Listing: TSX Symbol: CYM
TORONTO, Dec. 10 /CNW/ - Cymat Technologies Ltd. (symbol CYM, TSX) reports quarterly revenue of approximately $420,000 for the second quarter of fiscal 2009 ended October 31, 2008, compared with revenue of approximately $1.2 million for the same three-month period in the prior fiscal year. On a year to date basis, revenue of almost $750,000 fell short of revenue in the same period in the previous year by approximately $1.16 million.
The quarterly and year-to-date revenue decrease is primarily as a result of decreased architectural sales of the Company's aluminum foam panels sold as display platforms for the new Audi models in their worldwide showrooms. Negative economic conditions caused a decline in the rate of dealer showroom retrofits in Europe and Asia. Demand is expected to return to prior levels by the end of the current fiscal year as a consequence of planned launches of showroom retrofits in other markets.
Despite the slowdown of the Audi business, Cymat has been successful in completing orders for a number of high profile marquee projects to North American customers and continues to bid on significant architectural opportunities.
The net loss for the quarter totaled $1,018,796 and is greater than the loss for the same period in the prior year by $165,895.
The net loss for the year-to-date period ended October 31, 2008 totaled $2,150,517 or $235,662 less than the loss for the same period in the prior year.
Highlights for the quarter were:
- Blast mitigation initiatives continue to gain momentum as the company
works closely with its military contractors and integrators applying
its new blast-mitigating, military grade foam named SmartMetal(TM),
into troop safety initiatives around the world.
- Architectural orders delivered for marquee projects including the
Vancouver Convention Center (2010 Olympics) and Microsoft office
building.
In November Cymat's partner Georg Fischer Automotive received a second prototype order from a leading German automobile manufacturer utilizing Cymat's proprietary aluminum foam technology. The automobile manufacturer will be investigating the use of stabilized aluminum foam as a method of reducing noise, vibration and harshness (NVH) levels in a specific component for a 2010 platform. Georg Fischer is expecting several more programs of this nature with other auto makers by the end this fiscal year.
"These recent advancements in our business place the Company well in its goal to commercialize its technology," said Tim Hardman, Cymat's President. "Our unique blast mitigation material SmartMetal(TM) has quickly progressed through the validation phase of development and we are optimistic Cymat will receive its first development award early in the New Year. Cymat is dedicated to playing a major role in increasing Canadian and NATO troop safety," he added.
Key Financial Information
The following shows key financial information for the year to date and second quarter and comparables.
-------------------------------------------------------------------------
Six Months ended: Three Months ended:
Oct. 31, Oct. 31, Oct. 31, Oct. 31,
2008 2007 2008 2007
Revenues $743,157 $1,902,950 $418,449 $1,166,181
Plant operating
costs ($684,327) ($1,758,467) ($322,940) ($798,792)
SG&A ($1,413,575) ($1,669,256) ($711,063) ($751,723)
Net loss ($2,150,517) ($2,386,179) ($1,018,796) ($852,901)
Loss per Common
Share - basic
and diluted(x) ($0.03) ($0.04) ($0.01) ($0.01)
Balance Sheet Items
as at: Oct. 31, Apr. 30,
2008 2008
Cash and Cash
equivalents $1,318,480 $2,545,830
Working Capital $1,354,557 $2,447,607
Weighted Average no. of shares outstanding
basic and diluted 71,950,263 57,456,069
-------------------------------------------------------------------------
(x) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended
October 31, 2008 and October 31, 2007.
The interim financial statements and management discussion will be 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