Cymat Reduces Raw Material Cost by 50%
Listing: TSX
Symbol: CYM
TORONTO, Dec. 12 /CNW/ - Cymat Corp. today reported financial results for
the second quarter of its fiscal year ending April 30, 2006
The Company reported revenues of $149,832 for the quarter ended
October 31, 2005, compared with $43,634 for the quarter ended October 31,
2004. The net loss for the period was $1,577,557 or $0.03 per share, compared
with $1,255,476, or $0.03 per share for the same period in fiscal 2005. Cash
utilized in operating activities for the quarter ended October 31, 2005
totaled $764,889 as compared to $903,318 for the same period in fiscal 2005.
Highlights from the Second Quarter:
-----------------------------------
- Reduced raw material costs used to manufacture SAF by 50%
- Demonstrated commercial scale production capability for Near-net
shape, or 3D parts
- Broadened IP protection through 2023 with additional patents
granted in USA and Europe
In the second quarter Cymat was able to reduce by 50% the cost of the raw
materials used to manufacture Stabilized Aluminum Foam (SAF). This advance was
achieved by a series of carefully designed experiments targeted to improve
process capability and reduce overall cost. Although the raw material is now
much less costly, the resulting SAF exhibits no deterioration of material
properties. This achievement is particularly important as Cymat's clients,
especially those in the automotive sector, are under enormous cost pressures.
This makes SAF that much more desirable, accessible and closer to meeting our
customers needs for use in the fabrication of their parts on a commercial
scale.
"We are delighted by this breakthrough advance in process technology,"
said Dr. Paul A. Tichauer, Cymat's President and CEO. "This major innovation
further confirms Cymat's position as the leading producer of commercial
aluminum foam, and positions the company well for future commercial success in
the automotive sector."
During the second quarter Cymat continued to progress its patented LPFC
(Low Pressure Foam Casting) technology towards full commercial scale
capability. As previously disclosed, the Company is working together with its
European commercialization partner to commission a low cost high volume,
production scale LPFC unit at the latter's facility in Europe. The start-up of
this second commercial unit is proceeding well and on schedule.
"We are very pleased with our progress towards high volume production
capability," said Dr. Tichauer. "Graduating from the 'lab bench' to the 'shop
floor' is central to getting prototype orders from our target customers.
Automotive OEM's will not generally order prototypes until the component can
be produced on full, commercial scale, production equipment."
In addition, during the second quarter Cymat was granted two new patents,
one in the USA and one in Europe. These patents continue to expand, and extend
through 2023, the scope of patent protection for the Company's proprietary
aluminum foam manufacturing technology.
Subsequent to the close of the second quarter, Cymat and Hutte Klein-
Reichenbach (HKB) filed a joint petition with the Commercial Court of Vienna
requesting withdrawal of the interim injunction and the return to Cymat of the
original bank guarantee of one million euros. The withdrawal of the interim
injunction does not affect the patent infringement suit that Cymat has
initiated against HKB. Cymat remains committed to protecting its intellectual
property rights and will vigorously employ all legal remedies available to
enforce its intellectual property rights.
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The following is a summary of key financial information for the second
quarter of fiscal 2006:
Three Months ended: October 31, 2005 October 31, 2004
------------------- ---------------- ----------------
Revenues $ 149,832 $ 43,634
Research and Development $ 1,065,875 $ 823,260
Net Profit (loss) $(1,577,557) $(1,255,476)
Net Profit (loss) per share(x) $ (0.03) $ (0.03)
Cash flow from operations (764,889) $ (903,318)
As at: October 31, 2005 October 31, 2004
------ ---------------- ----------------
Cash and Cash equivalents 1,398,847 $ 3,027,407
Restricted cash 1,422,266 0
Working Capital 676,412 3,083,862
Shares Outstanding 51,454,437 46,856,047
(x) Net profit (loss) per share has been calculated using the weighted
average number of common shares outstanding during the quarter ended
October 31, 2005 and October 31, 2004.
About Cymat:
Cymat develops innovative materials for industry. The company has
exclusive 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 new strategic material with a wide array of benefits,
including a good strength-to-weight ratio, mechanical energy absorption at low
stress levels, thermal and acoustic insulation, recyclability and relatively
low cost of production. Cymat is collaborating with a number of partners
spanning the automotive, transportation and construction industries. The
company's principal market focus is automotive, where aluminum foam is ideally
suited to the industry's objectives to make vehicles lighter, safer and better
for the environment. 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 Corp.
with the Ontario Securities Commission. Cymat Corp. disclaims any intention or
obligation to update or revise any forward-looking statements.
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