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Nanophase Reports Record Third Quarter Revenue and Profit

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Nanophase Technologies reported record financial results for Q3 2024, with revenue reaching $16.9 million, a 112% increase from Q3 2023. The company's Solésence subsidiary achieved $13.6 million in revenue, up 171% year-over-year. Q3 gross profit hit a record $6.1 million, with net income of $3 million compared to a $1.4 million loss in Q3 2023.

For the nine months ended September 30, revenue reached $39.8 million, exceeding full-year 2023 revenue by $2.5 million. The company expanded operations by adding three new ISO 6 clean rooms and implementing additional automation across key processes.

Nanophase Technologies ha riportato risultati finanziari record per il terzo trimestre del 2024, con ricavi che hanno raggiunto 16,9 milioni di dollari, un incremento del 112% rispetto al terzo trimestre del 2023. La controllata Solésence dell'azienda ha registrato ricavi di 13,6 milioni di dollari, in aumento del 171% su base annua. Il profitto lordo del terzo trimestre ha toccato un massimo record di 6,1 milioni di dollari, con un utile netto di 3 milioni di dollari rispetto a una perdita di 1,4 milioni di dollari nel terzo trimestre del 2023.

Per i nove mesi terminati il 30 settembre, i ricavi hanno raggiunto 39,8 milioni di dollari, superando i ricavi totali dell'anno 2023 di 2,5 milioni di dollari. L'azienda ha ampliato le proprie operazioni aggiungendo tre nuove camere bianche ISO 6 e implementando ulteriore automazione in processi chiave.

Nanophase Technologies reportó resultados financieros récord para el tercer trimestre de 2024, con ingresos que alcanzaron 16,9 millones de dólares, un aumento del 112% en comparación con el tercer trimestre de 2023. La subsidiaria Solésence de la compañía logró 13,6 millones de dólares en ingresos, lo que representa un incremento del 171% interanual. El beneficio bruto del tercer trimestre alcanzó un récord de 6,1 millones de dólares, con un ingreso neto de 3 millones de dólares en comparación con una pérdida de 1,4 millones de dólares en el tercer trimestre de 2023.

Durante los nueve meses que terminaron el 30 de septiembre, los ingresos ascendieron a 39,8 millones de dólares, superando los ingresos totales del año 2023 en 2,5 millones de dólares. La compañía amplió sus operaciones añadiendo tres nuevas salas limpias ISO 6 e implementando más automatización en procesos clave.

Nanophase Technologies는 2024년 3분기 동안 기록적인 재무 성과를 보고했으며, 매출은 1,690만 달러에 달해 2023년 3분기 대비 112% 증가했습니다. 회사의 자회사인 Solésence는 1,360만 달러의 매출을 올렸으며, 이는 전년 대비 171% 증가한 수치입니다. 3분기 총 이익은 기록적인 610만 달러에 도달했으며, 순이익은 300만 달러로 2023년 3분기의 140만 달러 손실과 대비됩니다.

9월 30일로 끝나는 9개월 동안, 매출은 3,980만 달러에 이르렀으며 2023년도 총 매출을 250만 달러 초과했습니다. 회사는 3개의 새로운 ISO 6 청정실을 추가하고 핵심 프로세스에 추가 자동화를 구현하여 운영을 확장했습니다.

Nanophase Technologies a annoncé des résultats financiers records pour le troisième trimestre 2024, avec des revenus atteignant 16,9 millions de dollars, soit une augmentation de 112% par rapport au troisième trimestre 2023. La filiale Solésence de l'entreprise a réalisé 13,6 millions de dollars de revenus, en hausse de 171% d'une année sur l'autre. Le bénéfice brut du troisième trimestre a atteint un niveau record de 6,1 millions de dollars, avec un bénéfice net de 3 millions de dollars contre une perte de 1,4 million de dollars au troisième trimestre 2023.

Pour les neuf mois se terminant le 30 septembre, les revenus ont atteint 39,8 millions de dollars, dépassant les revenus annuels 2023 de 2,5 millions de dollars. L'entreprise a élargi ses opérations en ajoutant trois nouvelles salles blanches ISO 6 et en mettant en œuvre une automatisation supplémentaire dans les processus clés.

Nanophase Technologies meldete für das dritte Quartal 2024 rekordverdächtige finanzielle Ergebnisse, mit einem Umsatz von 16,9 Millionen Dollar, was einem Anstieg von 112% im Vergleich zum dritten Quartal 2023 entspricht. Die Tochtergesellschaft Solésence des Unternehmens erzielte 13,6 Millionen Dollar Umsatz, ein Anstieg von 171% im Jahresvergleich. Der Bruttogewinn im dritten Quartal erreichte einen Rekord von 6,1 Millionen Dollar, mit einem Nettogewinn von 3 Millionen Dollar, verglichen mit einem Verlust von 1,4 Millionen Dollar im dritten Quartal 2023.

