CALGARY, ALBERTA, CANADA - The Westaim Corporation announced today that for the year ended December 31, 2000, it recorded a net loss of $14.6 million, or 19 cents per share, compared to a net loss of $23.9 million, or 32 cents per share in the prior year. The loss from continuing operations was $28.2 million, or 37 cents per share, for the year ended December 31, 2000 compared to $28.8 million, or 38 cents per share in 1999. Revenues from continuing operations were $127.8 million in 2000 and $97.1 million in 1999.
For the three months ended December 31, 2000, the company posted a net loss from continuing operations of $10.8 million, or 14 cents per share, on revenues from continuing operations of $34.8 million. For the same period last year, Westaim had a net loss from continuing operations of $9.2 million, or 12 cents per share, on revenues from continuing operations of $29.6 million.
The results in 2000 include one-time gains of $10.5 million as a result of an equity investment in iFire Technology Inc. by TDK Corporation of Japan and $9.2 million from the sale of the company’s Chemicals Division. In addition, a non-cash charge of $8.0 million is included in the year to reflect equity accounting treatment for Westaim’s investment in Savvion, Inc.
At December 31, 2000, Westaim had $124.5 million in cash and short-term investments, and no debt.
“Meaningful progress in each of our technology businesses resulted in a significant increase in shareholder value in 2000,” said Kevin Jenkins, President and CEO of Westaim. “We expect to accomplish many important commercialization milestones in 2001 and are on track for another year of solid achievement.”
iFire Technology Inc.
iFire Technology continued to make important technical and commercial steps in 2000 towards its goal of producing consumer-priced hang-on-the-wall televisions. iFire’s goal is to be producing iFire-brand display modules in 2003, when the global market for large size consumer televisions is estimated to reach US$66 billion.
In February 2000, the company signed a $US25-million non-exclusive licensing agreement with TDK Corporation of Japan to produce iFireTM displays less than 12 inches in size. The company made excellent technical progress in 2000 and demonstrated the ease with which iFireTM displays can be scaled to larger sizes. In only five months, the company demonstrated that a full-color video display could be scaled from 8.5 inches to 17 inches.
In January 2001, iFire significantly improved its materials system by achieving TV-quality color, a significant step in meeting the specifications for commercial television. In 2001, in addition to producing TV-quality color 8.5-inch and 17-inch prototypes, iFire expects to conclude a partnership agreement for the future development and commercialization of its iFireTM screens for flat panel televisions.
Westaim Biomedical Corp.
Westaim Biomedical’s infection-control technology continues to receive strong clinician acceptance. Sales of its first product, Acticoat® antimicrobial barrier dressings, which are currently being sold for use in the life-threatening infection control environment of hospital burn units, continue to grow. Sales of burn dressings in this concentrated market grew year over year by 60 per cent and Acticoat® burn dressings are now being used in more than 100 of the 120 leading burn centers in North America. During 2000, the company also signed a distribution agreement for its burn dressings in Japan.
Building on two years of success from its Acticoat® burn dressings, Westaim Biomedical received clearance for Acticoat® 7 dressings, which are specifically designed for the treatment of chronic wounds, such as venous insufficiency ulcers, diabetic foot ulcers and pressure sores. Early evidence shows Acticoat® 7 dressings to be extremely beneficial in the treatment of chronic wounds, a growing market estimated to be US$1 billion annually. Westaim Biomedical expects to sign a worldwide wound care distribution agreement in the first half of 2001. In addition, the company is also examining scientific evidence that suggests the potent “healing” or therapeutic properties of Acticoat® products. A decision to pursue a therapeutic claim for the treatment of chronic wounds will also be made in the first half of the year.
Savvion, Inc.
In the first quarter of 2000, Westaim purchased an equity stake in Savvion, a privately held Silicon Valley-based e-business software developer, for approximately US$16 million. Savvion’s business process management software allows new and existing businesses to quickly and efficiently put their business processes on the web. This provides real-time management and unprecedented control of operations, resulting in dramatic cost savings and increased efficiencies. Savvion had an impressive first year of sales for its BusinessManagerTM software, attracting numerous Fortune 500 companies and signing technology partnership agreements with industry leaders such as BEA, BV Solutions and WebMethods. In 2001, Savvion will release new versions of its business process management software and will continue to increase sales.
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, 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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