Listing: TSX
Symbol: CYM
TORONTO, July 26 /CNW/ - Cymat Technologies Ltd. (TSX: CYM), a Toronto-based manufacturer of stabilized aluminum foam "SAF" products, targeting the automotive, architecture and blast mitigation markets, announced the best quarterly and fiscal year-end results in its history.
Fiscal 2007 Highlights - Revenues increased 296 percent to $2.2 million - Net loss reduced by 45 percent to $3.2 million - Loss per share declined 45 percent to $0.06 from $0.11 in 2006
In 2007, the company transformed itself from a research-based to a revenue-focused organization. As part of this transition, the company implemented significant senior management changes including the recruitment of a new CEO, CFO, Vice President of Operations as well as the restructuring of its Board of Directors. The company also completed two separate financings, one of which involved a complex non-dilutive transaction. In addition, Cymat's plant was converted from a limited-run R&D facility to a production facility and several key commercial contracts were executed.
Chris Skillen, President and CEO of Cymat noted that "Cymat has made significant progress in the last year. This has been a very challenging year and the excellent results should be attributed to a team effort including our customers, staff, suppliers and our patient shareholders. A special thanks is due to our key customer, Audi / Isaria Corporate Design, who were patient and very supportive."
Audi uses our Alusion products in its dealer showrooms in Europe to showcase their high technology performance vehicles. Cymat anticipates a long term relationship with Audi.
Trevor Sandler, Cymat's CFO, added that "Our successful move to a revenue-focused organization is providing financial contribution to the company's operations. Continued progress of this nature will move Cymat into a sustainable positive cash flow position".
Important progress has also been made on the company's blast mitigation initiative including a relationship with AIGIS, a UK company that utilizes SAF in its fully tested and commercialized TABREshield product. SAF has been validated by a number of independent studies and explosive tests and has been proven to be very effective for blast mitigation and shockwave attenuation. Its unique and desirable properties make it applicable to both military and civilian protection applications.
A key event in the year was the execution of a comprehensive licensing agreement deepening our relationship with Georg Fischer, the company's Swiss-based automotive manufacturing partner. The agreement provides Cymat with significant royalty payments commencing with the establishment of development programs for SAF-based parts for specific OEM platforms. The agreement is structured to provide Cymat with royalties well before the traditional platform "start-of-production". The company anticipates this agreement will begin to generate revenues this fiscal year.
Intellectual property development and protection is an ongoing company focus and Cymat will continue to expand its lead in methods and know-how regarding SAF production for both flat panel and three dimensional SAF products.
Revenue
Combined revenue for the 12 months ended April 30, 2007 totaled $2.2 million, an increase of 296 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, 2007, revenue increased by over 690 percent to $1,024,656.
SG&A expenses
SG&A expenses totaled $1.8 million, a decrease of 11 percent over 2006. This decrease is the result of tighter fiscal controls including a reduction in reliance on outside service organizations and a rationalization of its patent strategy. This decrease would have been larger were it not for a number of non-recurring costs associated with the Brompton transaction and organizational setup costs relating to the new Cymat. These non-recurring costs were approximately $300,000.
SG&A expenses totaled $364,902 for the three months ended April 30, 2007 a decrease of 21 percent from 2006. This decrease is consistent with the management implemented fiscal controls.
Net Loss
The net loss for fiscal 2006 totaled $3.2 million and reduced last year's loss by 45 percent. On a per-share basis, the basic and fully diluted loss per share totaled $0.06, down from $0.11 per share in fiscal 2006.
For the fourth quarter, the net loss totaled $481,753, a decrease of 55 percent over the same period in 2006.
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