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Listing: TSX Symbol: CYM
TORONTO, June 22 /CNW/ - Cymat Technologies Ltd. (TSX: CYM), a Toronto-based manufacturer and licensor of stabilized aluminum foam ("SAF") products, targeting the automotive, architectural and blast mitigation markets, announced its fiscal year-end results for the year ending April 30, 2009.
Fiscal 2009 - Key Financial Metrics - Revenues totalled $1 million - Net loss totalled $4.6 million - Loss per share remained constant from 2008 at $0.06
In 2009 the company accelerated its transformation from a research-based materials company to a revenue-focused operation.
Michael Liik, Executive Chairman of Cymat noted that "the company made significant strides in fiscal 2009 despite a very challenging economic environment. We were one of very few Canadian small cap companies to be successful in completing a financing; we made considerable progress on our blast mitigation initiatives; and successfully completed a milestone automotive project for a high-performance German auto maker".
Cymat anticipates that 2010 will be a turning point for the company with respect to its initiatives in its 3 targeted industry segments.
Military and numerous defense contractors continue to work with Cymat to develop blast mitigant solutions using SmartMetal(TM). The company is in the process of capturing blast data on SmartMetal(TM) which will help validate its efficacy in blast mitigation applications. Cymat expects that these efforts will lead to initial revenues this fiscal year.
Automakers continue to be interested in the noise/vibration reduction and stiffness enhancing properties of SAF. The company expects that more OEM programs will be undertaken together with its Swiss partner Georg Fischer, leading to initial royalty payments in 2010.
Revenues from Alusion, Cymat's architectural product, are expected to grow considerably this year resulting from an expansion in its distributor base in North America, Europe and Asia and a focus on external applications.
Revenue
Combined revenue for the 12 months ended April 30, 2008 totaled $1.0 million, a decrease of 66 percent compared to the previous year.
For the three months ended April 30, 2009, revenue was $3,600, down from revenue of $417,000 in the same quarter in 2008. Approximately $136,000 of damaged goods returns were deducted against revenue in the fourth quarter.
The quarterly and annual decrease in revenue is primarily as a result of decreased architectural sales of the Company's aluminum foam panels sold as the display platform for the new Audi models in their worldwide showrooms. The demand for this application decreased due to negative economic conditions during the year.
Notwithstanding this impact on revenue, Cymat was able to produce and ship architectural products to a number of US and European architectural projects and at some level replaced the diminishing Isaria revenue.
SG&A expenses
SG&A expenses totaled $2.6 million, a decrease of 4 percent over 2008. This decrease is primarily as a the result of stock-based compensation expenses which were higher in 2008 as a result of additional options granted and expensed in 2008.
Excluding stock-based compensation expense, SG&A increased by 2% for the year as a result of commercialization-related costs including marketing, travel and consulting fees.
SG&A expenses totaled $0.6 million for the three months ended April 30, 2008 an increase of $0.1 million from the same period in 2008.
Net Loss
The net loss for the year ended April 30, 2004 totaled $4.6 million, an increase of 7 percent over 2008. On a per-share basis, the fully diluted net loss per share totaled $0.06 which is equal to the fully diluted net loss per share in fiscal 2008.
For the fourth quarter, the net loss totaled $1.3 million, an increase of $0.4 million over the same period in 2008.
The annual financial statements, management discussion and analysis and annual information form have been filed on SEDAR. Cymat Technologies Ltd. trades on the TSX stock exchange under the trading symbol CYM.
About Cymat:
Cymat develops innovative materials for industry. The company has worldwide rights, through patents and licenses, for producing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, architectural and blast mitigation industries. For further information, visit the Web site www.cymat.com.
The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Technologies Ltd. with the Ontario Securities Commission. Cymat Technologies Ltd. disclaims any intention or obligation to update or revise any forward-looking statements.
%SEDAR: 00024103E