Implant Sciences [IMSC]
4Q15 4Q14 FY2015 FY2014
Sales $5.7M $1.5M $13M $8.6M
Net Inc. ($4.2M, $0.06)($5.7M, 0.09) ($21.5M, $0.30) ($21M, 0.35)
Based on its current backlog and projections for its new fiscal year, Implant Sciences expects a record sales year with revenue between $40 million and $43 million, more than triple results in FY ’15, which were a record by about $1 million. Sales in the fourth quarter increased 271 percent due to an increase of shipments of QS-B220 desktop explosive trace detectors to customers in Europe for aviation security and Latin America for drug detection. The higher volume more than offset a nearly 12% decrease in average unit sales prices. Sales of QS-H150 handheld ETDs were down 26% and few units shipped and lower prices. Sales of parts and supplies were up 204%. Gross margin in the quarter was 42% versus a loss a year ago due to the higher volume. Company officials say they are working to reduce the cost of the ETDs to compensate for pricing pressures. Research and development expense was down nearly 8% to just under $1.1 million. Implant had higher interest expenses, and selling and administrative expenses. Backlog stands at $44.8 million, largely due to the receipt last November of an initial order from the Transportation Security Administration for 1,170 QS-B220 and orders from airports in Europe. Implant Chief Bill McGann says that the B-220 is the only ETD that meets TSA’s new requirements for cyber security in a networked environment. However, this has slowed deliveries of the systems as the agency has to demonstrate that the requirements are being met, the officials say. McGann also says that networking of the systems is a future revenue opportunity for other customers. He also says the company is developing a new handheld ETD.