SOURCE: Altair Nanotechnologies Inc.

August 06, 2008 07:00 ET

Altair Nanotechnologies Reports Second Quarter 2008 Financial Results

RENO, NV--(Marketwire - August 6, 2008) - Altair Nanotechnologies Inc. (NASDAQ: ALTI) today reported financial results for the second quarter ended June 30, 2008.

For the quarter ended June 30, 2008, the Company reported revenues of $1.90 million, down from $3.07 million in the same quarter of 2007. The net loss was $5.66 million, or seven cents per share, compared to a net loss of $5.43 million, or eight cents per share, for the second quarter of 2007. The basic and diluted weighted average shares outstanding for the quarter were 84,488,315 compared to 69,926,260 reported in second quarter of 2007.

The Company's cash and cash equivalents decreased by $22.37 million, from $50.15 million at December 31, 2007 to $27.77 million at June 30, 2008. This is due primarily to net cash used in operations of approximately $20.88 million, purchases of property and equipment of approximately $1.59 million, and the payment of notes payable of $0.60 million. This decrease was partially offset by the receipt of proceeds resulting from the exercise of stock options and warrants of approximately $0.50 million.

During the six months ended June 30, 2008, our net cash consumed was $22.37 million while cash consumed during the second quarter was only $7.80 million of this total. Since the first quarter, the Company has taken significant steps to reduce its cash burn rate to a level more consistent with its current revenue expectations.

"We experienced outstanding test results from our two-megawatt stationary battery developed for The AES Corporation," said Terry Copeland, Ph.D., Altairnano's President & CEO. "The independent report prepared by KEMA has validated that our battery did everything that it was designed to do. These test results have created a significant amount of interest in our product and its capabilities for solving existing problems in the electric grid, particularly as suppliers look for cost effective solutions to their capacity and energy management issues."

"We have also recently reached an agreement with Phoenix MC, Inc. that has resolved all of our outstanding issues with them," Dr. Copeland continued. "They will use our original Generation 1 batteries in their first 50 demonstration vehicles with the addition of a new safety system being added by Phoenix. We continue to work with Phoenix on the definition of a new longer-term supply agreement, and are excited about the potential in this market."

As previously announced, during the 2008 second quarter, Altairnano reversed the $2.8 million warranty liability associated with the Phoenix Motorcars' transaction and wrote off a $1.7 million note payable due to Altairnano from Phoenix. The result of the transaction, which is outlined in the Principles of Agreement Letter filed July 24, 2008 with a Form 8K, is a reduction to cost of goods sold of $2.8 million and an increase in operating expense of $1.7 million for a net positive impact of $1.1 million to net income in the second quarter of 2008 financial results.

In addition to the approximate net impact of the $1.1 million, the Phoenix demonstration vehicles are expected to qualify for zero-emission vehicle ("ZEV") credits under the California Air Resources Board (CARB) Type III program. If Phoenix receives any ZEV credits and is able to monetize them, Altairnano will receive ten percent of that monetized value awarded for cars containing its battery packs. Each car qualifying under the Type III program will generate forty ZEV credits in calendar year 2008.

Second Quarter 2008 Conference Call

Altairnano will hold a conference call to discuss its second quarter 2008 results on Wednesday, August 6, 2008 at 11:00 a.m. Eastern Daylight Time (EDT). Shareholders and members of the investment community are invited to participate in the conference call. The dial-in number for both U.S. and international callers is (719) 325-7848. Please dial in to the conference five minutes before the call is scheduled to begin. Ask the operator for the Altair Nanotechnologies call.

An audio replay of the conference call will be available from 2:00 p.m. through 11:59 p.m. EDT, Wednesday, August 13, 2008 and can be accessed by dialing (719) 457-0820 and entering conference number 5992401. Additionally, the conference call is available online, and can be accessed by visiting Altairnano's web site,


Altairnano is an innovator and supplier of advanced novel, ceramic nanomaterials. Altairnano's leading edge scientists are complemented by a seasoned management team with substantial experience in commercializing innovative, disruptive technologies. The Company has developed nanomaterials for the alternative energy, life sciences and performance materials markets based on its proprietary manufacturing process. This process also provides the foundation for its innovative AHP pigment process. For more information visit:

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 Altairnano'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 development of any the early-stage products referred to in this release will not be completed for technical, business or other reasons; that any products under development or in the early commercial stages will not perform as expected in future testing or commercial applications; that customers or prospective customers will not use or purchase products as represented to us or otherwise expected; that one or more of the joint development partners or customers may proceed slowly with, or abandon, development or commercialization efforts for any of various reasons, including concerns with the feasibility of the product or the financial viability of continuing with our products or their product; that sales of commercialized Altairnano products may not reach expected levels for one or more reasons, including the failure of end products to perform as expected or the introduction of a superior product; and that costs associated with the proposed products may exceed revenues. In general, Altairnano 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 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.

