Altair Nanotechnologies Reports Third Quarter 2012 Financial

Altair Nanotechnologies Reports Third Quarter 2012 Financial Results 
RENO, NV -- (Marketwire) -- 11/08/12 --  Altair Nanotechnologies,
Inc. ("Altair") (NASDAQ: ALTI), today reported financial results for
the third quarter ended September 30, 2012. 
Altair reported revenues of $0.4 million for the third quarter
compared to $0.9 million for the same period in 2011. Deferred
revenue grew to $5.3 million for the third quarter compared to $1.6
million for the same period in 2011. The gross loss was $428,000
primarily due to cost increases associated with the launch of new
electric grid products. 
Operating expenses were $4.0 million for the third quarter, a
decrease from $5.4 million for the same period in 2011. Planned
reductions of $0.5 million in research and development, sales and
marketing, and general and administrative expenses were achieved. In
addition, severance expenses of $0.9 million were recorded in the
third quarter of 2011. 
The net loss for the third quarter of 2012 was $4.7 million ($0.07
per share) compared to a net loss of $5.9 million ($0.10 per share)
for the same period in 2011. 
"We continue to execute on our plan to reduce costs, grow our China
business, and make critical investments to advance our technology and
products," stated Alexander Lee, Altair's Chief Executive Officer.
"We are nearing completion on several large projects that were
shipped in the third quarter, which are now being commissioned with
key customers." 
Recent highlights and subsequent events: 


 
--  In July 2012, the Company shipped a 1.2 megawatt (MW) ALTI ESS to a
    European renewable energy company for a wind integration project.
    
    
--  In August 2012, Altair's subsidiary in China, Northern Altair
    Nanotechnologies Co., Ltd. ("Northern Altair") received a $1.9 million
    down payment from the City of Wu'an, China for its order of 50
    electric buses. These buses are scheduled for delivery at the end of
    2012.
    
    
--  In August 2012, the Company entered into a memorandum of understanding
    with a leading coal company in China regarding potential ALTI ESS
    projects.
    
    
--  In September 2012, the Company was granted another contract extension
    by INE, which allows INE to seek the required r
egulatory approvals.
    
    
--  In September 2012, the Company signed a memorandum of understanding
    with EnerDel, a manufacturer of lithium-ion batteries and systems, to
    collaborate on the joint marketing and sales of each other's
    products.
    
    
--  In October 2012, the Company entered into a contract with TSK Solar, a
    leading energy EPC contractor and engineering firm, to supply a 2 MW
    ALTI ESS Advantage system that will be installed at the San Fermin 26
    MW photovoltaic solar farm in Loiza, Puerto Rico. The Company received
    a $343,000 down payment for the system in October.
    
    
--  In October 2012, the Company and Northern Altair entered into a series
    of transactions, wherein, Northern Altair set aside, as restricted
    cash, $2 million with the Bank of China. In return, the Bank of China
    loaned the Company $2 million to be used as working capital.
    
    
--  In October 2012, the Company and Northern Altair entered into two
    intercompany agreements, which involve the transfer and sale of
    lithium titanate (nLTO) manufacturing equipment and nLTO materials
    from the Company to Northern Altair. Under the Agreements, Northern
    Altair will transfer $2.86 million to the Company for the transfer of
    nLTO equipment and materials.
    
    
--  In October 2012, Northern Altair entered into an agreement to acquire
    approximately 66 acres of land within the City of Wu'an, China under
    terms in which the purchase price is generally offset by near term
    cash incentives.
    
    
--  In October 2012, the Company settled its lawsuits with JMP Securities
    and Charles Cheng.
    
    
--  In November 2012, the Company entered into a $2.2 million agreement
    for the sale of its Reno facility. The agreement is conditioned on an
    environmental report, and includes provisions for the Company to
    leaseback the facility for a 10 month period.

