Nanophase Technologies Corp. Q2 2008 Earnings Call Transcript

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2008-07-22 17:13:07.0

Tags: Nanophase Technologies Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from [Michael Lu].

Michael Lu

Hi Jess.

Joseph Cross

Hey Michael.

Michael Lu

You've hired from these new market opportunities or rather three new customers, can you provide like I know its tough with the timeframe of when do you think you could possibly see revenue contribution or more significant contributions from these customers.

Joseph Cross

Michael this is Joe. On the last polishing product, we just got our second order. So that is starting to scale up. We have met with this customer as recently as last week, and they have an exciting product, but we are under non-disclosure so I can't discuss it a lot. And it's a commercial product that seems to have a very significant market and they are taking us to the market now.

So this could be a seven figure opportunity as well as we can tell, if they are successful in the market place. The ESD Protection we've received several orders for that. We have a team out there actually with the customer today, and that's expected to grow in 2009. I can't say a lot about this application because of non-disclosure, but I can tell you coming from the electronics field that if this application really takes off, I think it's really exciting. Because essentially what it does is in the event of a surge to a device think of a laptop or cell phone. Instead of frying the components, the layer that's in there close to nanomaterials instantaneously at a molecular level changes from an insulator to a conductor and dissipates this charge saving the component and device. So it's a really exciting application.

That too assuming growth, that's a significant opportunity for us. The animal hygiene product, I'd rather not speculate. It's a market we're just getting in to, we've got our first customer, we're working with two other customers also in that industry, and while we've got some estimates or size, Michael, I'm just not real comfortable guessing right this minute.

Michael Lu

And also you'd mentioned that, obviously you want to shift towards more of a direct sales model, what percentage of revenues are currently direct right now?

Joseph Cross

I don't have that number off the top of my head.

Joseph Cross

Well currently the revenue from BASF and BYK and Rhom and Haas, we would not define as direct sold revenue where as the revenue from their hedge funds putting customer is. So right now that's -- almost 60% is partner revenue not direct revenue. So there's a lot of room to grow there.

 

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