Altair Nanotechnologies Reports First Quarter 2013 Financial Results
RENO, NV -- (Marketwired) -- 05/15/13 -- Altair Nanotechnologies,
Inc. ("Altair") (NASDAQ: ALTI) today reported financial results for
the first quarter ended March 31, 2013.
Altair reported revenues of $1.9 million for the first quarter
compared to $0.3 million for the same period in 2012. The gross loss
was $0.3 million due to inventory cost adjustments and the launching
of new electric grid products.
Operating expenses were $3.2 million for the first quarter, a $1.6
million decrease from $4.8 million for the same period in 2012.
Planned reductions were achieved and accounted for the decrease of
$1.6 million in the research and development, sales and marketing,
and general and administrative departments.
The net loss for the first quarter of 2013 was $3.4 million ($0.29
per share) compared to a net loss of $4.9 million ($0.42 per share)
for the same period in 2012.
"Our goal in 2012 was to advance our commercialization efforts,
reduce cost and position the company for growth," stated Alexander
Lee, Altair's Chief Executive Officer. "Thus far in 2013, we can
tangibly point to our achievements in each of these areas. We
delivered a number of systems to our customers, who are impressed
with our team and our products. We reduced our operating expenses
this past quarter by 33% as compared to the same period last year.
Moreover, we achieved this milestone, while we were ramping up our
China operations. We have approximately 30 employees in China, and
have made significant progress on the construction of our new
manufacturing and assembly facilities. With respect to the critical
issue of revenue, we recognized $1.9 million in revenue this quarter,
and now have $7.1 million in deferred revenue. Lastly, when we add in
the revenue that we expect to earn from our current customer base,
which includes the Hawaii Natural Energy Institute, Proterra and the
City of Wu'an, it quickly becomes clear why 2013 will be a pivotal
year for Altair."
Highlights for the quarter ended March 31, 2013 and subsequent events
-- In May 2013, Northern Altair Nanotechnologies Co., Ltd. ("Northern
Altair") bid for, and is expecting to acquire, a conditional 50-year
land use right with respect to approximately 40.43 acres of industrial
land in Wu'an, China with an acquisition price of approximately $8.5
million, which includes various land transfer taxes and fees that are
equal to approximately $1.2 million. In turn, we expect to receive
cash incentives as part of our economic development deal, which shall
be equal to our acquisition price. A deposit of $4.8 million was made
on May 10, 2013, the closing date is expected to be in late May 2013
and the balance due at closing is expected to be approximately $3.7
-- In March 2013, the Company engaged in additional cost reduction
measures, which will result in an estimated $200,000 decrease in our
monthly operating expenses when fully implemented.
-- In April 2013, we began to decommission our nano lithium titanate
manufacturing equipment in Reno in order to prepare it for shipment to
Northern Altair in mid-May 2013.
-- In April 2013, Northern Altair transferred $1.5 million as a fifty
percent pre-payment for the transfer of Altair's nano lithium titanate
materials and equipment to Northern Altair. An additional $0.9 million
was transferred in March 2013, and the balance due of $0.6 million is
expected to be paid in June 2013.
-- In April 2013, Altair's subsidiary in China received $1.9 million in
near term cash incentives from the City of Wu'an, China. The total
cash incentives received to date from Wu'an under our economic
development deal is $13.7 million.
-- In February 2013, Altair installed and commissioned a 1.2 megawatt
ALTI ESS Advantage(TM) for Vestas Wind Systems in Denmark. This
system is being used for the integration of wind power.
-- In February 2013, we commenced shipments of our nano lithium titanate
battery modules to Proterra, a leading manufacturer of all-electric
transit buses. Under our May 2012 contract with Proterra, Altair is
expected to deliver a minimum of $3.2 million of modules through the
end of the year.
-- In January 2013, Altair commissioned a 1.8 megawatt ALTI ESS System to
Energy Storage Holdings in New Jersey. This system has entered into
commercial operation, and is generating revenue through the sale of
ancillary grid services.
-- In January 2013, the Hawaii Natural Energy Institute purchased its
third energy storage system. They ordered our new 2 megawatt ALTI-ESS
Advantage(TM), and we are working with them to schedule the
installation of this system in either late-2013 or early-2014.
-- In January 2013, Northern Altair commenced the construction of its
nano lithium titanate manufacturing and energy storage assembly
facilities in Wu'an, China. Northern Altair expects to complete the
construction of these facilities in the third quarter of this year.
-- 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(TM) system that will be installed at the San
Fermin 26 MW photovoltaic solar farm in Loiza, Puerto Rico. The system
was shipped and installed in December 2012, but will be commissioned
in June 2013 upon the expected completion of the solar farm. To date,
Altair has received $1.5 million in payments for this project.
-- Altair continues to have discussions with large transportation and
industrial customers in the U.S, Europe and Asia, who are interested
in using our battery systems in a variety of applications where the
high-power attributes of our battery are a key consideration. Several
customers are now testing our application kits, modules and Power Rack
systems for various commercial applications.
-- In February 2011, we signed an $18 million contract with Inversiones
Energeticas, S.A. de C.V. ("INE") for the supply and installation
of a 10 megawatt ALTI-ESS advanced battery system in El Salvador. In
October 2012, INE conducted a technical review for the use of energy
storage with the Unidad de Transacciones ("UT"), which is the
regulatory body that oversees the transmission market in El Salvador.
