Canada markets close in 45 minutes
  • S&P/TSX

    20,255.37
    +74.77 (+0.37%)
     
  • S&P 500

    4,297.08
    -0.06 (-0.00%)
     
  • DOW

    34,107.91
    +195.47 (+0.58%)
     
  • CAD/USD

    0.7784
    +0.0031 (+0.40%)
     
  • CRUDE OIL

    86.13
    -3.28 (-3.67%)
     
  • BTC-CAD

    30,653.35
    -439.06 (-1.41%)
     
  • CMC Crypto 200

    566.64
    -5.28 (-0.92%)
     
  • GOLD FUTURES

    1,791.40
    -6.70 (-0.37%)
     
  • RUSSELL 2000

    2,018.54
    -2.81 (-0.14%)
     
  • 10-Yr Bond

    2.8240
    +0.0330 (+1.18%)
     
  • NASDAQ

    13,065.68
    -62.37 (-0.48%)
     
  • VOLATILITY

    19.89
    -0.06 (-0.30%)
     
  • FTSE

    7,536.06
    +26.91 (+0.36%)
     
  • NIKKEI 225

    28,868.91
    -2.87 (-0.01%)
     
  • CAD/EUR

    0.7653
    +0.0028 (+0.37%)
     

CYMAT REPORTS Q3 RESULTS FOR FISCAL 2022

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

/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./

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.

Cymat Technologies Ltd. (CNW Group/Cymat Technologies Ltd.)
Cymat Technologies Ltd. (CNW Group/Cymat Technologies Ltd.)

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.

Cision
Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2022/04/c8158.html

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting