Symbols: TSXV: CYM
OTCQB: CYMHF
MISSISSAUGA, ON, Sept. 30, 2024 /PRNewswire/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the "Company" or "Cymat") is pleased to announce its results for the first quarter of the fiscal 2025 year - the three months ended July 31, 2024.
Cymat commenced its new fiscal year with a record-setting quarterly revenue of $2M and achieving positive cashflow from operations. Sales were led by Cymat's architectural business as the Company delivered $1.8M of AlusionTM panels. Sales included its first major order for the NEOM development in the Kingdom of Saudi Arabia, cladding for an Italian energy company's new head office, and a major restocking order for its China -based AlusionTM distributor.
While more modestly represented in the quarterly revenue figure, SmartMetalTM - Cymat's custom engineered stabilized aluminum foam (SAF) - commenced with initial deliveries under long-term contracts in key industry verticals.
One such vertical for SmartMetalTMis the defense and security sector. SmartMetalTM attributes particularly relevant to the needs of this market sector include its ability to dissipate blast and impact energy, its comparative lightweight, and its compatibility with composite systems designed for multi-threat protection applications. Within this defense vertical, Cymat is pleased to announce that it has shipped the first 24 SmartMetalTM underbelly protection kits to our Asian military vehicle manufacturer customer. This shipment is the leading edge of an expected initial 350 kit order. These SmartMetalTM equipped transport vehicles have been ordered by the customer's national military who is expanding its fleet by approximately 700 vehicles. While this order is still on a quoted-price basis, Cymat is in the final stages of approval for the definitive 3-year supply contract. The full value of the initial contract is anticipated to be in the $4M - $5M range. The OEM's marketing efforts for this vehicle are expected to extend to the broader global military customer base, where earlier vehicle variants are in service.
Another key market for SmartMetalTM is the energy infrastructure sector. In a recently issued press release, Cymat announced the receipt of a major order for SmartMetalTM panels from NUVIA, a global specialist in nuclear technology based in France. Cymat has begun the shipment of these panels which NUVIA will integrate into its NuFoamTM system to provide protection of sensitive nuclear power generation equipment from external threats. These panels represent the first $1M phase of a total $2.7M order. France's ongoing life extension programs for its nuclear power generating facilities is expected to result in a future stream of similar orders. By attaining this order, Cymat has demonstrated its ability to meet the exacting manufacturing standards of the nuclear energy industry. Based on the efficacy of SmartMetalTM within the NuFoamTM platform, Cymat has initiated conversations with several other entities interested in providing enhanced resilience for new energy infrastructure projects.
Additionally, Cymat continues to place a high priority on business development efforts targeting the automotive industry, with a focus on electrified vehicle platforms. Recent media reports have highlighted the challenges that automotive OEMs are facing with regards to the expense of manufacturing BEVs and softening consumer demand. Cost reduction is clearly a key element necessary for OEMs to succeed in their journey to vehicle electrification. As proven by independently performed dynamic testing, a SmartMetalTM based prototype successfully demonstrated its ability to protect the underside of battery enclosure from object impact while offering a reduced component weight, increased energy absorption and reduced post-crash deflection. Moreover, this SmartMetalTM component can deliver cost savings and contribute to battery system simplification goals. Communication of enhanced SmartMetalTM marketing material featuring the independent testing report from this prototype continues to drive discussions with several automotive OEMs and Tier One suppliers. For fiscal 2025, Cymat expects to build upon its investment in manufacturing, testing and information systems to further demonstrate its capability in meeting the requirements of the automotive manufacturing environment.
Cymat CEO and Chairman Michael Liik stated "We are extremely pleased with this significant turn around in our business after a challenging fiscal 2024. While Alusion continues to generate a significant portion of our revenues, the beginnings of long-term contractual revenue from our SmartMetal division should provide a much higher degree of predictability to our financial performance going forward." He went on to say that "It is particularly satisfying to see our long term business and product development efforts in the nuclear and defence industries begin to yield results. We anticipate that these two business verticals will lay a strong and growing foundation to our business going forward."
Michael Liik will lead an Investor Update call and presentation on Tuesday October 1 st at 11:00 AM Eastern Time (ET), hosted by Investor Cubed. Full details of the event are outlined below.
PRESENTATION DETAILS:
- Date: Tuesday, October 1 st, 2024
- Time: 11:00 AM Eastern Time (ET)
Please see below the link to the webinar.
https://us06web.zoom.us/webinar/register/WN_9BKqPPs5TYWj4Pd7t-JGTw
The following table presents selected financial information for the three-month periods ended July 31, 2024, and July 31, 2023 (in $CAD 000's).
Three Months Ended July 31 | ||
2024 | 2023 | |
($) | ($) | |
Interim Consolidated Statements of Operations | ||
Revenue | 1,992 | 1,037 |
Plant operating expenses | 1,440 | 1,067 |
Research and material testing expense | 141 | 53 |
Selling, general and administrative expenses | 670 | 979 |
Loss from operations | (259) | (1,062) |
Net loss | (542) | (1,154) |
Interim Statements of Cash Flows | ||
Cash provided by (used in) operating activities | 272 | (622) |
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 Alusion brand and its automotive and military SAF under the SmartMetal 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.
SOURCE Cymat Technologies Ltd.
