Implant Sciences Corporation Announces 129% Increase In Fiscal 2006 Third Quarter Revenues

WAKEFIELD, Mass.--(BUSINESS WIRE)--May 10, 2006--Implant Sciences Corporation (AMEX: "IMX", "IMX.WS") a developer and manufacturer of products for national security, medicine and industry, today announced financial results for its fiscal 2006 quarter ended March 31, 2006. Total revenues for the three months ended March 31, 2006 were $6,548,000 as compared to $2,862,000 for the comparable prior year period, an increase of $3,686,000 or 129%. Total revenues for the nine months ended March 31, 2006 were $18,760,000 as compared to $7,677,000 for the comparable prior year period, an increase of $11,083,000 or 144%. The increase in total revenues for the three and nine months ended March 31, 2006 is partly attributable to semiconductor revenues realized from Core Systems Inc. and Accurel Systems International Corporation, which were acquired in the second and third quarters of fiscal 2005, respectively. In addition, the increase in revenues for the nine months ended March 31, 2006 is also attributable to sales of explosives detection equipment, primarily significant shipments in the second quarter of fiscal 2006 to a customer in China; and recognition of revenue on awards from government agencies, specifically a $2.2 million TSA award to develop the "next-generation" passenger portal. For the three months ended March 31, 2006, the Company realized a decrease in explosives detection equipment shipments as compared to the prior quarter ended December 31, 2005. The Company attributes this decrease to the "lumpy" nature of orders for explosives detection equipment.