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Implant Sciences Corp. Message Board

  • ctruman Jun 11, 2013 11:56 AM Flag

    Notes on the expansion

    I am not going to name the companies involved here, for legal reasons.

    One of my first jobs was doing some engineering work for a very small OTC company which had developed a new technology for use in heavy trucks and buses. They had gone through the usual 2 or so years of testing and validation, and had developed enough manufacturing to supply what we thought was a reasonable demand. A large manufacturer (whose name you would recognize) sent its representatives to the factory to meet everyone and review the plant. After some discussions (not with me), they decided to put it into use in several of their trucks and some heavy machinery. They told us what numbers they would require, which would constitute more than $100 million in orders and warranties over the following 3 years. We were all delighted, and informed them that under current manufacturing, we should be able to meet that demand.

    WRONG, they said. We cannot risk our business on production levels that you SHOULD be able to meet. We believe that other companies will want this product as well, and you will not give us an exclusive contract. So we need you to add at least 2 more assembly lines (effectively doubling capacity), allow us to verify them, and then we will give you the contract. BTW, sign this nondisclosure agreement so our competitors don't get wise to what we are doing......

    Sentiment: Strong Buy

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    • Bump

      A great read

      Sentiment: Strong Buy

    • Bump it up
      Revealing insight


      Sentiment: Strong Buy

    • time for a BUMP!!!!!!

      Sentiment: Strong Buy

    • Wow there is intelligent life on this board !

      Sentiment: Strong Buy

    • Thanks for sharing your experience! However, it seems investors need to know that #1 on anyone's list should start with Dr. Bill McGann....Imagine where we'd be without him...certainly no TSA approved device! McGann's inside contacts and knowledge of TSL provided the difference in the 220's success. Known in our industry as "the father of ETD Technology" Dr. McGann also lent Implant instant credibility. GLTU and the believers

      12 letters.......Dr.Bill McGann ....invest all you can

      • 1 Reply to jake86jacobs
      • This has been a really great thread and I appreciate ctruman taking the time to post his past experience. In my opinion IMSC would never have considered moving to a larger facility if they didn't think they would soon be needing the increased manufacturing space, etc. Also, DMRJ had to be in the loop on this, and they wouldn't have approved it either if they didn't think it was a necessary move. However, it was really helpful to read ctruman's 'case study' about a past expansion in a company he was involved in.

        Sentiment: Strong Buy

    • Excellent post. I love it !. The office in Shanghei is a really big deal to me as well. you know the one that seemed to appear out of thin air with the 3 execs having their picture taken in front of the IMSC LOGO..

      Sentiment: Strong Buy

    • i`m sure you didn`t work 7-12`s two shifts, otherwise you have finished in 2.5 months. oh to save afew pennies and lose dollars. bean counters for you.

    • ctruman Jun 11, 2013 11:57 AM Flag

      ...So we got to work immediately. Working around the clock, we got the lines installed, worked out the bugs, and validated them with the customer. The problem was that this process took more than 5 months to complete (we had enough space, just not enough equipment). During that 5 month period, we were not allowed to say anything to anyone, and the company did not PR anything during that time. Shareholders got angry. "What are they doing? No one is interested in this product after all? Why don't they tell us something?" We couldn't even tell them why we couldn't tell them anything. Many sold shares. Few bought.

      Then, one day, like magic, we announced a colossal order, many times our puny market cap. The company was eventually bought out, and shareholders made a great deal of money. Those on the outside thought that this was something which just happened one day, but those of us on the inside knew what it took to make it happen over many months of sweat and toil.

      Many people here think that moving to a much larger facility is a good sign. That is incorrect. It is a GREAT sign, especially to people who have seen startup manufacturing from the inside. CUSTOMERS have demanded this increase as a condition for large, multiyear purchases. I'll say that again: CUSTOMERS HAVE DEMANDED THIS INCREASE AS A CONDITION FOR LARGE PURCHASES. Once we get into the new factory and get it running and validated, then the mega orders will come in. I am waiting for the day when Glenn tells us about how the potential customer(s) have visited the new factory, because then the real numbers will begin.

      For me, this news is rivalled only by the TSA approval. GLTA.

      Sentiment: Strong Buy

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