Westaim announces 2005 first quarter results

CALGARY, May 4 /CNW/ - The Westaim Corporation announced today that for
the first quarter ended March 31, 2005, it recorded net income of $2.5 million
or three cents per share, on revenues of $5.0 million. In the same quarter
last year, the company recorded a net income of $1.0 million, or one cent per
share, on revenues of $10.4 million. Last year's first quarter results
included a US$5-million milestone payment from Smith & Nephew plc to
NUCRYST Pharmaceuticals.
The 2005 first quarter results include income from discontinued
operations of $11.4 million compared to $4.2 million in 2004. Discontinued
operations in 2005 included a total gain of $11.5 million relating to the
reorganization and sale of inactive subsidiaries.
At March 31, 2005, Westaim had $103.2 million in cash and short-term
investments.
"Westaim is focused on executing our business plan and we have set the
stage for growth in 2005," said Barry M. Heck, President and CEO of Westaim.
"iFire has completed the construction of its pilot production facility and
expanded cleanroom facility. Equipment for pilot manufacturing will continue
to be delivered throughout the second quarter and is anticipated to be
operational in the second half of 2005. NUCRYST continues to see revenue
growth from its SILCRYST division and is also undergoing an expansion at its
manufacturing facility in Alberta as a result of increased demand of
Acticoat(TM) dressings."

iFire Technology
iFire is expanding its research and development facility to include pilot