Nevertheless, the UT continues to review certain commercial issues
related to INE's planned use of energy storage on the El Salvadoran
grid, and as a result, INE has not yet issued Altair with a formal
notice to proceed. We continue to support INE in its discussions with
Altair's cash and cash equivalents decreased by $1.4 million, from
$12.4 million at December 31, 2012 to $10.9 million at March 31,
2013. The net decrease of $1.4 million resulted from the net loss of
$3.4 million, mainly offset by a reduction in deferred contract
expenses of $1.7 million due completing two projects. Changes to cash
included receipts related to closing two projects during the quarter
for our ALT-ESS Advantage(TM) product. The closed projects included a
completed contract with Vestas Wind Systems A/S and a leased system
to Energy Storage Systems, LLC. Altair received $2.7 million in
receipts during the quarter ended March 31, 2013.
Revenues increased by $1.6 million, from approximately $0.3 million
during the quarter ended March 31, 2012 to approximately $1.9 million
during the quarter ended March 31, 2013, primarily a result of
revenue recognized for the sale of one ALTI ESS Advantage(TM) system
sold to Vestas Wind Systems A/S.
"Our Company's mission remains the same for 2013," stated Mr. Lee.
"We remain focused on the need to improve the overall financial
performance. We implemented additional cost reduction measures this
past quarter that should further reduce our monthly operating
expenses by approximately $200,000 when fully implemented. Our
overall cash position, including restricted and long-term restricted
classifications, currently stands at $28.8 million. We fully
appreciate the need to drive our revenue growth. And, as we continue
to grow and expand into new markets, we believe we will have access
to the necessary capital to fund our continued growth."
First Quarter 2013 Conference Call
Altair will hold a conference
call to discuss its first quarter 2013 results on Wednesday, May 15,
2013 at 11:00 a.m. Eastern Daylight Time (EDT). 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. EDT, Wednesday, May 15, 2013 until Midnight EDT, May 22, 2013.
It can be accessed by dialing +1 404-537-3406 and entering the
conference number 64741586. 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
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 our revenue will not increase for various reasons,
including our failure to close on expected orders or INE's failure to
obtain required approvals; that our land use rights may be worth
significantly less than the appraised or recorded value, particularly
in light of the risk of forfeiture and the requirement that we make a
substantial investment related to the property prior to pledging or
selling the land use rights; that the Company will run into
regulatory, finance or other obstacles as it attempts to expand its
operations into China or other countries; that the company will be
unable to close sales due to its pricing; the characteristics of its
products, competing energy storage systems or alternatives to energy
storage systems; that the Company will be unable to expand production
capacity (or contract with its suppliers to expand their capacity) in
order to meet the demand of product orders, particularly with respect
to products like electric vehicles which the Company does not itself
manufacture and will have to source from third parties; 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 and generally. 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)
March 31, December 31,
Cash and cash equivalents $ 10,925 $ 12,372
Restricted cash 8,035 6,245
Accounts receivable, net 715 1,498
Product inventories, net 6,156 7,416
Prepaid expenses and other assets 882 937
Deferred contract costs 2,799 4,532
Other assets, related party 1,764 1,754
Total current assets 31,276 34,754
Restricted cash 9,821 11,803
Property, plant and equipment, net 5,553 4,076
Property, plant and equipment, net held and not
used 1,811 1,857
Patents, net 255 274
Land use right, net 13,636 13,625
Total Assets $ 62,352 $ 66,389
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $ 1,665 $ 2,599
Accrued salaries and benefits 520 632
Accrued warranty 506 418
Accrued liabilities 360 384
Deferred revenues 7,142 7,218
Warrant liabilities 220 90
Note payable, current 6,680 6,680
Capital lease obligation 6 5
Total current liabilities 17,099 18,026
Deferred income 11,870 11,803
Capital lease obligation, less current portion 3 4
Total Liabilities 28,972 29,833
Commitments and Contingencies
Common stock, $.001 par value, 200,000,000
shares authorized; 11,590,067 shares issued
and outstanding at March 31, 2013 and December
31, 2012 246,667 246,667
Additional paid in capital 12,468 12,410
Accumulated deficit (225,824) (222,409)
Accumulated other comprehensive income (loss) 69 (112)
Total stockholders' equity 33,380 36,556
Total Liabilities and Stockholders' Equity $ 62,352 $ 66,389
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States Dollars, except shares and per
March 31, March 31,
Product sales $ 1,794 $ 197
License fees 60 60
Total revenues 1,854 257
Cost of goods sold
Product 2,167 420
Total cost of goods sold 2,167 420
Gross loss (313) (163)
Research and development 1,288 1,833
Sales and marketing 435 920
General and administrative 1,199 1,749
Depreciation and amortization 294 269
Total operating expenses 3,216 4,771
Loss from operations (3,529) (4,934)
Other (expense) income
Interest income (expense), net 241 (2)
Change in market value of warrants (130) 77
Gain on foreign exchange 3
Total other income, net 114 75
Net loss $ (3,415) $ (4,859)
Loss per common share - basic and diluted (0.29) (0.42)
Weighted average shares - basic and diluted 11,590,067 11,590,067
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