  
Altair's cash and cash equivalents decreased by $14.3 million, from
$46.5 million as of December 31, 2011 to $32.2 million as of
September 30, 2012. The decrease in cash was primarily due to $14.6
million of cash used in operating activities during the nine months
ending September 30, 2012. The bulk of the cash used in operations
went to cover our net loss of $14.4 million, offset by $1.0 million
in proceeds from a short-term note payable used toward the $4.7
million increase in work-in-process inventory required for the
fulfillment of customer orders. 
Third Quarter 2012 Conference Call 
 Altair will hold a conference
call to discuss its third quarter 2012 results on Thursday, November
8, 2012 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 +1 678-224-7719. Please dial in to the conference five
minutes before the call is scheduled to begin. Ask the operator for
the Altair Nanotechnologies call. 
Post call, a phone-based audio replay will be available from 2:00
p.m. EST, Thursday, November 8, 2012 until Midnight EST, November 15,
2012. It can be accessed by dialing +1 404-537-3406 and entering the
conference number 64897021. Additionally, the conference call and
replay will be available online, and can be accessed by visiting
Altair's web site, www.altairnano.com. 
About Altair Nanotechnologies Inc.
 Altair is a leading provider of
high-power, energy storage systems for the electric grid, industrial
equipment and transportation markets. The company's lithium titanate
technology is built on a proprietary nano-scale processing technology
that creates high-power, rapid-charging battery systems with
industry-leading performance and cycle life. Altair is headquartered
in Reno, Nevada and maintains operations in Anderson, Indiana;
Zhuhai, China; and Wu'an, China. For additional information, please
visit: www.altairnano.com. 
Forward-Looking Statements 
 This report 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
Altair'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 report. These risks include
the risk that the government entities with which the Company has
contracted will be unable to fulfill their commitment due to legal
limitations, including certain procedures required in connection with
land use grants and major product purchases; that the government
entities will not fulfill their commitments for political or other
discretionary reasons, in which case the Company will have no, or
limited, remedies; that the Company will run into regulatory, finance
or other obstacles as it attempts to expand its operations into
China; that the Company interest may be harmed by the absence from
the Agreement of terms and conditions that are customary in contracts
under U.S. law; that the Company will be unable to expand capacity
(or contract with third part
ies) in order to meet the demand of
product orders, particularly products like electric vehicles which
the Company does not itself manufacture; that the Company will not
experience expected costs savings as a result of its expansion into
China and that the Company will not experience an increase in sales
volume or, even if it experiences such an increase, that the Company
will experience low (or negative) gross margins and not operate
profitably in China. Other risks are identified in Altair's most
recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q
filed with the SEC. Such forward-looking statements speak only as of
the date of this release. Altair expressly disclaims any obligation
to update or revise any forward-looking statements found herein to
reflect any changes in Altair expectations or results or any change
in events. 


 
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                        CONSOLIDATED BALANCE SHEETS                         
      (Expressed in thousands of United States Dollars, except shares)      
                                                                            
                                                                            
                                                (Unaudited)                 
                                               September 30,   December 31, 
                                                    2012           2011     
                                               -------------  ------------- 
                    ASSETS                                                  
Current assets                                                              
  Cash and cash equivalents                    $      32,213  $      46,519 
  Restricted cash                                        293                
  Accounts receivable, net                               949            333 
  Product inventories, net                             8,648          7,220 
  Prepaid expenses and other assets                    4,227          2,240 
  Other assets, related party                          1,700                
                                               -------------  ------------- 
    Total current assets                              48,030         56,312 
                                                                            
Property, plant and equipment, net                     6,117          6,870 
Patents, net                                             293            350 
                                               -------------  ------------- 
                                                                            
