Listing: TSX Symbol: CYM
TORONTO, March 11 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports revenue of approximately $260,000 for the third quarter of fiscal 2009 ended January 31, 2009, compared with revenue of approximately $630,000 for the same period in the prior fiscal year. For the fiscal year-to-date period ended January 31, 2009 revenue totalled approximately $1 million which is about $1.5 million less than revenue in the same period in the previous year.
Quarterly and year-to-date revenue declined over the same periods in the prior fiscal year primarily as a result of a decline in architectural sales to Audi showrooms. Negative global economic conditions caused a decline in the rate of dealer showroom retrofits in Europe and Asia. It is expected that demand will return to prior levels by the end of the current calendar year as a consequence of planned launches of showroom retrofits in North America.
Despite the slowdown of the Audi business, Cymat continues to bid on significant architectural opportunities for both exterior and interior projects.
The company is also gaining momentum in its military industry initiatives with the confirmation of an order from the Canadian Department of National Defence in early February 2009. It is anticipated that military revenues will grow substantially towards the end of 2009 and into 2010.
The net loss for the quarter totaled $1,113,275 and is greater than the loss for the same period in the prior year by $154,369 due to lesser sales and associated contribution margin.
The net loss for the year-to-date period ended January 31, 2009 totaled $3,263,792 or $81,292 less than the loss for the same period in the prior year.
Highlights for the quarter were:
- Major-General (Ret'd) Lewis MacKenzie was appointed as a new
corporate director of Cymat.
- 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.
- Cymat's products and process were showcased on US Discovery Channel
in January 2009 increasing the awareness and profile of SmartMetal
(TM) as a high-performance blast mitigating material.
- In November 2009 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 of this calendar year.
In February 2009, Cymat received its first preproduction development award from the Canadian Department of National Defence (DND) for SmartMetal(TM). DND will be testing SmartMetal(TM) as part of a retrofit kit to increase blast survivability of a specific military vehicle platform operating in Afghanistan.
On March 10, 2009 Cymat announced it had engaged Fraser MacKenzie as an advisor to assist the Company with a non-brokered private placement of its common shares and common share warrants for gross proceeds of a minimum of $1.5 million. Each unit will consist of one common share and one purchase warrant with a 24 month expiry. Pricing of the common shares will be $0.16. The warrant strike price will be $0.25 for the first 12 months and $0.35 for the second 12 months.
"This past quarter has seen significant progress in moving our technology to commercialization" said Tim Hardman, Cymat's President. "Our unique blast mitigation material SmartMetal(TM) has now been validated with the DND order and we expect that our ongoing collaboration with key US military and defence partners will yield similar commercial awards for large scale projects in the US in 2009. We are also optimistic that our other lines of business, Automotive and Architecture, will gain momentum in the coming calendar year" he added.
Key Financial Information
The following shows key financial information for the year to date and third quarter and comparables.
Nine Months ended: Three Months ended:
31-Jan-09 31-Jan-08 31-Jan-09 31-Jan-08
Revenues $1,002,932 $2,529,699 $259,775 $626,750
Plant operating costs $1,063,085 $2,421,963 $378,759 $663,496
SG&A $2,011,884 $2,200,318 $598,308 $531,063
Net loss ($3,263,792) ($3,345,084) ($1,113,275) ($958,906)
Loss per Common Share
- basic and diluted(x) ($0.05) ($0.05) ($0.02) ($0.02)
Balance Sheet Items as at: 31-Jan-09 30-Apr-08
Cash and Cash equivalents $806,978 $2,545,830
Working Capital $796,274 $2,447,607
Weighted Average no. of shares
outstanding basic and diluted 72,041,189 66,698,974
(x) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended January
31, 2009 and January 31, 2008.
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 Cymat's business, the development of markets, development programs, future revenues and improvements in technology, and management's objectives, strategies, beliefs and intentions which are subject to important risks and uncertainties. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "intend" and similar words referring to future events and results, including in respect of the completion of the offering , use of proceeds and the Company's revenue growth. 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. Readers are cautioned not to place undue reliance on these forward-looking statements as actual results may differ materially from those expressed or implied in the forward looking statements. Cymat Technologies Ltd. disclaims any intention or obligation to update or revise any forward-looking statements after the date of this press release or to revise such statements to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
%SEDAR: 00024103E