Cymat reports fiscal 2010 - Third quarter results
Listing: TSX
Symbol: CYM
TORONTO, March 17 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports revenue of approximately $165,000 for the third quarter of fiscal 2010 ended January 31, 2010, compared with revenue of approximately $260,000 in the previous quarter. Revenue for the nine months ended January 31, 2010 totalled approximately $599,000 as compared with revenue of approximately $1,000,000 in the same period in the prior year.
Quarterly revenue to military customers surpassed 50% of total revenue for the first time in company history which is evidence of SmartMetal(TM) starting to gain traction in that industry and it is anticipated that military revenues will grow substantially more in 2010. Military sales consisted of prototype purchased by various OEMs in North America and Europe. Architectural sales consisted of sales to various distributors with Cymat's worldwide network. 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 net loss for the third quarter totaled $1,148,241 while the loss for the nine month period ended January 31, 2010 totalled $3,970,811. This translates to a loss per share of $0.01 and $0.05 for each of the periods respectively.
Highlights for the quarter were:
- Cymat appointed Lieutenant Generals (U.S. Army Retired) Jay M. Garner
and Ronald V. Hite to its newly established Advisory Board. Generals
Garner and Hite bring extensive backgrounds in both military and
commercial operations to Cymat. Their unique insights and deep
relationships within the American and NATO industrial/military
sectors will be invaluable to Cymat as it commercializes its
SmartMetal(TM) within this industry.
- Cymat received and delivered two proto-type orders from a major
US-based OEM of light vehicles. Cymat's SmartMetal(TM) will be
integrated into a survivability solution for vehicle under belly
protection. This solution has been designed to accommodate both
existing vehicles through an aftermarket retrofit kit, and new OEM
vehicle production. The material's anticipated success in this
application would mean access to numerous commercial opportunities
within the group of NATO country Armed Forces who collectively retain
a large fleet of this vehicle type. It is anticipated that these
retrofit kits will be produced in North America and shipped directly
to vehicles in the field for installation.
- The Company received the final test in a series of ASTM tests
performed on its architectural material, sold under the trade name
Alusion, at the well known test facility Exova (formally Bodycote).
The 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 started to distribute our material characterization data for SmartMetal(TM) and Alusion to key commercial customers," said Tim Hardman, Cymat's President. "The data allow customers to model various threats and conditions that our material could be subjected to and in turn be able to design solutions 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 third quarter and comparables.
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Nine months ended: Three Months ended:
31-Jan-10 31-Jan-09 31-Jan-10 31-Jan-09
Revenue $598,723 $1,002,932 $164,361 $259,775
Plant operating
costs $1,086,605 $1,063,085 $325,974 $378,759
Research and
development $252,991 $0 ($18,754) $0
SG&A $2,035,212 $2,011,884 $606,147 $598,308
Net loss ($3,970,811) ($3,263,792) ($1,148,241) ($1,113,275)
Loss per common
share-basic and
diluted* ($0.05) ($0.05) ($0.01) ($0.02)
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Balance Sheet Items
as at: 31-Jan-10 30-Apr-09
Cash and Short-term
investments $564,795 $1,153,635
Working capital $525,143 $2,366,518
Weighted average no.
of shares outstanding
basic and diluted 85,155,150 72,041,189
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*Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended January 31,
2010 and January 31, 2009.
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: (416) 307-4015, Email: [email protected]; Trevor Sandler, Chief Financial Officer, Cymat Technologies Ltd., Tel: (905) 696-2427, Email: [email protected]
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