TORONTO, July 8 /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 its fiscal year-end results for the year ending April 30, 2010.
Fiscal 2010 - Key Financial Metrics
- Revenues totalled $0.8 million
- Net loss totalled $5.1 million
- Loss per share remained constant from 2009 at $0.06
In 2010 the company accelerated its transformation to a revenue-focused operation in its 3 lines of business and is seeing particular traction in the military sector.
Michael Liik, Executive Chairman of Cymat noted that "the company continued to make significant strides in fiscal 2010 especially with its blast mitigation initiatives. While the slowdown in the 2008-2009 global economy affected Alusion sales, this decline was somewhat mitigated by military sales which accounted for 20% of total revenue. Additionally, the capital markets continued to validate the Company and its opportunities as Cymat was able to raise $2.7 million in a financing in trying circumstances".
Cymat anticipates that 2011 will see significant growth in its 3 targeted industry segments.
Military and numerous defence contractors and armour integrators continue to work with Cymat to develop blast mitigant solutions using SmartMetal(TM). The Company completed capturing its blast data on SmartMetal(TM) which is being used to validate its efficacy in blast mitigation applications. Cymat expects that these efforts will lead to revenues in retrofit and next-generation applications this coming fiscal year.
Automakers continue to express an interest in noise/vibration reduction and stiffness enhancing features of SAF. The company expects that more OEM programs will be undertaken together with its Swiss partner Georg Fischer, leading to initial royalty payments in 2011 and beyond.
Revenues from Cymat's architectural product, Alusion, are expected to grow considerably in 2011 resulting from an expansion in its distributor base in North America, Europe and Asia, a focus on external applications and an expectation that the economy in those regions will turn around.
Combined revenue for the 12 months ended April 30, 2010 totaled $0.8 million, a decrease of 17 percent compared to the previous year.
For the three months ended April 30, 2010, revenue was $0.2 million, an increase of $0.2 million from revenue in the same quarter in 2009.
The annual decrease in revenue is primarily as a result of decreased architectural sales of the Company's aluminum foam panels directly related to the downturn in the global economy and the related reduction in high profile projects that occurred in fiscal 2009.
Of significance was a change in the revenue mix with military revenue contributing to 20% of the overall revenue number. It is expected that overall revenue will be weighted in favor of military as the business evolves.
SG&A expenses totaled $2.8 million, an increase of 8 percent over 2009. This marginal increase is primarily the result of business development expenses directly related to growing the business that were incurred in this fiscal year.
SG&A expenses totaled $0.8 million for the three months ended April 30, 2010, an increase of $0.1 million from the same period in 2009.
The net loss for the year ended April 30, 2010 totaled $5.1 million, an increase of 12 percent over 2009. On a per-share basis, the fully diluted net loss per share totalled $0.06 which is the same as the fully diluted net loss per share in fiscal 2009.
For the fourth quarter, the net loss totaled $1.2 million, a decrease of $0.2 million over the same period in 2009.
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 forward-looking statements.
SOURCE Cymat Technologies Ltd.
For further information: For further information: Investors and Media: Michael Liik, Executive Chairman, Cymat Technologies Ltd., Tel: (416) 307-4015, Email: firstname.lastname@example.org