CYMAT REPORTS FISCAL 2011 - FIRST QUARTER RESULTS
Listing: TSX
Symbol: CYM
TORONTO, Sept. 10 /CNW/ - Cymat Technologies Ltd (symbol CYM, TSX) reports revenue of approximately $0.4 million for the first quarter ended July 31, 2010, compared with revenue of approximately $0.1 million for the same period in the prior fiscal year.
The quarterly increase in revenue is due to a substantial increase in architectural sales orders driven primarily by the sale of Alusion product to the prestigious $4 billion award winning LEED's Platinum Certified project in China. In addition, the Company's network of distributors and agents were successful in securing increased orders through the first quarter ended July 31, 2010 as they continue to increase awareness of the Alusion product.
Revenue also includes military samples shipped to a number of military customers for the purpose of evaluating SmartMetal(TM) as part of a number of armored vehicle applications.
The net loss for the quarter was $1.4 million compared to $1.5 million for the same period in the prior year.
Highlights for the quarter were:
- On September 9, 2010, the Company announced the appointment of David
Fowler as its new President and Chief Operating Officer. Mr. Fowler
was Group Vice President of Woodbridge Foam Corporation and brings
extensive executive leadership experience with particular expertise
in technical foam products with long sales cycles.
- Significant progress was made in the blast mitigation and the
military arena with the Company continuing to work very closely with
OEM's, armor integrators and US officials on specific retrofit
programs. The Company has been diligently working with its military
partners ensuring that their dynamic timelines and high standards are
met during their evaluation phase of each program.
- Cymat participated in several of the largest architectural trade
shows in the United States, exhibiting at the American Institute of
Architects, displaying its material at the HD Expo in Las Vegas and
the International Contemporary Furniture Fair in New York. This
participation is key to the Company's strategy of raising the profile
and recognition of Alusion in the North American market.
- On August 11, 2010 Cymat shareholders approved (the "Approval") the
conversion of subscription receipts into common shares and common
share purchase warrants issued as part of the private placement that
closed on April 19, 2010. As a result of the Approval, Cymat issued
3,912,388 new common shares and warrants and the net proceeds
previously held in escrow were paid to the Company.
"We are very pleased with the progress we made in the first quarter with our commercialization activities," said Michael Liik, Cymat's Chief Executive Officer. "The inclusion of the Alusion product in the high profile LEED's Platinum Certified project in China was a significant win for Cymat and has increased the profile of our product within the architecture market. The on-going integration of SmartMetal(TM) by several military vehicle OEMs and armour integrators into their specific IED solutions has shown extremely positive results. We are optimistic that our commercialization activities will continue to gain momentum through the remainder of this year under David's leadership."
Key Financial Information
The following shows key financial information for the first quarter and comparables.
Three Months ended:
31-Jul-10 31-Jul-09
Revenue $398,783 $82,178
Plant operating costs $511,849 $300,723
Research and development $36,066 -
SG&A $875,801 $809,612
Net loss ($1,412,100) ($1,548,299)
Loss per common share - basic and
diluted* ($0.01) ($0.02)
Balance Sheet Items as at: 31-Jul-10 30-Apr-10
Cash and Short-term investments $1,077,655 $2,043,016
Working capital $1,617,293 $2,366,992
Weighted average no. of shares
outstanding basic and diluted 96,709,667 74,520,938
* Net loss per share has been calculated using the weighted average
number of common shares outstanding during the quarter ended July 31,
2010 and July 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: (905) 696-2424, Email: [email protected]
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