TORONTO, Aug. 28, 2014 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter and the year ending April 30, 2014.
Fourth Quarter and Fiscal 2014 - Key Financial Metrics
- Revenue totalled $214,000 for the fourth quarter (2013 - $132,000) and $789,000 for fiscal 2014 (2013 - $926,000).
- Plant operating costs totalled $254,000 for the fourth quarter (2013 - $259,000) and $1.0 million for fiscal 2014 (2013 - $1.2 million).
- SG&A expenses totalled $301,000 for the fourth quarter (2013 - $285,000) and $1.0 million for fiscal 2014 (2013 - $1.1 million).
- For fiscal 2014 there was a fourth quarter net loss of $857,000 and a net loss of $1.8 million for the year. The losses for the quarter and the year included a $482,000 non-cash financing cost associated with royalties payable on promissory notes. For fiscal 2013 there was a fourth quarter net income of $1.6 million and a net income of $443,000 for the year. Income for the quarter and the year included a one-time gain on the settlement of debt in the amount of $2.0 million.
Revenue for the quarter ended April 30, 2014 was approximately $214,000, compared to revenue for the quarter ended April 30, 2013, of $132,000. Increased AlusionTM sales from North America and Europe accounted for the quarter-over-quarter increase.
Revenue for fiscal 2014 was approximately $789,000 compared to revenue for fiscal 2013, of $926,000. The year-over-year decrease in revenue was the largely the result of a decline in the Alusion™ revenue European transactional sales reflecting the economic woes experienced in the European Union.
Plant operating expenses for the year ended April 30, 2014 were approximately $1,024,000 compared to $1,197,000 for the year ended April 30, 2013 - the expense decrease in keeping with the decrease in annual sales.
SG&A expenses for fiscal 2014 totalled approximately $1,027,000, compared to $1,126,000 for fiscal 2013. Fiscal 2013 expenses included a recovery of share-based compensation in the amount $199,000 as the result of options that expired upon the departure of management personnel. Excluding share-based compensation expenses, SG&A expenses for fiscal 2014 totalled $999,000 as compared to SG&A expenses of $1,325,000 for fiscal 2013. Favourable SG&A expense variances were primarily the result of savings due to decreased management headcount.
Interest for the fourth quarter and fiscal 2014 year includes a non-cash-based amount of $482,000 pertaining to the present value of the estimated future royalty outflow on the promissory notes.
Net Income (Loss)
A net loss of $857,000 was recorded for the fourth quarter of fiscal 2014. Excluding the above-described non-cash royalty accrual, the fourth quarter experienced a $376,000 loss. Excluding the gain on settlement of debt, the fourth quarter of fiscal 2013 experienced a net loss of $416,000.
A net loss of $1,824,000 was recorded for fiscal 2014. Excluding the non-cash royalty accrual, the year experienced a loss of $1,343,000. A net income of $443,000 was recorded for fiscal 2013; excluding the gain on settlement of debt and non-cash interest, a loss of $1,381,000 was experienced in fiscal 2013.
Cymat has recently undertaken a major architectural project for Prada, a global fashion house. This high-profile installation for the Fondazione Prada Museum in Milan is expected to be completed for 2015 Expo Milano. As the European Union continues its economic recovery, the company has experienced increased sales activity in the region, traditionally its strongest market. Cymat is also anticipating a number of major Alusion projects in both North and South America in the coming year.
On the military front, Cymat continues its development efforts with a variety of global OEM's and is optimistic that a number of these projects will enter serial production this fiscal year. The company is also anticipating that its SmartMetalTM product will be deployed in a major French nuclear installation in fiscal 2015.
On the automotive front, the Company continues its discussions with two automotive industry suppliers regarding the possible use of SmartMetal™ in vehicle bumper system applications for the North American automotive industry. The company remains convinced that SmartMetalTM has the potential to resolve the conflicting requirements within automotive design to increase vehicle crashworthiness while at the same time reduce vehicle weight.
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.
SOURCE: Cymat Technologies Ltd.
For further information: Investors and Media: Michael Liik, Executive Chairman, Cymat Technologies Ltd., Tel: (416) 682-4214, Email: email@example.com