Für die neun Monate bis zum 30. September betrug der Umsatz 39,8 Millionen Dollar, was die Gesamteinnahmen für das Jahr 2023 um 2,5 Millionen Dollar übersteigt. Das Unternehmen erweiterte seine Betriebe, indem es drei neue ISO 6-Reinräume hinzufügte und zusätzliche Automatisierung in Schlüsselprozesse implementierte.

Positive
  • Record Q3 revenue of $16.9M, up 112% YOY
  • Solésence revenue increased 171% to $13.6M
  • Q3 gross profit margin improved to 36% from 19%
  • Record Q3 net income of $3M vs $1.4M loss in 2023
  • Nine-month revenue already exceeded full-year 2023 by $2.5M
  • Operational expansion with 3 new clean rooms
Negative
  • None.

—Nanophase Reports Q3 Revenue Record at $16.9 Million with Solésence Revenue up 171% YOY 

—Record $3 Million in Q3 Profit

ROMEOVILLE, Ill., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Nanophase Technologies Corporation (OTCQB: NANX), a leader in mineral-based and scientifically-driven health care solutions across beauty and life science categories — with innovations that protect skin from environmental aggressors and aid in medical diagnostics — today announced record financial results for the third quarter ended September 30, 2024.   

Jess Jankowski, President and Chief Executive Officer, commented: “We are pleased to have closed out another successful quarter as 2024 continues to be the breakout year that we had expected. In the third quarter, alongside record top-line revenue we also achieved record gross profit, record operating income, and record net income.”  

Kevin Cureton, Chief Operating Officer, commented: “We continue to see the impact of our improvements, along with continuing dynamic growth of the Solésence business, as our nine-month revenue for 2024 has already exceeded our full-year 2023 revenue by $2.5 million. In the third quarter, we expanded our capabilities and implemented additional automation while manufacturing and shipping a record number of units of finished goods to support record-breaking revenue growth and profitability.” 

Third Quarter Financial Highlights 

  • Revenue for the third quarter was a record $16.9 million, vs. $8 million for the same period in 2023, a 112% increase.  
    • Solésence revenue was $13.6 million, vs. $5 million for the same period in 2023, a 171% increase.  
  • Gross profit for the third quarter was a record $6.1 million, vs $1.5 million for the same period in 2023, a 299% increase.  
    • As a percentage of sales, gross profit was 36%, vs. 19% for the same period in 2023. 
  • Net income for the third quarter was a record $3 million, vs. a net loss of $1.4 million for the same period in 2023.  
    • Net income as a percentage of sales was 18% for the period. 

Nine-Month Financial Highlights 

  • Revenue for the nine months ended September 30 was a record $39.8 million, a 36% increase over the same period in 2023. 
    • Nine-month revenue for 2024 exceeded full-year 2023 revenue by $2.5 million
  • Gross profit for the nine months ended September 30 was $13.4 million, an 83% increase over the same period in 2023. 
  • Net income for the nine months ended September 30 was $4.8 million, a $7.1 million swing from the $2.3 million loss in the same period in 2023. 

Operational Highlights 

Record Q3 production  

  • Solésence manufactured and shipped a record number of units of finished goods, both on a monthly and on a quarterly basis, throughout Q3. 

Automation implementation 

  • We added additional automation across two key processes to expand production capacity and improve labor efficiency. 

Clean room expansion 

  • We added 3 new ISO 6 clean rooms for the filling and assembly of products. This brings our total to 8 clean rooms, adding capacity to enable new opportunities both domestically and on a global basis. 

“Our results are a testament to the hard work of our entire team, as well as the ongoing partnership with the brands we work with, and support from our suppliers, investors, and other critical stakeholders. Our strategy is bearing fruit, and we are all optimistic about our future. We look forward to sharing more during our call tomorrow,” concluded Jankowski. 

Conference Call 

Nanophase will host its Third Quarter Conference Call on Thursday, October 31, 2024, at 1:00 p.m. CDT, 2:00 p.m. EDT, to discuss its financial results and provide a business and financial update. On the call will be Jess Jankowski, the Company’s President & CEO, joined by Kevin Cureton, the Company’s Chief Operating Officer. 

Participant Registration:  

https://register.vevent.com/register/BI47b1370207234aaf827679d05baa2c17  

To receive the dial-in number, as well as your personalized PIN, you must register at the above link. Once registered, you will also have the option to have the system dial-out to you once the conference call has begun. If you forget your PIN prior to the conference call, you can simply re-register.  

