In This Article:
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Q2 2024 Revenue: $13 million, a 32% increase over Q1 and a 10% increase over Q2 2023.
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First Half 2024 Revenue: $22.9 million, with a 32% gross margin.
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Gross Margin: 29% for Q2 2024, impacted by a $500,000 inventory write-down.
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Net Income Q2 2024: $900,000, a $500,000 improvement over Q2 2023.
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First Half 2024 Net Income: $1.7 million, compared to an $800,000 net loss in the same period of 2023.
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Operating Expenses: Decreased by about $1 million year-over-year.
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Inventory Increase: Up $3.8 million since year-end to support growth.
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Projected 2024 Revenue: Potential to exceed $50 million for the year.
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Capital Expenditures 2024: Estimated between $3 billion to $6 billion.
Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nanophase Technologies Corp (NANX) reported a strong Q2 2024 with $13 million in revenue, marking a 32% increase over Q1 and a 10% increase over Q2 2023.
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The company achieved a 29% gross margin despite a $500,000 inventory write-down, indicating strong operational performance.
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Nanophase Technologies Corp (NANX) has improved its supply chain management, achieving 100% target performance for inventory availability.
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The company has a robust pipeline with over $50 million in shipped and confirmed sales orders for 2024, indicating strong demand for its products.
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Nanophase Technologies Corp (NANX) is investing in capital improvements to increase production capacity to $100 million in Solesence finished products, positioning for future growth.
Negative Points
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The company experienced a $500,000 inventory write-down due to obsolete components, impacting gross margins.
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Nanophase Technologies Corp (NANX) faces challenges in meeting demand due to production constraints, which have been a limiting factor for growth.
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The company's non-Solesence sales have been dragging down overall growth, with limited visibility and control over this segment.
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Operating expenses remain a concern, with the need for additional staffing and capabilities to support growth potentially impacting profitability.
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The company has only $2.3 million in cash, raising concerns about funding future growth without further dilution or debt.
Q & A Highlights
Q: Could you elaborate on the non-Solesence sales and what we might expect for those? Also, what would your target gross margin be for this year and next year? A: Jess Jankowski, President and CEO, explained that the non-Solesence business, primarily with BASF, has less visibility and control. They expect it to be a good year but have limited insight into 2025. The target gross margin for this year is in the 30s, with potential for improvement next year.