Nanophase Announces Anticipated Second Quarter Revenues
July 8, 1998 04:43 PM
BURR RIDGE, Ill., July 8 /PRNewswire/ -- Nanophase Technologies Corporation NANX , a leader in developing and marketing advanced materials using nanocrystalline compounds, announced today that it anticipates second quarter 1998 revenues will be approximately $215,000, compared with revenues of $603,003 for the second quarter of 1997 and $703,534 for the first quarter of 1998. The portion of revenues for the second quarter of 1998 that is derived from the sale of products rather than from fees for development work is anticipated to be approximately $100,000, which the company stated represents the base of business upon which the company will build in the future. For the six months ended June 30, 1998, revenues from the sale of products are anticipated to total approximately $775,000, compared with approximately $420,000 for the first six months of 1997 and approximately $925,000 for all of last year.
Several product orders in volumes that are contemplated in contracts with existing customers were not finalized in the second quarter of 1998 as anticipated. Revenues for the quarter were also impacted by the fact that several significant licensing agreements which had been proposed to the company by potential new customers, and which are currently under active negotiation, could not be completed during the quarter as anticipated.
"While we will continue to grant new technology licenses and marketing rights in appropriate markets when such arrangements offer the potential for long-term benefits to the company," said Robert Cross, Nanophase's president and chief executive officer, "these arrangements are not the primary focus of our long-term growth strategies, and the availability of such arrangements on advantageous terms, and the timing and amount of revenues from such arrangements, will vary considerably. Fees for development work, while important to our marketing strategies, will also vary considerably in timing and amount."
"We are still in the early stages of building a long-term revenue base," Cross said. "The timing and the amount of most of our revenues will continue to vary substantially during this time, and the most meaningful measure of our progress will be growth in new customers and growth from year to year in product revenues. In this regard, we are well ahead of last year in product revenues, with product revenues for the first six months of 1998 equal to approximately 84% of product revenues for all of last year. We also added several potentially important new customers in the second quarter."
Nanophase Technologies Corporation develops and markets engineered advanced materials for a variety of product applications in the electronics, structural ceramics, cosmetics, and industrial catalysts industries. Using proprietary technology to alter materials at the molecular level, the company creates products with unique performance attributes. The company's global customer base includes a number of Fortune 500 companies. Nanophase trades on the Nasdaq NMS under the symbol "NANX." Visit the company's web site at www.nanophase.com.
Statements contained in this news release that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results for future periods to differ materially from those expressed in this news release. These important factors include, without limitation: demand for, and acceptance of, the Company's nanocrystalline materials; changes in development and distribution relationships; the impact of competitive products and technologies; and other risks indicated in the Company's Annual Report on Form 10-K for the year ended December 31, 1997, as filed with the Securities and Exchange Commission. Nanophase undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
For additional information on Nanophase Technologies by fax at no cost, dial 1-800-PRO-INFO, code NANX
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