EX-99.1 2 altair_ex9901.htm PRESS RELEASE ISSUED BY THE COMPANY DATED NOVEMBER 8, 2006 Press Release issued by the Company dated November 8, 2006

ALTAIR NANOTECHNOLOGIES REVENUES
RISE 28 PERCENT IN THIRD QUARTER
 

RENO, NV - NOVEMBER 8, 2006 - Altair Nanotechnologies Inc. (Nasdaq: ALTI), a leading provider of advanced nanomaterials technology for use in energy, pharmaceutical, life sciences and industrial applications, today reported financial results for its third quarter and nine months ended September 30, 2006.

For the quarter, revenues increased 28 percent to $750,000 from $585,000 in the prior year quarter. The net loss for the quarter was $4.05 million, or seven cents a share, compared to a net loss of $2.17 million, or four cents a share, in the prior year. The common weighted average shares outstanding were 59,461,244 compared to 58,940,760 during the prior year quarter.

Operating expenses of $4.91 million for the third quarter of 2006 were $1.97 million greater than operating expenses of $2.94 million for the third quarter of 2005. Increased operating expenses were due to increased research and development efforts (increased approximately $1.47 million) largely for staffing and other expenditures related to battery development, sales and marketing expenses ($186,000) primarily relating to increased marketing efforts in the AMPS division, and general and administrative expenses ($142,000). Within G&A, share-based compensation expense, a non-cash item, increased by approximately $408,000, primarily as a result of implementing SFAS 123R as of January 1, 2006. This increase was partially offset by a decrease in consulting and accounting expense of approximately $258,000 related to compliance with Sarbanes-Oxley rules, which was largely accomplished during 2005.

For the nine month period, revenues increased 11 percent to $2.35 million from $2.12 million in the same period of the prior year. The net loss for the nine months was $12.4 million, or 21 cents a share, compared to a net loss of $6.3 million, or 11 cents a share, during the year ago period. The common weighted average shares outstanding were 59,325,488 compared to 57,338,796 in the same period of the prior year.

“The 2006 third quarter represented a milestone quarter of achievement for Altair Nanotechnologies,” said Alan J. Gotcher, Ph.D., President and Chief Executive Officer of Altair Nanotechnologies Inc. “We successfully demonstrated, along with our vehicle partners Phoenix Motorcars and Boshart Engineering, a freeway ready, all-electric SUV at the California Air Resources Board Zero Emission Symposium, the Southern California Clean Vehicle Technology Expo and the SEMA show. We believe these public demonstrations represent a major step forward in realizing the commercial promise of all-electric zero emission vehicles.”

Altairnano’s balance sheet remains strong, with cash and short term investments totaling $9.8 million. The Company’s debt, from a mortgage obligation on its 100,000 square feet of offices, laboratories and semi-works facilities in Reno, Nevada, is $2.4 million.

“We continue to invest in our Advanced Materials and Power Systems (AMPS) business unit, which accounted for a significant portion of our increased expenses during the quarter. These strategic investments in research and development, product application labs and marketing in our battery materials, batteries and battery systems will, we believe, produce strong returns and are the major driver for our business,” Gotcher said.


 
ALTAIR NANOTECHNOLOGIES REVENUES
RISE 28 PERCENT IN THIRD QUARTER
Page 2
 
Please join a conference call with Altairnano’s management team for an update on the company’s financial results and principal business developments. The conference call dial-in number for both U.S. and international callers is +1.719.234.0008. Please dial into the conference five minutes before the call is scheduled to begin and ask the operator for the Altair Nanotechnologies call. An audio replay of the conference call will be available from November 8 through November 16, 2006, and can be accessed by dialing +1.719.457.0820 and entering conference number 9410433.

Additionally, the conference call is being webcast and can be accessed by visiting Altairnano's web site at www.altairnano.com.

ABOUT ALTAIR NANOTECHNOLOGIES INC.
Altairnano is an innovator and supplier of advanced novel, ceramic nanomaterials. Altairnano’s leading edge scientists are complemented by a seasoned management team with substantial experience in commercializing innovative, disruptive technologies. The company has developed nanomaterials for the alternative energy, life sciences and performance materials markets based on its proprietary manufacturing process. This process also provides the foundation for its innovative AHP pigment process. For more information visit www.altairnano.com.

Forward-Looking Statements
This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that Altairnano’s cash and non-cash expenses will rise significantly during the following year as a result of unforeseen events; that in future testing and/or commercial use, the various Altairnano products and potential products referenced in this release may not demonstrate expected results or may not prove competitive with existing products or products under development; that, irrespective of a product’s potential, parties to our development and license agreements may abandon commercialization or marketing efforts for various internal reasons; that applications for key patents may be denied or key regulatory approvals may not be obtained for technical or other reasons; and that even if full commercialization occurs, sales may not reach expected levels for one or more reasons, including failure of the product to perform as expected, the introduction of a superior product or the withdrawal from the project of key commercial partners. In general, Altairnano is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, grants, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K and Form 10-Q, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.

