Implant Sciences Announces Restructuring
Actions expected to result in ongoing annualized savings of $2 million
Apr 15, 2015, 12:47 ET
WILMINGTON, Mass., April 15, 2015 /PRNewswire/ -- Implant Sciences Corporation (OTCQB: IMSC), a leading manufacturer of explosives trace detection (ETD) and drugs trace detection solutions for homeland security applications, today announced restructuring actions to better align costs with current and future geographic revenue sources and to improve efficiencies. The actions, which include increasing outreach and sales and marketing efforts, reducing expenses and other actions to align with our markets, are expected to result in a pre-tax charge of approximately $200,000 which will be recorded in the quarter ended March 31, 2015. The charge is primarily related to expenses incurred to relocate the San Diego, CA advanced technology office and costs related to closing our Shanghai office and converting our sales model in Southeast Asia from direct selling to in-country distribution. The Company expects the restructuring will result in annual pre-tax reductions of approximately $2 million in annual operating expenses, the benefits of which will begin in the fourth quarter of fiscal 2015, with the full savings expected to be achieved in fiscal 2016.
"As discussed previously on our February 17, 2015 earnings conference call, we stated our need to establish a balance in our operations between revenue and cost control, thereby reducing our reliance on external funding," stated Implant Sciences' Chief Executive Officer, Dr. Bill McGann. "The restructuring actions we have taken optimize our cost structure and better focus our resources in the markets that we expect to compete in, now and in the future."
About Implant Sciences
Implant Sciences is a leader in developing and manufacturing advanced detection capabilities to counter and eliminate the ever-evolving threats from explosives and drugs. The Company's team of dedicated trace detection experts has developed proprietary technologies used in its commercial products, thousands of which have been sold across more than 50 countries worldwide. Implant Sciences is only the third manufacturer, and the sole American-owned company, to currently have an ETD system named as a Qualified Product by the US Transportation Security Administration. The Company's ETDs have received approvals and certifications from several international regulatory agencies including the TSA in the U.S., ECAC in Europe, STAC in France, the German Ministry of the Interior, and the Ministry of Public Safety in China. For two consecutive years in 2013 and 2014 it received the GSN Homeland Security Award for "Best Explosives Detection Solution". All Implant Sciences products are recognized as Qualified Anti-Terrorism Technologies by the Department of Homeland Security. 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 lenders by the due dates; if we are unable to satisfy our obligations to our secured lenders and to raise additional capital to fund operations, our lenders 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; there is no guaranty that the Transportation Security Administration (TSA) or any other U.S. or foreign government and law enforcement agencies or commercial consumers will purchase any of our explosives detection products or that any new products we may develop will be accepted by the TSA or by such other governments, agencies or consumers; 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.
Implant Sciences Corporation
Company Contact:
Robert Liscouski
978-752-1700 x 116
SOURCE Implant Sciences Corporation