Cymat Reports Fiscal 2013 First Quarter Results
TORONTO, Sept. 12, 2012 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter ending July 31, 2012.
Highlights for the Quarter
- Revenues decreased by approximately $202,000, or 37%, as the result of a decrease Alusion™ sales regarding the Congress Center in Mallorca Spain of approximately $321,000. Other transactional sales were up by approximately $119,000, or 175%, on a quarter-over-quarter basis.
- Loss from operations decreased by approximately $369,000, or 41%. Reductions in SG&A expenses and reductions in the non-cash expenses of depreciation, stock-based compensation and non-cash interest were the primary drivers of the operating loss reduction.
- Cash used in operating activities of $294,000 improved by approximately $141,000, or 32%, largely as a result of the expense reductions and favourable changes in non-cash working capital balances.
- Cymat signed an agreement with the Latin American Division of Hunter Douglas N. V. ("Hunter Douglas") to be the exclusive distributor of its Alusion™ product in Chile, Mexico, Brazil, Argentina, Columbia, Peru, Panama and Uruguay. Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products.
- Cymat announced that SmartMetal™ had been specified into the design of the new ITER nuclear reactor project in France for use in the cargo lift base, to act as an energy absorber in the event of lift failure.
- The Company raised $227,500 as part of an on-going private equity placement.
Key Financial Information
|Three months ended July 31|
|Interim Statements of Operations|
|Plant operating expenses||419,245||815,205|
|Research and material testing expense||2,509||11,314|
|Selling, general and administrative expenses||450,023||616,511|
|Loss from operations||(528,855)||(898,070)|
|Interim Statements of Cash Flows|
|Cash used in operating activities||(294,451)||(435,676)|
In the field of architecture, the Company is encouraged by the growth experienced in Alusion™ transactional sales in the first quarter of fiscal 2013. A key element of Cymat's growth strategy is the continued expansion of the Company's international distributor/agent base. As mentioned above, Cymat announced that it signed a distribution agreement with the Latin American Division of Hunter Douglas. Cymat's management views the Hunter Douglas signing as a landmark agreement for the Company which is expected to significantly increase the Alusion™ brand awareness and the sales pipeline.
The Company also has continuing expectations for the inclusion of Alusion™ in major high-profile international architectural projects as detailed in our fourth quarter earnings release. Management is also encouraged by the recent announcement that the funding authorities for the 9/11 Memorial Museum have reached an agreement that paves the way for the completion of the Museum's construction. The exposure for Alusion™ that these high profile installations will create is anticipated to generate long-lasting benefits.
SmartMetal™ continues to be evaluated by several OEMs and their suppliers in various military vehicle platforms for next generation and retrofit vehicles. After the quarter end, Cymat announced the results of one of these evaluations with SmartMetal™ being used as an important component in an armouring panel produced by Bravo Zulu Services Inc. ("Bravo Zulu") for inclusion as part of Texas Armoring Corporation's ("TAC") new line of special explosion-resistant SUVs. Management anticipates that there will be continuing positive results from SmartMetal™ testing with other OEM's.
On the automotive front, Cymat continues to investigate the efficacy of SmartMetal™ applications in automotive design, including the possibility of incorporating SmartMetal™, as produced from Cymat's flat panel line, into the design for automotive crash-boxes.
Additionally, Cymat continues to explore new markets for various non-vehicular applications of SmartMetal™. The SmartMetal™ specification into the design of the cargo lift for new ITER nuclear reactor project in France is one example of a new application for SmartMetal™.
Cymat's management expects that its financing efforts will continue to meet the needs of the Company as it executes its growth strategy. Subsequent to the quarter end, the Company raised gross proceeds of $250,000 through the issuance of equity units and a further $192,800 through the issuance subscription receipts. The subscription receipts will convert to shares and warrants upon approval by the Company's shareholders. The Company intends to seek such shareholder approval at the annual shareholder meeting to be held on September 26, 2012 and expects to continue its fundraising efforts up to the date of the annual shareholder meeting.
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.
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