Listing: TSX Symbol: CYM
TORONTO, Sept. 4 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports revenue of approximately $80,000 for the first quarter of fiscal 2010 ended July 31, 2009, compared with revenue of approximately $320,000 for the same period in the prior fiscal year.
Quarterly revenue declined as architectural sales to high profile projects and Audi dealership platforms in the prior year's quarter were not matched in this period due to negative global economic conditions. It is expected that demand for Audi showroom platforms will return to past levels by the end of the current calendar year as a consequence of planned launches of showroom retrofits in North America. Additionally, Cymat continues to bid on significant architectural opportunities for both exterior and interior projects and any positive economic growth should see increased demand for Cymat's architectural products.
The company is also gaining momentum in its military industry initiatives and it is anticipated that military revenues will grow substantially towards the end of 2009 and into 2010.
The net loss for the quarter totaled $1,548,299 verses $1,131,721 for the same period in the prior year. The loss for this period was greater due to lesser sales and associated contribution margin.
Highlights for the quarter were: - Cymat hosted 2 blast test events at its "Industry Week" to provide clients with realtime SmartMetal(TM) performance data. The testing showed a reduction of at least 7 to 1 in blast energy transfer with a 50% compaction of each foam panel. - 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. - On July 28, 2009 Cymat shareholders approved (the "Approval") the conversion of subscription receipts into common shares and common share purchase warrants issued as part of the private placement that closed on April 28, 2009. As a result of the Approval, Cymat issued 10,359,181 new common shares and warrants and the net proceeds from the original sale of subscription receipts plus certain escrowed amounts was paid to the Company.
In August 2009, the company received a purchase order from a major US armored vehicle manufacturer for 13 SmartMetal(TM) assemblies to be delivered in August 2009. These prototypes will be incorporated in and tested as part of a complete armoring system for the proposed next generation vehicle.
"This quarter resulted in significant progress with respect to validating our technology in the military industry" said Tim Hardman, Cymat's President. "Our unique blast mitigation material SmartMetal(TM) has been shown by an independent blast testing facility to reduce blast energy by at least a factor of 7. With the showcasing of these results at 'Industry Week' to a number of key US military and defence partners, we expect to yield commercial awards for large scale projects in the US in the coming year. We are also optimistic that our other lines of business, Automotive and Architecture, will gain momentum as well" he added.
Key Financial Information
The following shows key financial information for the first quarter and comparables.
Three Months ended:
31-Jul-09 31-Jul-08
Revenues $82,178 $324,709
Plant operating costs $419,930 $361,388
SG&A $809,612 $702,512
Net loss ($1,548,299) ($1,131,721)
Loss per Common Share-basic and diluted(x) ($0.02) ($0.02)
Balance Sheet Items as at: 31-Jul-09 30-Apr-09
Cash and Cash equivalents $182,098 $1,028,462
Working Capital $1,613,147 $2,366,518
Weighted Average no.
of shares outstanding basic and diluted 74,520,938 66,698,974
(x) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended July 31,
2009 and July 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.
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