Nanophase Technologies Corporation, has reported financial results for the second quarter and six-month period ended June 30, 2011.
Nanophase CEO and President Jess Jankowski commented. “Year-to-date revenue is ahead of last year and we believe that gap will grow as we move through the second half of 2011. We look to post unusually steady performance for our company, at a higher level than last year, which was significantly better than the year before that.”
Second Quarter 2011
- Revenue for the quarter was $2.9 million, down approximately $0.4 million from the second quarter of 2010, which happened to be the highest revenue level reported during 2010. Second quarter 2011 revenue of $2.9 million exceeded first quarter 2011 revenue of $2.8 million, as well as three of the four quarters of 2010.
- Gross margin for the quarter was $1.0 million, or 34 percent of revenue, slightly below the 36 percent posted during the second quarter of 2010.
- The net loss for the quarter was $0.5 million, or a loss of $0.02 per share, which compares to a net loss of $0.1 million, or $0.01 per share, for the second quarter of 2010.
- The balance sheet is strong with approximately $3.5 million in cash and cash equivalents. The Company has no debt.
Jankowski continued, “Revenue in our traditionally strong areas of Personal Care and Exterior Coatings tends to be seasonal as it is primarily derived from UV protection products sold in the North American market. Our goal is to reduce seasonality as we grow revenue, first with markets that aren’t seasonal such as polishing and scratch resistant coatings and second by extending our reach into new markets for our traditional product lines.”
Six months ended June 30, 2011
- Revenue for the six-month period ended June 30, 2011, was $5.7 million, an increase of 7 percent, when compared to revenue of $5.3 million for the same period of 2010.
- Gross margin for the six-month period was $1.9 million, or 33 percent of revenue, a 13 percent increase from the $1.7 million, or 32 percent of revenue, for the same period of 2010.
- The net loss for the six-month period was $1.1 million, or a loss of $0.05 per share, a 15 percent improvement compared to the net loss of $1.3 million, or $0.06 per share, for the same period of 2010.
Jankowski continued, “Our sales team is working with qualified prospects from the European Coatings Show to support our expansion plans in scratch resistant additives. We are also working with contacts from the recent Semicon West (Electronics) Show to support our initiatives in various polishing areas.
Over the next six months we will exhibit and/or attend several industry conferences as we continue on our path to focus more on immediate customer needs than developing the technology itself.
“The continued export limitations and related price explosion for rare earth materials, a classification that includes the cerium oxide we use in polishing applications, is an area of increased focus for us. In partnership with our customers and suppliers, we have managed the issue thus far, recognizing that it represents a risk to polishing revenue. As new mines and processing facilities come on line in 2012, there is a general expectation that prices will retreat as global supply increases. To be clear, the materials Nanophase works with outside of our polishing business are not included in the rare earth classification and are not impacted by this supply issue. The long term health of this particular aspect of our business will be impacted by the cost and availability of raw materials.
“We expect third and fourth quarter 2011 revenue to exceed the third and fourth quarters of 2010. We continue to move new customer activities forward. The timing of projects getting through testing and design phases and into commercial revenue is significant to our strategy.”