Joe Cross's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/159748/comments http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-123195 123195 Thu, 06 Mar 2008 17:17:07 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122554 122554
Considering the recessionary pressure in the US, we are currently watching architectural coatings and consumer cosmetic products closely.
]]> Wed, 05 Mar 2008 15:07:00 -0500
Considering the recessionary pressure in the US, we are currently watching architectural coatings and consumer cosmetic products closely.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122460 122460
Applications where we anticipate the most growth in the next 12-36 months, from the perspective of new business or customers, would likely be in applications for industrial coatings, architectural coatings, and, perhaps, CMP. We are pursuing several other applications, many of which are exciting, so this list could well change in the next six months.
]]> Wed, 05 Mar 2008 11:39:37 -0500
Applications where we anticipate the most growth in the next 12-36 months, from the perspective of new business or customers, would likely be in applications for industrial coatings, architectural coatings, and, perhaps, CMP. We are pursuing several other applications, many of which are exciting, so this list could well change in the next six months.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122459 122459 Wed, 05 Mar 2008 11:37:50 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122134 122134
Relative to architectural coatings, the NanoGuard trademark promotes the nanotechnology enabled performance of the coating. There have been marketing materials at most retail locations we have checked, so I am surprised at your experience. Check out the company website - it has a video showing advantages of the material.
]]> Tue, 04 Mar 2008 17:40:08 -0500
Relative to architectural coatings, the NanoGuard trademark promotes the nanotechnology enabled performance of the coating. There have been marketing materials at most retail locations we have checked, so I am surprised at your experience. Check out the company website - it has a video showing advantages of the material.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122101 122101 Tue, 04 Mar 2008 16:04:26 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122029 122029
First, we have an exclusive global relationship with Rohm & Haas for nanomaterials in semiconductor polishing. As you may know, R & H is also a significant stockholder in Nanophase. Within this umbrella, there are several activities underway. For obvious reasons, we are unable to comment on specific customers or activities.

With Rohm & Haas, we believe that we have an excellent corporate relationship. We have initiatives and discussions in a variety of areas where there may be synergism between nanomaterials and their products. Again, we are unable to comment on specifics.

Our water-based technology is ready now and is being sold commercially in large volume specifically to the architectural coating and polishing industries. Our dispersions are typically stable for at least 2 years. We believe that dispersions are likely the delivery vehicle of choice for nanomaterials and Nanophase is rather uniquely well positioned to deliver.
]]> Tue, 04 Mar 2008 13:35:49 -0500
First, we have an exclusive global relationship with Rohm & Haas for nanomaterials in semiconductor polishing. As you may know, R & H is also a significant stockholder in Nanophase. Within this umbrella, there are several activities underway. For obvious reasons, we are unable to comment on specific customers or activities.

With Rohm & Haas, we believe that we have an excellent corporate relationship. We have initiatives and discussions in a variety of areas where there may be synergism between nanomaterials and their products. Again, we are unable to comment on specifics.

Our water-based technology is ready now and is being sold commercially in large volume specifically to the architectural coating and polishing industries. Our dispersions are typically stable for at least 2 years. We believe that dispersions are likely the delivery vehicle of choice for nanomaterials and Nanophase is rather uniquely well positioned to deliver.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122028 122028 nanophase.com under Investor Relations; please review at your convenience.

Relative to the call, it turns out that there were some technical problems with the company that handles this for Nanophase. Several questioners could not get noticed and therefore the questions were not asked as part of the call. The analysts did call us later and we were able to answer their questions.

Relative to revenue growth, understand that we expect revenues from our market partners (BASF, BYK Chemie, and Rohm & Haas CMP Technologies) to continue to grow going forward. We also expect revenue from current customers to continue to grow. So, there is a base of revenue growth in place for the future.

