Implant Sciences (IMSC.PK), a company with game-changing technology that is quickly gaining traction in the explosives trace detection (ETD) industry, announced another major move on Monday that brings with it another layer of validation and foretells the probability that the company is ready to make a major move into the arena of defending the United States homeland.
Implant announced during the morning hours on Monday the addition of Todd Swearingen as General Manager for the Americas. According to the press release announcing the news, Mr. Swearingen:
will oversee the federal and state sales channels in the Americas with focus on the aviation security markets, leading sales for the Company's Quantum Sniffer QS-B220 desktop explosives and drugs trace detector, which is currently undergoing U.S. Transportation Security Administration (TSA) qualification testing for air cargo screening.
The implications of this announcement are very significant for a number of reasons and should not go unnoticed by investors.
Maybe the most notable item to take away from this news byte is the significance of the fact that Implant landed someone of Mr. Swearingen's stature in the industry. Aside from serving as a Senior Advisor to the TSA Administrator and as a director within the U.S. Department of Labor, Swearingen also served as Assistant Federal Security Director with the U.S. Department of Homeland Security's TSA at Dallas-Fort Worth International Airport.
Most compelling, however, is the fact that Swearingen rolls to Implant from The SAFRAN Group's Morpho Detection, formerly GE (GE) Homeland Security. There he served as the Director of Aviation Security for North America and managed the Company's top two clients while maintaining responsibility for relationships with key stakeholders in US/Canadian governments, airlines, airports and industry leaders.
His well-established ties to the industry and his decision to join the Implant team should be viewed as a coup for Implant Sciences. This move brings with it the a huge validation of its technology and builds on the already-growing confidence that the company is ready to make a quick and furious move into the booming markets of homeland defense and air cargo security operations.
As previously noted, the TSA has mandated that come December 3rd of this year, ALL inbound air cargo on passenger airliners is expected to be screened for explosives. The appointment of Mr. Swearingen to head up sales in "The Americas" not only demonstrates a confidence on behalf of the company that a TSA approval is coming, but it also underscores the fact that Implant may be expecting a swift inflow of orders once its Quantum Sniffer technology is approved.
With a long history, established reputations and full rolodex of contacts in the airline/airport security markets, Implant should not miss a beat in ramping up sales and revenue, should the TSA approval materialize in late August, as expected.
It's also not a small item that Swearingen arrives at Implant after a tour at Morpho Detection. Implant's technology is superior to similar technologies offered by Morpho and the UK's Smith's Detection (SMGZY.PK), for example, mainly because of the quick "clear down" offered by the Quantum Sniffer. The "clear down" is the amount of time needed for a system to 'reset' itself and become available for use again to continue inspections and detections and the Sniffer can complete this action in mere seconds, while the current market competition takes minutes, if not hours before "clearing down."
Considering the throughput that will need to be achieved to meet the TSA's December mandate, this is a huge benefit and advantage for Implant.
Possibly the most significant advantage for Implant's technology, however, is that the ionization process used to detect explosives and/or narcotics uses no radioactive particles, another claim that cannot be made the current competition. This also gives Implant a huge advantage of becoming the primary destination for orders of explosive trace detection products because there are no associated safety concerns with its products, as would be the case for the competing products that use radioactivity to detect explosives.
The addition of Mr. Swearingen to the Implant team is another confirmation that all-stars in the industry are gaining confidence and noticing the unique potential of the company to become huge name in the homeland defense industry over the short term.
Mr. Swearingen noted in Monday's release that:
Implant Sciences' technology, products, and the team they have assembled create an opportunity which I am very pleased to join. I look forward to playing a key role in presenting and implementing the Company's products which can better serve our nation's security needs through superior detection without the use of radioactive materials.
President and CEO Glenn D. Bolduc added that:
Todd brings a unique 360-degree view of the aviation security industry to the Company. His expert knowledge of security screening and solid relationships with TSA are strong assets for Implant Sciences as we move through the TSA qualification process with our QS-B220.
There is also another angle to consider regarding the building of a World Series management team at Implant Sciences. Another recent addition, Dr. Bill McGann, is a pioneer of trace detection technology and was appointed just months ago as the Chief Operating Officer. What is noteworthy about Dr. McGann's addition is that he co-founded Ion Track Instruments, the first ETD provider to receive TSA certification, and subsequently sold that company to General Electric for nearly $200 million before becoming the Chief Technology Officer for GE Security.
It's possible that Implant could make another attractive acquisition to a much larger company in the industry, and, based on his history and experiences, Dr. McGann is just the guy to have around to get that done.
Also grabbing attention was the recent addition of Dr. Darryl Jones as the VP of Sales and Marketing. Dr. Jones is another veteran of GE Security, and most eye-catching is the fact that he also has a tour under his belt at Morpho, where he led the sales and marketing efforts.
It looks like all the big names in the industry are coming to Implant, and saying good-bye to the competition in the process.
Monday's announcement that Todd Swearingen is the most recent bigwig to jump on board is just another reason why investors should have an observant eye on Implant Sciences right now. If that TSA approval hits in August, then the current share prices will most likely be looked back upon as quite the buying opportunity.
A quick influx of order post-approval could also add fuel to what should become a handsome spike in the IMSC share price. With a current market cap of just over thirty million, there's no reason to believe that a triple is out of the question at some point during the remainder of 2012.
Given the unique advantages over the competition and pending TSA mandate, there's also no reason to believe that Implant Sciences cannot become the leader of a booming industry.
Disclosure: I am long IMSC.PK.