MISSISSAUGA, ON, Oct. 4, 2021 /CNW/ - Cymat Technologies Ltd.
(TSXV: CYM) (the "Company" or "Cymat") is
pleased to report its results of operations for the three months
ended July 31, 2021.
Revenue for the quarter was $946,000, a 24% increase over last fiscal year's
Q1 revenue. Sales of AlusionTM, Cymat's architectural
line of products, accounted for $754,000 of the quarterly revenue, representing
the majority of Q1 revenue with the Company's automotive and
military division, SmartMetalTM, accounting for revenue
of $192,000.
The pipeline of significant construction projects remains
strong, although the Covid-19 pandemic continues to cause some
delayed construction dates for AlusionTM installations.
Q1 revenue unfortunately fell short of the Company's expectations
primarily as the result of mechanical issues experienced in the
plant, resulting in the loss of about one third of its production
capacity for the quarter. Opearations are now fully functional with
the plant working expeditiously to process the backlog of
orders.
AlusionTM continues to gain international recognition
and is seeing continued growth. The Company intends to further
capitalize on this success by increasing global marketing and sales
efforts. Cymat has signed an established European sales agency to
further enhance its strong continental presence. The Company has
also commenced a search for an additional senior sales person to
focus on new business development in North America.
Michael Liik, CEO commented,
"Alusion is becoming a recognized global brand and we believe that
we will see continued strong growth which can be accelerated by the
buildout of additional global marketing and sales resources."
SmartMetalTM revenue came primarily from the sale of
Stabilized Aluminum Foam ("SAF") panels used in a protection system
for the transport of explosive material. As recently announced,
Cymat has received an order for two SmartMetalTM blast
protection kits to be delivered to an Asian military vehicle OEM
this fall. Successful completion of blast testing, schedulted for
December, has the potential to result in an order from the OEM's
domestic armed forces for up to 700 kits, at an estimated value of
$5M to $7M.
In the latter part of Q1, Cymat experienced mechanical issues
with one of its primary melting furnaces, necessitating suspension
of casting operations for a period that lasted into mid-September.
Repair efforts were hampered by the shortage of parts and skilled
technicians, again due to the pandemic. Proceeds from the recent
financing are currently being used for manufacturing equipment
upgrades to increase resiliency, productivity and output
capacity.
Expenses for the three months ended July
31, 2021 include the recording of $878,000 in non-cash expenses resulting
from the valuation of stock options issued in June, a
quarter-over-quarter increase in consultant and advisory fees of
$135,000 and an increase in sales
commissions of $29,000. Additionally,
as the result of increased revenues, Cymat did not qualify for the
Canada Emergency Wage Subsidy
("CEWS") this quarter. The comparative quarter benefited from CEWS
proceeds of $138,000.
Key financial data for the year ended April 30, 2021 and the two previous fiscal years
include the following (All items in $ 000's, except net loss per
share):
|
July 31,
2021
|
July 31,
2020
|
|
|
|
Revenue
|
946
|
765
|
Plant operating
expenses
|
556
|
372
|
Research and material
testing expenses
|
31
|
34
|
Selling, general and
administrative expenses
|
1,409
|
296
|
(Loss) income from
operations
|
(1,049)
|
63
|
Net (loss)
income
|
(1,134)
|
7
|
Operating cash
flow
|
(1,308)
|
178
|
Cash and cash
equivalents
|
5,232
|
485
|
Working
Capital
|
4,819
|
(608)
|
Total
Assets
|
7,056
|
1,862
|
Michael Liik, CEO of Cymat
commented, "While sales for our first quarter improved year over
year, financial performance was adversely affected by both extended
downtime on one of our furnaces and by the non-cash effects of
employee and consultant option grants." He added, "We are focussed
on taking Cymat to the next level with significant investments in
both sales resources and plant operations to accelerate sales
growth and provide state-of-the-art manufacturing facilities,"
further added Mr. Liik.
About Cymat Technologies Ltd.
Cymat Technologies Ltd. has the global rights, through patents
and established know-how, to manufacture and sell Stabilized
Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic
material. The proprietary production process entails the injection
of gases through a molten bath of alloyed aluminum infused with
ceramic particles. The result is an advanced, lightweight,
recyclable material that exhibits unique characteristics including:
customizable density and dimensions; mechanical energy absorption;
thermal and acoustic insulation; and time, temperature and
strain-rate insensitivity. A key benefit of this continuous foam
production process is its scalability and resultant low cost of
production. SAF is used in such industries as architectural design,
military and automotive. Cymat markets its architectural SAF under
the AlusionTM brand and its automotive and military SAF
under the SmartMetalTM brand. For further information ,
please visit our website at www.cymat.com.
Certain information set forth in this news release may
contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. All statements other than
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SOURCE Cymat Technologies Ltd.