ROMEOVILLE, Ill., Oct. 26, 2010 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (Nasdaq:NANX), a technology leader in nanomaterials and advanced nanoengineered products, today reported much improved financial results for the third quarter and nine-month period, ended September 30, 2010.
  • Nine-month 2010 revenue up 57 percent
  • Nine-month gross margin as a percentage of revenue increased 93 percent
  • Nine-month net loss decreased 32 percent

Nanophase CEO and President Jess Jankowski commented, "In an improving business environment and with the realignment of our marketing strategy, Nanophase has shown a significant improvement in sales over the past nine months. We continue to work closely with BASF, whose established presence and reputation for quality products within the personal care markets has made them a significant customer of our nano zinc oxide products for blocking UV rays in sunscreens and skincare products. Our strong relationship with BASF and other long-time customers in parallel with our customer direct strategy should generate revenue growth exceeding that of 2009 by 40 to 50 percent."   

Third Quarter 2010
  • Revenue was $2.1 million, an increase of 21 percent , when compared to revenue of $1.7 million for the third quarter of 2009.  
  • Gross margin for the quarter was $0.5 million, or 23 percent of revenue, compared to a gross margin of $0.5 million, or 27 percent of revenue, for the third quarter of 2009.  
  • The net loss for the quarter was $1.6 million, or a loss of $0.07 per share, when compared to a net loss of $0.9 million, or $0.04 per share, for the third quarter of 2009. The 2010 net loss includes the one-time charge of $0.7 million for the termination of an exclusive supply agreement. Net loss excluding the one-time charge would be consistent with third quarter 2009.  
  • The balance sheet is strong with approximately $6.7 million in cash and cash equivalents. The Company has no debt.

Nine months ended September 30, 2010
  • Revenue was $7.4 million, an increase of 57 percent , when compared to revenue of $4.7 million for the same period of 2009.  
  • Gross margin was $2.2 million, or 29 percent of revenue, a significant increase from a gross margin of $0.7 million, or 15 percent of revenue, for the same period of 2009.  
  • The net loss was $2.9 million, or a loss of $0.13 per share, when compared to a net loss of $4.2 million, or $0.20 per share, for the same period of 2009.

During the third quarter, Nanophase terminated a supplier exclusivity agreement with a long-term customer and signed a new, more traditional five-year supply agreement which will provide both companies more options and opportunities in their markets. With the termination of the former agreement, Nanophase recorded a $700,000 charge of which half was paid in cash and the other half in the form of product purchase credits.