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Listing: TSX
Symbol: CYM
TORONTO, Oct. 17, 2011 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter ending July 31, 2011.
The quarter ending July 31, 2011, is the first quarter that Cymat is reporting under International Financial Reporting Standards ("IFRS"). The net loss for the quarter was $1.0 million compared to $1.4 million for the same quarter in the prior year.
Highlights for the Quarter
-
Revenues increased by approximately $146,000, or 37%, as the result of
increased Alusion™ sales primarily associated with the Congress Center
in Mallorca Spain.
-
Loss from operations decreased by approximately $494,000, or 35%, as the
result of the increased revenue, combined with expense decreases
achieved by increased production efficiencies and management's efforts
to curtail corporate overhead costs.
-
Cash used in operating activities improved by approximately $585,000, or
58%, largely as a result of the above-mentioned revenue increases and
expense reductions.
-
Cymat signed a contract to supply Alusion™ to clad the exterior of a
12,000 square metre building in metropolitan Tbilisi, the capital of
Georgia. Production of the order, worth more than $US 700,000,
commenced in the quarter, with the associated revenues to be realized
in the second quarter of fiscal 2012.
-
The pace of Alusion™ sales related to the Congress Center in Mallorca
Spain slowed as the result of a June construction stoppage at the site
in Spain.
- The Company signed Stone Source LLC as a distributor of Alusion™ to represent the material in 16 states in the United States of America.
"We are happy with the progress made in our AlusionTM business and associated manufacturing operations, and anticipate that volumes will continue to increase in the coming quarters, "said Michael Liik, Executive Chairman of Cymat. He went on to say, "We expect to see advances in our SmartMetalTM military business in the upcoming quarter as well."
Key Financial Information
| Three months ended July 31 | ||
| 2011 | 2010 | |
| ($) | ($) | |
| Revenue | 544,960 | 398,783 |
| Plant operating expenses | 815,205 | 835,319 |
| Research and material testing expense | 11,314 | 39,986 |
| Selling, general and administrative expenses | 642,761 | 941,536 |
| Loss from operations | (924,320) | (1,418,058) |
| Net loss | (1,010,279) | (1,422,753) |
| Basic and diluted net loss per share | (0.01) | (0.01) |
| Cash used in operating activities | (435,676) | (1,020,712) |
Outlook
The materials industry for architectural and construction remains highly competitive with numerous solutions competing for high profile projects. For many world economies the recovery from the 2008-2009 financial crisis has stalled, with the threat of another recession possible. Accordingly, the industry is dealing with budget cuts and project delays.
The economic conditions in Spain resulted in the afore-mentioned construction delay at the Congress Center in Mallorca. As at the date of this report, the Company has delivered an additional installment of material on the Mallorca contract and expects that the delivery schedule will resume by the beginning of November.
Notwithstanding these challenges, Cymat signed a substantial contract for the provision of AlusionTM for the exterior cladding of a building in Tbilisi, Georgia in the first quarter of fiscal 2012. As of the date of this release, shipment of the related materials has been fully completed and revenues have been fully received, substantially improving the Company's cash position.
SmartMetalTM continues to be evaluated by several OEMs in various military vehicle platforms for next generation and retrofit vehicles. As sales of this nature generally have long timelines, require deep relationships and require the ability to design and engineer customized solutions, Cymat will continue to focus its internal resources on development of this market. As of the date of this release, the US military has issued a Request for Proposal ["RFP"] for the Humvee retrofit program which indicates specific timelines and volumes of vehicles subject to retrofit. Submissions under this RFP are due by January 13, 2012.
"While the unexpected stoppage of work on the Mallorca convention centre reduced the sales and results for the quarter, a continued focus on cost management and other replacement sales provided some significant positive offset," said David Fowler, President and Chief Operating Officer. "With Mallorca slowly restarting and our other sales initiatives beginning to gain traction, we should continue our positive sales momentum," Mr. Fowler added.
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.