpho Detection. Under the contract, TSA has placed a $21.6 million order for 1,170 units. In addition to being qualified by TSA this year for aviation security screening, the BS-220 passed testing in Europe in October for airport checkpoint screening of passengers and baggage, making it the only ETD system so far to meet the requirements of both TSA and the European Civil Aviation Conference. Company officials expect the TSA purchase of the B220 to doors elsewhere in the U.S. and internationally for additional sales of the product.