                 Total Assets                  $      54,440  $      63,532 
                                               =============  ============= 
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                                                            
Current Liabilities                                                         
  Trade accounts payable                       $       6,717  $       5,870 
  Accrued salaries and benefits                          852          1,132 
  Accrued warranty                                       397            354 
  Accrued liabilities                                    445            421 
  Deferred revenues                                    5,326          1,616 
  Warrant liabilities                                    742            654 
  Note payable, current                                1,000                
  Capital lease obligation                                16             12 
                                               -------------  ------------- 
    Total current liabilities                         15,495         10,059 
                                                                            
                                                                            
               Total Liabilities                      15,495         10,059 
                                               -------------  ------------- 
                                                                            
                                                                            
Stockholders' equity                                                        
  Common stock, no par value, unlimited shares                              
   authorized; 69,537,911 shares issued and                                 
   outstanding at September 30, 2012 and                                    
   December 31, 2011                                 245,617        245,617 
  Additional paid in capital                          12,349         12,279 
  Accumulated deficit                               (218,828)      (204,423)
  Accumulated other comprehensive loss                  (193)               
                                               -------------  ------------- 
    Total stockholders' equity                        38,945         53,473 
                                                                            
      Total Liabilities and Stockholders'                                   
       Equity                                  $      54,440  $      63,532 
                                               =============  ============= 
                                                                            
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
  (Expressed in thousands of United States Dollars, except shares and per   
                               share amounts)                               
                                (Unaudited)                                 
                                                                            
                            Three Months Ended         Nine Months Ended    
                               September 30,             September 30,      
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
Revenues                                                                    
  Product sales          $       296  $       795  $       869  $     3,335 
  License fees                    60           60          180          180 
  Commercial                                                                
   collaborations                  4                        22           80 
  Contracts and grants                                                  287 
                         -----------  -----------  -----------  ----------- 
    Total revenues               360          855        1,071        3,882 
                         -----------  -----------  -----------  ----------- 
                                                                            
Cost of goods sold                                                          
  Product    
                    773          559        1,792        3,484 
  Commercial                                                                
   collaborations                            (124)                       73 
  Contracts and grants                                                  296 
  Warranty and inventory                                                    
   reserves                       15           97          490          155 
                         -----------  -----------  -----------  ----------- 
    Total cost of goods                                                     
     sold                        788          532        2,282        4,008 
                         -----------  -----------  -----------  ----------- 
                                                                            
Gross (loss) profit             (428)         323       (1,211)        (126)
                                                                            
Operating expenses                                                          
  Research and                                                              
   development                 1,423        1,594        5,046        4,933 
  Sales and marketing            499          834        2,344        2,798 
  General and                                                               
   administrative              1,836        2,730        5,010        6,107 
  Depreciation and                                                          
   amortization                  252          259          771        1,013 
  Loss on disposal of                                                       
   assets                                       2                        18 
                         -----------  -----------  -----------  ----------- 
    Total operating                                                         
     expenses                  4,010        5,419       13,171       14,869 
                         -----------  -----------  -----------  ----------- 
Loss from operations          (4,438)      (5,096)     (14,382)     (14,995)
                         -----------  -----------  -----------  ----------- 
                                                                            
Other (expense) income                                                      
  Interest income                                                           
   (expense), net                 37          (97)          67         (155)
  Change in market value                                                    
   of warrants                  (267)        (676)         (88)         346 
                         -----------  -----------  -----------  ----------- 
    Total other                                                             
     (expense) income,                                                      
     net                        (232)        (777)         (23)         186 
                         -----------  -----------  -----------  ----------- 
                                                                            
Net loss                 $    (4,671) $    (5,873) $   (14,405) $   (14,809)
                         ===========  ===========  ===========  =========== 
                                                                            
Loss per common share -                                                     
 basic and diluted       $     (0.07) $     (0.10) $     (0.21) $     (0.38)
                         -----------  -----------  -----------  ----------- 
Weighted average shares                                                     
 - basic and diluted      69,537,911   60,222,433   69,537,911   39,286,178 
                         ===========  ===========  ===========  =========== 

  
For Additional Information:  
Investors
Tony Luo
tluo@altairnano.com
775.858.3726