                   (Expressed in United States Dollars)

                                                  June 30,    December 31,
                                                    2008          2007
                                                ------------  ------------
Current Assets
  Cash and cash equivalents                     $ 27,772,737  $ 50,146,117
  Accounts receivable, net                           774,325     1,221,543
  Accounts receivable from related party, net        500,000        96,276
  Notes receivable from related party                      -     1,638,510
  Prepaid expenses and other current assets          178,004       799,387
                                                ------------  ------------
      Total current assets                        29,225,066    53,901,833

Investment in Available for Sale Securities        3,459,791     4,564,814

Property, Plant and Equipment, net                14,999,514    14,548,837

Patents, net                                         678,026       720,433

Other Assets                                         622,718       122,718
                                                ------------  ------------

            Total Assets                        $ 48,985,115  $ 73,858,635
                                                ============  ============

Current Liabilities
  Trade accounts payable                        $  1,445,751  $  7,814,037
  Accrued salaries and benefits                    1,272,167     2,239,110
  Accrued warranty                                    59,088     2,915,990
  Accrued liabilities                                449,791       759,644
  Note payable, current portion                      600,000       600,000
                                                ------------  ------------
      Total current liabilities                    3,826,797    14,328,781
                                                ------------  ------------

Note Payable, Long-Term Portion                      600,000     1,200,000
                                                ------------  ------------

Minority Interest in Subsidiary                    1,208,711     1,369,283
                                                ------------  ------------

Stockholders' Equity
  Common stock, no par value, unlimited shares
   authorized; 84,744,322 and 84,068,377
   shares issued and outstanding at June 30,
   2008 and December 31, 2007                    165,599,679   163,780,176
  Additional paid in capital                       5,107,095     5,489,604
  Accumulated deficit                           (125,772,567) (111,823,809)
  Accumulated other comprehensive loss            (1,584,600)     (485,400)
                                                ------------  ------------

         Total Stockholders' Equity               43,349,607    56,960,571
                                                ------------  ------------

       Total Liabilities and Stockholders'
        Equity                                  $ 48,985,115  $ 73,858,635
                                                ============  ============

                   (Expressed in United States Dollars)

                      Three Months Ended            Six Months Ended
                           June 30,                     June 30,
                  --------------------------  ----------------------------
                      2008          2007          2008           2007
                  ------------  ------------  -------------  -------------
  Product sales   $    224,607  $  1,755,613  $     388,537  $   1,933,003
   collaborations      992,718       734,784      1,513,531      1,082,072
  Contracts and
   grants              685,334       575,471      1,069,928      1,191,725
                  ------------  ------------  -------------  -------------
      revenues       1,902,659     3,065,868      2,971,996      4,206,800
                  ------------  ------------  -------------  -------------
Operating Expenses
  Cost of sales -
   product              20,825     2,192,476         79,034      2,402,738
  Cost of sales -
   warranty and
   reserves         (2,864,837)            -     (2,864,837)             -
  Research and
   development       5,111,524     3,238,869     10,369,558      6,236,197
  Sales and
   marketing           769,342       409,230      1,435,270        789,766
  Notes receivable
   extinguishment    1,721,919             -      1,721,919              -
  General and
   administrative    2,440,363     2,600,818      5,703,115      5,212,032
   amortization        639,742       473,991      1,213,351        905,049
                  ------------  ------------  -------------  -------------
      expenses       7,838,878     8,915,384     17,657,410     15,545,782
                  ------------  ------------  -------------  -------------
Loss from
 Operations         (5,936,219)   (5,849,516)   (14,685,414)   (11,338,982)
                  ------------  ------------  -------------  -------------
Other Income (Expense)
  Interest expense     (22,901)      (31,500)       (50,254)       (66,500)
  Interest income      248,057       292,670        630,394        636,038
  (Loss)/Gain on
   foreign exchange     (1,429)           83         (4,056)          (285)
                  ------------  ------------  -------------  -------------
     Total other
      income, net      223,727       261,253        576,084        569,253
                  ------------  ------------  -------------  -------------

Loss from
 before minority
 interests' share   (5,712,492)   (5,588,263)   (14,109,330)   (10,769,729)

Less:  Minority
 Interests' share       52,170       157,680        160,572        157,680
                  ------------  ------------  -------------  -------------

Net Loss          $ (5,660,322) $ (5,430,583) $ (13,948,758) $ (10,612,049)
                  ============  ============  =============  =============

Loss per common
 share - Basic
 and diluted      $      (0.07) $      (0.08) $       (0.17) $       (0.15)
                  ============  ============  =============  =============

Weighted average
 shares - Basic
 and diluted        84,488,315    69,926,260     84,354,147     69,596,969
                  ============  ============  =============  =============

Contact Information

  • For Additional Information:

    Institutional Investors:
    C. Robert Pedraza
    VP, Corporate Development
    Altair Nanotechnologies, Inc.
    Email Contact

    Media Relations:
    Justin Swett
    Altair Nanotechnologies, Inc.
    Email Contact

    Individual Investors:
    Marty Tullio
    McCloud Communications, LLC
    Email Contact