Cymat Reports Fiscal 2012 Second Quarter Results

Listing: TSX
Symbol: CYM

TORONTO, Dec. 14, 2011 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter ending October 31, 2011.

The quarter ending October 31, 2011, is the second quarter that Cymat is reporting under International Financial Reporting Standards ("IFRS").  The net loss for the quarter was $0.6 million compared to $1.5 million for the same quarter in the prior year.

Highlights for the Quarter

• Revenues increased by approximately $992,000, or 700%, as the result of increased Alusion™ sales primarily associated with the Congress Center in Mallorca Spain and cladding for a building in Tbilisi, Georgia.
  
  
• Loss from operations decreased by approximately $887,000, or 59%, 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.
  
  
• The second quarter of fiscal 2012 generated cash from operating activities in the amount of $177,000, a quarterly high for Cymat.
  
  
• Cymat completed delivery of the Alusion™ material to clad the exterior of a 12,000 square metre building in metropolitan Tbilisi, the capital of Georgia.  The contract was for just over $US 700,000.
  
  
• The pace of Alusion™ sales related to the Congress Center in Mallorca Spain slowed as the result of a construction stoppage at the site in Spain, with only one related shipment of material being made in the quarter.
  
  
• Alusion™ was prominently featured in the November edition of Architectural Digest Magazine in a two-page photo of a New York residence clad in Alusion™ foam.

"We are pleased with the revenue ramp from our Alusion^TM business" said Michael Liik, Executive Chairman of Cymat.  He went on to say, "The significant profit margin from these sales combined with continued overhead reductions resulted in positive cash generation from operations for the quarter"

Key Financial Information

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 resumed production of material on the Mallorca order and the pace of production has returned to the pre-stoppage level.  It is expected that the production of the Mallorca contract will be complete by the end of the next fiscal quarter.

SmartMetal™ 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.

"In addition to the improvements in cash flow in the quarter, we had good progress with a number of new armouring opportunities, and were pleased to see new customers re-affirm, through their testing, our SmartMetal™ performance and utility," said David Fowler, President and Chief Operating Officer.

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.