Additionally, we have to continue to add new markets and new customers. To accomplish this, we have been reworking and honing our business development and sales strategy during the last half of 2006 and through 2007, and seeing increased success. Steps we have taken include:
• Restructuring and reskilling the sales and business development team: during 2007 we hired Kevin Wenta, as EVP of Sales and Marketing, and David Nelson as Vice President of Sales – both with excellent experience in chemical sales. This process continues; we are now searching and plan to add 1-2 additional Sales Directors. Moreover, Dr. Brotzman, who was focused solely on R&D, is now predominately in a technical sales and marketing role for the Company, supporting customer business development and sales where he is adding tremendous value.
• We have also worked hard to hone our five stage gate business development model and processes. If you are familiar with this model, essentially Stages 0 to about 2.5 are considered the discovery Stages and about 2.5 to 5 are develop and implement stages. We believe that to reach the 50+% annual revenue growth rates desired, we have to improve the discovery Stages; we seem to do well in the develop and implement Stages.
• To improve the discovery stages, we have taken several synergistic steps:
o First, we have increased our depth and level of understanding in target markets by consolidating and ranking about 44 market segments, but focusing on the top 20. Market segments include energy, building & construction, printed electronics, and automotive to list a few and provide a flavor of the effort. First with the top 20, and then the remainder, we are driving to the customer value proposition to understand the performance and cost required for specific applications.
o Secondly, we have refocused our application scientists and engineers solely on these target markets and our product development efforts are directed to demonstrating the value of nanomaterials in these specific markets. For example architectural coatings – we have installed equipment to test the benefit of nanomaterials in commercial formulations in a manner similar to architectural coating companies. We purchase commercially available architectural coating materials and use our developed applications knowledge to add our engineered nanomaterial solutions. We then apply the coatings to the appropriate substrate, test the samples to industry standards, and, finally, visually and quantitatively demonstrate the value of using Nanophase to leaders in the marketplace. This approach gets much better customer attention and mindshare, demonstrates the value of nanomateirals in their particular products, and significantly reduces the TTM.
o Thirdly, we are developing more opportunities in these targeted market segments – the sales team has been given goals designed to increase directly touching the end customer on a weekly basis. We have increased customer touch 2-3X. We have also increased our presence at application trade shows such as coatings, electronics, and similar target markets to improve and extend our market knowledge and emphasize the advantage of nanomaterials in specific market applications for enhanced performance.
o Fourth, we are taking a much more rigorous approach to qualifying and quantifying opportunities to select those opportunities in the target market that are most likely to succeed, provide the largest revenue opportunities, and appear to have the shortest TTM. Our improved process allows very close examination of each opportunity before it moves through a stage gate.
In summary, we have given a great deal of thought and market research to select market targets and increasingly focus our efforts and resources to optimize the potential for revenue growth. Again, our vision is to reach $50M and then $100M in sales; to do so, we have to increase annual revenue growth to 50%. We have restructured, reskilled, and honed our business development and sales effort and implemented or refined processes to achieve these goals. We are adding additional sales personnel to increase market and customer contacts.
]]> Tue, 04 Mar 2008 13:34:18 -0500 nanophase.com under Investor Relations; please review at your convenience.

Relative to the call, it turns out that there were some technical problems with the company that handles this for Nanophase. Several questioners could not get noticed and therefore the questions were not asked as part of the call. The analysts did call us later and we were able to answer their questions.

Relative to revenue growth, understand that we expect revenues from our market partners (BASF, BYK Chemie, and Rohm & Haas CMP Technologies) to continue to grow going forward. We also expect revenue from current customers to continue to grow. So, there is a base of revenue growth in place for the future.

