Cymat Reports Fiscal 2012 Third Quarter Results
March 15 2012 - 1:59PM
PR Newswire (Canada)
Listing: TSX Symbol: CYM TORONTO, March 19, 2012 /CNW/ - Cymat
Technologies Ltd., a materials technology company focused on the
architectural, military and automotive industries, announced its
results for the quarter ending January 31, 2012. The quarter ending
January 31, 2012, is the third quarter that Cymat is reporting
under International Financial Reporting Standards ("IFRS").
The net loss for the quarter was $251,000 compared to $985,000 for
the same quarter in the prior year. Highlights for the Quarter --
Quarterly revenues increased by approximately $494,000, or 358%, as
the result of increased Alusion™ sales primarily associated with
the Congress Center in Mallorca Spain. -- Loss from operations
decreased by approximately $94,000, or 59%, as the result of the
increased revenue. -- Cash used in operating activities improved by
approximately $456,000, or 62%, compared to the third quarter of
fiscal 2011. -- A work stoppage at the Mallorca Congress Center
construction site resulted in a second quarter slowdown of
AlusionTM sales and production. This has since been remedied with
third quarter AlusionTM activity back at pre-stoppage pace.
However, production activity in the third quarter was curtailed as
a result of an unanticipated furnace relining at the Cymat
production facility, causing deliveries of Mallorca orders to be
pushed into the fourth quarter. "While Alusion(TM) sales continue
to provide solid cash flow for Cymat, our SmartMetal(TM) strategy
of reaching beyond the US military is starting to get traction,"
said Michael Liik, Executive Chairman of Cymat. Key Financial
Information Three months ended Nine monthsended January 31 January
31 2012 2011 2012 2011 ($) ($) ($) ($) Revenue 631,668 137,678
2,310,162 678,173 Plant operating 872,211 446,469 2,779,801
1,931,739 expenses Research and 3,136 (44,242) 17,586 50,383
material testing expense Selling, general 547,010 620,887 1,846,762
2,505,296 and administrative expenses Loss from (790,689) (885,436)
(2,333,987) (3,809,245) operations Net loss (251,159) (985,060)
(1,864,667) (4,009,301) Basic and diluted (0.00) (0.01) (0.02)
(0.04) net loss per share Cash used in (274,177) (729,582)
(533,690) (2,683,294) operating activities Outlook The materials
industry for architectural and construction remains highly
competitive with numerous solutions competing for high profile
projects. For many world economies the recovery from the 2008-2009
financial crisis has stalled, with the threat of another recession
possible. Accordingly, the industry is dealing with budget
cuts and project delays. Earlier in the year, economic conditions
in Spain resulted in a construction delay at the Congress Center in
Mallorca. In the previous quarter, the Company had resumed
production of material on the Mallorca contract and the pace of
production had returned to the pre-stoppage level. As of the
date of this report, the final material shipment of the Mallorca
contract has left the Company's plant. Management anticipates that
the Company will continue to build upon the successes achieved in
the architecture market in fiscal 2011 with the awards pertaining
to the National September 11 Memorial Museum at the World Trade
Center site in New York City and the Congress Center in Mallorca.
The Company also expects continued expansion of its international
network of agents and distributors of Alusion™, resulting in
increased sales opportunities. Military forces and OEM
manufacturers continue to focus on developing counter measures for
IED threats, including retrofitting existing vehicles and
incorporating next-generation vehicles with lightweight,
high-energy absorption materials such as SmartMetal(TM). At
the same time military budgets face increasing pressure and
cost-cutting initiatives as the result of government deficit and
debt levels and weakening global economies. Still, IED
countermeasures remain as high priority needs for NATO forces. As
of last quarter's end, the US military had issued a draft Request
for Proposal ["RFP"] for the Humvee retrofit program which
indicated specific timelines and volumes of vehicles subject to
retrofit, with submissions under this RFP due by January 13,
2012. Subsequently the US military withdrew the due date for
RFP submissions. As of the date of this report, the
final RFP has not been released and there is no due date for RFP
submissions. While the uncertainty regarding the Humvee retrofit
program is disappointing, SmartMetal(TM) continues to be evaluated
by several OEMs in various military vehicle platforms for next
generation and retrofit vehicles. Sales of this nature generally
have long timelines, require deep relationships and require the
ability to design and engineer customized solutions. In addition to
the continued focus of its internal resources on development of
this market, Cymat has expanded its strategy for military markets
to include the use of agents to assist in the development of more
effective structures for customer communication, product awareness,
clarity for local program opportunities and customer needs,
together with recognition of local market dynamics. On the
automotive front, Cymat continues to investigate the efficacy of
SmartMetal™ applications in automotive design. A recent
meeting with a major manufacturer in the automotive industry
centered on a renewed interest in the possibility of incorporating
SmartMetal(TM), as produced from Cymat's flat panel line, into the
design for automotive crash-boxes. Management believes that
SmartMetal(TM) has the potential to resolve the conflicting
requirements within automotive design for increased vehicle
crashworthiness while at the same time reducing vehicle weight.
Additionally, Cymat is also exploring markets for various
non-vehicular applications of SmartMetal(TM). For
example, Cymat has recently delivered prototype orders in
connection with the investigation of SmartMetal(TM)'s utility for
blast mitigation with respect to stationary objects.
Additionally, Cymat has recently provided prototype SmartMetal(TM)
material to be examined for its usefulness as a consumable energy
absorption agent in a manufacturing process. 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 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. Cymat Technologies Ltd. CONTACT:
Investors and Media:Michael LiikExecutive ChairmanCymat
Technologies Ltd.Tel: (416) 307-4015 Email: liik@cymat.com
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