Listen-Only Webcast & Replay:  

https://edge.media-server.com/mmc/p/hmq3nfn9  

The call may also be accessed through the company’s website, at www.nanophase.com, by clicking on Investor Relations, Investor News, and the links in this conference call announcement release. Please connect to the conference at least five minutes before the call is scheduled to begin.  

FINANCIAL RESULTS AND NON-GAAP INFORMATION 

Use of Non-GAAP Financial Information 

Nanophase believes that the presentation of results excluding certain items, such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (“GAAP”) and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP. 

About Nanophase Technologies 

Nanophase Technologies Corporation (OTCQB: NANX), www.nanophase.com, is a leading innovator in mineral-based and scientifically driven healthcare solutions across beauty and life science categories, as well as other legacy advanced materials applications. Leveraging a platform of integrated, patented and proprietary technologies, the Company creates products with unique performance, enhancing consumers' health and well-being. We deliver commercial quantity and quality engineered materials both as ingredients and as part of fully formulated products in a variety of formats.   

About Solésence Beauty Science 

Solésence, www.solesence.com, a wholly owned subsidiary of Nanophase Technologies, is changing the face of skin health with patented, mineral-based technology that is embraced by leading performance-driven and clean beauty brands alike. Our patented products for brands transform the way mineral actives look, feel and function — enabling textures never-before-seen in the mineral space and inclusivity never-before-seen in the sun care space. Solésence’s innovative formulations offer best-in-class UV protection, unparalleled free radical prevention to protect against pollution, and enhanced antioxidant performance.  

Forward-Looking Statements 

This press release contains words such as “expects,” “shall,” “will,” “believes,” and similar expressions that are intended to identify forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements in this announcement are made based on the Company’s current beliefs, known events and circumstances at the time of publication, and as such, are subject in the future to unforeseen risks and uncertainties that could cause the Company’s results of operations, performance, and achievements to differ materially from current expectations expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, without limitation, the following: a decision by a customer to cancel a purchase order or supply agreement in light of the Company’s dependence on a limited number of key customers; uncertain demand for, and acceptance of, the Company’s engineered materials, ingredients, and fully formulated products; the Company’s manufacturing capacity and product mix flexibility in light of customer demand; the Company’s limited marketing experience; changes in development and distribution relationships; the impact of competitive products and technologies; the Company’s dependence on patents and protection of proprietary information; the resolution of litigation in which the Company may become involved; the impact of any potential new government regulations that could be difficult to respond to or too costly to comply with while remaining financially viable; the ability of the Company to maintain an appropriate electronic trading venue; and other factors described in the Company’s Form 10-K filed March 28, 2024. In addition, the Company’s forward-looking statements could be affected by general industry and market conditions and growth rates. Except as required by federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties, or other contingencies.  

Investor Relations Contact: 

Phone: (630) 771-6736 

NANOPHASE TECHNOLOGIES CORPORATION
      
CONSOLIDATED BALANCE SHEETS
(Unaudited Consolidated Condensed)
   (in thousands except share and per share data)
   
   September 30, December 31,
   2024 2023
ASSETS(Unaudited)  
      
Current assets:   
 Cash$2,925  $1,722 
 Trade accounts receivable, less allowance for doubtful accounts of $446   
  for September 30, 2024 and $225 for December 31, 2023 8,732   3,467 
 Inventories, net 15,043   10,031 
 Prepaid expenses and other current assets 3,061   1,082 
  Total current assets 29,761   16,302 
      
 Equipment and leasehold improvements, net 10,230   8,668 
 Operating leases, right of use 8,054   7,907 
 Other assets, net 2   4 
   $48,047  $32,881 
      
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
 Lines of credit - accounts receivable, related party -   2,810 
 Current portion of long term debt - inventory, related party 5,200   - 
 Current portion of long term debt, related party 1,000   - 
 Current portion of long term debt, related party -   2,000 
 Current portion of operating lease obligations 1,091   1,297 
 Accounts payable 6,562   6,260 
 Current portion of deferred revenue 6,228   2,353 
 Accrued expenses 3,207   869 
  Total current liabilities 23,288   15,589 
      
 Long-term portion of operating lease obligations 9,346   9,152 
 Long-term debt - inventory, related party -   5,000 
 Long-term debt, related party -   1,000 
 Asset retirement obligation 244   238 
  Total long-term liabilities 9,590   15,390 
      
Stockholders' equity:   
 Preferred stock, $.01 par value, 24,088 shares authorized and   
  no shares issued and outstanding -   - 
 Common stock, $.01 par value, 95,000,000 and 60,000,000 shares authorized;   
  69,949,646 and 49,627,254 shares issued and outstanding on September 30, 2024   
  and December 31, 2023, respectively 699   496 
 Additional paid-in capital 114,339   106,069 
 Accumulated deficit (99,869)  (104,663)
  Total stockholders' equity 15,169   1,902 
Total liabilities and shareholders' equity$48,047  $32,881 
      


