CYMAT REPORTS SECOND QUARTER RESULTS FOR FISCAL 2023
Symbols: TSXV: CYM
MISSISSAUGA, ON, Jan. 3, 2023 /PRNewswire/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the “Company” or “Cymat”) is pleased to announce its results for the second quarter of the fiscal 2023 year – the three months ended October 31, 2022.
Sales for the quarter were approximately $1.0M in comparison to $0.4M for the comparable quarter of the last fiscal year. AlusionTM sales included significant orders shipped to Eastern Asia and an order for a large American-based internet search engine company. Current quarter sales also included sales of SmartMetalTM to an Asian Original Equipment Manufacturer (“OEM”) for under-belly blast protection on military personnel carriers as well as an order for protective material used in the French nuclear energy industry. Revenue in the comparative quarter were impacted by maintenance down-time on the casting line, with supply chain interruptions that extended the repair time beyond the typical timeframe.
The loss from operations of $1.3 (2021 – loss of $1.0M) included non-cash charges of $0.4M (2021 - $0.2M) pertaining to the valuation of employee/consultant stock options. Additionally, operating expenses for the current period were increased as a result of the addition of a second production shift, increases in wages to address the tight labour market, increased depreciation and maintenance expenses resulting from production line upgrades and increased business development expenditures.
Prior to the end of December 2022, Cymat shipped two more SmartMetalTM blast mitigation kits to the Asian military vehicle OEM, with a further three kits expected to ship early in this new calendar year. These kits are part of a low-rate initial production order for an Asian military force anticipated to eventually deploy up to 700 vehicles equipped with SmartMetalTM blast protection.
Cymat continues to emphasize the automotive industry in business development efforts. As announced in December, Cymat commenced a second component development agreement with a global automotive OEM. This component will employ SmartMetalTM in a system to provide battery side impact protection for a new mid-sized EV platform. Initial annual vehicle volumes are forecast to be in the 50,000-vehicle range, expanding to several hundred thousand vehicles per year as more models are introduced on the platform. With the assistance of our design partner, Tesseract, Cymat expects to complete the design phase for this component by the end of the first calendar quarter of 2023.
Key financial data for the three and six months ended October 31, 2022 and October 31, 2021 include the following (All items in $ 000′s, except net loss per share):
Three Months Ended
Six Months Ended
Plant operating expenses
Research and material testing expense
Selling, general and administrative expenses
Loss from operations
Net loss per share
Operating cash flow
Michael Liik, CEO and Chairman stated that “We are anticipating increased sales activity in both our architectural and military product lines in the two remaining quarters of our fiscal year.” He further added “As well, by March 2023, we expect a final decision from our automotive OEM customer on whether it will incorporate our SmartMetal components on two of the car manufacturer’s EV platforms.”
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.
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SOURCE Cymat Technologies Ltd.