SOURCE: Altair Nanotechnologies Inc.

Altair Nanotechnologies Inc.

February 24, 2011 07:00 ET

Altair Nanotechnologies Reports 2010 Financial Results

RENO, NV--(Marketwire - February 24, 2011) - Altair Nanotechnologies Inc. (Altairnano) (NASDAQ: ALTI), a provider of advanced lithium-ion battery technologies and systems, today reported financial results for the year ended December 31, 2010.

"The Company took a number of giant strides forward and successfully completed several important milestones during 2010 toward greater market acceptance and profitability," said Dr. Terry Copeland, Altairnano's president and chief executive officer. "The Company is positioned for the beginning of significant revenue traction and growth in 2011 and beyond."

Financial Highlights for the full year of 2010 compared to 2009

  • Revenues increased 79 percent to $7.8 million. 
  • Gross margin of $2.0 million compared to $1.3 million.
  • Operating expenses of $22.5 million compared to $22.1 million.
  • Net loss of $22.3 million compared to $21.3 million.
  • Net cash burn excluding the sale of new common shares of $14.1 million compared to $22.8 million.

For the full-year 2010, Altairnano reported a 79 percent increase in revenues to $7.83 million, up $3.46 million from $4.37 million for 2009. More importantly for the future, the revenue in each quarter was higher than in the prior quarter increasing from $1.2 million to $1.5 million to $2.0 million to $3.1 million. The net loss was $22.3 million, or $0.84 per share, compared to a net loss of $21.3 million, or $0.85 per share, for 2009. The basic and diluted weighted average shares outstanding for the year were 26.6 million, compared to 25.0 million in 2009.

This increase in revenues is the result of higher battery product sales, contract and grant activity with the Office of Naval Research and the Department of Defense. For the year, gross margin was also higher by $0.7 million and operating expenses remained relatively flat at $22.5 million from $22.1 million in 2009 primarily as a result of lower R&D and G&A expense more than offset by higher marketing and sales expenses. In addition to the margin and operating expense drivers 2010 results were negatively impacted by the $2.0 million loss on the sale of our auction rate securities and Spectrum common stock, while our 2009 results benefitted from the $0.9 million gain on the sale of an initial block of Spectrum common stock. 

Altairnano's cash and cash equivalents decreased by $13.4 million, from $18.1 million at December 31, 2009 to $4.7 million at December 31, 2010. This is primarily due to net cash used in operations of approximately $15.2 million. The bulk of this amount went to cover normal compensation and non-labor expenses, $1.6 million for increased product inventories, an increase of $0.6 million in accounts receivable offset by an increase of $1.1 million in accounts payable and an increase of $2.2 million in deferred revenue. Investing activities consisted primarily of purchases of fixed assets of approximately $1.0 million offset by the receipt of $2.6 million from the sale of our available for sale securities. Financing activities of $0.1 million is a result of the money raised from the Company's At-the-Market financing offset by the final payment on the note on the Company's Reno facility. 

Recent Highlights

  • Shareholder and CFIUS (Committee on Foreign Investment in the United States) approval of the proposed investment transaction with Canon Investment Holdings. Delay of the anticipated close until May 17, 2011 to allow both parties to complete and agree on the final remaining details.
  • On December 8, 2010, we announced that Altairnano had been selected by Inversiones Energéticas, S.A. de C.V. (INE), one of El Salvador's largest electric generation utilities, to provide a turn-key 10 Megawatt ALTI-ESS advanced battery system for frequency control. On February 9, 2011, we signed the binding contract for the delivery of that system.
  • On December 3, 2010, we announced that Altairnano had regained compliance with the minimum bid price requirement of NASDAQ Listing Rule 5550(a)(2) (the "Rule") and was no longer in jeopardy of being delisted from NASDAQ.
  • At the close of business on November 15, 2010, the Company completed a reverse stock split in the ratio of 4:1.
  • In July 2010 we signed a Memorandum of Understanding with the Hawai'i Electric light Company, Inc. (HELCO) and the University of Hawaii - Hawaii Natural Energy Institute (HNEI) to deliver a 1 Megawatt ALTI-ESS advanced battery system to test and evaluate the efficacy of its use in wind energy integration in the electric grid. On January 27, 2011, we announced the award of a firm contract with HNEI to supply that one-megawatt ALTI-ESS energy storage system. The system will be installed at the Hawi wind farm on the island of Hawai'i and connected to the HELCO utility grid.
  • We continued a steady monthly delivery of battery modules under the long-term Proterra contract announced in our Q2 earnings release and are working closely with them as they begin to rapidly scale-up their business.
  • We completed our efforts to focus all of our efforts on the Power and Energy Systems market and exited the Life Sciences and Performance Materials markets.

Year End 2010 Conference Call
Altairnano will hold a conference call to discuss its 2010 results on Thursday, February 24, 2011 at 11:00 a.m. Eastern Standard Time (EST). 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 +1 678-224-7719. 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. ET, Thursday, February 24th, until Midnight ET, March 7, 2011. It can be accessed by dialing +1 706-645-9291 and entering conference number 46184787.

Additionally, the conference call and replay will be available online, and can be accessed by visiting Altairnano's web site, www.altairnano.com.

