RENO, NV, Nov. 5, 2009 (Marketwire) --
RENO, NV -- (Marketwire) -- 11/05/09 -- 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 third quarter ended September 30, 2009.
For the quarter ended September 30, 2009, the Company reported revenues of $1.7 million, down from $1.8 million for the same period in 2008. The net loss was $3.3 million, or three cents per share, compared to a net loss of $9.1 million, or 11 cents per share, for the third quarter of 2008. The basic and diluted weighted average shares outstanding for the quarter were 105.1 million, compared to 84.6 million reported in the third quarter of 2008.
Operating expenses of $5.9 million for the third quarter of 2009 were $5.2 million less than the operating expenses of $11.1 million for the third quarter of 2008. The third quarter of 2008 contained the one-time settlement expense of $3.6 million with Al Yousuf LLC. and higher research and development costs associated with the number of grants being worked on in 2008 compared to 2009. Additionally, we had reduced spending associated with the former Life Sciences and Performance Materials groups in 2009 than we did in 2008.
The Company's cash and cash equivalents decreased by $4.1 million, from $28.1 million at December 31, 2008 to $23.9 million at September 30, 2009. This is due primarily to net cash used in operations of approximately $18.1 million, $4.8 million of which was for increased product inventories; investing activities primarily consisting of purchases of fixed assets of approximately $0.6 million offset by $2.0 million received from the sale of our Spectrum common stock; and financing activities that include payment of notes payable of $0.6 million offset by $12.8 million of proceeds relating to the issuance of common shares in May 2009.
The Company's cash burn rate has been higher throughout the first three quarters of 2009 than it was in the second half of 2008 as the Company has been building up inventory of component parts with three to six month lead times in anticipation of sales later this year and in early 2010. We expect our cash burn rate to slow in the fourth quarter of 2009 as the Company believes it now has adequate levels of components in inventory. Product inventories are higher by $3.6 million and prepaid expenses by $1.2 million from their respective December 31, 2008 balances. The increase in prepaid expenses results almost entirely from a partial payment on the purchase of battery cells from the Company's Korean cell manufacturer.
"We have experienced an increased level of customer requests for quotes in the past couple of months," said Dr. Terry Copeland, Altairnano's president and CEO. "In addition, we anticipate that potential order activity will begin to gain traction as we enter into 2010. Given the importance of establishing this revenue stream and having referenceable customers for other prospects to speak with, we need to be able to move expeditiously once we have these initial firm orders."
During the third quarter Altairnano received the final signed contracts for both the $3.8 million Office of Naval Research phase 2 development program, and the Department of Defense supported $1.8 million nanosensor project. The Company will perform work on both of these contracts during the fourth quarter and into the first half of 2010.
As payment for Spectrum Pharmaceuticals achieving certain past milestones as specified in its contract with the Company, Altairnano was 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 third quarter of 2009, the Company sold these shares for $2.0 million realizing a gain of $900,000. Altairnano also reached agreement with Spectrum to modify its existing contract to assign ownership of all patent rights associated with Renazorb and Renalan compounds to Spectrum. Under the terms of the agreement, the Company received $750,000 in Spectrum restricted common stock and a right to future royalties and milestone payments upon completion of certain specified events.
Third Quarter 2009 Conference Call
Altairnano will hold a conference call to discuss its third quarter 2009 results on Thursday, November 5, 2009 at 11:00 a.m. Eastern Standard Time (EST). 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 +1 719-325-2117. 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 12:00 p.m. EST, Thursday, November 5, until Midnight EST, November 12, 2009. It can be accessed by dialing +1 719-457-0820 and entering conference number 1046971.
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.
