Altair Nanotechnologies, a Reno-based maker of energy-storage systems, lost $3.3 million in the quarter ended Sept. 30, the company reported last week.
The publicly held company reported revenues of $1.7 million, a slight dip from the $1.8 million reported for the same period in 2008. However, its net loss for the quarter was substantially less than the $9.1 million it lost in the third quarter of 2008. It boosted revenues by selling shares of a pharmaceutical company for a profit of $900,000.
Operating expenses of $5.9 million for the quarter were down $5.2 million from last year. The company slashed its research and development budget by $1.1 million and cut $750,000 in legal expenses.
Altair Nanotechnologies increased its cash burn rate as it stockpiled inventory in anticipation of sales in the fourth quarter and the early part of 2010. Inventory levels are higher by $3.6 million and prepaid expenses rose $1.2 million from balances at the end of 2008, the company said, with prepaid expenses resulting primarily from payments to a Korean battery cell manufacturer.
Altair Nanotechnologies saw a rise in requests for quotes and expects sales activity to pick up next year, company President Terry Copeland said.
"We are hoping that this increased quote activity will lead to increase order activity in the coming months," Copeland says. "Overall sales are up slightly, but the activity level clearly has picked up.
"Given the importance of establishing this revenue stream and having reference-able customers for other prospects to speak with, we need to be able to move expeditiously once we have these initial firm orders," Copeland said.
Much of Altair Nanotechnologies' third-quarter business stems from two contracts with the federal government. The Office of Naval Research inked a $3.8 million development deal, and the Department of Defense signed a $1.8 million deal for development of nanosensors. Altair Nanotechnologies expects to work on both contracts through the middle of next year.
"I believe we are coming out of the economic doldrums that have slowed down business for all of 2009," Copeland said in a conference call with investors. "We are clearly seeing more activity across the board. We are looking forward to a significantly better year in 2010."
