CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the second quarter ended June 30, 2001, it recorded net earnings of $2.0 million,or three cents per share, on revenue of $16.2 million. The results include a $20.1 million gain on sale of assets related to the sale of the Westaim Biomedical burn business to Smith & Nephew as well as a write down of investments of $6.6 million primarily related to Savvion, Inc. In the same quarter last year, the company recorded a net loss of $10.6 million, or 14 cents per share, on revenues of $30.2 million.
For the six months ended June 30, 2001, the company posted revenues of $37.3 million and a net loss of $6.0 million, or eight cents per share. For the same period last year,Westaim had revenues of $63.6 million and a net loss of $8.2 million, or eleven cents per share. At June 30, 2001, Westaim had $153.4 million in cash and short-term investments, and no debt.
“It has been an extremely positive first half of the year,” said Kevin J. Jenkins, Presidentand CEO of Westaim. “Our progress in the lab and the marketplace, combined with our strong balance sheet, position us well to become a significant player in the sectors we are targeting.”
iFire Technology
During the first half of 2001, iFire Technology demonstrated CRT-quality color on an 8.5-inch prototype display and is working to transfer the color accomplishment to a 17-inch prototype display. This progress helped iFire to advance discussions with potential partners for commercializing its flat panel technology in the consumer television market.
Westaim Biomedical
In May 2001, Westaim Biomedical closed a major marketing and sales agreement with Smith & Nephew, the world’s leading wound care company. Westaim Biomedical continues to manufacture all Acticoat® products for Smith & Nephew and is examining other applications for its nanocrystalline silver technology, including over-the-counter consumer products and pharmaceutical uses.
Savvion, Inc.
Savvion continues to build market awareness of its BusinessManagerTM business process management software by broadening its systems integrator (SI) partner base, establishing strategic relationships and expanding its customer base. In May 2001, Savvion BusinessManagerTM received a Product of the Year award from eAI Journal magazine.
About The Westaim Corporation
The Westaim Corporation is a technology accelerator that launches exceptional technologies into the marketplace. Its technology investments include Westaim Biomedical Corp., which has developed an infection control technology for use in the treatment of wounds; iFire Technology Inc., which has developed a revolutionary low-cost flat panel display; and Savvion, Inc., a leader in e-business management software. Westaim's common shares are listed on Nasdaq under the symbol WEDX and on The Toronto Stock Exchange under the symbol WED.
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For full financial statements and Management Discussion and Analysis, please visit www.westaim.com
For more information contact:
The Westaim Corporation
(403) 234-3103
info@westaim.com
www.westaim.com
Westaim Legal Notice Regarding Forward-Looking Statements
This news release may contain forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties, and the Company can give no assurance that these expectations are correct. Various factors could cause actual results to differ materially from those projected in such statements, including financial considerations and those predicting the timing and market acceptance of future products. The Company disclaims any intention or obligations to revise forward-looking statements whether as a result of new information, future developments or otherwise. All forward-looking
statements are expressly qualified in their entirety by this Cautionary Statement.
Management Discussion & Analysis and Financial Statements
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