ROMEOVILLE, Ill., Feb. 27, 2013 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB:NANX), a technology leader in nanomaterials and advanced nanoengineered products, today reported revenue of $2.7 million for the fourth quarter and revenue of $10.0 million for the fiscal year ended December 31, 2012.
Nanophase CEO and President Jess Jankowski commented, "We measure ourselves on what we have accomplished – what we have put in the bank – and we have seen three consecutive years of revenue growth, a significantly improved bottom line, and stronger cash flow. We also measure ourselves by what we have put in place for the future, and I see new products in the market and significant projects in our pipeline, any of which have the potential to move Nanophase to an entirely different level of performance."
Fourth Quarter 2012 Financial Highlights
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Revenue for the fourth quarter was $2.7 million, compared to revenue of $1.7 million for the comparable 2011 quarter, a 61 percent increase. Gross margin was 25% for the fourth quarter 2012, vs. 4% during the fourth quarter 2011.
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The net loss for the quarter was $0.6 million, or a loss of $0.02 per share, compared to a net loss of $1.3 million, or $0.06 per share, for the comparable 2011 quarter.
- The Company finished 2012 with approximately $4.2 million in cash and cash equivalents on the balance sheet; the company has no debt.
Fiscal year ended December 31, 2012 Financial Highlights
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Revenue for fiscal year 2012 was $10.0 million, compared to $9.7 million for 2011. Gross margin improved to 26%, from 24%, for fiscal year 2012 vs. 2011, respectively.
- The net loss for the fiscal year ended December 31, 2012 was $2.4 million, or a loss of $0.10 per share, compared to a net loss of $3.4 million, or $0.16 per share, for 2011.
"During the past few years," continued Jankowski, "our bottom line has improved from a loss of $6.4 million in 2008 to $4.9 million in 2009, $4.1 million in 2010, $3.4 million in 2011, and now $2.4 million in 2012. We have accomplished this while expanding in our core areas, setting up new and potentially significant revenue opportunities. We are also focused on enhancing our offerings going forward, into new markets that we expect will provide additional returns as they mature. I like where our company stands and look forward to sharing our progress during 2013."
Fourth Quarter and Fiscal Year End 2012 Conference Call
The Nanophase conference call, to be hosted by Jess Jankowski, the Company's CEO and President, is scheduled for February 28, 2013, at 10:00 a.m. CST, 11:00 a.m. EST. The conference call dial-in number for U.S. callers is 877-312-8776 and for international callers is 408-774-4007. The conference ID is 98620501. Please dial in to the conference at least five minutes before the call is scheduled to begin.
The call may also be accessed through the company's website, at www.nanophase.com, by clicking on the link under News Center and Calendar of Events, to listen to a webcast of the event.
Use of Non-GAAP Financial Information
Nanophase believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles.
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 9001:2008 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 risks 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; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company's Form 10-K filed March 29, 2012. 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.
| NANOPHASE TECHNOLOGIES CORPORATION | ||
| BALANCE SHEETS | ||
| December 31, | December 31, | |
| ASSETS | 2012 | 2011 |
| Current assets: | ||
| Cash and cash equivalents | $ 4,124,234 | $ 2,693,623 |
| Investments | 30,000 | 30,000 |
| Trade accounts receivable, less allowance for doubtful accounts of $6,000 on December 31, 2012 and December 31, 2011, respectively | 1,031,405 | 878,600 |
| Other receivable | 27,167 | 13,712 |
| Inventories, net | 1,138,482 | 1,338,210 |
