SOURCE: Altair Nanotechnologies, Inc.

August 12, 2005 07:00 ET

Altair Nanotechnologies Reports Second Quarter Fiscal 2005 Financial Results

Revenue Increases 226 Percent Over Comparable 2004 Quarter

RENO, NV -- (MARKET WIRE) -- August 12, 2005 -- Altair Nanotechnologies Inc. (NASDAQ: ALTI), a leading supplier of advanced ceramic nanomaterial technology, today reported financial results for its second quarter fiscal 2005 and first half ended June 30, 2005.

Revenue for the second quarter increased 226 percent to $503,000 with a net loss of $1.9 million, or $0.03 per share compared to revenue of $154,000 with a net loss of $2.2 million, or $0.04 per share for the same period last year. General and administrative expenses were $1.3 million with research and product development expenses increasing 25 percent to $744,000. Sales and marketing expenses increased 182 percent to $191,000 through the addition of personnel and the implementation of a sales and product branding campaign.

Revenue for the six-month period ended June 30, 2005 increased 420% to $1.5 million compared to revenue of $294,000 for the comparable period last year. The net loss for the period was $4.2 million, or $0.07 per share versus a net loss of $3.9 million, or $0.08 per share for the comparable period in 2004.

Altairnano's cash position as of June 30, 2005 was $29.7 million compared to $7.4 million on December 31, 2004. Shareholders' equity increased 174 percent to $33.8 million from $12.3 million on December 31, 2004.

"We are focusing our energies on continuing the progress we have made in commercializing our proprietary technology. As with any emerging technology company, our quarterly revenues can vary in the early stages of our development due to milestone payments but we are pleased that the last four quarters of Altairnano's revenues totaled $2.4 million compared with the prior four quarters revenue of $342,000," said Altair President and CEO Alan J. Gotcher, PhD.

Gotcher continued, "We anticipate a strong second half performance as we continue to bring Altairnano's product technology to market with increases in revenues from new product sales and license agreements."

Please join Altairnano's management for a financial results and project update conference call today, August 12, at 11:00 AM Eastern Daylight Time. The dial-in number is 973 935 2981

Analyst Coverage initiated in the second quarter:

--  W. R. Hambrecht & Co initiated coverage of Altair Nanotechnologies on
    May 25, 2005.
--  The Maxim Group initiated coverage of Altair Nanotechnologies on June
    17, 2005.

ABOUT ALTAIR NANOTECHNOLOGIES INC.

Altairnano is a leading supplier and innovator of advanced ceramic nanomaterial technology. Based in Reno, Nevada, Altairnano has assembled a unique team of materials scientists who, coupled in collaborative ventures with industry partners and leading academic centers, have pioneered an array of intellectual property and products.

Altairnano's robust proprietary technology platforms produce a variety of crystalline and non-crystalline nanomaterials of unique structure, performance, quality and cost. The company has scalable manufacturing capability to meet emerging nanomaterials demands, with the production capacity of hundreds of tons of nanomaterials.

Altairnano's two divisions, Life Sciences and Performance Materials, are focused on applications where its nanotechnology may enable new high growth markets. The Life Sciences Division is pursuing market applications in pharmaceuticals, drug delivery, dental materials and other medical markets. The Performance Materials Division is focused on market applications in advanced materials for paints and coatings; air and water treatment and alternative energy including new Li Ion battery electrode materials. For additional information on Altairnano and its nanomaterials, visit www.altairnano.com

Altairnano™, Altair Nanotechnologies Inc.®, RenaZorb™, NanoCheck™, TiNano Spheres™ and the Hydrochloride Pigment Process™ are trademarks or registered trademarks of Altair Nanotechnologies Inc.

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 company'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 Altair's cash and non-cash expenses will significantly rise during the following year as a result of unforeseen events; that the licensing and manufacturing agreements that Altair expects to sign in the next few months and that form a basis for its expectation of increased licensing and product sales revenues will not be signed or that sales by Altair or its licensees under those agreements will not occur or be delayed for unforeseen reasons; that Altair's revenue will not continue to grow at projected rates, at rates consistent with past growth or at all due to cancellation or expiration of existing revenue-generating contracts and a failure to attract revenue from new sources; that, due to unexpected expenses, Altair will be unable to meet its financial obligations; and that, even if Altair's revenues continue to grow, such growth will not exceed the growth of expenses and, as a result, Altair will never generate a net profit. In general, Altair 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, as 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.

                ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                     (Expressed in United States Dollars)
                                  (Unaudited)

                           Three Months Ended         Six Months Ended
                                 June 30,                  June 30,
                            2005         2004         2005         2004
                        -----------  -----------  -----------  -----------
Revenues
  License fees          $         -  $         -  $   695,000  $         -
  Product sales              42,485        1,221       65,593        2,843
  Commercial
   collaborations           160,775      117,244      257,041      234,915
  Contracts and grants      299,621       35,768      512,827       56,224
                        -----------  -----------  -----------  -----------
    Total revenues          502,881      154,233    1,530,461      293,982
                        -----------  -----------  -----------  -----------
Operating Expenses
  Cost of product sales      12,461          189       16,007          536
  Research and
   development              764,330      595,185    1,545,865      987,855
  Sales and marketing       190,670       67,579      921,108      199,716
  General and
   administrative
   expenses               1,335,510    1,400,002    2,900,945    2,476,415
  Depreciation and
   amortization             251,455      220,314      496,085      441,510
                        -----------  -----------  -----------  -----------
    Total operating
     expenses             2,554,426    2,283,269    5,880,010    4,106,032
                        -----------  -----------  -----------  -----------
Loss from Operations      2,051,545    2,129,036    4,349,549    3,812,050
                        -----------  -----------  -----------  -----------
Other (Income) Expense
  Interest expense           51,592       48,114      102,292       95,396
  Interest income          (184,383)     (23,436)    (287,659)     (43,374)
  Loss on foreign
   exchange                     324          318          855          717
                        -----------  -----------  -----------  -----------
    Total other (income)
     expense, net          (132,467)      24,996     (184,512)      52,739
                        -----------  -----------  -----------  -----------

Net Loss                $ 1,919,078  $ 2,154,032  $ 4,165,037  $ 3,864,789
                        ===========  ===========  ===========  ===========

Loss per common share -
 Basic and diluted      $      0.03  $      0.04  $      0.07  $      0.08
                        ===========  ===========  ===========  ===========

Weighted average shares
 - Basic and diluted     58,814,970   48,740,271   56,524,538   48,036,745
                        ===========  ===========  ===========  ===========


               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                    (Expressed in United States Dollars)
                                (Unaudited)

                                               June 30,        December 31,
                                                 2005              2004
                                            ------------      ------------
               ASSETS
Current Assets
  Cash and cash equivalents                 $ 29,686,129      $  7,357,843
  Accounts receivable, net                       380,377           499,599
  Prepaid expenses and other current
   assets                                         94,538           182,595
                                            ------------      ------------
     Total current assets                     30,161,044         8,040,037
Investment in available for sale
 securities                                      420,000                 -
Property, Plant and Equipment, net             6,579,867         6,513,907
Patents, net                                     932,470           974,877
Other Assets                                      23,200            18,200
                                            ------------      ------------
             Total Assets                   $ 38,116,581      $ 15,547,021
                                            ============      ============

   LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
  Trade accounts payable                    $    604,684      $     81,030
  Accrued liabilities                            768,297           295,743
  Note payable, current portion                  600,000                 -
                                            ------------      ------------
     Total current liabilities                 1,972,981           376,773
                                            ------------      ------------
Note Payable, Long-Term Portion                2,382,603         2,880,311
                                            ------------      ------------

Commitments and Contingencies

Stockholders' Equity
  Common stock, no par value,
   unlimited shares authorized;
   58,898,789 and 49,775,694 shares
   issued and outstanding at June 30,
   2005 and December 31, 2004                 91,483,656        65,505,630
  Accumulated deficit                        (57,380,730)      (53,215,693)
  Deferred compensation expense                 (166,929)                -
  Accumulated other comprehensive income        (175,000)                -
         Total Stockholders' Equity           33,760,997        12,289,937
                                            ------------      ------------
     Total Liabilities and Stockholders'
      Equity                                $ 38,116,581      $ 15,547,021
                                            ============      ============

Contact Information

  • For Additional Information:

    Investor and Financial Relations:
    Marty Tullio or Mark Tullio
    McCloud Communications, LLC
    949.553.9748
    Email Contact
    Email Contact

    Sales and Marketing:
    Roy Graham
    Altair Nanotechnologies, Inc.
    775.856.2500
    Email Contact