Implant Sciences Corp (OTCMKTS:IMSC) Still Climbing

Shares of Implant Sciences Corp (OTCMKTS:IMSC) are still climbing after we profiled the company last month. This comes after the company delivered a solid earnings report and investors get excited about the company's potential. We believe the bull trend is just getting started because the company's revenue growth supports higher prices ahead.Implant Sciences describes itself as "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 60 countries worldwide. The company's ETDs have received approvals and certifications from several international regulatory agencies including the TSA in the U.S., ECAC in Europe, CAAC and the Ministry of Public Safety in China, Russia FSB, STAC in France, and the German Ministry of the Interior. It has also received the 2015 GSN Airport/Seaport/Border Security Award for "Best Security Checkpoint". All Implant Sciences products are recognized as Qualified Anti-Terrorism Technologies by the Department of Homeland Security."Revenues for the three months ended March 31, 2016 increased 230.5%, to $10.9 million, from $3.3 million for the comparable prior year period. Net loss for the three months ended March 31, 2016 was $4.1 million as compared with a net loss of $5.7 million for the comparable prior year period, a decrease of $1.6 million. Revenues for the nine months ended March 31, 2016 increased 386.8%, to $35.6 million, from $7.3 million for the comparable prior year period. Net loss for the nine months ended March 31, 2016 was $8.3 million as compared with a net loss of $17.4 million for the comparable prior year period, a decrease of $9.1 million. CEO Dr William McGann said:

"We are pleased with the results of our recently completed quarter, a quarter in which we recorded revenues of $10.9 million and have achieved nine month revenues of $35.6 million. We're equally pleased with the improvement in our operations which have resulted in substantial reductions in net operating losses of $1.6 million and $9.1 million, in the quarter and the nine month period, respectively. The improvement in our operating results are tempered somewhat by costs associated with our strategic alternative review and other one-time charges, which amounted to $559,000 and $908,000 in the three month and nine month periods, respectively. Shipments under the delivery order with the Transportation Security Administration are ongoing and on schedule. During the just concluded quarter we delivered QS-B220's to the Canadian Air Transport Security Authority, the significance of which cannot be dismissed. With this win, we believe that we are now the leading provider of ETD in North America. The production ramp continues unabated, demonstrating our capabilities from not only a manufacturing and supply chain perspective, but also from a working capital management perspective. Our execution in all facets is not perfect, but we are striving for and demonstrating continuous improvement in managing this exponential growth. We continue to generate the cash flow required from internal operations to fund the significant working capital required to deliver the record revenues being reported today. We're continuing to invest and expect to increase our investment in technology, with the intent to introduce new product that will increase the size of the security market we can penetrate."

Currently trading with a market cap of $52 million, IMSC has made tremendous progress in the past year. Where the company needs to improve upon is its capital structure. CEO Dr William McGann addressed this on the earnings call:

Mid-week through our year, we announced our intention to explore strategic alternatives aimed at fixing our capital structure, ahead in part, you know and we’ve been hearing that for a long time from our investors and people in the industry alike. So we’ve set about a mission to do that, we are still in that process, so we are not going to elaborate a lot on it today, but I will say we are committed to finding a path for this company to grow profitably and unencumbered in the future, because we have a great strategy, we have a great technology roadmap and I think we have a proven theme that can execute that mission.

We will be updating Insider Financial as soon as we know more. For continuing coverage on IMSC, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in IMSC and have not been compensated for this article.