ROMEOVILLE, Ill., April 27, 2015 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB:NANX), a technology leader in nanomaterials and advanced nanoengineered products, today reported financial results for the first quarter ended March 31, 2015.
"We moved past a slow start to show strength at the end of the quarter," commented Nanophase CEO and President Jess Jankowski. "Our primary challenge was significant fluctuation in our personal care business. Revenue outside of this area was up more than 80% from the prior year, but that wasn't enough to pick up the slack. The second quarter of 2015 has already seen the first commercial shipment of one of our energy-related products, and we expect more to follow. We have received more orders for surface finishing (polishing) products than we shipped during all of 2014, and will have shipped more product in this area by June 2015 than we did all of last year."
First Quarter 2015 Financial Highlights
- Revenue for the first quarter was $2.3 million, vs. the $2.6 million reported during the first quarter of 2014.
- The net loss for the quarter was $0.6 million, or a loss of $0.02 per share, compared to a net loss of $0.4 million, or $0.02 per share, for the comparable 2014 quarter.
- The Company finished the quarter with approximately $1.2 million in cash and cash equivalents; the Company has no debt.
Jankowski continued, "Personal care has long held an outsized impact on our overall performance. It is a good business and one that we are committed to, but the impact of quarterly fluctuations here provides support for our goal to develop complementary revenue streams. We continue to expand our business in surface finishing technologies (polishing) applications, and have reached the tip of the commercial iceberg on the new energy products. We are very excited about our prospects."
Shareholders and members of the financial community are encouraged to participate in the upcoming conference call, where Mr. Jankowski will discuss the company's current and long-term prospects.
First Quarter 2015 Conference Call
The Nanophase conference call, to be hosted by Jess Jankowski, the Company's President & CEO, is scheduled for April 28, 2015, at 10:00 a.m. CDT, 11:00 a.m. EDT. 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 17241220. 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 Investor Relations, Investor News and the link in the April 21st conference call announcement release.
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 27, 2015. 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 | ||
| March 31, | ||
| 2015 | December 31, | |
| ASSETS | (Unaudited) | 2014 |
| Current assets: | ||
| Cash and cash equivalents | $ 1,206,566 | $ 1,861,524 |
| Trade accounts receivable, less allowance for doubtful accounts of $6,000 on March 31, 2015 and on December 31, 2014 | 1,259,254 | 387,760 |
| Other receivables, net | 49 | 65 |
| Inventories, net | 825,738 | 950,106 |
| Prepaid expenses and other current assets | 353,013 | 367,860 |
| Total current assets | 3,644,620 | 3,567,315 |
| Equipment and leasehold improvements, net | 1,992,989 | 2,137,549 |
| Other assets, net | 24,249 | 24,864 |
| $ 5,661,858 | $ 5,729,728 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Current portion of capital lease obligations | $ 62,430 | $ 69,733 |
| Accounts payable | 1,009,364 | 492,718 |
| Accrued expenses | 408,078 | 412,824 |
| Total current liabilities | 1,479,872 | 975,275 |
| Long-term portion of capital lease obligations | 105,612 | 120,787 |
| Long-term deferred rent | 595,793 | 621,475 |
| Asset retirement obligations | 167,634 | 166,099 |
| 869,039 | 908,361 | |
| 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; 28,585,496 and 28,516,163 shares issued and outstanding on March 31, 2015 and December 31, 2014, respectively | 285,855 | 285,162 |
| Additional paid-in capital | 96,037,776 | 95,965,739 |
| Accumulated deficit | (93,010,684) | (92,404,809) |
| Total stockholders' equity | 3,312,947 | 3,846,092 |
| $ 5,661,858 | $ 5,729,728 | |
| NANOPHASE TECHNOLOGIES CORPORATION | ||
| STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| Three months ended | ||
| March 31, | ||
| 2015 | 2014 | |
| Revenue: | ||
| Product revenue | $ 2,299,798 | $ 2,575,761 |
| Other revenue | 10,387 | 9,201 |
| Total revenue | 2,310,185 | 2,584,962 |
| Operating expense: | ||
| Cost of revenue | 1,744,551 | 1,877,273 |
| Gross profit | 565,634 | 707,689 |
| Research and development expense | 301,910 | 337,387 |
| Selling, general and administrative expense | 867,075 | 798,000 |
| Loss from operations | (603,351) | (427,698) |
| Interest income | -- | 370 |
| Interest expense | (2,524) | (1,603) |
| Other, net | -- | -- |
| Loss before provision for income taxes | (605,875) | (428,931) |
| Provision for income taxes | -- | -- |
| Net loss | $ (605,875) | $ (428,931) |
| Net loss per share-basic and diluted | $ (0.02) | $ (0.02) |
| Weighted average number of basic and diluted common shares outstanding | 28,542,533 | 28,481,496 |
| NANOPHASE TECHNOLOGIES CORPORATION | ||
| STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE | ||
| (Unaudited) | ||
| Three months ended | ||
| March 31 | ||
| 2015 | 2014 | |
| Revenue: | ||
| Product revenue, net | $ 2,299,798 | $ 2,575,761 |
| Other revenue | 10,387 | 9,201 |
| Total revenue | 2,310,185 | 2,584,962 |
| Operating expense: | ||
| Cost of revenue detail: | ||
| Depreciation | 144,322 | 149,083 |
| Non-Cash equity compensation | 5,635 | 7,112 |
| Other costs of revenue | 1,594,594 | 1,721,078 |
| Cost of revenue | 1,744,551 | 1,877,273 |
| Gross profit | 565,634 | 707,689 |
| Research and development expense detail: | ||
| Depreciation | 29,965 | 27,635 |
| Non-Cash equity compensation | 8,345 | 16,142 |
| Other research and development expense | 263,600 | 293,610 |
| Research and development expense | 301,910 | 337,387 |
| Selling, general and administrative expense detail: | ||
| Depreciation and amortization | 10,182 | 9,467 |
| Non-Cash equity compensation | 32,705 | 33,422 |
| Other selling, general and administrative expense | 824,188 | 755,111 |
| Selling, general and administrative expense | 867,075 | 798,000 |
| Loss from operations | (603,351) | (427,698) |
| Interest income | -- | 370 |
| Interest expense | (2,524) | (1,603) |
| Other, net | -- | -- |
| Loss before provision for income taxes | (605,875) | (428,931) |
| Provision for income taxes | -- | -- |
| Net loss | $ (605,875) | $ (428,931) |
| Non-GAAP Disclosure (see note regarding Non-GAAP disclosures): | ||
| Addback Interest, net | 2,524 | 1,233 |
| Addback Depreciation/Amortization | 184,469 | 186,185 |
| Addback Non-Cash Equity Compensation | 46,685 | 56,676 |
| Adjusted EBITDA | $ (372,197) | $ (184,837) |