| Prepaid expenses and other current assets | 240,870 | 391,466 |
| Total current assets | 6,592,158 | 5,345,611 |
| Equipment and leasehold improvements, net | 3,027,671 | 3,713,082 |
| Other assets, net | 29,829 | 32,318 |
| $ 9,649,658 | $ 9,091,011 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Current portion of capital lease obligations | $ 34,526 | $ -- |
| Accounts payable | 680,452 | 319,706 |
| Accrued expenses | 484,460 | 383,425 |
| Accrued discount liabilities | -- | 116,103 |
| Total current liabilities | 1,199,438 | 819,234 |
| Long-term portion of capital lease obligations | 62,755 | -- |
| Long-term deferred rent | 636,628 | 647,404 |
| Asset retirement obligation | 153,967 | 148,515 |
| 853,350 | 795,919 | |
| Contingent liabilities: | -- | -- |
| Stockholders' equity: | ||
| Preferred stock, $.01 par value, 24,088 shares authorized and no shares issued and outstanding | -- | -- |
| Common stock, $.01 par value, 35,000,000 shares authorized; 28,458,162 and 21,208,162 shares issued and outstanding on December 31, 2012 and December 31, 2011, respectively | 284,582 | 212,082 |
| Additional paid-in capital | 95,512,065 | 93,070,979 |
| Accumulated deficit | (88,199,777) | (85,807,203) |
| Total stockholders' equity | 7,596,870 | 7,475,858 |
| $ 9,649,658 | $9,091,011 | |
| NANOPHASE TECHNOLOGIES CORPORATION | ||
| STATEMENTS OF OPERATIONS | ||
| Years ended | ||
| December 31, | ||
| 2012 | 2011 | |
| Revenue: | ||
| Product revenue, net | $ 9,725,064 | $ 9,321,042 |
| Other revenue | 311,641 | 329,745 |
| Total revenue | 10,036,705 | 9,650,787 |
| Operating expense: | ||
| Cost of revenue | 7,395,332 | 7,322,247 |
| Gross profit | 2,641,373 | 2,328,540 |
| Research and development expense | 1,626,669 | 1,737,201 |
| Selling, general and administrative expense | 3,403,163 | 3,954,750 |
| Loss from operations | (2,388,459) | (3,363,411) |
| Interest income | 57 | 3,928 |
| Interest expense | (7,119) | (4,012) |
| Other, net | 2,947 | (42) |
| Loss before provision for income taxes | (2,392,574) | (3,363,537) |
| Provision for income taxes | -- | -- |
| Net loss | $ (2,392,574) | $ (3,363,537) |
| Net loss per share- basic and diluted | $ (0.10) | $ (0.16) |
| Weighted average number of common shares outstanding | 24,476,605 | 21,206,036 |
| NANOPHASE TECHNOLOGIES CORPORATION | ||
| STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE | ||
| Years ended | ||
| December 31, | ||
| 2012 | 2011 | |
| Revenue: | ||
| Product revenue, net | $ 9,725,064 | $ 9,321,042 |
| Other revenue | 311,641 | 329,745 |
| Total revenue | 10,036,705 | 9,650,787 |
| Operating expense: | ||
| Cost of revenue detail: | ||
| Depreciation | 764,600 | 885,512 |
| Non-Cash equity compensation | 31,680 | 40,498 |
| Other costs of revenue | 6,599,052 | 6,396,237 |
| Cost of revenue | 7,395,332 | 7,322,247 |
| Gross profit | 2,641,373 | 2,328,540 |
| Research and development expense detail: | ||
| Depreciation | 137,127 | 143,904 |
| Non-Cash equity compensation | 82,771 | 92,391 |
| Other research and development expense | 1,406,771 | 1,500,906 |
| Research and development expense | 1,626,669 | 1,737,201 |
| Selling, general and administrative expense detail: | ||
| Depreciation and amortization | 80,437 | 89,692 |
| Non-Cash equity compensation | 176,579 | 188,980 |
| Other selling, general and administrative expense | 3,146,147 | 3,676,078 |
| Selling, general and administrative expense | 3,403,163 | 3,954,750 |
| Loss from operations | (2,388,459) | (3,363,411) |
| Interest income | 57 | 3,928 |
| Interest expense | (7,119) | (4,012) |
| Other, net | 2,947 | (42) |
| Loss before provision for income taxes | (2,392,574) | (3,363,537) |
| Provision for income taxes | -- | -- |
| Net loss | $ (2,392,574) | $ (3,363,537) |
| Non-GAAP Disclosure (see note regarding Non-GAAP disclosures): | ||
| Addback Interest, net | 7,062 | 84 |
| Addback Depreciation/Amortization | 982,164 | 1,119,108 |
| Addback Non-Cash Equity Compensation | 291,030 | 321,869 |
| Adjusted EBITDA | $ (1,112,318) | $ (1,922,476) |