SOURCE: Altair Nanotechnologies, Inc.

Altair Nanotechnologies, Inc.

August 06, 2009 06:00 ET

Altair Nanotechnologies Reports Second Quarter 2009 Financial Results

RENO, NV--(Marketwire - August 6, 2009) - Altair Nanotechnologies, Inc. (Altairnano) (NASDAQ: ALTI), a provider of energy storage systems for clean, efficient power and energy management, today reported financial results for the second quarter ended June 30, 2009.

For the quarter ended June 30, 2009, the Company reported revenues of $(3,000). Actual gross revenues were $180,000 but this amount was offset by returns from prior years of $183,000. These returns reduced sales for the current period because it is not the Company's normal practice to accept customer returns, and consequently a reserve for returns had not been established in prior years. This total second quarter revenue compares to $1.9 million in net revenue for the same period in 2008. The net loss was $6.4 million, or seven cents per share, compared to a net loss of $5.7 million, or seven cents per share, for the second quarter of 2008. The basic and diluted weighted average shares outstanding for the quarter were 97.4 million, compared to 84.5 million reported in the second quarter of 2008.

Operating expenses of $6.5 million for the second quarter of 2009 were $1.3 million less than the operating expenses of $7.8 million for the second quarter of 2008. The decrease in operating expenses was primarily a result of lower research and development costs associated with the smaller number of grants on which we are working in 2009 compared to 2008 and the reduced spending associated with the former Life Sciences and Performance Materials groups.

The Company's cash and cash equivalents increased by $6.8 million, from $21.9 million at March 31, 2009 to $28.7 million at June 30, 2009. This is due primarily to net cash used in operations of approximately $5.8 million which includes the reduction of a restricted cash reserve of $0.5 million required to facilitate currency hedge agreements related to inventory purchases denominated in foreign currencies, purchases of fixed assets of approximately $0.2 million offset by our registered direct stock offering that raised $12.8 million.

The Company's cash burn rate has been higher throughout the first half of 2009 than it was in the second half of 2008 and that trend is expected to continue into the second half of 2009 as the Company builds up inventory in anticipation of orders towards the end of 2009. Related to the increased cash burn rate, product inventories are higher by $0.5 million and prepaid expenses by $1.2 million from their respective December 31, 2008 amounts. The increase in prepaid expenses results almost entirely from a partial payment on the purchase of cells from the Company's Korean contract manufacturer. "We have seen a significant slowdown in customer purchase activity as companies wait to see if they can secure funding from the Government as part of the American Reinvestment and Recovery Act of 2009," said Dr. Terry Copeland, Altairnano president and CEO, "but we anticipate that buying activity will begin to pick up as grant money awards are announced."

The Company's military business, while all still on track, is experiencing similar delays. The Company has been in frequent communication with the Army Research Office and the $1.8 million nanosensor grant that the Company expected in late 2008, is still awaiting contract formalization, and is now expected in mid-third quarter of this year.

As payment for achieving certain milestones as specified in its contract with Spectrum Pharmaceuticals, the Company is also carrying shares of Spectrum stock with a cost basis of $1.1 million on its balance sheet. As a result of the increasing share price for this stock during the second quarter of 2009, the temporary impairment of $0.7 million that the Company had recorded against these securities as of March 31, 2009 was reversed and is now being carried on our balance sheet at a $0.7 million gain. However, the total amount reflected on the balance sheet in the "accumulated other comprehensive loss" account is still negative because of the ongoing impairment allowance associated with the Company's Auction Rate Securities.

Second Quarter 2009 Conference Call

Altairnano will hold a conference call to discuss its second quarter 2009 results on Thursday, August 6, 2009 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 +1 719-457-2631. 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. EDT, Thursday, August 6, 2009 until Midnight EDT, Monday, August 17, 2009. It can be accessed by dialing +1 719-457-0820 and entering conference number 7181544.

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. Going beyond lithium ion, Altairnano's Lithium-Titanate based battery systems are among the highest performing and most scalable, with applications that include battery cells for military artillery, battery packs for hybrid vehicles and energy storage systems for large-scale stationary power services. 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 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; 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, 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.

