CALGARY, Aug. 9 /CNW/ - The Westaim Corporation announced today that for the second quarter ended June 30, 2007, it recorded a net loss of $7.4 million or 8 cents per share, on revenues of $6.7 million. In the same quarter last year, the Company recorded a net loss of $12.0 million, or 13 cents per share, on revenues of $7.0 million.
In the 2007 second quarter, the Company recorded a one-time gain of $8.6 million through the sale of its real estate holdings in Fort Saskatchewan, Alberta for net proceeds of $14.4 million. Also in the second quarter, the Company recorded reorganization costs, including severances of $4.3 million related to operational changes at iFire and the Company, which will significantly reduce annual operating costs.
For the six months ended June 30, 2007, the Company posted revenues of $12.8 million and a net loss of $14.1 million or 15 cents per share. For the same period in 2006, Westaim reported revenues of $14.2 million and a net loss of $30.0 million or 32 cents per share. Results in 2007 benefited from the gain on sale of the real estate and a dilution gain of $4.5 million reported in the first quarter of 2007.
At June 30, 2007, Westaim had $55.6 million in consolidated cash and short-term investments which includes $21.6 million of NUCRYST Pharmaceuticals Corp. cash and short-term investments.
"Through our ongoing strategic review process to maximize shareholder value, Westaim implemented a series of changes over the course of the second quarter," said Drew Fitch, President & CEO of The Westaim Corporation. "The sale of our Fort Saskatchewan real estate holdings has strengthened our balance sheet and the operational changes at iFire have allowed the technology development team to focus on the core issues relating to phosphor development, while preserving our financial resources. We are committed to supporting the advancement of iFire's TDEL technology and remain confident in the potential it holds for the consumer marketplace."
The Westaim Corporation's technology investments include iFire Technology Corp., which is developing a low-cost flat panel display technology, and a 74.7 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. A more detailed discussion of Westaim's 2007 second quarter results can be found at www.westaim.com and www.sedar.com.
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 regarding maximization of shareholder value, steps taken to allow the technology development team to focus on core issues relating to phosphor development while preserving financial resources, the advancement of iFire's TDEL technology, and the potential which TDEL technology holds for the consumer marketplace. 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.
THE WESTAIM CORPORATION
Financial Highlights
(unaudited)
(thousands of dollars except per share data)
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Three Months Ended Six Months Ended
June 30 June 30
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Consolidated Statements
of Operations 2007 2006 2007 2006
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Revenue $ 6,686 $ 6,995 $ 12,817 $ 14,248
Net loss (7,388) (11,980) (14,088) (29,986)
Net loss per common share -
basic and diluted (0.08) (0.13) (0.15) (0.32)
Weighted average number of
common shares outstanding
(thousands) 94,051 93,231 94,021 93,077
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Three Months Ended Six Months Ended
June 30 June 30
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Segmented Information 2007 2006 2007 2006
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Revenue
Nucryst Pharmaceuticals $ 6,686 $ 6,995 $ 12,817 $ 14,248
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Operating loss
Nucryst Pharmaceuticals $ (1,815) $ (3,037) $ (3,972) $ (6,378)
iFire Technology (10,029) (8,915) (18,624) (20,288)
Other (including
corporate costs) (3,511) (422) (4,785) (5,046)
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Operating loss $ (15,355) $ (12,374) $ (27,381) $ (31,712)
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Consolidated Balance December 31,
Sheets June 30, 2007 2006
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Cash and short-term
investments $ 55,588 $ 62,832
Current assets 69,921 80,256
Other assets 56,557 68,083
Current liabilities 7,390 15,797
Shareholders' equity 99,588 112,977
%SEDAR: 00002793E