Alan Gotcher tried to dampen investors' enthusiasm for Reno-based Altair Nanotechnologies Inc.
last week.
But by the time Gotcher, the company's president and chief executive officer,was done with a 45-minute conference call,Altair's always volatile common stock was up nearly 10 percent on heavy volume.
Altair reported a loss of $2.2 million on revenues of $1 million in the quarter ended March 31.
In the same quarter a year earlier, the company lost $1.7 million on revenues of $139,749.
The company's revenues this year got a major boost from a $695,000 licensing fee paid by Spectrum Pharmaceuticals Inc.,which purchased the rights to an Altair product that helps treat kidney disease.
Adding to the company's costs during the quarter, however, were a $500,000 marketing and sales consulting fee relating to the kidneydisease product as well as increased investments in research and development.
Gotcher flatly told investors that the company won't be profitable next quarter, and he said that sales revenues won't be enough to generate positive cash flow for several more quarters.
He told them, too, that they can expect to see more announcements in which Altair partners with obscure smaller companies to develop its technology.
In the first quarter, for instance,Altair inked a deal with Advanced Battery Technologies Inc., a Chinese manufacturer interested in the Reno company's technology to make electrodes.
While Altair is talking with a number of companies about the battery technology, Gotcher said well-known larger companies tend to move more slowly and want to keep their interest secret.And that means that any deals that are announced will involve lesserknown partners.
He acknowledged, too, that some observers don't share Altair's faith in its battery product.
"Some people out there are a little skeptical about our ability to build a new battery material and bring it to market," he said."We're very excited.And we'll have some fun as either our detractors or us eat a little crow in the next few quarters."
Altair raised more than $20 million in capital through a private equity offering during the first quarter and currently has about $30.3 million in cash.
That's enough, Gotcher said, to provide several years of cushion while it seeks to bring products to market.
Altair Nanotechnologies is working on a wide front to bring nanomaterials to market.
Along with the product to treat kidney disease, its work covers paints, power treatments for metals,water treatment and cosmetics.
