Westaim announces 2007 third quarter results

    Company to seek buyer for iFire Technology Corp.

    CALGARY, Nov. 13 /CNW/ - The Westaim Corporation announced today that for
the third quarter ended September 30, 2007, it recorded a net loss of
$17.1 million or 18 cents per share, on revenues of $7.8 million. In the same
quarter last year, the company recorded a net loss of $9.6 million, or
10 cents per share, on revenues of $8.2 million.
    In the third quarter of 2007, the Company recorded reorganization costs
including severance, of $2.3 million related to operational changes that will
significantly reduce the Company's annual operating costs. In addition, in the
third quarter, the Company wrote down its investment in Canadian third-party
asset-backed commercial paper (ABCP) by $3.0 million.
    For the nine months ended September 30, 2007, the Company posted a net
loss of $31.2 million or 33 cents per share on revenues of $20.7 million. For
the same period in 2006, Westaim reported a net loss of $39.5 million or
42 cents per share on revenues of $22.5 million. Results in 2007 benefited
from an $8.6 million gain on the sale of real estate and a dilution gain of
$4.5 million reported earlier in the year. These benefits have been partially
offset by corporate restructuring costs of $6.6 million incurred in 2007.
    At September 30, 2007, Westaim had $32.6 million in consolidated cash and
short-term investments. Westaim's cash position, excluding cash and short-term
investments held by its 74.6 per cent owned affiliate NUCRYST Pharmaceuticals
Corp., was $12.2 million. In addition, Westaim held third-party ABCP with a
book value of $14.1 million. As previously reported, the market for
$35 billion of third-party ABCP has been frozen since mid-August and until the
paper is restructured, or a market otherwise forms for this ABCP, Westaim
cannot be certain of the ultimate value it will realize for its holdings.
    The Company announced on November 2, 2007 the receipt of an offer,
subject to final documentation, for a credit line of $12.6 million from a
major financial institution. The credit facility will be available for one
year and will be secured by the equivalent value of ABCP held by the Company.
    Westaim also announced today that it will actively seek a buyer for its
iFire subsidiary. The Company will immediately freeze the development effort
on iFire's thick dielectric electroluminescent (TDEL) technology during the
sale process, which will reduce iFire's operating costs by approximately
50 percent.
    "Despite continued progress in certain aspects of its development plan,
iFire's overall progress has been slower than expected. With increasingly
demanding specification improvement targets in the flat panel TV market in
general, our product development timeline has been extended past the timeframe
we had originally expected," said Drew Fitch, President and CEO of The Westaim
Corporation. "Westaim continues to believe in the potential of iFire's TDEL
technology; however, we do not have the financial resources required to
complete the development work necessary for commercialization. We will
continue to assess the structure of the Company as the sale process develops."

    The Westaim Corporation's technology investments include iFire Technology
Corp., which is developing a low-cost flat panel display, and a 74.6 per cent
interest in NUCRYST Pharmaceuticals Corp. (NASDAQ:   NCST; TSX; NCS), which
develops, manufactures and commercializes medical products that fight
infection and inflammation based on its nanocrystalline silver technology.
Westaim's common shares are listed on The Toronto Stock Exchange under the
trading symbol WED.

    This news release contains forward-looking statements. These statements
are based on current expectations that are subject to risks and uncertainties,
and Westaim can give no assurance that these expectations are correct. Various
factors could cause actual results to differ materially from those projected
in such statements, including but not limited to statements regarding the
ultimate value of Westaim's asset-backed commercial paper, the availability of
credit, reduction of operating costs, product development timelines and the
work necessary for the commercialization of iFire's technology, the potential
of iFire's technology, Westaim's financial resources, and the potential sale
of iFire. Westaim disclaims any intention or obligation to revise
forward-looking statements whether as a result of new information, future
developments or otherwise. Accordingly, readers are advised not to place undue
reliance on forward-looking statements, and should not rely on this
information at any date other than the date of this news release. All
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.


    Financial Highlights
    (thousands of dollars except per share data)


                                  Three Months Ended       Nine Months Ended
                                      September 30            September 30
    Consolidated Statements    ---------------------   ---------------------
     of Operations                  2007        2006        2007        2006

    Revenue                    $   7,839   $   8,203   $  20,656   $  22,451
    Net loss                     (17,138)     (9,552)    (31,226)    (39,538)
    Net loss per common share
     - basic and diluted           (0.18)      (0.10)      (0.33)      (0.42)
    Weighted average number of
     common shares outstanding
     (thousands)                  94,098      93,944      94,047      93,369


                                  Three Months Ended       Nine Months Ended
                                      September 30            September 30
                               ---------------------   ---------------------
    Segmented Information           2007        2006        2007        2006

      Nucryst Pharmaceuticals  $   7,839   $   8,203   $  20,656   $  22,451

    Operating loss
      Nucryst Pharmaceuticals  $    (195)  $  (2,638)  $  (4,167)  $  (9,016)
      iFire Technology            (8,358)     (8,443)    (26,982)    (28,731)
      Other (including
       corporate costs)           (4,194)        229      (8,979)     (4,817)
    Operating loss             $ (12,747)  $ (10,852)  $ (40,128)  $ (42,564)

    Consolidated               September    December
     Balance Sheets             30, 2007    31, 2006

    Cash and short-term
     investments               $  32,645   $  62,832
    Current assets                51,247      80,256
    Other assets                  64,099      68,083
    Current liabilities           13,701      15,797
    Shareholders' equity          82,680     112,977

    %SEDAR: 00002793E

For further information:

For further information: David Wills, Investor Relations, (416)
504-8464, info@westaim.com, www.westaim.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890