*AV*--NANX --- This is a gift, especially when you read the news releases and see exactly what took place. Stock has lost more than 45% of its value and is trading well below the IPO price. CMP success is more of a reality with EKC as the supplier of product to the end customer. CMP slurries and IPEC(#1 growth company) are enabling technologies that ARE REQUIRED real soon to remain competitive. I don't care how bad the sector is doing. Given what they beleived MOYC could do with the slurries, NANS's IPO was priced accordingly. Given that a stronger company is going to take over the purchase agreements, the price should be at least at IPO levels.
As for me, I sold off some of my DELL to take this gamble for a 33% gain or more. This also is more of a long term holding than anything else. Got in at 5.875 and even though $1.4 Million of the $1.5 Million is from licensing (net $100,000 actual earnings) and the Korean/Asian concern, this is still an enabling technology consummable. At worst this is going to be necessary just to main competitiveness in the market. Foir what it is worth, 1/3 was bought and the second 1/3 did not clear since it is moving up. This gives me the weekend to figure out a course of action. I might chase.
NANOPHASE TECHNOLOGIES CORP. Sees "Small Positive" Net Income for 1997
Forth Quarter
Jan. 9, 1998, Nanophase Technologies Corp. (Nasdaq:NANX - news) said it anticipates a
''small positive'' net income for the fourth quarter of 1997 on revenues anticipated to be
about $1,500,000, compared with $308,586 for the same period last year. The company
noted that revenues for the fourth quarter are ''lower than anticipated.''
The company said total revenues for 1997 are expected to be about $3,700,000, compared
with $595,806 for all of 1996.
In attributing the results, NANX said anticipated sales of product for chemical mechanical
polishing (NYSE:CMP - news) slurries for semiconductor production were not made
because of protracted negotiations tied to the sale of the CMP businesses of Moyco
Technology Inc. (Nasdaq:MOYC - news), its principal customer. The company also said it
believes it lost potential revenue because of economic uncertainties in Korea and other
Asian markets. In addition, NANX stated that in late December it became apparent that
additional product revenues would not materialize as anticipated because its collaborative
product development programs were not progressing as quickly as expected. NANX noted
that revenues for the 1997 fourth quarter consisted of a $1,400,000 license fee from a unit
of Itochu Corp. of Japan, as well as other product sales.
In connection with MOYC's recent sale of its CMP business to EKC Technology Inc., a
subsidiary of ChemFirst Inc. (NYSE:CEM - news), the company said it entered into a
long-term supply agreement to provide EKC Technology with its nanometer-sized particles
for use in the production of CMP slurries for semiconductor applications. The company said
the agreement supersedes an agreement that it had with MOYC. In addition, NANX
announced a multi-year agreement with C.I. Kasei Co. Ltd. , a subsidiary of Itochu Corp.,
for the manufacture and marketing by C.I. Kasei of nanocrystalline materials for Asian
markets (excluding CMP and dosmetics) using NANX's patented technologies.
Company officials were unavailable for further comment.
NANX had its initial public offering in November.
Friday January 9, 5:00 am Eastern Time
Company Press Release
SOURCE: Nanophase Technologies Corporation
Nanophase Announces Anticipated Fourth Quarter 1997 Results, Revised CMP Supply
Agreement and New Manufacturing License With Unit of Itochu
BURR RIDGE, Il., Jan. 9 /PRNewswire/ -- Nanophase Technologies Corporation (Nasdaq:
NANX - news), a leader in developing and marketing advanced materials using
nanocrystalline compounds, announced today its anticipated 1997 fourth quarter and annual
revenues. Nanophase anticipates that fourth quarter 1997 revenues will be approximately
$1.5 million compared with $308,586 for the same period last year. The revenues for the
1997 fourth quarter consisted of a $1.4 million license fee from a unit of Itochu Corporation
of Japan discussed later in this release, and other product sales. The company anticipates a
small positive net income for the fourth quarter of 1997. Total revenues for 1997 are
expected to be approximately $3.7 million, compared with total revenues of $595,806 for all
of 1996.
''While the increase in revenues for the year is substantial,'' said Robert Cross, Nanophase's
president and chief executive officer, ''revenues for the fourth quarter are lower than
anticipated due to a number of factors. First, anticipated sales of product for chemical
mechanical polishing (CMP) slurries for semiconductor production were not made because
of protracted negotiations relating to the sale by the company's principal customer, Moyco
Technologies, Inc. (Nasdaq: MOYC - news), of its CMP business. The company has now
entered into a new supply agreement with the purchaser of Moyco's CMP assets, which is
also described later in this release. Second, the company believes it lost potential revenue
due to economic uncertainties in Korea and other Asian markets. Finally, in late December,
it became apparent that additional product revenues would not materialize as anticipated due
to the company's collaborative product development programs not progressing as quickly as
expected.''
He added: ''We continue to have great confidence in the company's vigor and potential over
the long term. As we all understand, the company is in the early stages of developing its
marketplaces. We are pioneering this field and there will be ups and downs. The company's
performance will have to be assessed over the long term. The company's near-term
prospects, however, will continue to reflect the loss of momentum from the circumstances
that adversely affected the fourth quarter of 1997.'' The company plans to announce full
1997 results by late February.
As mentioned above, in connection with Moyco's recent sale of its CMP business to EKC
Technology, Inc. (EKC), a wholly owned subsidiary of ChemFirst Inc. (NYSE: CEM -
news), the company has entered into a long-term supply agreement to provide EKC with
Nanophase's unique nanometer-sized particles for use in the production of CMP slurries for
semiconductor applications. This agreement supersedes an agreement which Nanophase
had with Moyco.
CMP is a key enabling technology for the manufacture of semiconductors with sub-0.35
micron feature size and high circuit density. Nanophase's CMP materials are designed for
use in slurries of abrasives and chemicals for the polishing of metal layers on advanced logic
and memory devices. ''This is a small but rapidly growing market that we believe represents
substantial potential for Nanophase over the long term,'' said Cross. ''Sales to EKC during
1998 are not expected to be as great as those previously expected from Moyco, but we are
very pleased to be collaborating with EKC, an established global leader in chemical products
for the manufacture of semiconductors.''
Nanophase also announced a multi-year agreement with C.I. Kasei Co. Ltd. (CIK), a
wholly owned subsidiary of Itochu Corporation of Japan (formerly C. Itoh), for the
manufacture and marketing by CIK of nanocrystalline materials for Asian markets
(excluding CMP and cosmetics) using Nanophase's patented technologies. Previously, CIK
had been distributing Nanophase's products in Asia. Cross said: ''This broadened agreement
culminates more than a year of close marketing and technical collaboration with CIK and,
through the extensive relationships and resources of CIK, should enable us to gain access to
Asian markets much more quickly and offers the potential for substantial royalty revenues
over the long term.''
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 companies such as DuPont, Schering-Plough, and
Medtronic. Nanophase trades on the Nasdaq NMS under the symbol ''NANX.'' Visit the
company's Web site at 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 1997 and beyond 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 Registration Statement on Form
S-1 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.
SOURCE: Nanophase Technologies Corporation |
