TORONTO, July 23 /CNW/ - Cymat Technologies Ltd. (TSX: CYM), a
Toronto-based manufacturer and licensor of stabilized aluminum foam ("SAF")
products, targeting the automotive, architectural and blast mitigation
markets, announced record fiscal year-end results for the year ending April
Fiscal 2008 Highlights
- Revenues increased 36 percent to a record $2.9 million
- Net loss reduced by 10 percent to $4.3 million
- Loss per share remained constant from 2007 at $0.06
In 2008 the company accelerated its transformation from a research-based
materials company to a revenue-focused operation.
Michael Liik, Executive Chairman of Cymat noted that "the company has
made significant operational and financial progress in a very challenging
economic environment. We successfully completed a milestone automotive project
for a high-performance German auto maker; expanded our Audi showroom
initiative to a multi-year arrangement; made considerable progress on our
blast mitigation initiatives; and completed a private placement".
He went on to say that "we also instituted a senior management change
with the hiring of a new President and COO, Tim Hardman, whose significant
experience in the sales of aluminum to Cymat's targeted industries, bodes well
for the next stage of our evolution."
Trevor Sandler, Cymat's CFO, added that "the increased revenue
attributable to the Audi contract has contributed to a declining burn rate
and, along with the proceeds from the private placement, has helped move the
company closer to a sustainable cash flow position".
Cymat anticipates that considerable progress will be made in each of its
3 targeted industry segments in the coming year. Automakers continue to be
interested in the noise/vibration reduction and stiffness enhancing properties
of SAF. The company expects that more OEM programs will be undertaken together
with its Swiss partner Georg Fischer, leading to initial royalty payments this
year. More advanced product-specific testing by the military and numerous
defense contractors continues to validate the efficacy of SAF in blast
mitigation applications. Cymat expects that these efforts will lead to initial
revenues this fiscal year. The company also plans to initiate further
independent testing to accelerate these commercialization efforts. Revenues
from Alusion, Cymat's architectural product, are expected to grow considerably
this year as efforts to expand and better support its distributor base begin
to pay off.
Intellectual property development and protection will continue to play an
important role as Cymat moves to expand its SAF knowledge base and production
know how for both the flat panel and three dimensional SAF processes.
Combined revenue for the 12 months ended April 30, 2008 totaled $2.9
million, an increase of 36 percent compared to the previous year. The majority
of this growth came from Cymat's flat panel business.
For the three months ended April 30, 2008, revenue was down by 45 percent
to $0.5 million from the same quarter in 2007 as a result of Audi increasing
its demand for platforms over the fourth quarter of 2007 due to the R8
rollout. This same demand was not present in the fourth quarter of 2008.
SG&A expenses totaled $2.7 million, an increase of 11 percent over 2007.
This increase is primarily as a the result of stock-based compensation
expenses which were higher in 2008 as a result of options granted in 2007 that
were amortized for a full 12 months in 2008 compared with 8 months in 2007.
Excluding stock-based compensation expense, SG&A decreased by 10 percent
due to tighter fiscal controls including a reduction in reliance on outside
service organizations and a rationalization of its patent strategy.
SG&A expenses totaled $0.5 million for the three months ended April 30,
2008 an increase of $0.2 million from the same period in 2007. This increase
is primarily as a result of stock-based compensation expense which increased
by $0.3 million. Excluding this charge, SG&A expenses have declined which is
consistent with the management implemented fiscal controls.
The net loss for the year ended April 30, 2008 totaled $4.3 million, an
increase of 35 percent over 2007. On a per-share basis, the fully diluted net
loss per share totaled $0.06 which is equal to the fully diluted net loss per
share in fiscal 2007.
The 2007 net loss includes a non-recurring gain of arrangement of
$1.6 million. Excluding this non-recurring amount, the net loss for fiscal
2007 would have totalled $4.8 million and the normalized net loss variance
would have shrunk by more than 10 percent year over year.
For the fourth quarter, the net loss totaled $1 million, an increase of
$0.5 million over the same period in 2007. Excluding the stock-based
compensation expense charge, the net loss only increased by $0.2 million for
The annual financial statements, management discussion and analysis and
annual information form have been filed on SEDAR. Cymat Technologies Ltd.
trades on the TSX stock exchange under the trading symbol CYM.
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
For further information:
For further information: Investors and Media: Michael Liik, Executive
Chairman, Cymat Technologies Ltd., Tel: (905) 696-2424, Email: firstname.lastname@example.org;
Trevor Sandler, Chief Financial Officer, Cymat Technologies Ltd., Tel: (905)
696-2427, Email: email@example.com