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Nanophase Reports Third Quarter Revenue of $2.2 Million
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Nanophase Technologies Corporation has reported financial results for the third quarter and nine-month period ended September 30, 2011.
Nanophase CEO and President Jess Jankowski commented, “We are pleased to have maintained momentum in the third quarter with increases in revenue and an improved bottom line when compared to the third quarter of 2010, despite the presence of broad industry headwinds. Our growth is a direct result of increased product sales into markets with little or no seasonality. This includes polishing products for the electronics industry and scratch resistant additives used in coatings for cell phones and computers to graphics for art packaging and magazine covers. Growth in non-seasonal markets will balance and support our traditionally strong personal care and exterior coatings products, which have significant seasonality as they are mainly sold in North America,” added Jankowski.
Q3 Financial Results
Third Quarter 2011
- Revenue for the quarter was $2.2 million, an eight percent increase over the comparable 2010 quarter.
- Gross margin for the quarter was $0.4 million, or 16 percent of revenue, down slightly from last year’s comparable quarter.
- The net loss for the quarter was $1.0 million, or a loss of $0.05 per share, compared to a net loss of $1.6 million, or $0.07 per share, for the comparable 2010 quarter.
- The balance sheet shows approximately $3 million in cash and cash equivalents and the Company has no debt.
Nine months ended September 30, 2011
- Revenue for the period ended September 30, 2011, was $8.0 million, an increase of seven percent over the comparable 2010 period.
- Gross margin for the nine-month period was $2.3 million, or 28 percent of revenue, compared to 29 percent for the same period in 2010.
- The net loss for the nine-month period was $2.1 million, or a loss of $0.10 per share, a 27 percent improvement compared to the net loss of $2.9 million, or $0.13 per share, for the same period of 2010.
Renegotiation of several of our once-exclusive agreements has given us the freedom to explore additional markets more aggressively.
“We continue to introduce and demonstrate the benefits and strength of our technology and products through extensive direct customer contact and at industry conferences. We continue to listen to our customers and provide competitively priced, innovative products to specifically chosen markets with unmet needs. While the economy is sluggish and many research and development teams are taking a ‘wait and see’ attitude, we are successfully moving new customer activities forward. The movement of these projects through the testing and design phases and into customer’s hands is significant to our future revenue growth and breakeven strategy.”
The ongoing export limitations and related price increase for rare earth materials, a classification that includes the cerium oxide used in the Company’s polishing applications, is an area of increased focus for management.
Recognizing that it represents a risk to polishing revenue, the Company, in partnership with its customers and suppliers is managing the problem. While the market for the Company’s polishing product is currently impacted by the cost and availability of raw materials, it should be noted that this is only one component of Nanophase’s business and it remains a profitable one.
Shareholders and members of the financial community are encouraged to participate in the upcoming conference call, where Mr. Jankowski will discuss the company’s current and long-term prospects.
