Altair Nanotechnologies Reports Second Quarter 2010 Financial Results

Altair Nanotechnologies, Inc. (Altairnano) reported financial results for the second quarter ended June 30, 2010.

"The second quarter saw us take a large step forward in our relationship with Proterra Inc., with the signing of a long-term purchase and supply agreement," said Dr. Terry Copeland, Altairnano’s President and CEO. "The first $4.6 million purchase of battery modules under that agreement has gone a long way toward validating our transportation market strategy and providing a solid base upon which to continue building our business."

"During the quarter, we also reorganized our marketing and sales function to provide additional focus on our core businesses of stationary power, transportation, and defense markets, and began the sales of battery modules to industrial OEMs," said Copeland.

For the quarter ended June 30, 2010, Altairnano reported revenues of $1.5 million, up from $(3,000) for the same period in 2009. This increase is the result of higher contract and grant activity with the Office of Naval Research and the Department of Defense compared to 2009 which is expected to continue throughout most of 2010. Sales returns of $183,000 impacted the 2009 results. Operating expenses of $5.5 million for the second quarter of 2010 were down $0.7 million from $6.2 million in the second quarter of 2009. The net loss attributable to Altairnano was $4.9 million, or five cents per share, compared to a net loss of $6.4 million, or seven cents per share, for the second quarter of 2009. The basic and diluted weighted average shares outstanding for the quarter were 105.3 million, compared to 97.4 million reported in the second quarter of 2009.

Altairnano’s cash and cash equivalents decreased by $4.1 million, from $12.3 million at March 31, 2010 to $8.2 million at June 30, 2010. This is primarily due to net cash used in operations of approximately $4.2 million, of which $0.4 million was for increased product inventories, and $1.8 million was for increased accounts receivable offset by $1.7 million in deferred revenue; investing activities primarily consisting of purchases of fixed assets of approximately $0.4 million; and financing activities of $0.5 million that is primarily the money raised from the sale of common stock through the At the Market financing program with Thomas Weisel Partners. Second Quarter 2009 results reflected a net cash increase as a result of the $12.8 million raised for the company by Lazard in that quarter.

Altairnano’s second quarter cash burn rate of about $1.4 million per month represents an improvement compared to the second half of 2009 and first quarter of 2010. "We are focusing closely on our cash consumption and have taken a number of steps such as implementation of a hiring freeze, slowing material purchases, and deferring capital expenditures to reduce our monthly burn rate, until anticipated orders close," added Copeland.