Listing: TSX
Symbol: CYM
TORONTO, March 10 /CNW/ - Cymat Technologies Ltd. is pleased to report quarterly revenue of $553,000 for the third quarter of fiscal 2008 ended January 31, 2008 compared with revenue of $568,000 for the same three-month period in the prior fiscal year.
On a year to date basis, revenue of $2.4 million for fiscal 2008 surpassed the previous year by 109%. This revenue increase was mainly attributable to the large order to supply platforms for Audi showrooms as well as other architectural projects throughout Europe and North America.
The net loss for the quarter ended January 31, 2008 was approximately $960,000 or $0.02 per share, compared with $1.2 million or $0.02 per share for the same period in the prior year, a quarter on quarter decline of 23%.
The net loss includes non-cash items of approximately $570,000 relating to stock-based compensation and depreciation expense. The net loss for the quarter excluding these non-cash items is approximately $388,000 which is evidence of the company's success in moving to cash flow profitability and is attributable to the contribution margin resulting from revenue and cost containment initiatives.
The net loss for the nine-month period ended January 31, 2008 was $3.3 million or $0.05 per share, compared with $2.7 million or $0.05 per share for the same period in the prior year. The prior year's results include a one-time gain of arrangement related to the August 2006 Brompton plan of arrangement. The net loss declined by 22% when excluding the gain from arrangement.
"Cymat continues to exhibit good progress since moving from an R&D focus to commercial production." said Trevor Sandler, Cymat's CFO, "Year-to-date record revenues and the associated contribution margin have reduced Cymat's net cash loss which positions the company well to realize on our leading technology in the large markets of automotive and blast mitigation".
Highlights for the quarter were:
- Change in strategic focus from a research to revenue-based commercial
operation continued to yield solid revenue.
- Shorter product delivery times and improved productivity.
- Cymat's partner Georg Fischer Automotive ("GF") received its first
prototype order utilizing Cymat's proprietary aluminum foam
technology
- Blast mitigation initiatives gained momentum.
Chris Skillen, CEO noted that "We are progressing well with defense contractors and armor suppliers in their testing of the efficacy of our unique aluminum foam as a shock attenuator and blast mitigator. We are encouraged by their initial test results and as such believe that we will be able to realize on our mission of placing Cymat aluminum foam between people and terrorist threats in both military and urban theaters of terrorist conflict. Also we are encouraged by our recent progress in automotive."
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:
Jan. 31, Jan. 31, Jan. 31, Jan. 31,
2008 2007 2008 2007
Revenues $2,383,100 $1,142,059 $552,875 $568,351
SG&A ($2,141,926) ($1,473,215) ($529,282) ($406,403)
Net loss ($3,345,084) ($2,706,682) ($958,906) ($1,244,294)
Net loss per
share(x) ($0.05) ($0.05) ($0.02) ($0.02)
Balance Sheet Items as at: Jan. 31, Apr 30,
2008 2007
Cash and Cash equivalents $2,883,257 $857,391
Working Capital $2,868,670 $486,162
Shares Outstanding 71,999,523 56,616,704
(x) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended
January 31, 2008 and January 31, 2007.
The interim financial statements and management discussion 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.