NANOPHASE TECHNOLOGIES CORPORATION
            
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited Consolidated Condensed)
(in thousands except share and per share data)
        
    Three months ended Nine months ended 
    September 30, September 30, 
    2024 2023
 2024 2023
 
Revenue:         
 Product revenue$16,785 $7,746  $39,479 $28,925  
 Other revenue 81  212   301  361  
  Net revenue 16,866  7,958   39,780  29,286  
            
 Cost of revenue 10,764  6,428   26,358  21,932  
  Gross profit 6,102  1,530   13,422  7,354  
            
Operating expense:        
 Research and development expense 970  1,057   2,746  3,052  
 Selling, general and administrative expense 1,934  1,695   5,321  5,951  
Income from operations 3,198  (1,222)  5,355  (1,649) 
 Interest income  -    -  
 Interest expense 153  214   562  613  
 Other income, net  -    -  
Income before provision for income taxes 3,045  (1,436)  4,793  (2,262) 
Provision for income taxes -  -   -  -  
Net income (loss)$3,045 $(1,436) $4,793 $(2,262) 
            
            
Net income (loss) per share-basic$0.04 $(0.03) $0.08 $(0.05) 
            
Weighted average number of common shares outstanding - basic 69,873,394  49,598,591   59,778,119  49,532,395  
            
Net income (loss) per share-diluted$0.04 $(0.03) $0.08 $(0.05) 
            
Weighted average number of common shares outstanding - diluted 71,935,394  49,598,581   61,725,119  49,532,395  
            
            
NANOPHASE TECHNOLOGIES CORPORATION
            
CONSOLIDATED STATEMENTS OF OPERATIONS - EXPANDED SCHEDULE
(Unaudited Consolidated Condensed)
(in thousands except share and per share data)
        
    Three months ended Nine months ended 
    September 30, September 30, 
    2024 2023
 2024 2023
 
Revenue:         
 Product revenue$16,785 $7,746  $39,479 $28,925  
 Other revenue 81  212   301  361  
  Net revenue 16,866  7,958   39,780  29,286  
            
 Cost of revenue detail:        
 Depreciation 219  159   663  481  
 Non-Cash equity compensation 26  27   80  85  
 Other costs of revenue 10,519  6,242   25,615  21,366  
  Cost of revenue 10,764  6,428   26,358  21,932  
   Gross profit 6,102  1,530   13,422  7,354  
            
Operating expense:        
 Research and development expense detail:        
 Depreciation 6  7   17  21  
 Non-Cash equity compensation 34  47   99  136  
 Other research and development expense 930  1,003   2,630  2,895  
  Research and development expense 970  1,057   2,746  3,052  
            
 Selling, general and administrative expense detail:        
 Depreciation and amortization 6  8   20  22  
 Non-Cash equity compensation 100  136   298  374  
 Other selling, general and administrative expense 1,828  1,551   5,003  5,555  
  Selling, general and administrative expense 1,934  1,695   5,321  5,951  
Income from operations 3,198  (1,222)  5,355  (1,649) 
 Interest expense 153  214   562  613  
 Other income, net -  -   -  -  
Income before provision for income taxes 3,045  (1,436)  4,793  (2,262) 
Provision for income taxes -  -   -  -  
Net income (loss)$3,045 $(1,436) $4,793 $(2,262) 
            
Non-GAAP Disclosure (see note regarding Non-GAAP disclosures):        
 Addback Interest, net 153  214   562  613  
 Addback Depreciation/Amortization 231  174   700  524  
 Addback Non-Cash Equity Compensation 160  210   477  595  
 Subtract Non-Cash Other Income -  -   -  -  
            
 Adjusted EBITDA$3,589 $(838) $6,532 $(530) 
            

FAQ

What was Nanophase Technologies (NANX) Q3 2024 revenue?

Nanophase Technologies reported record Q3 2024 revenue of $16.9 million, representing a 112% increase from Q3 2023.

How much did Solésence revenue grow in Q3 2024?

Solésence revenue grew 171% year-over-year to $13.6 million in Q3 2024, compared to $5 million in Q3 2023.

What was NANX's net income for Q3 2024?

Nanophase Technologies reported a record net income of $3 million in Q3 2024, compared to a net loss of $1.4 million in Q3 2023.

How many clean rooms did Nanophase add in Q3 2024?

Nanophase added 3 new ISO 6 clean rooms for filling and assembly, bringing their total to 8 clean rooms.

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