CALGARY, Nov. 7 /CNW/ - The Westaim Corporation announced today that for
the third quarter ended September 30, 2006, it recorded a net loss of
$9.6 million or 10 cents per share, on revenues of $8.2 million. In the same
quarter last year, the company recorded a net loss of $5.0 million, or 5 cents
per share, on revenues of $12.3 million. The change in revenue and net loss in
the third quarter of 2006 compared to 2005 is primarily attributable to
$5.9 million in milestone revenue recorded in 2005.
At September 30, 2006, Westaim had consolidated $70.7 million in cash and
short-term investments.
"Westaim continues to place top priority on executing our business
strategy and we are encouraged by the progress made through the first three
quarters of 2006," said Barry M. Heck, President and CEO of The Westaim
Corporation. "We were pleased with the new potential partner interest in
iFire's TDEL technology as well as the continued progress at the pilot
facility toward generating the process repeatability data required to secure a
manufacturing partner. Westaim believes NUCRYST's nanocrystalline silver
technology platform holds tremendous value and we support NUCRYST's continued
pursuit of new product opportunities."
NUCRYST's wound care division reported revenues of $8.2 million in the
third quarter compared to $12.3 million in the same period last year.
NUCRYST's operating loss, reported in Westaim's consolidated results, was
$2.6 million compared to net income of $4.9 million last year, a decline
primarily attributable to higher clinical study and R&D expenditures and
$5.9 million in milestone revenues earned in the third quarter of 2005 under
an agreement NUCRYST has with Smith & Nephew plc.
The Westaim Corporation's technology investments include iFire Technology
Corp., which has developed a low-cost flat panel display and a 74.8 per cent
interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX; NCS), which
develops, manufactures and commercializes medical products that fight
infection and inflammation based on its nanocrystalline silver technology.
Westaim's common shares are listed on NASDAQ under the symbol WEDX and on The
Toronto Stock Exchange under the trading symbol WED.
SILCRYST(TM) is a trademark of NUCRYST Pharmaceuticals Corp.
Acticoat(TM) is a trademark of Smith & Nephew plc
This news release contains forward-looking statements. These statements
are based on current expectations that are subject to risks and uncertainties,
and Westaim can give no assurance that these expectations are correct. Various
factors could cause actual results to differ materially from those projected
in such statements, including but not limited to statements involving
Westaim's progress in executing its business strategy, potential partner
interest in iFire's TDEL technology, iFire's progress toward process
repeatability data, the value of NUCRYST's nanocrystalline silver technology,
and NUCRYST's pursuit of new product opportunities. Westaim disclaims any
intention or obligation to revise forward-looking statements whether as a
result of new information, future developments or otherwise. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
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THE WESTAIM CORPORATION
Financial Highlights
(unaudited)
(thousands of dollars except per share data)
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ----------------------
Consolidated Statements
of Operations 2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue $ 8,203 $ 12,268 $ 22,451 $ 22,953
Loss from continuing
operations (9,552) (5,130) (39,538) (24,991)
Net loss (9,552) (5,042) (39,538) (12,728)
Loss per common share -
basic and diluted
Continuing operations (0.10) (0.06) (0.42) (0.27)
Net loss (0.10) (0.05) (0.42) (0.14)
Weighted average number of
common shares outstanding
(thousands) 93,944 92,851 93,369 92,836
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ----------------------
Segmented Information
- Continuing Operations 2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue
Nucryst Pharmaceuticals $ 8,203 $ 12,268 $ 22,451 $ 22,953
-------------------------------------------------------------------------
Continuing operations $ 8,203 $ 12,268 $ 22,451 $ 22,953
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating (loss) income
Nucryst Pharmaceuticals $ (2,638) $ 4,916 $ (9,016) $ 3,677
iFire Technology (8,443) (8,328) (28,731) (23,728)
Other (including
corporate costs) 229 (1,880) (4,817) (6,105)
-------------------------------------------------------------------------
Continuing operations $ (10,852) $ (5,292) $ (42,564) $ (26,156)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Balance September December
Sheets 30, 2006 31, 2005
------------------------------------------------
Cash and short-term
investments $ 70,673 $ 119,627
Current assets 89,440 136,169
Other assets 71,759 76,292
Current liabilities 17,746 26,614
Shareholders' equity 123,473 157,640
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%SEDAR: 00002793E