Tables Follow

              ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
  (Expressed in thousands of United States Dollars, except shares and per
                             share amounts)
                              (Unaudited)


                                                                  December
                                                        June 30,    31,
                                                          2009      2008
                                                        --------  --------
                       ASSETS
Current assets
  Cash and cash equivalents                             $ 28,693  $ 28,088
  Restricted cash                                              1         -
  Accounts receivable, net                                   214       955
  Product inventories                                        642        98
  Prepaid expenses and other current assets                1,713       572
                                                        --------  --------
    Total current assets                                  31,263    29,713

Investment in available for sale securities                4,849     3,174

Property, plant and equipment, net held and used          11,201    11,637

Property, plant and equipment, net held and not used       2,008     2,377

Patents, net                                                 593       636

Other assets                                                 500       534
                                                        --------  --------

        Total Assets                                    $ 50,414  $ 48,071
                                                        ========  ========

            LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Trade accounts payable                                $  1,295  $    749
  Accrued salaries and benefits                            2,001     1,361
  Accrued warranty                                            36        36
  Accrued liabilities                                        355       765
  Current portion of long-term debt                          643       736
                                                        --------  --------
    Total current liabilities                              4,330     3,647
                                                        --------  --------

Long-term debt, less current portion                          46       608

Stockholders' equity
  Common stock, no par value, unlimited shares
   authorized; 105,519,855 and 93,143,271 shares
   issued and outstanding at June 30, 2009 and
   December 31, 2008                                     188,437   180,105
  Additional paid in capital                              10,479     5,378
  Accumulated deficit                                   (153,670) (140,892)
  Accumulated other comprehensive loss                      (195)   (1,873)
                                                        --------  --------
    Total Altair Nanotechnologies, Inc's stockholders'
     equity                                               45,051    42,718
  Noncontrolling interest in subsidiary                      987     1,098
                                                        --------  --------

        Total stockholders' equity                        46,038    43,816
                                                        --------  --------

    Total liabilities and stockholders' equity          $ 50,414  $ 48,071
                                                        ========  ========




              ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Expressed in thousands of United States Dollars, except share and per
                              share amounts)
                                (Unaudited)


                              Three Months Ended       Six Months Ended
                                   June 30,                June 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Revenues
  Product sales             $       62  $      225  $      253  $      389
  Less sales returns              (183)          -        (183)          -
  Commercial collaborations         67         993         766       1,513
  Contracts and grants              51         685          63       1,070
                            ----------  ----------  ----------  ----------
     Total revenues                 (3)      1,903         899       2,972
                            ----------  ----------  ----------  ----------
Operating Expenses
  Cost of sales - product          163          21         348          79
  Cost of sales - warranty
   and inventory reserves            -      (2,865)          -      (2,865)
  Research and development       2,268       5,112       5,296      10,370
  Sales and marketing              598         769       1,208       1,435
  Notes receivable
   extinguishment                    -       1,722           -       1,722
  General and
   administrative                2,780       2,440       5,597       5,703
  Depreciation and
   amortization                    673         640       1,407       1,213
                            ----------  ----------  ----------  ----------
     Total operating
      expenses                   6,482       7,839      13,856      17,657
                            ----------  ----------  ----------  ----------
Loss from Operations            (6,485)     (5,936)    (12,957)    (14,685)
                            ----------  ----------  ----------  ----------
Other Income (Expense)
  Interest expense                 (13)        (23)        (31)        (50)
  Interest income                   48         248         119         630
  Realized loss on
   investment                        -           -         (18)          -
  Gain/(Loss) on foreign
   exchange                          2          (1)         (2)         (4)
                            ----------  ----------  ----------  ----------
     Total other income,
      net                           37         224          68         576
                            ----------  ----------  ----------  ----------

  Net Loss                      (6,448)     (5,712)    (12,889)    (14,109)

Less:  Noncontrolling
 interests' share                   55          52         111         160
                            ----------  ----------  ----------  ----------

Net Loss attributable to
 Altair Nanotechnologies,
 Inc.                       $   (6,393) $   (5,660) $  (12,778) $  (13,949)
                            ==========  ==========  ==========  ==========

Loss per common share -
 basic and diluted          $    (0.07) $    (0.07) $    (0.13) $    (0.17)
                            ==========  ==========  ==========  ==========

Weighted average shares -
 basic and diluted          97,358,071  84,488,315  95,182,687  84,354,147
                            ==========  ==========  ==========  ==========

Contact Information

  • For Additional Information:

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

    Individual Investors:
    Marty Tullio
    McCloud Communications, LLC
    949.553.9748
    Email Contact

    Media Relations:
    Jeff Brunings
    Director, Strategic Marketing
    Altair Nanotechnologies, Inc.
    775.856.2500
    Email Contact