TORONTO, Sept. 4 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports
revenue of approximately $80,000 for the first quarter of fiscal 2010 ended
July 31, 2009, compared with revenue of approximately $320,000 for the same
period in the prior fiscal year.
Quarterly revenue declined as architectural sales to high profile
projects and Audi dealership platforms in the prior year's quarter were not
matched in this period due to negative global economic conditions. It is
expected that demand for Audi showroom platforms will return to past levels by
the end of the current calendar year as a consequence of planned launches of
showroom retrofits in North America. Additionally, Cymat continues to bid on
significant architectural opportunities for both exterior and interior
projects and any positive economic growth should see increased demand for
Cymat's architectural products.
The company is also gaining momentum in its military industry initiatives
and it is anticipated that military revenues will grow substantially towards
the end of 2009 and into 2010.
The net loss for the quarter totaled $1,548,299 verses $1,131,721 for the
same period in the prior year. The loss for this period was greater due to
lesser sales and associated contribution margin.
Highlights for the quarter were:
- Cymat hosted 2 blast test events at its "Industry Week" to provide
clients with realtime SmartMetal(TM) performance data. The testing
showed a reduction of at least 7 to 1 in blast energy transfer with a
50% compaction of each foam panel.
- Blast mitigation initiatives continue to gain momentum as the company
works closely with its military contractors and integrators applying
its new blast-mitigating, military grade foam named SmartMetal(TM),
into troop safety initiatives around the world.
- On July 28, 2009 Cymat shareholders approved (the "Approval") the
conversion of subscription receipts into common shares and common
share purchase warrants issued as part of the private placement that
closed on April 28, 2009. As a result of the Approval, Cymat issued
10,359,181 new common shares and warrants and the net proceeds from
the original sale of subscription receipts plus certain escrowed
amounts was paid to the Company.
In August 2009, the company received a purchase order from a major US
armored vehicle manufacturer for 13 SmartMetal(TM) assemblies to be delivered
in August 2009. These prototypes will be incorporated in and tested as part of
a complete armoring system for the proposed next generation vehicle.
"This quarter resulted in significant progress with respect to validating
our technology in the military industry" said Tim Hardman, Cymat's President.
"Our unique blast mitigation material SmartMetal(TM) has been shown by an
independent blast testing facility to reduce blast energy by at least a factor
of 7. With the showcasing of these results at 'Industry Week' to a number of
key US military and defence partners, we expect to yield commercial awards for
large scale projects in the US in the coming year. We are also optimistic that
our other lines of business, Automotive and Architecture, will gain momentum
as well" he added.
Key Financial Information
The following shows key financial information for the first quarter and
Three Months ended:
Revenues $82,178 $324,709
Plant operating costs $419,930 $361,388
SG&A $809,612 $702,512
Net loss ($1,548,299) ($1,131,721)
Loss per Common Share-basic and diluted(*) ($0.02) ($0.02)
Balance Sheet Items as at: 31-Jul-09 30-Apr-09
Cash and Cash equivalents $182,098 $1,028,462
Working Capital $1,613,147 $2,366,518
Weighted Average no.
of shares outstanding basic and diluted 74,520,938 66,698,974
(*) Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended July 31,
2009 and July 31, 2008.
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 Cymat's business, the development of markets, development programs, future
revenues and improvements in technology, and management's objectives,
strategies, beliefs and intentions which are subject to important risks and
uncertainties. Forward-looking statements are frequently identified by such
words as "may", "will", "plan", "expect", "anticipate", "intend" and similar
words referring to future events and results, including in respect of the
completion of the offering, use of proceeds and the Company's revenue growth.
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. Readers are cautioned not to place
undue reliance on these forward-looking statements as actual results may
differ materially from those expressed or implied in the forward looking
statements. Cymat Technologies Ltd. disclaims any intention or obligation to
update or revise any forward-looking statements after the date of this press
release or to revise such statements to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
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