Listing: TSX
Symbol: CYM
TORONTO, July 23 /CNW/ - Cymat Technologies Ltd. (TSX: CYM), a Toronto-based manufacturer and licensor of stabilized aluminum foam ("SAF") products, targeting the automotive, architectural and blast mitigation markets, announced record fiscal year-end results for the year ending April 30, 2008.
Fiscal 2008 Highlights - Revenues increased 36 percent to a record $2.9 million - Net loss reduced by 10 percent to $4.3 million - Loss per share remained constant from 2007 at $0.06
In 2008 the company accelerated its transformation from a research-based materials company to a revenue-focused operation.
Michael Liik, Executive Chairman of Cymat noted that "the company has made significant operational and financial progress in a very challenging economic environment. We successfully completed a milestone automotive project for a high-performance German auto maker; expanded our Audi showroom initiative to a multi-year arrangement; made considerable progress on our blast mitigation initiatives; and completed a private placement".
He went on to say that "we also instituted a senior management change with the hiring of a new President and COO, Tim Hardman, whose significant experience in the sales of aluminum to Cymat's targeted industries, bodes well for the next stage of our evolution."
Trevor Sandler, Cymat's CFO, added that "the increased revenue attributable to the Audi contract has contributed to a declining burn rate and, along with the proceeds from the private placement, has helped move the company closer to a sustainable cash flow position".
Cymat anticipates that considerable progress will be made in each of its 3 targeted industry segments in the coming year. Automakers continue to be interested in the noise/vibration reduction and stiffness enhancing properties of SAF. The company expects that more OEM programs will be undertaken together with its Swiss partner Georg Fischer, leading to initial royalty payments this year. More advanced product-specific testing by the military and numerous defense contractors continues to validate the efficacy of SAF in blast mitigation applications. Cymat expects that these efforts will lead to initial revenues this fiscal year. The company also plans to initiate further independent testing to accelerate these commercialization efforts. Revenues from Alusion, Cymat's architectural product, are expected to grow considerably this year as efforts to expand and better support its distributor base begin to pay off.
Intellectual property development and protection will continue to play an important role as Cymat moves to expand its SAF knowledge base and production know how for both the flat panel and three dimensional SAF processes.
Revenue
Combined revenue for the 12 months ended April 30, 2008 totaled $2.9 million, an increase of 36 percent compared to the previous year. The majority of this growth came from Cymat's flat panel business.
For the three months ended April 30, 2008, revenue was down by 45 percent to $0.5 million from the same quarter in 2007 as a result of Audi increasing its demand for platforms over the fourth quarter of 2007 due to the R8 rollout. This same demand was not present in the fourth quarter of 2008.
SG&A expenses
SG&A expenses totaled $2.7 million, an increase of 11 percent over 2007. This increase is primarily as a the result of stock-based compensation expenses which were higher in 2008 as a result of options granted in 2007 that were amortized for a full 12 months in 2008 compared with 8 months in 2007.
Excluding stock-based compensation expense, SG&A decreased by 10 percent due to tighter fiscal controls including a reduction in reliance on outside service organizations and a rationalization of its patent strategy.
SG&A expenses totaled $0.5 million for the three months ended April 30, 2008 an increase of $0.2 million from the same period in 2007. This increase is primarily as a result of stock-based compensation expense which increased by $0.3 million. Excluding this charge, SG&A expenses have declined which is consistent with the management implemented fiscal controls.
Net Loss
The net loss for the year ended April 30, 2008 totaled $4.3 million, an increase of 35 percent over 2007. On a per-share basis, the fully diluted net loss per share totaled $0.06 which is equal to the fully diluted net loss per share in fiscal 2007.
The 2007 net loss includes a non-recurring gain of arrangement of $1.6 million. Excluding this non-recurring amount, the net loss for fiscal 2007 would have totalled $4.8 million and the normalized net loss variance would have shrunk by more than 10 percent year over year.
For the fourth quarter, the net loss totaled $1 million, an increase of $0.5 million over the same period in 2007. Excluding the stock-based compensation expense charge, the net loss only increased by $0.2 million for the period.
The annual financial statements, management discussion and analysis and annual information form have been filed on SEDAR. Cymat Technologies Ltd. trades on the TSX stock exchange under the trading symbol CYM.
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.
%SEDAR: 00024103E