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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/implant-sciences-announces-restructuring-300066466.html
SOURCE Implant Sciences Corporation