About Altair Nanotechnologies Inc.
Headquartered in Reno, Nevada with manufacturing in Anderson, Indiana, Altairnano is a leading provider of energy storage systems for clean, efficient power and energy management. Altairnano's Lithium-Titanate based battery systems are among the highest performing and most scalable, with applications that include complete energy storage systems for use in providing frequency regulation and renewables integration for the electric grid, and battery modules and cells for transportation and industrial applications. For more information please visit Altairnano at 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 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 of the Company 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 for various reasons, including a buyer's purchasing of a competing product, absence of agreement over pricing or a buyer's absence of capital to purchase products; 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; that costs associated with the proposed products may exceed revenues; and that, due to unexpected expenses not accompanied by offsetting revenue, the Company's use of cash in its operations may exceed budgeted levels. In general, Altairnano is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. These risks and uncertainties include, without limitation, the risk that the remaining differences between the parties cannot be resolved or that various other conditions to the closing of the Canon transaction may not be satisfied and, as a result, the transaction may not close; and that if it does close significant cultural and business differences may make it difficult to realize the anticipated benefits. 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.

Tables Follow

   
   
   
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Expressed in thousands of United States Dollars, except shares and per share amounts)  
                   
    Year Ended December 31,  
    2010     2009     2008  
Revenues                        
  Product sales   $ 3,543     $ 945     $ 757  
  Less: Sales returns     -       (184 )     -  
  License fees     -       750       -  
  Commercial collaborations     364       1,410       2,007  
  Contracts and grants     3,923       1,450       2,962  
    Total revenues     7,830       4,371       5,726  
                         
Cost of goods sold                        
  Product     2,662       954       183  
  Commercial collaborations     194       781       2,449  
  Contracts and grants     2,534       1,120       1,978  
  Warranty and inventory reserves     409       198       (2,865 )
    Total cost of goods sold     5,800       3,053       1,745  
Gross profit     2,030       1,318       3,981  
                         
Operating expenses                        
  Research and development     8,212       9,389       12,993  
  Sales and marketing     4,051       2,894       2,969  
  General and administrative     7,552       7,796       9,837  
  Depreciation and amortization     1,896       2,035       2,076  
  Notes receivable extinguishment     -       -       1,722  
  Settlement and release     -       -       3,605  
  Loss on disposal of assets     770       -       -  
    Total operating expenses     22,481       22,114       33,202  
Loss from operations     (20,451 )     (20,796 )     (29,221 )
                         
Other income (expense)                        
  Interest expense     (19 )     (107 )     (97 )
  Interest income     101       188       982  
  Realized gain/(loss) on investment     (2,045 )     851       (89 )
  Loss on foreign exchange     (1 )     (2 )     (10 )
    Total other income (expense), net     (1,964 )     930       786  
Loss from continuing operations     (22,415 )     (19,866 )     (28,435 )
Gain/(loss) from discontinued operations     124       (2,065 )     (905 )
Net loss     (22,291 )     (21,931 )     (29,340 )
Less: Net loss attributable to non-controlling interest     5       619       272  
Net loss attributable to Altair Nanotechnologies Inc.   $ (22,286 )   $ (21,312 )   $ (29,068 )
                         
Amounts attributable to Altair Nanotechnologies Inc. shareholders:                        
  Loss from continuing operations   $ (22,405 )   $ (19,866 )   $ (28,435 )
  Gain/(loss) from discontinued operations     119       (1,446 )     (633 )
Net loss   $ (22,286 )   $ (21,312 )   $ (29,068 )
                         
Earnings per share attributable to Altair Nanotechnologies Inc. shareholders:                        
Basic and diluted:                        
  Loss from continuing operations   $ (0.84 )   $ (0.79 )   $ (1.32 )
  Gain/(loss) from discontinued operations   $ -     $ (0.06 )   $ (0.03 )
Loss per common share - Basic and diluted   $ (0.84 )   $ (0.85 )   $ (1.35 )
                         
Weighted average shares - Basic and diluted     26,550,288       25,044,432       21,475,928  

 

   
   
   
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(Expressed in thousands of United States Dollars, except shares)  
(Unaudited)  
             
    December 31,     December 31,  
    2010     2009  
ASSETS                
Current assets                
  Cash and cash equivalents   $ 4,695     $ 18,122  
  Investment in available for sale securities     -       505  
  Accounts receivable, net     1,318       683  
  Product inventories     6,825       5,043  
  Prepaid expenses and other current assets     2,269       1,820  
      Total current assets     15,107       26,173  
                 
Investment in available for sale securities, non-current     -       2,587  
                 
Property, plant and equipment, net     8,727       8,670  
                 
Property, plant and equipment, net held and not used     -       2,211  
                 
Patents, net     426       551  
                 
Other assets     -       125  
Total Assets   $ 24,260     $ 40,317  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current Liabilities                
  Trade accounts payable   $ 2,873     $ 1,783  
  Accrued salaries and benefits     743       625  
  Accrued warranty     211       79  
  Accrued liabilities     387       447  
  Deferred revenues     2,516       311  
  Current portion of long-term debt     216       810  
      Total current liabilities     6,946       4,055  
                 
Long-term debt, less current portion     16       37  
      Total liabilities     6,962       4,092  
                 
Stockholders' equity                
  Common stock, no par value, unlimited shares authorized; 27,015,680 and 26,350,182 shares issued and outstanding at December 31, 2010 and December 31, 2009     189,491       188,515  
  Additional paid in capital     12,297       10,933  
  Accumulated deficit     (184,490 )     (162,204 )
  Accumulated other comprehensive loss     -       (1,560 )
    Total Altair Nanotechnologies Inc.'s stockholders' equity     17,298       35,684  
                 
Noncontrolling interest in Subsidiary     -       541  
    Total stockholders' equity     17,298       36,225  
                 
Total Liabilities and Stockholders' Equity   $ 24,260     $ 40,317  
                 

Contact Information

  • For Additional Information:

    Institutional Investors:
    Brion D. Tanous
    Principal
    CleanTech IR, Inc.
    310-541-6824
    Email Contact

    Individual Investors:
    Tom Herbert
    Principal
    CleanTech IR, Inc.
    310-541-6824
    Email Contact