Westaim announces 2007 third quarter results

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[{"type":"text","content":"\n\n\n\nCompany to seek buyer for iFire Technology Corp.\n\n\nCALGARY, Nov. 13 /CNW/ - The Westaim Corporation announced today that for\nthe third quarter ended September 30, 2007, it recorded a net loss of\n$17.1 million or 18 cents per share, on revenues of $7.8 million. In the same\nquarter last year, the company recorded a net loss of $9.6 million, or\n10 cents per share, on revenues of $8.2 million.\n\n\nIn the third quarter of 2007, the Company recorded reorganization costs\nincluding severance, of $2.3 million related to operational changes that will\nsignificantly reduce the Company's annual operating costs. In addition, in the\nthird quarter, the Company wrote down its investment in Canadian third-party\nasset-backed commercial paper (ABCP) by $3.0 million.\n\n\nFor the nine months ended September 30, 2007, the Company posted a net\nloss of $31.2 million or 33 cents per share on revenues of $20.7 million. For\nthe same period in 2006, Westaim reported a net loss of $39.5 million or\n42 cents per share on revenues of $22.5 million. Results in 2007 benefited\nfrom an $8.6 million gain on the sale of real estate and a dilution gain of\n$4.5 million reported earlier in the year. These benefits have been partially\noffset by corporate restructuring costs of $6.6 million incurred in 2007.\n\n\nAt September 30, 2007, Westaim had $32.6 million in consolidated cash and\nshort-term investments. Westaim's cash position, excluding cash and short-term\ninvestments held by its 74.6 per cent owned affiliate NUCRYST Pharmaceuticals\nCorp., was $12.2 million. In addition, Westaim held third-party ABCP with a\nbook value of $14.1 million. As previously reported, the market for\n$35 billion of third-party ABCP has been frozen since mid-August and until the\npaper is restructured, or a market otherwise forms for this ABCP, Westaim\ncannot be certain of the ultimate value it will realize for its holdings.\n\n\nThe Company announced on November 2, 2007 the receipt of an offer,\nsubject to final documentation, for a credit line of $12.6 million from a\nmajor financial institution. The credit facility will be available for one\nyear and will be secured by the equivalent value of ABCP held by the Company.\n\n\nWestaim also announced today that it will actively seek a buyer for its\niFire subsidiary. The Company will immediately freeze the devel...

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