MISSISSAUGA, ON, Dec. 31, 2021 /CNW/ - Cymat Technologies
Ltd. (TSXV: CYM) (the "Company" or "Cymat") is
pleased to report its results of operations for the second quarter
ended October 31, 2021.
Revenue for the second quarter of fiscal 2022 was $386,000 representing a decrease of $220,000, or 36%, compared to revenue from the
second quarter of the preceding year of $606,000. Repairs to the lining and control
systems for one of the casting furnaces, resulted in down time for
the Stabilized Aluminum Foam ("SAF") casting line that extended for
half of the second quarter. Supply chain interruptions that have
typified the Covid-19 pandemic delayed the receipt of replacement
components, delaying repair time beyond the typical timeframe.
Repairs were completed at the midway point of the quarter and
production has been operating at full capacity since that point,
progressing towards fulfillment of the $1.2
Million in sales order backlog.
AlusionTM, Cymat's architectural aluminum foam, is
expected to continue to provide the majority of revenue for the
near term, with the bulk of the above-mentioned order backlog
relating to AlusionTM panels. Some short-term delays in
the timing of architecture orders are possible as the pandemic
continues to exert its economic influence; however, the pipeline of
major construction projects continues to be strong. In its
efforts to further broaden the AlusionTM sale pipeline,
Cymat continues to collaborate with its newly signed European
architectural sales agency to further augment its traditionally
strong continental presence. Also Cymat has added a full-time
senior sales person based in the United
States with a focus on developing new business and agent
relationships in the USA and Cymat
has launched a marketing campaign with an additional online
architectural platform.
Cymat continues to focus a significant portion of its business
development efforts on the promotion of SmartMetalTM's
utility to the automotive sector as a solution to achieve vehicle
light-weighting and energy absorption objectives. Cymat has
bolstered its executive team with the addition of a Chief Operating
Officer and a Chief Commercial Officer that both have extensive
experience in the automotive manufacturing industry. Additionally,
our new US-based sales person has a lengthy history in the
automotive sector and possesses significant contacts with new,
upstart automotive OEMs. Ongoing production line upgrades are
expected to benefit automotive business development efforts as they
enhance Cymat's ability to demonstrate high volume manufacturing
readiness to automotive OEMs and Tier 1 suppliers.
Expenses for the six months ended October
31, 2021 include the recording of $1.1 Million in non-cash expenses resulting from
the valuation of stock options issued in June, and a
period-over-period increase in salaries, recruiting fees consultant
and advisory fees of $321,000. Also,
Cymat no longer qualifies for the Canada Emergency Wage Subsidy ("CEWS") which
reduced reported expenses in the six months that ended October 31, 2020 by $219,000.
Key financial data for the three and six months ended
October 31, 2021 and October 31, 2020 include the following (All items
in $ 000's, except net loss per share):
|
Three Months
Ended
October
31
|
Six Months
Ended
October
31
|
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Revenue
|
386
|
606
|
1,332
|
1,371
|
Plant operating
expenses
|
426
|
292
|
982
|
664
|
Research and material
testing expenses
|
85
|
34
|
116
|
68
|
Selling, general and
administrative expenses
|
837
|
341
|
2,245
|
636
|
(Loss) income from
operations
|
(962)
|
(60)
|
(2,011)
|
4
|
Net loss
|
(1,042)
|
(109)
|
(2,176)
|
(102)
|
Net loss per
share
|
(0.02)
|
(0.00)
|
(0.04)
|
(0.00)
|
Operating cash
flow
|
(1,096)
|
79
|
(2,405)
|
257
|
Cash and cash
equivalents
|
|
|
4,047
|
553
|
Working
Capital
|
|
|
3,979
|
(677)
|
Total
Assets
|
|
|
6,267
|
2,340
|
Michael Liik, CEO of Cymat
commented, "While second quarter sales were clearly disappointing,
the casting furnaces are fully operational and we have begun to
tackle our order backlog." He added, "We are very enthusiastic
about entering the balance of the year with a strong order backlog
and growing pipeline; a considerably expanded experienced senior
management team; and the continuing evolution of our Mississauga plant to a state-of-the-art
manufacturing facility."
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.
Not intended for distribution to United States Newswire
Services or for dissemination in the
United States. Any failure to comply with this restriction
may constitute a violation of United States Securities
laws.
SOURCE Cymat Technologies Ltd.