For Additional Information:
 
 
Institutional Investors:
Fleishman-Hillard
Tom Laughran
Senior Vice President
312.751.3519
laughrant@fleishman.com
Individual Investors:
McCloud Communications, LLC
Marty Tullio
Managing Members
949.553.9748
marty@mccloudcommunications.com
     
 
Media Relations:
Fleishman-Hillard
Terry Banks
Senior Vice President
202.828.9710
bankst@fleishman.com
Company Information:
Altair Nanotechnologies Inc.
Roy Graham
SVP Commercial Development
775.858.3706
rgraham@altairnano.com
 
 
 
 
ALTAIR NANOTECHNOLOGIES REVENUES
RISE 28 PERCENT IN THIRD QUARTER
Page 3
 
Tables Follow

ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(Expressed in United States Dollars)
  
(Unaudited)
  
           
   
September 30,
  
December 31,
  
   
2006
  
2005
  
ASSETS
          
Current Assets
          
Cash and cash equivalents
  
$
2,107,074
  
$
2,264,418
  
Investment in available for sale securities
    
7,713,606
   
20,789,656
 
Accounts receivable
    
712,462
   
602,168
 
Product Inventories
    
407,104
   
-
 
Prepaid expenses and other current assets
    
457,775
   
254,067
 
Total current assets
    
11,398,021
   
23,910,309
 
               
Investment in Available for Sale Securities
    
1,235,872
   
423,000
 
               
Property, Plant and Equipment, net
   
10,177,754
   
8,169,445
 
               
Patents, net
    
826,451
   
890,062
 
               
Other Assets
    
21,261
   
71,200
 
               
Total Assets
  
$
23,659,359
  
$
33,464,016
  
               
LIABILITIES AND STOCKHOLDERS' EQUITY
              
Current Liabilities
              
Trade accounts payable
  
$
1,298,631
  
$
808,905
  
Accrued salaries and benefits
    
1,025,274
   
709,349
 
Accrued liabilities
    
486,491
   
309,289
 
Note payable, current portion
    
600,000
   
600,000
 
Total current liabilities
    
3,410,396
   
2,427,543
 
               
Note Payable, Long-Term Portion
    
1,800,000
   
2,400,000
 
               
Stockholders' Equity
              
Common stock, no par value, unlimited shares authorized;
              
59,647,386 and 59,316,519 shares issued and
             
outstanding at September 30, 2006 and December 31, 2005
   
92,694,818
   
92,126,714
 
Additional paid in capital
    
1,191,419
   
-
 
Accumulated deficit
    
(75,556,674
)
  
(63,152,905
)
Deferred compensation expense
    
-
   
(165,336
)
Accumulated other comprehensive income
    
119,400
   
(172,000
)
               
Total Stockholders' Equity
    
18,448,963
   
28,636,473
 
               
Total Liabilities and Stockholders' Equity
  
$
23,659,359
  
$
33,464,016
  
               
 
 
 
ALTAIR NANOTECHNOLOGIES REVENUES
RISE 28 PERCENT IN THIRD QUARTER
Page 4
 

ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(Expressed in United States Dollars)
  
(Unaudited)
  
                   
   
Three Months Ended
 
Nine Months Ended
 
   
September 30,
  
September 30,
  
   
2006
  
2005
  
2006
  
2005
  
Revenues
                  
License fees
  
$
-
  
$
-
  
$
364,720
  
$
695,000
  
Product sales
    
22,940
   
8,494
   
33,598
   
74,087
 
Commercial collaborations
    
339,116
   
327,479
   
1,058,622
   
584,520
 
Contracts and grants
    
387,842
   
249,432
   
895,082
   
762,259
 
Total revenues
    
749,898
   
585,405
   
2,352,022
   
2,115,866
 
Operating Expenses
                          
Cost of product sales
    
28,237
   
1,427
   
30,953
   
17,434
 
Research and development
    
2,763,566
   
1,290,354
   
6,917,218
   
2,816,031
 
Sales and marketing
    
423,615
   
238,151
   
1,384,787
   
1,159,259
 
General and administrative
   
1,288,191
   
1,146,528
   
5,746,759
   
4,067,661
 
Depreciation and amortization
    
405,072
   
263,105
   
1,085,190
   
759,190
 
Total operating expenses
    
4,908,681
   
2,939,565
   
15,164,907
   
8,819,575
 
Loss from Operations
    
(4,158,783
)
  
(2,354,160
)
  
(12,812,885
)
  
(6,703,709
)
Other Income (Expense)
                          
Interest expense
    
(42,000
)
  
(52,397
)
  
(129,500
)
  
(154,689
)
Interest income
    
146,235
   
227,503
   
539,060
   
515,162
 
Loss on foreign exchange
    
(138
)
  
2,228
   
(444
)
  
1,373
 
Total other income, net
    
104,097
   
177,334
   
409,116
   
361,846
 
                           
Net Loss
  
$
(4,054,686
)
$
(2,176,826
)
$
(12,403,769
)
$
(6,341,863
)
                           
Loss per common share - Basic and diluted
  
$
(0.07
)
$
(0.04
)
$
(0.21
)
$
(0.11
)
                           
Weighted average shares - Basic and diluted
    
59,461,244
   
58,940,760
   
59,325,488
   
57,338,796
 
                           
 
 
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