TORONTO, Dec. 14, 2012 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter ending October 31, 2012.
Highlights for the Quarter
- Loss from operations for the quarter decreased by approximately $132,000, or 22%. Reductions in SG&A expenses and reductions in the non-cash expenses of depreciation, stock-based compensation and non-cash interest were the primary drivers of the operating loss reduction.
- Revenues decreased by approximately $883,000, or 78%, as the result of a decrease in Alusion™ sales regarding large architectural projects (Congress Center in Mallorca and building in Tbilisi, Georgia) of approximately $961,000 in aggregate. Other transactional sales were up by approximately $78,000, or 45%, on a quarter-over-quarter basis.
- Cymat announced the use of SmartMetalTM as an important component in an armouring panel produced by Bravo Zulu Services Inc. ("Bravo Zulu") for inclusion as part of Texas Armoring Corporation's ("TAC") new line of special explosion-resistant SUVs. In describing his company's new line of vehicles, TAC President and CEO, Trent Kimball stated "The LC100 will stop armor-piercing rounds and multiple pounds of C4—it is serious, blast-eating protection and it is exactly what our clients need to stay safe from terrorist organizations". Bravo Zulu's Jason Miller said of the LC100, "We've done something incredible here—Texas Armoring's new offering will provide clients with military-grade blast protection and the comfort of a regular SUV."
- The Company raised $837,500 as part of an on-going private equity placement.
Key Financial Information
| Three months ended
| Six months ended
|Interim Statements of Operations|
|Plant operating expenses||247,232||1,092,385||666,476||1,907,590|
|Research and material testing expense||2,509||3,136||5,018||14,450|
|Selling, general and administrative expenses||482,392||651,740||932,416||1,268,251|
|Loss from operations||(481,617)||(613,727)||(1,010,472)||(1,511,798)|
|Interim Statements of Cash Flows|
|Cash provided by (used in) operating activities||(627,644)||176,599||(922,095)||(259,077)|
In the field of architecture, the Company is encouraged by the continued growth experienced in Alusion™ transactional sales in the second quarter of fiscal 2013. A key element of Cymat's growth strategy is the continued expansion of the Company's international distributor/agent base. Cymat continues to build its relationship with the Latin American Division of Hunter Douglas, who acts as the exclusive distributor of Alusion™ in Chile, Mexico, Brazil, Argentina, Columbia, Peru, Panama and Uruguay. Hunter Douglas is the world market leader in window coverings and a major manufacturer of architectural products. Cymat is also working on the development of relationships with other international divisions of Hunter Douglas.
The Company also has continuing expectations for the inclusion of AlusionTM in major high-profile international architectural projects. However, there has been some slippage in the expected timing of material delivery for these projects. For example, the expected 80,000 square feet of AlusionTM to be installed in the new Fondazione Prada exhibition centre in Milan, Italy is now anticipated to have a delivery date subsequent to the 2013 fiscal year end.
SmartMetalTM continues to be evaluated by several OEMs and their suppliers in various military vehicle platforms for next generation and retrofit vehicles. These evaluations include testing of SmartMetalTM at the United States Army Research Laboratory. Sales in this market generally have long timelines, require deep relationships and require the ability to engineer customized solutions. The Company is continuing its efforts in the engagement of external agents to assist in the development of international military markets for SmartMetalTM.
Cymat's management expects that its financing efforts will continue to meet the needs of the Company as it executes its growth strategy. Subsequent to the quarter end, the Company raised gross proceeds of approximately $219,000 through the issuance of equity units.
"While our year-over-year revenues are down, we are very encouraged by the positive trend in our Alusion transactional sales - the near term foundation of our business" said Michael Liik, Executive Chairman of Cymat. He added "As a consequence, our focus over the last quarter has been to "right-size" our organization in order to accelerate the path to profitability".
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.
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