Revenue Increases 68 Percent for Third Quarter and 230 Percent for Nine-Month Period
RENO, NV -- (MARKET WIRE) -- November 11, 2005 -- Altair Nanotechnologies Inc. (NASDAQ:
Altair reported revenue of approximately $585,000 for the third quarter of fiscal 2005, a 68 percent increase, compared to revenue of approximately $347,000 for the third quarter of fiscal 2004. For the nine-month period ended September 30, 2005, the company reported revenue of approximately $2.1 million, an increase of 230 percent, compared to revenue of approximately $641,000 for the nine-month period ended September 30, 2004.
"An increase in revenue of 230 percent for the first three quarters of 2005 is representative of the significant progress Altair has made over the last nine months," said Altair Nanotechnologies Chief Executive Officer and President Alan J. Gotcher, Ph.D. "We are experiencing solid business development progress and opportunities in both our Performance Material and Life Sciences divisions in several target markets. We expect these opportunities to mature and to produce recurring and sustainable revenues."
The net loss for the third quarter of fiscal 2005 was $2.2 million, a net loss per share of $0.04, versus a net loss of $1.4 million, a net loss per share of $0.03, for the comparable quarter in fiscal 2004. The net loss for the nine-month period ended September 30, 2005 was $6.3 million, a net loss per share of $0.11, versus a net loss of $5.3 million, a net loss per share of $0.11, for the corresponding period in 2004.
"We have increased operating expenses associated with research and development, sales and marketing and our general and administrative expenses for the third quarter and the nine-month period," commented Altair Chief Financial Officer, Edward Dickinson. "Altair increased our investment in additional personnel for new contract R&D projects, increased business development efforts, Sarbanes-Oxley compliance, and non-cash charges such as stock option compensation expense."
Dickinson continued, "Our net cash used in operations has averaged around $650,000 per month for the first three quarters and we expect an increase in net cash used in operations for the fourth quarter, as we hire additional personnel and continue to increase investments in product and business development."
As of September 30, 2005, Altair's balance sheet was strong, with a cash position and short term investments of approximately $26.9 million, compared to $7.4 million at December 31, 2004. With the exception of a promissory note of $3.0 million to acquire its Reno, Nevada facilities, the company has no debt of consequence.
Please join Altair's management team for an update of the company's financial results, which will include a segment discussing principal developments in Altair's Performance Materials and Life Sciences Divisions. The conference call is being held today, November 11, 2005, at 11:00 AM Eastern Standard Time. The dial-in number is 973 935 2981. The operator will require the conference number 6684307 to enter the call.
ABOUT ALTAIR NANOTECHNOLOGIES INC.
Altairnano is a leading supplier and innovator of advanced ceramic nanomaterial technology. Based in Reno, Nevada, Altairnano has assembled a unique team of materials scientists who, coupled in collaborative ventures with industry partners and leading academic centers, have pioneered an array of intellectual property and products.
Altairnano's robust proprietary technology platforms produce a variety of crystalline and non-crystalline nanomaterials of unique structure, performance, quality and cost. The company has scalable manufacturing capability to meet emerging nanomaterials demands. Altairnano's two divisions, Life Sciences and Performance Materials, are focused on applications where its nanotechnology may enable new high growth markets. The Life Sciences Division is pursuing market applications in pharmaceuticals, drug delivery, dental materials and other medical markets. The Performance Materials Division is focused on market applications in advanced materials for paints and coatings; air and water treatment and alternative energy including new lithium ion battery electrode materials. For additional information on Altairnano and its nanomaterials, visit www.altairnano.com
Forward-Looking Statements
This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that Altair's cash and non-cash expenses will significantly rise during the following year as a result of unforeseen events; that the licensing and manufacturing agreements that Altair expects to sign in the next few months and that form a basis for its expectation of future recurring and sustainable revenue will not be signed or that sales by Altair or its licensees under those agreements will not occur or be delayed for unforeseen reasons; that Altair's revenue will not continue to grow at projected rates, at rates consistent with past growth or at all due to cancellation or expiration of existing revenue-generating contracts and a failure to attract revenue from new sources; and that, even if Altair's revenues continue to grow, such growth will not exceed the growth of expenses and, as a result, Altair will never generate a net profit. In general, Altair is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, grants, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
(Unaudited)
September 30, December 31,
2005 2004
----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $11,150,620 $ 7,357,843
Investment in available for sale securities 15,728,213 -
Accounts receivable 514,291 499,599
Prepaid expenses and other current assets 376,198 182,595
----------- -----------
Total current assets 27,769,322 8,040,037
Investment in Available for Sale Securities 496,000 -
Property, Plant and Equipment, net 6,698,837 6,513,907
Patents, net 911,266 974,877
Other Assets 75,200 18,200
----------- -----------
Total Assets $35,950,625 $15,547,021
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $ 672,647 $ 81,030
Accrued liabilities 537,132 295,743
Note payable, current portion 600,000 -
----------- -----------
Total current liabilities 1,809,779 376,773
----------- -----------
Note Payable, Long-Term Portion 2,400,000 2,880,311
----------- -----------
Commitments and Contingencies
Stockholders' Equity
Common stock, no par value, unlimited
shares authorized; 58,990,252 and
49,775,694 shares issued and
outstanding at September 30, 2005
and December 31, 2004 91,603,870 65,505,630
Accumulated deficit (59,557,556) (53,215,693)
Deferred compensation expense (206,468) -
Accumulated other comprehensive loss (99,000) -
----------- -----------
Total Stockholders' Equity 31,740,846 12,289,937
----------- -----------
Total Liabilities and Stockholders'
Equity $35,950,625 $15,547,021
=========== ===========
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in United States Dollars)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues
License fees $ - $ - $ 695,000 $ -
Product sales 8,494 3,728 74,087 6,571
Commercial
collaborations 327,479 140,603 584,520 375,518
Contracts and grants 249,432 202,576 762,259 258,800
---------- ---------- ---------- ----------
Total revenues 585,405 346,907 2,115,866 640,889
---------- ---------- ---------- ----------
Operating Expenses
Cost of product sales 1,427 613 17,434 1,149
Research and
development 1,290,354 520,376 2,816,031 1,508,231
Sales and marketing 238,151 46,070 1,159,259 245,786
General and
administrative
expenses 1,146,528 973,080 4,067,661 3,449,495
Depreciation and
amortization 263,105 226,823 759,190 668,333
---------- ---------- ---------- ----------
Total operating
expenses 2,939,565 1,766,962 8,819,575 5,872,994
---------- ---------- ---------- ----------
Loss from Operations 2,354,160 1,420,055 6,703,709 5,232,105
---------- ---------- ---------- ----------
Other (Income) Expense
Interest expense 52,397 50,336 154,689 145,732
Interest income (227,503) (29,706) (515,162) (73,080)
Loss on foreign
exchange (2,228) (361) (1,373) 356
---------- ---------- ---------- ----------
Total other (income)
expense, net (177,334) 20,269 (361,846) 73,008
---------- ---------- ---------- ----------
Net Loss $2,176,826 $1,440,324 $6,341,863 $5,305,113
========== ========== ========== ==========
Loss per common share -
Basic and diluted $ 0.04 $ 0.03 $ 0.11 $ 0.11
========== ========== ========== ==========
Weighted average shares -
Basic and diluted 58,940,760 49,121,984 57,338,796 48,401,132
========== ========== ========== ==========