Company to seek buyer for iFire Technology Corp.
CALGARY, Nov. 13 /PRNewswire-FirstCall/ - The Westaim Corporation
announced today that for the third quarter ended September 30, 2007, it
recorded a net loss of $17.1 million or 18 cents per share, on revenues of
$7.8 million. In the same quarter last year, the company recorded a net loss
of $9.6 million, or 10 cents per share, on revenues of $8.2 million.
In the third quarter of 2007, the Company recorded reorganization costs
including severance, of $2.3 million related to operational changes that will
significantly reduce the Company's annual operating costs. In addition, in the
third quarter, the Company wrote down its investment in Canadian third-party
asset-backed commercial paper (ABCP) by $3.0 million.
For the nine months ended September 30, 2007, the Company posted a net
loss of $31.2 million or 33 cents per share on revenues of $20.7 million. For
the same period in 2006, Westaim reported a net loss of $39.5 million or 42
cents per share on revenues of $22.5 million. Results in 2007 benefited from
an $8.6 million gain on the sale of real estate and a dilution gain of $4.5
million reported earlier in the year. These benefits have been partially
offset by corporate restructuring costs of $6.6 million incurred in 2007.
At September 30, 2007, Westaim had $32.6 million in consolidated cash and
short-term investments. Westaim's cash position, excluding cash and short-term
investments held by its 74.6 per cent owned affiliate NUCRYST Pharmaceuticals
Corp., was $12.2 million. In addition, Westaim held third-party ABCP with a
book value of $14.1 million. As previously reported, the market for $35
billion of third-party ABCP has been frozen since mid-August and until the
paper is restructured, or a market otherwise forms for this ABCP, Westaim
cannot be certain of the ultimate value it will realize for its holdings.
The Company announced on November 2, 2007 the receipt of an offer, subject
to final documentation, for a credit line of $12.6 million from a major
financial institution. The credit facility will be available for one year and
will be secured by the equivalent value of ABCP held by the Company.
Westaim also announced today that it will actively seek a buyer for its
iFire subsidiary. The Company will immediately freeze the development effort
on iFire's thick dielectric electroluminescent (TDEL) technology during the
sale process, which will reduce iFire's operating costs by approximately 50
percent.
"Despite continued progress in certain aspects of its development plan,
iFire's overall progress has been slower than expected. With increasingly
demanding specification improvement targets in the flat panel TV market in
general, our product development timeline has been extended past the timeframe
we had originally expected," said Drew Fitch, President and CEO of The Westaim
Corporation. "Westaim continues to believe in the potential of iFire's TDEL
technology; however, we do not have the financial resources required to
complete the development work necessary for commercialization. We will
continue to assess the structure of the Company as the sale process develops."
The Westaim Corporation's technology investments include iFire Technology
Corp., which is developing a low-cost flat panel display, and a 74.6 per cent
interest in 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.
Westaim's common shares are listed on The Toronto Stock Exchange under the
trading symbol WED.
This news release contains 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 regarding the
ultimate value of Westaim's asset-backed commercial paper, the availability of
credit, reduction of operating costs, product development timelines and the
work necessary for the commercialization of iFire's technology, the potential
of iFire's technology, Westaim's financial resources, and the potential sale
of iFire. Westaim disclaims any intention or obligation to revise
forward-looking statements whether as a result of new information, future
developments or otherwise. Accordingly, readers are advised not to place undue
reliance on forward-looking statements, and should not rely on this
information at any date other than the date of this news release. 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)
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
Consolidated Statements --------------------- ---------------------
of Operations 2007 2006 2007 2006
-------------------------------------------------------------------------
Revenue $ 7,839 $ 8,203 $ 20,656 $ 22,451
Net loss (17,138) (9,552) (31,226) (39,538)
Net loss per common share
- basic and diluted (0.18) (0.10) (0.33) (0.42)
Weighted average number of
common shares outstanding
(thousands) 94,098 93,944 94,047 93,369
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
Segmented Information 2007 2006 2007 2006
-------------------------------------------------------------------------
Revenue
Nucryst Pharmaceuticals $ 7,839 $ 8,203 $ 20,656 $ 22,451
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating loss
Nucryst Pharmaceuticals $ (195) $ (2,638) $ (4,167) $ (9,016)
iFire Technology (8,358) (8,443) (26,982) (28,731)
Other (including
corporate costs) (4,194) 229 (8,979) (4,817)
-------------------------------------------------------------------------
Operating loss $ (12,747) $ (10,852) $ (40,128) $ (42,564)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated September December
Balance Sheets 30, 2007 31, 2006
------------------------------------------------
Cash and short-term
investments $ 32,645 $ 62,832
Current assets 51,247 80,256
Other assets 64,099 68,083
Current liabilities 13,701 15,797
Shareholders' equity 82,680 112,977
SOURCE Westaim Corporation
-0- 11/13/2007
/CONTACT: David Wills, Investor Relations, (416) 504-8464,
info@westaim.com, www.westaim.com/
(WED. WEDX)
CO: Westaim Corporation
ST: Alberta
IN: MLM MTC
SU: ERN
-30-
KM
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9760 11/13/2007 13:30 EST http://www.prnewswire.com
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