Additionally, we have to continue to add new markets and new customers. To accomplish this, we have been reworking and honing our business development and sales strategy during the last half of 2006 and through 2007, and seeing increased success. Steps we have taken include:
• Restructuring and reskilling the sales and business development team: during 2007 we hired Kevin Wenta, as EVP of Sales and Marketing, and David Nelson as Vice President of Sales – both with excellent experience in chemical sales. This process continues; we are now searching and plan to add 1-2 additional Sales Directors. Moreover, Dr. Brotzman, who was focused solely on R&D, is now predominately in a technical sales and marketing role for the Company, supporting customer business development and sales where he is adding tremendous value.
• We have also worked hard to hone our five stage gate business development model and processes. If you are familiar with this model, essentially Stages 0 to about 2.5 are considered the discovery Stages and about 2.5 to 5 are develop and implement stages. We believe that to reach the 50+% annual revenue growth rates desired, we have to improve the discovery Stages; we seem to do well in the develop and implement Stages.
• To improve the discovery stages, we have taken several synergistic steps:
o First, we have increased our depth and level of understanding in target markets by consolidating and ranking about 44 market segments, but focusing on the top 20. Market segments include energy, building & construction, printed electronics, and automotive to list a few and provide a flavor of the effort. First with the top 20, and then the remainder, we are driving to the customer value proposition to understand the performance and cost required for specific applications.
o Secondly, we have refocused our application scientists and engineers solely on these target markets and our product development efforts are directed to demonstrating the value of nanomaterials in these specific markets. For example architectural coatings – we have installed equipment to test the benefit of nanomaterials in commercial formulations in a manner similar to architectural coating companies. We purchase commercially available architectural coating materials and use our developed applications knowledge to add our engineered nanomaterial solutions. We then apply the coatings to the appropriate substrate, test the samples to industry standards, and, finally, visually and quantitatively demonstrate the value of using Nanophase to leaders in the marketplace. This approach gets much better customer attention and mindshare, demonstrates the value of nanomateirals in their particular products, and significantly reduces the TTM.
o Thirdly, we are developing more opportunities in these targeted market segments – the sales team has been given goals designed to increase directly touching the end customer on a weekly basis. We have increased customer touch 2-3X. We have also increased our presence at application trade shows such as coatings, electronics, and similar target markets to improve and extend our market knowledge and emphasize the advantage of nanomaterials in specific market applications for enhanced performance.
o Fourth, we are taking a much more rigorous approach to qualifying and quantifying opportunities to select those opportunities in the target market that are most likely to succeed, provide the largest revenue opportunities, and appear to have the shortest TTM. Our improved process allows very close examination of each opportunity before it moves through a stage gate.
In summary, we have given a great deal of thought and market research to select market targets and increasingly focus our efforts and resources to optimize the potential for revenue growth. Again, our vision is to reach $50M and then $100M in sales; to do so, we have to increase annual revenue growth to 50%. We have restructured, reskilled, and honed our business development and sales effort and implemented or refined processes to achieve these goals. We are adding additional sales personnel to increase market and customer contacts.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122026 122026 Tue, 04 Mar 2008 13:29:55 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122024 122024 Tue, 04 Mar 2008 13:28:39 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122022 122022 Tue, 04 Mar 2008 13:26:51 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-122020 122020
- As we have stated before, we believe that our break-even is around $16-18M in annual sales depending on product mix. We have not provided guidance as to when we expect to attain this. Beginning in 2008, we started providing revenue guidance and expectations; keep watching.

- I am not exactly sure how to answer this without offending Dr. Brotzman! While Dr. Brotzman is our lead scientist, and has recently been promoted to CTO, we have added to the scientific and engineering staff. In R&D, where the emphasis is 'D', we have an additonal PhD and three chemists to support customer application development. We have also assembled a highly competent engineering staff including, we believe, one of the world's leading plasma physical chemists, to advance our technologies and constantly improve our manufacturing prowess. Given our size, we have a highly competent group of engineering and scientific professionals.

- As we have stated on conference calls (see a total compilation on our website), we need revenue growth. We have restructured and reskilled sales and marketing during 2007 and are currently adding to this staff to increase sales initiatives. We believe that our current equipment should support $20-25M in sales depending on product mix. To reach $100M, we would have to add capital and probably reconfigure our Romeoville facility; exact capital numbers would depend on product mix. At this point, we believe that we should be able to handle the bulk of capital funding with cash currently available plus that generated as revenue grows.

- Let me be very clear on this; most of our R&D costs are 'D' to create new products for markets and applications, or improve current operations to improve yield or reduce cost. Beginning in 2006 and going forward, we have adopted a conservative patent strategy that recognizes the changes at the US PTO and the practical reality and costs of enforcing patents. It is preferable in many instances to keep IP as proprietary rather than patent. One cannot simply look at the Company's R&D expense and equate it to the cost of patents issued. As I explained, above, there are many other activities that are shown in R&D expenses.
]]> Tue, 04 Mar 2008 13:23:53 -0500
- As we have stated before, we believe that our break-even is around $16-18M in annual sales depending on product mix. We have not provided guidance as to when we expect to attain this. Beginning in 2008, we started providing revenue guidance and expectations; keep watching.

