Nanophase Reports Fourth Quarter and Year End 2008 Financial Results - Management Discusses Positive Changes for 2009
3/26/2009 -
Romeoville, IL, - March 26, 2009 - Nanophase Technologies Corporation (Nasdaq: NANX), a technology leader in nanomaterials and advanced nanoengineered products, reported today financial results for its fourth quarter and year ended December 31, 2008.
Fourth Quarter
Revenue for the quarter was $2.1 million and in line with management’s expectations. Revenue for the fourth quarter of 2007 was $2.6 million.
The net loss for the quarter was $1.9 million, or $0.09 per share, compared to a net loss of $1.3 million, or $0.06 per share, for the fourth quarter of 2007.
Year End
Revenue for the year was $10.2 million, compared to revenue of $12.2 million for the same period in 2007. As a percentage of total revenue, gross margin remained at 26 percent for both years.
Net loss for the year was $6.4 million, or $0.30 per share. Twenty-five percent of the loss, $1.6 million or $0.07 per share, was attributed to one-time severance charges. The net loss for 2007 was $3.7 million, or $0.19 per share, for the same period in 2007.
Outlook for 2009
“We are both realistic and optimistic about the current and long-term prospects for Nanophase,” said Jess Jankowski, Nanophase president and CEO. “We are close to completing the formation of our new leadership team, and are putting the final pieces in place to leverage our capabilities to our best advantage with :
“With limited ability to predict how current economic conditions may impact our strategic markets,” continued Jankowski, “we continue to take a conservative approach to 2009 and, in line with previous guidance, have lowered our revenue projections by approximately 25 percent from 2008. This reduction is due in part to sales projections from industry leaders in our target markets, including housing trends and their impact on revenue from our coatings products. We’re prepared for a rebound in sales when the economy strengthens and as our aggressive marketing programs, ready-to-go products and innovative applications attract new customers from a variety of industries and assist our valued partners with new market penetration,” commented Jankowski.
“We are focused on building a pipeline of new business by leveraging our technology platform and development know-how. Our new sales and marketing team continues to expand its knowledge of our current markets, while investigating new potential markets and industries where Nanophase’s innovative technology and solutions can improve their products or allow them to create new products.”
Jankowski went on to add that the company expects to reduce operating expenses by approximately $1 million in 2009, and $1.2 million in 2010, with the elimination of 12 positions that became redundant, due in part to the company’s shift in business strategy which involves the addition of a direct sales approach, and the recent departure of two executive officers whose outstanding severance obligations will be disbursed late in the third quarter of 2009 and the first quarter of 2010, respectively. Management believes these staffing changes will not limit the company’s ability to execute its business plan through 2010. These changes will also reduce operating cash used by approximately $600,000 in 2009 and $1.1 million in 2010.
Shareholders and members of the financial community are encouraged to participate in today’s conference call, where Mr. Jankowski will be discussing the company’s current and long-term prospects.
Year End 2008 Conference Call
Nanophase has scheduled its quarterly conference call for March 26, 2009, at 4:00 p.m. CDT (5:00 p.m. EDT), which will be hosted by Jess Jankowski, president and CEO. To participate in the call you may dial 800-344-8034, or 785-830-1990 and reference the conference identification of 7NANOPHASE. The call may also be accessed through the company’s website, www.nanophase.comby clicking on the link under Investor Relations and Calendar of Events. If you are unable to attend, a replay will be available through April 2, 2009, by dialing 800-695-0395, or 402-220-1388, or by logging onto the company’s website and following the above directions.
About Nanophase Technologies
Nanophase Technologies Corporation (NANX), www.nanophase.com, is a leader in nanomaterials technologies and provides nanoengineered solutions for multiple industrial product applications. Using a platform of patented and proprietary integrated nanomaterial technologies, the Company creates products with unique performance attributes from two ISO 9001:2000 and ISO 14001 facilities. Nanophase delivers commercial quantity and quality nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety of media.
Forward-Looking Statements
This press release contains words such as “expects,” ”shall,” “will,” , “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risk and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s nanocrystalline materials; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; and the resolution of litigation in which the Company may become involved. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingencies.