CALGARY, May 3 /PRNewswire-FirstCall/ - The Westaim Corporation announced
today that for the first quarter ended March 31, 2006, it recorded a net loss
of $18.0 million or 19 cents per share, on revenues of $7.3 million. In the
same quarter last year, the company recorded net income of $2.5 million, or
three cents per share, on revenues of $5.0 million. Westaim's results in the
first quarter of 2005 benefited from $11.4 million of income from discontinued
operations.
At March 31, 2006, Westaim had $101.5 million in cash and short-term
investments.
"The first quarter of 2006 was productive for both iFire Technology and
NUCRYST Pharmaceuticals," said Barry M. Heck, President and CEO of Westaim.
"Pilot production is well underway at iFire and we are encouraged with the
progress made to date. NUCRYST continues to strengthen its intellectual
portfolio in dermatology and it recently completed patient enrolment for its
second Phase 2 human clinical trial of its investigational drug for the
treatment of atopic dermatitis."
Today, The Westaim Corporation is holding its Annual Meeting of
Shareholders in Toronto, Canada at 10:00 a.m. EDT. The meeting and
accompanying investor briefing, which will provide an update on the company's
businesses, will be webcast live and is available through the company website
www.westaim.com. An archive of the webcast will be posted following the
meeting.
Review of Operations:
iFire Technology
iFire Technology's pilot manufacturing facility is now operational with
process development and early production samples progressing as expected.
Through pilot production, iFire intends to complete the baseline processes for
the manufacture of its displays and focus on continual improvements to both
performance and manufacturing efficiency. The pilot plant will provide
information and experience to allow iFire to work with partners to construct
and operate the first volume production facility. Initial planning work for
this facility is under way.
The pilot facility is intended to simulate manufacturing in a commercial
environment in order to generate repeatability data and engineering samples of
high-definition 34-inch flat panel display modules based on its proprietary
thick dielectric electroluminescent (TDEL) technology. iFire expects to
commercialize its technology in partnership with industry leaders and plans to
initially target the 30- to 45-inch screen size television segment.
NUCRYST Pharmaceuticals
NUCRYST's wound care division reported revenues of $7.3 million in the
first quarter compared to $5.0 million in the same period last year. NUCRYST's
net loss, reported in Westaim's consolidated results, increased to
$3.3 million compared to $0.7 million last year primarily as a result of
higher clinical study and R&D expenditures.
NUCRYST has completed patient accrual for its second Phase 2 human
clinical trial of a topical cream formulation of its nanocrystalline silver.
The investigational drug (NPI 32101 topical cream) is being studied for the
treatment of atopic dermatitis, a form of eczema, and other skin conditions.
Results of the second Phase 2 human clinical trial are expected by the end of
2006.
NUCRYST also announced during the quarter the receipt of a new patent
covering its proprietary nanocrystalline silver for use in the treatment of
acne. NUCRYST's patent portfolio for use in dermatology now covers acne,
inflammatory skin conditions such as atopic dermatitis, and hyperproliferative
skin disorders such as psoriasis.
The Westaim Corporation's technology investments include NUCRYST
Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS), which develops, manufactures
and commercializes medical products that fight infection and inflammation
based on its nanocrystalline silver technology and iFire Technology Corp.,
which has developed a low-cost flat panel display. Westaim's common shares are
listed on NASDAQ under the symbol WEDX and on The Toronto Stock Exchange under
the trading symbol WED.
SILCRYST(TM) is a trademark of NUCRYST Pharmaceuticals Corp.
Acticoat(TM) is trademark of Smith & Nephew plc
This news release may contain forward-looking statements. These
statements are based on current expectations that are subject to risks and
uncertainties, and Westaim 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 but not limited to statements
involving financial considerations, the progress of iFire pilot production,
NUCRYST's development of its intellectual property portfolio, the completion
of iFire manufacturing processes and focus on performance and manufacturing
efficiency, the information and experience to be provided by iFire's pilot
plant, the manufacturing environment to be simulated by and the data and
engineering samples to be obtained from iFire's pilot facility, iFire's
expectations regarding commercialization of its technology and partnering
activities, the targeting of particular industry segments by iFire, conditions
potentially treatable by NPI 32101, and the timing of results from NUCRYST's
Phase 2 clinical trials. Westaim disclaims any intention or obligation 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.
THE WESTAIM CORPORATION
Financial Highlights
(unaudited)
(thousands of dollars except per share data)
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Three Months Ended
March 31
------------------------
Consolidated Statements of Operations 2006 2005
(Restated)
-------------------------------------------------------------------------
Revenue $ 7,253 $ 4,977
Loss from continuing operations (18,006) (8,858)
Net (loss) income (18,006) 2,532
Loss (income) per common share - basic and diluted
Continuing operations (0.19) (0.10)
Net (loss) income (0.19) 0.03
Weighted average number of common
shares outstanding (thousands) 92,922 92,828
-------------------------------------------------------------------------
Three Months Ended
March 31
------------------------
2006 2005
(Restated)
-------------------------------------------------------------------------
Revenue
Nucryst Pharmaceuticals $ 7,253 $ 4,977
-------------------------------------------------------------------------
Continuing operations $ 7,253 $ 4,977
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Operating (loss) income
Nucryst Pharmaceuticals $ (3,341) $ (687)
iFire Technology (11,373) (7,479)
Other 144 169
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Continuing operations $ (14,570) $ (7,997)
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Consolidated Balance Sheets March 31, December 31,
2006 2005
-------------------------------------------------------------------------
Cash and short-term investments $ 101,540 $ 119,627
Current assets 119,845 136,169
Other assets 74,065 76,292
Current liabilities 32,279 26,614
Shareholders' equity 140,266 157,640
SOURCE Westaim Corporation
-0- 05/03/2006
/CONTACT: David Wills, Investor Relations, (416) 504-8464,
info@westaim.com, www.westaim.com;
To request a free copy of this organization's annual report, please go to
http://www.newswire.ca and click on Tools for Investors./
(WED. WEDX)
CO: Westaim Corporation
ST: Alberta
IN: MLM MTC
SU: ERN
-30-
SB
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2056 05/03/2006 07:00 EDT http://www.prnewswire.com
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