Cymat Confirms Production Potential of LPFC(TM) Process
Listing: TSX
Symbol: CYM
TORONTO, Sept. 14 /CNW/ - Cymat Corp. (TSX: CYM), an innovative materials
technology company, today reported its financial results for the first quarter
of its fiscal year ending July 31, 2005.
The Company reported revenue of $189,626 for the quarter ended July 31,
2005, compared with $50,321 for the quarter ended July 31, 2004. The net loss
for the period was $1,543,898, or $0.03 per share, compared with $1,593,780,
or $0.04 per share for the same period in 2004. Cash utilized in operating
activities for the quarter ended July 31, 2005 totalled $692,194 as compared
to $1,096,867 for the same period in 2004.
Highlights for Q1:
------------------
During Q1 Cymat continued to advance its strategy targeting the
commercial application of Stabilized Aluminum Foam (SAF) in the automotive
sector in four specific application areas: 1) Crash Management, 2) Casting
Cores, 3) Structural Reinforcement and 4) Pedestrian Protection. Q1
commercial, technical and IP highlights follow:
Commercial
----------
- As previously disclosed, during Q1 of fiscal 2006 Valeo, one of the
world's leading Tier 1 suppliers to the automotive sector, issued a
purchase order to Cymat's development partner, Georg Fischer
Automotive, for pre-production tooling to manufacture Stabilized
Aluminum Foam (SAF) parts. The tooling will be engineered by Georg
Fischer in collaboration with Cymat, and is expected to be used by
Georg Fischer under licence from Cymat to supply prototypes to the
Tier 1 supplier. Cymat's partnership with Georg Fischer was
previously announced in December 2004.
- Cymat entered into a specific purpose license agreement with Kurtz
GmbH to enable Kurtz to manufacture Cymat's Low Pressure Foam Casting
(LPFC(TM)) system for one of Cymat's development partners. As part of
this program Cymat sold several of its proprietary gas injection
systems for inclusion in the LPFC(TM) being delivered by Kurtz.
- As part of the ongoing joint development program targeting the use of
Stabilized Aluminum Foam for structural reinforcement, Michigan-based
L&L Products ordered 100 SAF B-pillar reinforcements for benchmarking
evaluation.
- Cymat continues to be actively involved in pedestrian protection as a
member of the CEPPS consortium. The Company's participation in this
consortium provides it with opportunity to leverage the potential for
its products as vehicle designers strive to create appealing front-
end designs that meet the new European pedestrian safety standards.
Technical & IP
--------------
- During Q1 of fiscal 2006 Cymat carried out over an extended period a
series of systematic tests of its proprietary Low Pressure Foam
Casting (LPFC(TM)) process. This DOE (Design of Experiments) testing
is an important, and required, step in the development of low-cost,
production-scale manufacturing capability needed to make aluminum
foam components for the automotive sector, and confirmed the serial
production potential of Cymat's commercial-scale LPFC(TM) process.
- As previously disclosed, during Q1 of fiscal 2006 the Company was
granted a European patent covering its proprietary displacement
casting process. In conjunction with the US counterpart, these
patents provide protection through 2022 for Cymat's process for
manufacturing Near-net Shape parts.
- As previously disclosed, during Q2 of fiscal 2005 Cymat initiated
infringement proceedings in Austria against an Austrian company and
sought an interim injunction to prevent it from further infringing
Cymat's patented metal foam production process. As also previously
disclosed, during Q4 of fiscal 2005 the Austrian Court formally
issued the interim injunction against the Austrian company after
Cymat posted the required security bond of (euro) 1,000,000 (approx.
$1,600,000). The Austrian company appealed the court's decision and
its acceptance of the form of Cymat's bond, delaying their
implementation. Cymat has responded. The court's final decision
regarding these issues is still pending.
Financing and General
---------------------
- As previously disclosed, during the Q1 of fiscal 2006 the Company
completed a private placement for aggregate gross proceeds of
$2.7 million.
"We have significantly advanced our ability to produce Near-net Shape
Stabilized Aluminum Foam (SAF) parts using our proprietary, commercial-scale
LPFC(TM) process and equipment," said Dr. Paul A. Tichauer, Cymat's President
and CEO. "We are very pleased by the results from the extensive systematic DOE
testing carried out recently, and also by the very positive reactions to our
progress from both our production partner - Georg Fischer Automotive - and our
product development partner - Valeo."
Dr. Tichauer added, "These technical achievements form a solid foundation
for future commercial success manufacturing Near-net Shape components. In
conjunction with the commercial-scale system that is currently being
commissioned at our European production partner's facilities, the company is
now well positioned to begin to meet the production needs for Near-net Shape
SAF components for the automotive industry."
"We are delighted by Cymat's continued excellent technical progress,"
said L&L Products' Executive Vice President, Mark Fischer. "L&L's order for
100 aluminum foam B-pillar reinforcements is an important next step towards
realizing the full commercial potential of our joint structural reinforcement
program."
The following is a summary of key financial information for the first
quarter of FY 2006:
<<
Three months ended: July 31, 2005 July 31, 2004
------------------- ---- ----
Revenues $ 189,626 $ 50,321
Research and Development Costs $ 1,142,986 $ 1,036,404
Net Loss $ (1,543,898) $ (1,593,780)
Net Loss Per Share(x) $ (0.03) $ (0.04)
Cash flow from operating activities $ (692,194) $ (1,096,867)
As at: July 31, 2005 July 31, 2004
------ ---- ----
Cash and Cash equivalents $ 2,243,276 $ 1,993,934
Working Capital $ 1,578,787 $ 1,885,342
Shares Outstanding 49,051,243 40,570,333
(x) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended July 31,
2005 of 49,051,243 (July 31, 2004 -40,570,333).
About Cymat
Cymat develops innovative materials for industry. The company has
exclusive worldwide rights, through patents and licenses, for producing
stabilized aluminum foam product. The foam is manufactured by bubbling gas
through molten alloyed aluminum containing a dispersion of fine ceramic
particles and is used to create lightweight panels and shapes. The result is a
revolutionary material with a wide array of benefits, including ultra-light
weight, mechanical energy absorption, thermal and acoustic insulation,
recyclability and relatively low cost of production. Cymat's research and
development group is collaborating with a number of partners spanning the
automotive, transportation and construction industries. The company's
principal focus is on automotive, where aluminum foam is ideally suited to the
industry's objectives to make vehicles lighter, safer and better for the
environment. 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 Corp.
with the Ontario Securities Commission. Cymat Corp. disclaims any intention or
obligation to update or revise any forward-looking statements.
>>
Powered by 
Google Übersetzer
Google Übersetzer