Cymat Reports Fiscal 2014 First Quarter Results
TORONTO, Sept. 13, 2013 /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, 2013.
Highlights for the Quarter
- Loss from operations for the quarter was $298,000 compared to a loss of $529,000 for the same quarter of the previous fiscal year, predominately as the result of savings in employee compensation expenses as the result of reduced head count.
- Revenues for the quarter decreased by approximately $128,000, or 37%, as the result of decreased Alusion™ transactional sales to European customers.
|Key Financial Information||Three Months Ended July 31|
|Interim Statements of Operations|
|Plant operating expenses||277,583||419,245|
|Research and material testing expense||2,007||2,509|
|Selling, general and administrative expenses||232,939||450,023|
|Loss from operations||(297,835)||(528,855)|
|Interim Statements of Cash Flows|
|Cash used in operating activities||(51,429)||(294,451)|
The Outlook remains relatively unchanged from the July disclosure in Management's Discussion and Analysis for the year ended April 30, 2013. The Company has continuing expectations for the inclusion of Alusion™ in significant architectural projects. As reported previously, there has been some slippage in the expected timing of material delivery for such projects in Europe, owing to uncertainties and austerity measures impacting the European economy. However, the Company expects architectural sales to continue to provide the bulk of Cymat revenue, assisted by the building of its distributorship with the Latin American Division of Hunter Douglas and sales from its US-based distributor.
SmartMetal™ continues to be evaluated by several OEMs and their suppliers in various military vehicle platforms for next generation and retrofit vehicles. An international OEM has provided the Company with its design specifications in preparation of the final stage of pre-production testing regarding a vehicle protection kit. Also, despite uncertainties regarding the US military budget, there continues to be interest in SmartMetal™ displayed by certain OEMs based in the United States. Sales in this market generally have long timelines, require deep relationships and require the ability to engineer customized solutions. The Company is continuing its efforts in the engagement of external agents to assist in the development of international military markets for SmartMetal™.
On the automotive front, dialogue continues in the investigation of the efficacy of SmartMetal™ applications for automotive design, particularly the possibility of incorporating SmartMetal™, as produced from Cymat's flat panel line, into the design for automotive crash-boxes. Management believes that SmartMetal™ has the potential to resolve the conflicting requirements within automotive design for increased vehicle crashworthiness while at the same time reducing vehicle weight.
Installation of Alusion™ panels continues at the 9/11 Memorial site in New York City and management expects that the delivery of the final batch of panels will occur shortly.
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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