Altair Nanotechnologies Reports Third Quarter 2013 Financial Results

Altair Nanotechnologies Reports Third Quarter 2013 Financial Results 
RENO, NV -- (Marketwired) -- 11/13/13 --  Altair Nanotechnologies,
Inc. ("Altair") (NASDAQ: ALTI) today reported financial results for
the third quarter ended September 30, 2013. 
Altair reported revenues of $1.1 million for the third quarter
compared to $0.4 million for the same period in 2012. The gross loss
was $0.1 million, due to a decline in warranty and inventory reserves
of nearly $0.2 million, compared to $0.4 million for the same period
in 2012. 
Operating expenses were $3.7 million for the third quarter, a $0.3
million decrease from $4.0 million for the same period in 2012. Cost
cutting goals were achieved with planned reductions in the research
and development and sales and marketing departments. General and
administrative costs increased due to the ramp up of our China
operations. 
The net loss for the third quarter of 2013 was $3.7 million, or $0.32
per diluted share, compared to a net loss of $4.7 million, $0.40 per
diluted share, for the same period in 2012. 
"We have taken drastic action to further reduce our costs including
consolidating our Accounting and Finance Department into the Anderson
location," stated Richard W. Lee, Altair's Chief Executive Officer.
"In addition, some of our key research and development staff is
devoting a substantial amount of time in our facilities in China in
order to speed up the production capabilities in our new facilities.
As production ramps up in China, we will realize the cost
efficiencies in production that was the primary motivator for moving
operations to China. Currently, our team in China has grown to 181
employees with most of the additions to our operations team," said
Mr. Lee. 
Highlights for the quarter ended September 30, 2013 and subsequent
events include: 


 
--  In July 2013, Northern Altair received $2.0 million in cash incentives
    from the City of Wu'an, China under our economic development
    agreement.
    
    
--  In September 2013, Northern Altair received $1.6 million in cash
    incentives from the City of Wu'an, China. The total cash incentives
    received to date from Wu'an under our economic development agreement
    is $17.3 million.
    
    
--  Altair continues to have discussions with lar
ge 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.
    
    
--  Revenue is expected to increase significantly over the couple years
    with new orders from existing customers as well as opportunities with
    new customers.

  
Altair's cash and cash equivalents decreased by $9.1 million, from
$12.4 million at December 31, 2012 to $3.3 million at September 30,
2013. The net decrease of $9.1 million resulted from the net decrease
in operating activities of $7.6 million, the net decrease in
investing activities of $11.7 million and the net increase in
financing activities of $10.7 million. The investing activities
included the acquisition of the second land use right from the
Government of Wu'an, China, which was paid for by using restricted
cash, and the purchase of fixed assets by Northern Altair. The
financing activity included the increase of deferred income due to
receiving cash incentives from the purchase of the first land use
right of $1.9 million in and $3.6 million from the purchase of the
second land use right.  
"After considerable preparation work, we believe that we have found a
solution to succeed in this most competitive lithium battery
business. Additionally, we continually invest in research to advance
our technology focusing on our core attributes: faster charging,
longer life cycle, wider temperature range and higher energy
density," Mr. Lee continued. 
"As our production facilities in China come on-line, we are making
the best use of the 'CHINA ELEMENT' concept. It is not just lower
labor cost. We have government subsidies for electric vehicles, local
government grants, cost advantageous sourcing of material and
equipment supplies, low land use costs, educated, talented staff,
substantially larger electric vehicle and energy storage markets,
lower energy costs and most important of all, the drive and
determination to succeed," concluded Mr. Lee. 
Third Quarter 2013 Conference Call
 Altair will hold a conference
call to discuss its third quarter 2013 results on Wednesday, November
13, 2013 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, Wednesday, November 13, 2013 until Midnight EST, November
19, 2013. It can be accessed by dialing +1 404-537-3406 and entering
the conference number 98910043. 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 our revenue will not increase for various reasons,
including our failure to close on expected orders; 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 experien
ce 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.  
Tables Follow 


 
                                                                            
                                                                            
               ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES                
                        CONSOLIDATED BALANCE SHEETS                         
      (Expressed in thousands of United States Dollars, except shares)      
                                                                            
                                                                            
                                                (Unaudited)                 
                                               September 30,   December 31, 
                                                    2013           2012     
                                               -------------  ------------- 
                    ASSETS                                                  
Current assets                                                              
  Cash and cash equivalents                    $       3,293  $      12,372 
  Restricted cash                                     15,515          6,245 
  Accounts receivable, net                             1,473          1,498 
  Product inventories, net                             5,229          7,416 
  Prepaid expenses and other assets, current           1,846            937 
  Deferred contract costs                              1,831          4,532 
  Other assets, related party                          1,791          1,754 
                                               -------------  ------------- 
    Total current assets                              30,978         34,754 
                                                                            
