Cymat reports fiscal 2010 - second quarter results

Listing: TSX

Symbol: CYM

TORONTO, Dec. 11 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports revenue of approximately $350,000 for the second quarter of fiscal 2010 ended October 31, 2009, compared with revenue of approximately $80,000 in the previous quarter. Revenue for the six months ended October 31, 2009 totalled approximately $435,000 as compared with revenue of approximately $265,000 in the prior six month period ending April 30, 2009.

Consecutive quarterly revenue has grown by more than 300% due to a number of architectural sales to European projects such as the Spanish church where Alusion was used as an exterior application as well as numerous military orders from potential customers who are testing SmartMetal(TM) in various survivability solutions.

Cymat continues to bid on significant architectural opportunities for exterior and interior projects, both directly and through its extensive agent network covering North America, Europe and Australasia. Further positive economic growth should result in the 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 in 2010.

The net loss for the second quarter totaled $1,274,254 while the loss for the six month period ended October 31, 2009 totalled $2,822,569. This translates to a loss per share of $0.02 and $0.04 for each of the periods respectively.

    
    Highlights for the quarter were:

    -   Cymat completed its blast testing program in which Cymat contracted
        an independent blast testing facility to perform a series of 20 blast
        tests to fully characterize SmartMetal's performance under various
        blast events. 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.
    -   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
        vehicle. The company, one of the attendees at Cymat's recent Industry
        Week in Nevada, will test these parts for a next generation military
        vehicle.
    -   In October 2009, the Company announced a joint initiative between an
        independent military vehicle integrator and a major US armored
        vehicle OEM. Cymat's SmartMetal(TM) will be incorporated into a next
        generation vehicle as part of a comprehensive survivability solution.
        Prototype parts for this initiative were delivered in the fall with
        validation testing anticipated to be completed by the end of 2009.
    -   Cymat received and shipped its first major order for an exterior wall
        cladding application. Alusion is being used to line the outer walls
        of the largest church building in Catalonia, Barcelona, Spain. The
        project is headed by one of the region's leading architects Carlos
        Ferrater.
    -   The Company was also successful in completing the characterization of
        its architectural material, sold under the trade name Alusion. These
        tests were performed to determine the material's suitability for
        exterior applications and the results were extremely favorable.
    

"This quarter resulted in significant business progress as we have completed our material characterization efforts for SmartMetal(TM) and Alusion," said Tim Hardman, Cymat's President. "These results will serve as key business development tools as we present our material to various military and architectural customers. The data will allow customers to model various threats and conditions that our material could be subjected to and in turn be able to design to an optimal thickness and density of foam. These tools together with the military proto-type orders received to date evidence significant progress in the military sector as Cymat's materials continue along the path of validation and industry adoption," he added.

Key Financial Information

The following shows key financial information for the second quarter and comparables.

    
                               Six months ended:        Three Months ended:
                            31-Oct-09    31-Oct-08    31-Oct-09    31-Oct-08

    Revenue                  $434,362     $743,157     $352,184     $418,448
    Plant operating costs    $760,630     $684,327     $459,906     $322,940
    Research and
     development             $271,745           $0     $152,537           $0
    SG&A                   $1,429,064   $1,413,575     $619,438     $711,063
    Net loss              ($2,822,569) ($2,150,517) ($1,274,254) ($1,018,796)
    Loss per common
     share - basic and
     diluted*                ($0.04)      ($0.03)      ($0.02)      ($0.01)



    Balance Sheet Items as at:                        31-Oct-09    30-Apr-09

    Cash and Short-term investments                  $1,082,438   $1,153,635
    Working capital                                    $868,673   $2,366,518
    Weighted average no. of shares outstanding
     basic and diluted                               79,758,565   71,950,263

    * Net loss per share has been calculated using the weighted average
        number of common shares outstanding during the quarter ended October
        31, 2009 and October 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.

About Cymat:

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 laws.

%SEDAR: 00024103E

For further information: Investors and Media: Michael Liik, Executive Chairman, Cymat Technologies Ltd., Tel: [phone], Email: [email protected]; Trevor Sandler, Chief Financial Officer, Cymat Technologies Ltd., Tel: [phone], Email: [email protected]