Listing: TSX
Symbol: CYM
TORONTO, Dec. 13 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) is pleased to report record quarterly revenue of $1.1 million for the second quarter of fiscal 2008 ended October 31, 2007, compared with revenue of $0.4 million for the same three-month period in the prior fiscal year. Revenue is also 62% ahead of the previously reported quarter of $0.7 million. On a year to date basis, revenue of $1.8 million surpassed the same period in the previous year by 218%.
This quarterly revenue increase of 170% was attributable to both increased demand for highlight platforms at Audi's European showrooms and from other architectural projects throughout Europe and North America.
The reported net loss for the quarter includes non-cash items of approximately $600,000 relating to stock-based compensation and depreciation expense. The net loss excluding these non-cash items is approximately $265,000. This improvement has resulted largely from the increased revenue and strong contribution margins from our architectural line as well as from on going cost containment initiatives.
"We are pleased with the financial progress that Cymat has made over the past year and in particular in the past 3 months," said Trevor Sandler, Cymat's CFO. He added, "With our net cash loss down to approximately $90,000 per month, we are moving ever closer to our near term objective of achieving cash flow breakeven."
Highlights for the quarter were:
- Change in strategic focus from a research to revenue-based commercial
operation continued to yield results with significant consecutive
quarter revenue growth.
- Shorter product delivery times and improved productivity.
- Cymat's partner Georg Fischer Automotive received its first prototype
order utilizing Cymat's proprietary aluminum foam technology.
- Blast mitigation initiatives gained momentum.
- Receipt of an additional $1.6 million order for Audi platforms.
"These considerable recent advancements in our business lead to an unsolicited, non-brokered equity financing in early November," said Chris Skillen, Cymat's CEO. "With treasury resources of approximately $3 million on hand, we now have the financial flexibility to accelerate the execution of our longer term plan," 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,
2007 2006 2007 2006
Revenues $1,830,225 $574,173 $1,134,012 $432,558
SG&A ($1,698,485) ($1,067,012) ($772,200) ($645,983)
Net loss ($2,386,179) ($1,462,386) ($852,901) ($3,110)
Net loss per share(x) ($0.04) ($0.03) ($0.01) ($0.00)
Oct 31, Apr 30,
Balance Sheet Items as at: 2007 2007
Cash and Cash equivalents $763,255 $857,391
Working Capital $839,753 $486,162
Shares Outstanding 61,668,251 56,616,704
(x)Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended October 31,
2007 and October 31, 2006.
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