Restricted cash                                                      11,803 
Property, plant and equipment, net                    11,702          4,076 
Property, plant and equipment, net held and                                 
 not used                                                             1,857 
Patents, net                                             217            274 
Prepaid equipment purchases                            1,351                
Land use right, net                                   22,359         13,625 
                                               -------------  ------------- 
                                                                            
                 Total Assets                  $      66,607  $      66,389 
                                               =============  ============= 
                                                                            
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                                                            
Current Liabilities                                                         
  Trade accounts payable                       $       2,860  $       2,599 
  Accrued salaries and benefits                          676            632 
  Accrued warranty                                       634            418 
  Accrued liabilities                                    376            384 
  Deferred revenues                                    5,639          7,218 
  Warrant liabilities                                    120             90 
  Notes payable, current                              11,533          6,680 
  Capital lease obligation                                 6              5 
                                               -------------  ------------- 
    Total current liabilities                         21,844         18,026 
                                                                            
Deferred income                                       17,627         11,803 
Note payable                                                                
Capital lease obligation, less current portion                            4 
                                               -------------  ------------- 
          
                                                                  
               Total Liabilities                      39,471         29,833 
                                               -------------  ------------- 
                                                                            
Commitments and Contingencies                                               
                                                                            
Stockholders' equity                                                        
  Common stock, $.001 par value, 200,000,000                                
   shares authorized; 11,590,067 shares issued                              
   and outstanding at September 30, 2013 and                                
   December 31, 2012                                      12             12 
  Additional paid in capital                         259,198        259,065 
  Accumulated deficit                               (232,558)      (222,409)
  Accumulated other comprehensive income                                    
   (loss)                                                484           (112)
                                               -------------  ------------- 
    Total stockholders' equity                        27,136         36,556 
                                                                            
  Total Liabilities and Stockholders' Equity   $      66,607  $      66,389 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                                                                            
               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,      
                             2013         2012         2013         2012    
      
                   -----------  -----------  -----------  ----------- 
Revenues                                                                    
  Product sales          $     1,072  $       300  $     5,958  $       891 
  License fees                    60           60          180          180 
                         -----------  -----------  -----------  ----------- 
    Total revenues             1,132          360        6,138        1,071 
                         -----------  -----------  -----------  ----------- 
                                                                            
Cost of goods sold                                                          
  Product                      1,206          788        6,586        2,282 
                         -----------  -----------  -----------  ----------- 
    Total cost of goods                                                     
     sold                      1,206          788        6,586        2,282 
                         -----------  -----------  -----------  ----------- 
                                                                            
Gross loss                       (74)        (428)        (448)      (1,211)
                                                                            
Operating expenses                                                          
  Research and                                                              
   development                 1,079        1,423        3,124        5,046 
  Sales and marketing            201          499          883        2,344 
  General and                                                               
   administrative              1,908        1,837        4,843        5,010 
  Depreciation and                                                          
   amortization                  444          252        1,063          771 
  Gain on disposal of                                                       
   assets                         50                        31              
                         -----------  -----------  -----------  ----------- 
    Total operating                                                         
     expenses                  3,682        4,011        9,944       13,171 
                         -----------  -----------  -----------  ----------- 
Loss from operations          (3,756)      (4,439)     (10,392)     (14,382)
                         -----------  -----------  -----------  ----------- 
Other income (expense)                                                      
  Interest income, net            25           37          237           67 
  Change in market value                                                    
   of warrants                   (20)        (267)         (30)         (88)
  Other income                     8           (2)          36           (2)
                         -----------  -----------  -----------  ----------- 
    Total other income                                                      
     (expense), net               13         (232)         243          (23)
                         -----------  -----------  -----------  ----------- 
                                                                            
Net loss                 $    (3,743) $    (4,671) $   (10,149) $   (14,405)
                         ===========  ===========  ===========  =========== 
                                                                            
Loss per common share -                                                     
 basic and diluted       $     (0.32) $     (0.40) $     (0.88) $     (1.24)
                         -----------  -----------  -----------  ----------- 
Weighted average shares                                                     
 - basic and diluted      11,590,067   11,590,067   11,590,067   11,590,067 
                         ===========  ===========  ===========  =========== 

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