Revenues jump as losses widen at nanotech firm

Even though Altair Nanotechnologies lost $1.7 million on revenues of about $140,000 in the first quarter, the president of the Reno-based company sees good news in the numbers.

The revenues exceed the company's total for all of 2003, said Rudi Moerck, Altair's president.

He said the company has booked another $642,000 in orders for the rest of the year and thinks it has a good shot at winning another $1.5 million in work.

"We've demonstrated we have traction and the ability to perform," Moerck told analysts in a conference call last week.

He said the company's cash position has strengthened to $11.5 million from $3.9 million at the end of 2003, largely because warrants to purchase the company's stock have been exercised.

Altair, which is developing nanotechnology applications ranging from paint to pharmaceuticals, is running operational expenses of about $400,000 a month, Moerck said.

Its research costs rose to $255,000 in the first quarter compared with $212,000 a year earlier.

Administrative costs, meanwhile, rose by nearly $400,000 to $955,000 from $557,000 a year ago.

Moerck said the company added new executives, including Richard R.

Mauser to head its new life sciences group, and gave raises to employees.

Mauser previously worked for the U.S.

Commerce Department, where he analyzed applicants for technology awards.

A major shareholder last month called for the company to dump a money-losing division that's involved in mining technology.

Moerck said last week the company instead is studying a spin-off of the division to shareholders.

Before that can happen, he said Altair's board wants to see a plausible business plan for the unit a step that won't be complete until this summer at the earliest.