TORONTO, Sept. 10 /CNW/ - Cymat Technologies Ltd. is pleased to report
quarterly revenue of $696,213 for the first quarter of fiscal 2008 ended
July 31, 2007 compared with revenue of $141,615 for the same three-month
period in the prior fiscal year.
This quarterly revenue increase of approximately 400% was mainly
attributable to the large order from Isaria, the supplier to Audi showrooms as
well as other architectural projects throughout Europe and North America.
This revenue represents only 2 of 3 months production due to a scheduled
plant shutdown to reline our induction furnaces in May. Notwithstanding this
shutdown, production and related revenue returned to normal levels. Revenues
are expected to grow in the next quarter with our increased capacity and newly
The net loss for the three-month period was $1,533,278 or $0.03 per
share, compared with $1,459,277 or $0.03 per share for the same period in the
prior year. The net loss includes non-cash items relating to stock-based
compensation of $406,055 and depreciation expense of $453,434. Excluding these
non-cash items the net loss declined by 21% compared to the quarter ended
July 31, 2006 and is attributable to the contribution margin resulting from
increased revenue and cost containment initiatives.
Highlights for the quarter are:
- Change in strategic focus from a research to revenue-based commercial
operation continues to yield results with significant quarter-on-
quarter revenue growth.
- Plant operational improvements have yielded shorter product delivery
times and improved productivity.
- Automotive initiatives are promising.
- Blast mitigation initiatives begin to gain momentum.
- Major exclusive distribution contacts secured in Spain and Israel.
Chris Skillen, Cymat's President and CEO noted that "Cymat's strategy to
transition from research to a revenue-focused enterprise continues to yield
good results as revenues are up significantly year-over-year. The additional
Audi order and Cymat's new distribution relationships are key to growing the
company's architectural business. Progress has been made in the blast
mitigation market and we are also encouraged by progress in automotive uses
for our material."
Key Financial Information
The following shows key financial information for the first quarter and
Three Months ended: July 31, 2007 July 31, 2006
Revenues $696,213 $141,615
SG&A ($926,283) ($625,003)
Net loss ($1,533,278) ($1,459,277)
Net loss per share(*) ($0.03) ($0.03)
Balance Sheet Items as at: July 31, 2007 April 30, 2007
Cash and Cash equivalents $1,297,777 $857,391
Working Capital $1,118,028 $486,162
Shares Outstanding 61,668,251 56,616,704
(*)Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended July 31,
2007 and July 31, 2006.
The interim financial statements and management discussion will be 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: Christopher Skillen,
President and Chief Executive Officer, Cymat Technologies Ltd., Tel: (905)
696-2421, Email: firstname.lastname@example.org; Trevor Sandler, Chief Financial Officer,
Cymat Technologies Ltd., Tel: (905) 696-2427, Email: email@example.com