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Technology Stocks : Nanophase Technologies (NANX) -- Ignore unavailable to you. Want to Upgrade?

To: WWS who wrote (58)	1/9/1998 1:56:00 PM
From: Scrapps	Read Replies (1) \| Respond to of 322

INTERVIEW-Nanophase hopeful despite Asia -------------------------------------------------------------------------------- By Susan Nadeau CHICAGO, Jan 9 (Reuters) - Nanophase Technologies Corp, which lost revenues in the fourth quarter due to Asia's economic turmoil, said Friday it still has confidence in its long-term prospects. In an interview with Reuters, Nanophase Chief Executive Robert Cross said about $500,000 in lost fourth quarter revenues can be attributed to troubles in Asia. Shares of Nanophase, which had its initial public offering in November at $8 a share, fell more than 45 percent in early trade, down 5-3/8 to 6-1/4 as one of the most active stocks on the Nasdaq market. Earlier, the company, which provides engineered materials used to make semiconductors and cosmetics, said it expects to post about $1.5 million in fourth quarter revenues. Cross said the company had expected more than $2.2 million in revenues. "I don't have a crystal ball...there is a good bit of uncertainty there," Cross said of Asia. "I would like to think it's a short-term situation." Nanophase, based in Burr Ridge, Illinois, said it expects to post a small net profit for the quarter. The company said fourth quarter revenues include a $1.4 million licensing fee from a multi-year contract with a unit of Itochu Corp 8001.T of Japan. Revenues for the full year 1997 are estimated at $3.7 million, up from $595,806 for 1996, the company said. Nanophase reported fourth quarter 1996 revenues of $308,586. "I think the fundamentals of the company are fine," Cross said. The company said the licensing agreement with Itochu's C.I. Kasei Co Ltd (CIK) unit comes after a year of close marketing and technical collaboration. CIK previously distributed Nanophase's products in Asia, and the company said the new agreement should give quicker access to Asian markets and the potential for "substantial royalty revenues" in the long term. In addition to the effect of Asia, Nanophase said expected sales of products for chemical mechanical polishing (CMP) substances for semiconductor production were not made because its principal customer, Moyco Technologies Inc MOYC.O, was in prolonged negotiations to sell its CMP unit. Nanophase entered into a new supply agreement with the purchaser, ChemFirst Inc's CEM.N EKC Technology Inc unit, but the company does not anticipate 1998 revenues from the deal will reach levels expected from Moyco. "We have great expectations in our collaboration with ChemFirst," Cross said, but declined to give specific revenue targets. The company said additional product revenues from collaborative product development programs did not materialize as expected, as those programs were not progressing as quickly as planned. Cross said the newly public company was somewhat surprised by the drastic market reaction to its news. "I know this is a very unforgiving market, and the lack of forgiveness is magnified for emerging companies ... and companies affected by the situation in Asia," he said. Nanophase uses proprietary technology to alter materials' molecular makeup, creating products with unique attributes. It sells to the electronics, structural ceramics, cosmetics and industrial catalyst industries. REUTERS Rtr 11:59 01-09-98 Copyright 1998, Reuters News Service