TORONTO, March 18, 2013 /CNW/ - Cymat Technologies Ltd., a materials technology company focused on the military, automotive and architectural industries, announced its results for the quarter ending January 31, 2013.
Highlights for the Quarter
- Income from operations in the amount of $17,000 was recorded in the quarter, predominately as the result of savings in employee compensation expenses, including a non-cash recovery of share-based compensation expenses in the amount of $349,000 and a $164,000 reduction in cash-based employee benefits/consulting expenses as the result of reduced management head count.
- Revenues for the quarter decreased by approximately $431,000, or 68%, as the result of decreased Alusion™ sales pertaining to large architectural projects of approximately $504,000. Other transactional sales were up by approximately $72,000, or 56%, on a comparable quarter-over-quarter basis.
- The Company completed its private placement of equity units in November 2012. Gross proceeds of $219,000 were raised, bringing the total gross proceeds from the private placement to $1,534,000. Each equity unit consisted of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.10 per share until the expiry date of May 15, 2015.
Key Financial Information
| Three months ended
| Nine months ended
|Interim Statements of Operations|
|Plant operating expenses||272,210||872,211||938,686||2,779,801|
|Research and material testing expense||2,509||3,136||7,527||17,586|
|Selling, general and administrative expenses||(91,358)||547,010||841,059||1,815,262|
|Income (loss) from operations||17,013||(790,689)||(993,460)||(2,302,487)|
|Interim Statements of Cash Flows|
|Cash provided by (used in) operating activities||(223,106)||(273,513)||(1,145,201)||(532,590)|
In the field of architecture, the Company is encouraged by the continued growth experienced in Alusion™ transactional sales in the third quarter of fiscal 2013. The Company also has continuing expectations for the inclusion of Alusion™ in major high-profile international architectural projects. As reported previously, there has been some slippage in the expected timing of material delivery for such projects in Europe, owing to uncertainties and austerity measures impacting the European economy. With the slowdown in Europe, Cymat's building of its distributorship with the Latin American Division of Hunter Douglas continues to be a key focus, as does the exploration of relationship development with other international divisions of Hunter Douglas.
SmartMetal™ continues to be evaluated by several OEMs and their suppliers in various military vehicle platforms for next generation and retrofit vehicles. Despite uncertainties regarding the US military budget, there continues to be interest in SmartMetal™ displayed by certain OEMs based in the United States. 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 SmartMetal™.
On the automotive front, dialogue continues in the investigation of the efficacy of SmartMetal™ applications for automotive design, particularly the possibility of incorporating SmartMetal™, as produced from Cymat's flat panel line, into the design for automotive crash-boxes. Management believes that SmartMetal™ has the potential to resolve the conflicting requirements within automotive design for increased vehicle crashworthiness while at the same time reducing vehicle weight.
Installation of Alusion™ panels have recommenced at the 9/11 Memorial site in New York City and management expects that the delivery of the final batch of panels will occur in the next quarter, providing the Company with a significant source of cash flow.
"We continue to be encouraged by the dramatic growth in Alusion's transactional sales and are confident that a number of our delayed major projects will be launched in the next few quarters" said Michael Liik, Executive Chairman of Cymat. He added, "While we have already significantly pared our operating costs, we remain committed to identifying and implementing further cost efficiencies."
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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