Nanophase Reports Record Third Quarter Revenue and Profit
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.
- 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
- None.
—Nanophase Reports Q3 Revenue Record at
—Record
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
Third Quarter Financial Highlights
- Revenue for the third quarter was a record
$16.9 million , vs.$8 million for the same period in 2023, a112% increase.- Solésence revenue was
$13.6 million , vs.$5 million for the same period in 2023, a171% increase.
- Solésence revenue was
- Gross profit for the third quarter was a record
$6.1 million , vs$1.5 million for the same period in 2023, a299% increase.- As a percentage of sales, gross profit was
36% , vs.19% for the same period in 2023.
- As a percentage of sales, gross profit was
- 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.
- Net income as a percentage of sales was
Nine-Month Financial Highlights
- Revenue for the nine months ended September 30 was a record
$39.8 million , a36% increase over the same period in 2023.- Nine-month revenue for 2024 exceeded full-year 2023 revenue by
$2.5 million .
- Nine-month revenue for 2024 exceeded full-year 2023 revenue by
- Gross profit for the nine months ended September 30 was
$13.4 million , an83% 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 | |||||||||
for September 30, 2024 and | 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?
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