MISSISSAUGA, ON, December 31, 2021 / CNW / – Cymat Technologies Ltd. (TSXV: CYM) (the “Society” Where “Cymat“) is pleased to present its operating results for the second quarter ended October 31, 2021.
Revenues for the second quarter of fiscal 2022 were $ 386,000 representing a decrease of $ 220,000, or 36%, compared to the turnover of the second quarter of the previous year of $ 606,000. Repairs to the lining and control systems at one of the casting furnaces resulted in downtime for the stabilized aluminum foam (“SAF”) casting line which extended for half of the second. trimester. The supply chain disruptions that characterized the Covid-19 pandemic have delayed receipt of replacement components, delaying repair time beyond the usual timeframe. Repairs were completed midway through the quarter and production has been running at full capacity since that time, progressing towards completion. $ 1.2 million in the order book.
illusionMT, Cymat’s architectural aluminum foam, is expected to continue to provide the majority of revenue in the near term, with most of the aforementioned backlog relating to AlusionMT panels. Some short-term delays in the timing of architectural 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 expand the AlusionMT sales pipeline, Cymat continues to collaborate with its newly signed European architecture sales agency to further increase its traditionally strong continental presence. Cymat also added a full-time senior sales representative based at United States with an emphasis on developing new business and agent relationships in the United States and Cymat launched a marketing campaign with an additional online architectural platform.
Cymat continues to focus a significant portion of its business development efforts on promoting SmartMetalMT‘s for the automotive sector as a solution to achieve the goals of weight reduction and energy absorption of vehicles. Cymat has strengthened its management team with the addition of an COO and a Commercial Director who both have extensive experience in the automotive manufacturing industry. In addition, our new US-based salesperson has a long history in the automotive industry and has significant contacts with new entry-level 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 closed semester October 31, 2021 include recording of $ 1.1 million non-cash expenses resulting from the valuation of stock options issued in June and a period-over-period increase in salaries, recruitment consultant fees and advisory fees for $ 321,000. In addition, Cymat no longer qualifies for the Canada Emergency Wage Subsidy (“SSUC”) that reduced reported expenses in the six months that ended October 31, 2020 through $ 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 thousands of dollars, except net loss per share):
Three months ended
Six months ended
Plant operating costs
Materials research and testing costs
Selling, general and administrative expenses
(Loss) operating income
Net loss per share
Operating cash flow
Cash and cash equivalents
Michael liik, Cymat CEO commented: “While second quarter sales were clearly disappointing, the casting furnaces are fully operational and we have started to reduce our backlog. He added, “We are very excited to start the rest of the year with a strong order book and a growing pipeline; a significantly expanded experienced management team; and the continuous evolution of our Mississauga factory in a state-of-the-art manufacturing facility.
About Cymat Technologies Ltd.
Cymat Technologies Ltd. owns the worldwide rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam (“SAF”), a unique, ultralight, cellular metallic material. The proprietary production process involves the injection of gas through a molten bath of aluminum alloy infused with ceramic particles. The result is an advanced, lightweight and recyclable material that exhibits unique characteristics, including: customizable density and dimensions; absorption of mechanical energy; thermal and acoustic insulation; and insensitivity to time, temperature and strain rate. A key advantage of this continuous foam production process is its scalability and the resulting low production cost. SAF is used in industries such as architectural, military and automotive design. Cymat markets its architectural SAF under AlusionMT brand and its automotive and military SAF under the SmartMetalMT Brand. For more information, please visit our website at www.cymat.com.
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SOURCE Cymat Technologies Ltd.
For more information: Company Contact: Michael Liik, CEO, Email: [email protected], Phone: (416) 704-6217, Website: www.cymat.com; For more information, please contact: Investor Cubed Inc .: Neil Simon, CEO, Email: [email protected], Telephone: (647) 258-3310