Press Release
SOURCE: Nanophase Technologies Corporation
Nanophase Technologies Clarifies Media Misstatements
BURR RIDGE, Ill., June 2 /PRNewswire/ -- Nanophase Technologies Corporation (Nasdaq: NANX - news), a leader in nanomaterials and nanoengineered products, today clarified its announcement of June 1 to correct various erroneous information alleged in certain media reports, notably CBS MarketWatch, which appeared on both June 1 and 2.
The company's June 1 announcement, concerning a European customer's recent disclosures to Nanophase, quoting Joseph Cross, president and CEO, stated: ``Given this very recent development, we expect that Q2 revenue will now be in the approximate range of $1.1 million to $1.2 million. We now believe that our previous annual projection of approximately $10 million will probably be decremented by the $2 million to $2.5 million our European customer previously forecasted. However, we still have significant business development opportunities in process that may positively impact 2001 revenue.''
In clarification, the company states that the earlier estimate of 2001 annual revenue of approximately $10 million probably would be reduced by the loss of revenue estimated for the European customer of $2.0 million to $2.5 million, which was based on the customer's previous commitments and forecast to Nanophase. This has prompted Nanophase to revise its 2001 revenue estimate downward from $10 million to between $7.5 million and $8 million. However, Nanophase still has significant business development opportunities in process that may positively impact 2001 revenue by the end of the year.
The company reiterates that Nanophase owns and retains the patented and proprietary technology to create, surface treat, and suspend the materials in liquid fuels to attain the desired catalytic activity to make the application successful. As stated in the earlier announcement, quoting Cross: ``Based on our technical success, we are in the process of protecting our intellectual property and proprietary knowledge about the unique advantages our two core nanotechnologies provide to make this application successful. This particular application has been well documented in the fuel additive literature and initial results of testing have demonstrated certain emission reductions and specific major engine performance improvements that have been surprisingly promising. The change in the paradigm is our unique ability to both manufacture the appropriate nanoparticles, less than 15 nanometers in diameter, and surface treat each particle to achieve highly stable dispersions in liquid fuels.''
The company also reiterates that it plans to determine a timely and appropriate strategy to market the catalytic fuel additive materials. As stated in the earlier announcement, quoting Cross: ``The global market potential is too significant to have an exclusive relationship that is not functioning as needed. While we may continue to supply nanomaterial to this customer in the future, we believe that the large market potential demands a broader consortium of partners to achieve the market penetration and success the product appears to warrant. We have started initiatives to achieve this and plan to increase our activities to find appropriate partners.''
Nanophase Technologies Corporation provides engineered solutions utilizing nanocrystalline materials for a variety of industrial product applications. Using proprietary technology to produce nanocrystalline materials, the company creates products with unique performance attributes. The company's global customer base includes Fortune 500 companies. Nanophase trades on the Nasdaq NMS under the symbol ``NANX.'' Visit the company's web site at www.nanophase.com .
The words ``expect'', ``anticipates, ''plans``, ''forecasts`` and similar expressions are intended to identify forward looking statements. Statements contained in this news release that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results for future periods to differ materially from those expressed in this news release. These important factors include, without limitation: a decision of the customer to cancel a purchase order or supply agreement; demand for, and acceptance of, the Company's nanocrystalline materials; changes in development and distribution relationships; the impact of competitive products and technologies; and other risks indicated in the Company's current Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Nanophase undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
For Additional Information on Nanophase Technologies by fax at no cost, Dial 1-800-PRO-INFO, Code NANX
SOURCE: Nanophase Technologies Corporation