- I am not exactly sure how to answer this without offending Dr. Brotzman! While Dr. Brotzman is our lead scientist, and has recently been promoted to CTO, we have added to the scientific and engineering staff. In R&D, where the emphasis is 'D', we have an additonal PhD and three chemists to support customer application development. We have also assembled a highly competent engineering staff including, we believe, one of the world's leading plasma physical chemists, to advance our technologies and constantly improve our manufacturing prowess. Given our size, we have a highly competent group of engineering and scientific professionals.

- As we have stated on conference calls (see a total compilation on our website), we need revenue growth. We have restructured and reskilled sales and marketing during 2007 and are currently adding to this staff to increase sales initiatives. We believe that our current equipment should support $20-25M in sales depending on product mix. To reach $100M, we would have to add capital and probably reconfigure our Romeoville facility; exact capital numbers would depend on product mix. At this point, we believe that we should be able to handle the bulk of capital funding with cash currently available plus that generated as revenue grows.

- Let me be very clear on this; most of our R&D costs are 'D' to create new products for markets and applications, or improve current operations to improve yield or reduce cost. Beginning in 2006 and going forward, we have adopted a conservative patent strategy that recognizes the changes at the US PTO and the practical reality and costs of enforcing patents. It is preferable in many instances to keep IP as proprietary rather than patent. One cannot simply look at the Company's R&D expense and equate it to the cost of patents issued. As I explained, above, there are many other activities that are shown in R&D expenses.
]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-121890 121890 Tue, 04 Mar 2008 09:27:27 -0500 http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-121884 121884
Relative to the future, we evaluate markets and opportunities based on the value proposition and time-to-market (TTM). We are evaluating about 40 markets at this moment and believe that we currently have the right mix of engineered nanomaterial products to address these markets. Going forward, should we encounter a market with a suitable value and TTM proposition that would require new nanomaterials, we will certainly consider that. Our technologies have the capability of producing a considerable number of nanomaterials.]]> Tue, 04 Mar 2008 09:17:30 -0500
Relative to the future, we evaluate markets and opportunities based on the value proposition and time-to-market (TTM). We are evaluating about 40 markets at this moment and believe that we currently have the right mix of engineered nanomaterial products to address these markets. Going forward, should we encounter a market with a suitable value and TTM proposition that would require new nanomaterials, we will certainly consider that. Our technologies have the capability of producing a considerable number of nanomaterials.]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-121873 121873
Having said that, we have several new market and customer initiatives that appear promising in the near-term (2008-2009) and are quite focused toward our internal goal of reaching 50% annual revenue growth going forward.]]> Tue, 04 Mar 2008 09:06:05 -0500
Having said that, we have several new market and customer initiatives that appear promising in the near-term (2008-2009) and are quite focused toward our internal goal of reaching 50% annual revenue growth going forward.]]> http://seekingalpha.com/article/65806-interactive-q-a-joe-cross-president-and-ceo-of-nanophase-technologies?source=feed#comment-121720 121720
Relative to competition, Nanophase has several advantages in the marketplace. This is demonstrated by the fact that virtually all of our customers are single sourced to the Company. From the uniqueness of our nanoparticles, relative to performance in applications, to Nanophase's manufacturing excellence, we are at the forefront of nanomaterials. You can get additional information on competitive advantages from our website and our 10K.]]> Mon, 03 Mar 2008 18:29:44 -0500
Relative to competition, Nanophase has several advantages in the marketplace. This is demonstrated by the fact that virtually all of our customers are single sourced to the Company. From the uniqueness of our nanoparticles, relative to performance in applications, to Nanophase's manufacturing excellence, we are at the forefront of nanomaterials. You can get additional information on competitive advantages from our website and our 10K.]]>