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MISSISSAUGA, ON, April 4,
2022 /CNW/ - Cymat Technologies Ltd. (TSXV:CYM)
(the "Company" or "Cymat") is pleased to report
its results of operations for the third quarter ended January 31, 2022.
Revenue for the third quarter of fiscal 2022 was $468,000 representing a decrease of $658,000, or 58%, compared to revenue from the
third quarter of the preceding year of $1,126,000. The Covid-19 pandemic continues to
create short-term delays in the timing of architectural deliveries.
AlusionTM panels ordered for a Lithuanian science museum
façade with a commercial value of $500,000 had not yet reached their final
destination due to such delays and, accordingly, were still
included in inventory at quarter end. Additionally, a $600,000 AlusionTM order for the
facade of a conventrion centre in Washington State that was originally expected
for the third quarter, will now be shipping in the final fiscal
quarter. Despite the potential for continued near-term timing
extensions, the pipeline of major AlusionTM projects
remains robust.
The primary focus of business development efforts continues be
the promotion of SmartMetalTM's efficacy in vehicle
light-weighting and energy absorption solutions for the automotive
sector. Newly developed automotive connections, such as the
recently announced collaboration with the Automotive Parts
Manufactuing Association ("APMA"), are being leveraged to extend
Cymat's reach deeper into the automotive industry. Production
line upgrades are on-going, enhancing Cymat's ability to
demonstrate its high volume manufacturing readiness to automotive
OEMs and Tier 1 suppliers.
In the second quarter quarter, Cymat experienced operational
difficulties with one of its primary melting furnaces. Repair
efforts were hampered by supply chain interruptions and scarcity of
skilled technicians. Since then, casting operations have returned
to full capacity. However, management is mindful of the potential
for further impediments to the timely delivery of essential raw
materials and critical manufacturing components. Management is
employing enhanced inventory and supply chain management strategies
to mitigate potential risks, including holding higher levels of
inventory for raw materials and key production consumables. Cymat
has also initiated a development program for alternative
configurations and formulations pertaining to certain essential
consumable production components
Expenses for the nine months ended January 31, 2022 include the recording of
$1.7 Million in non-cash expenses –
the most prominent being stock option related expenses in the
amount of $1.5 Million. The expansion
of Cymat's executive and sales team led to a period-over-period
increase in expenses for salaries, recruiting fees, consulting and
advisory fees of $676,000. Also,
Cymat no longer qualifies for the Canada Emergency Wage Subsidy ("CEWS") which
reduced reported expenses in the comparative nine-month period that
ended January 31, 2021 by
$232,000.
Key financial data for the three and nine months ended
January 31, 2022 and January 31, 2021 include the following (All items
in $ 000's, except net loss per share):
|
Three Months
Ended
January
31
|
Nine Months
Ended
January
31
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Revenue
|
468
|
1,126
|
1,800
|
2,497
|
Plant operating
expenses
|
295
|
657
|
1,277
|
1,321
|
Research and material
testing expenses
|
33
|
31
|
149
|
98
|
Selling, general and
administrative expenses
|
1,291
|
432
|
3,537
|
1,069
|
(Loss) income from
operations
|
(1,151)
|
5
|
(3,162)
|
9
|
Net loss
|
(1,195)
|
(70)
|
(3,372)
|
(172)
|
Net loss per
share
|
(0.02)
|
(0.00)
|
(0.06)
|
(0.00)
|
Operating cash
flow
|
(713)
|
(280)
|
(3,118)
|
(23)
|
Cash and cash
equivalents
|
|
|
3,587
|
226
|
Working
Capital
|
|
|
3,528
|
(781)
|
Total Assets
|
|
|
7,008
|
1,782
|
Michael Liik, CEO of Cymat
commented, "While we were disappointed by the effects of pandemic-
related shipping delays on our revenue for the quarter, our Alusion
order book remains strong for Q4 and into the next fiscal year." Mr
Liik further added " We are particularly encouraged by recent
advancements in our SmartMetal business development initiatives as
they relate to automotive and military verticals"
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
statements of historical fact are forward-looking statements,
including, without limitation, statements regarding future
financial position, business strategy, use of proceeds, corporate
vision, proposed acquisitions, partnerships, joint-ventures and
strategic alliances and co-operations, budgets, cost and plans and
objectives of or involving the Company. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "predicts", "intends",
"targets", "aims", "anticipates" or "believes" or variations
(including negative variations) of such words and phrases or may be
identified by statements to the effect that certain actions "may",
"could", "should", "would", "might" or "will" be taken, occur or be
achieved. A number of known and unknown risks, uncertainties and
other factors may cause the actual results or performance to
materially differ from any future results or performance expressed
or implied by the forward-looking information. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company including, but not limited to, the impact of general
economic conditions, industry conditions and dependence upon
regulatory approvals. Certain material assumptions regarding such
forward-looking statements may be discussed in this news release
and the Company's annual and quarterly management's discussion and
analysis filed at www.sedar.com. Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The Company does not assume any
obligation to update or revise its forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required by securities laws.
No securities regulatory authority has either approved or
disapproved of the contents of this news release. The Shares have
not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, or any state securities laws,
and may not be offered or sold in the
United States, or to or for the account or benefit of any
person in the United States,
absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy any common
shares in the United States, or in
any other jurisdiction in which such offer, solicitation or sale
would be unlawful. We seek safe harbour.
Neither the Toronto Venture Exchange (TSXV) nor its Market
Regulator (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this news
release.
SOURCE Cymat Technologies Ltd.