Fourth Quarter:
Revenue for the quarter was $2.1 million and in line with management’s expectations. Revenue for the fourth quarter of 2007 was $2.6 million.
The net loss for the quarter was $1.9 million, or $0.09 per share, compared to a net loss of $1.3 million, or $0.06 per share, for the fourth quarter of 2007.
Outlook for 2009:
“We are both realistic and optimistic about the current and long-term prospects for Nanophase,” said Jess Jankowski, Nanophase president and chief executive officer. “We are close to completing the formation of our new leadership team, and are putting the final pieces in place to leverage our capabilities to our best advantage with:
New management team;
New sales strategy;
New ready-to-go products;
New strategic markets;
New applications;
Solid balance sheet.
“With limited ability to predict how current economic conditions may impact our strategic markets,” continued Jankowski, “we continue to take a conservative approach to 2009 and, in line with previous guidance, have lowered our revenue projections by about 25 percent from 2008. This reduction is due in part to sales projections from industry leaders in our target markets, including housing trends and their impact on revenue from our coatings products. We’re prepared for a rebound in sales when the economy strengthens and as our aggressive marketing programs, ready-to-go products and innovative applications attract new customers from a variety of industries and assist our valued partners with new market penetration,” commented Jankowski.
“We are focused on building a pipeline of new business by leveraging our technology platform and development know-how. Our new sales and marketing team continues to expand its knowledge of our current markets, while investigating new potential markets and industries where Nanophase’s innovative technology and solutions can improve their products or allow them to create new products.”
Jankowski went on to add that the company expects to reduce operating expenses by about $1 million in 2009, and $1.2 million in 2010, with the elimination of 12 positions that became redundant, due in part to the company’s shift in business strategy which involves the addition of a direct sales approach, and the recent departure of two executive officers whose outstanding severance obligations will be disbursed late in the third quarter of 2009 and the first quarter of 2010, respectively. Management believes these staffing changes will not limit the company’s ability to execute its business plan through 2010. These changes will also reduce operating cash used by about $600,000 in 2009 and $1.1 million in 2010.
