TORONTO, Nov. 13 /PRNewswire-FirstCall/ - The Westaim Corporation announced today that for the quarter ended September 30, 2009, it recorded a net loss of $0.2 million, or zero cents per share, on revenues of $6.7 million compared to a net loss of $3.1 million, or 3 cents per share, on revenues of $5.5 million in the same quarter for the previous year.
The loss from continuing operations for the quarter ended September 30, 2009 was $0.02 million compared to a loss of $1.9 million for the same period in 2008.
For the nine months ended September 30, 2009, the Company posted revenues of $17.6 million and a net loss of $4.1 million or 4 cents per share. For the same period in 2008, Westaim reported revenues of $15.4 million and a net loss of $13.0 million, or 14 cents per share, which included the write-down of the capital assets and the termination of the operations of iFire Technology Ltd.
The loss from continuing operations for the nine months ended September 30, 2009 was $3.4 million compared to $0.5 million in the same period last year. The 2008 results benefited from a dilution gain of $6.0 million relating to the sale of a non-core subsidiary.
At September 30, 2009, Westaim had $38.6 million in consolidated cash and cash equivalents and $2.2 million in short-term investments compared to $39.1 million in consolidated cash and cash equivalents at September 30, 2008. Westaim's cash position, excluding cash and cash equivalents and short-term investments held by its 75 per cent owned subsidiary, NUCRYST Pharmaceuticals Corp., was $24.2 million.
Westaim recently announced the execution of an amalgamation agreement with NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS). Under the agreement, NUCRYST has agreed to amalgamate with a newly-formed, wholly-owned subsidiary of Westaim with each holder of NUCRYST common shares (other than Westaim) to receive one redeemable preferred share in the capital of the amalgamated company, which will be redeemed for US$1.77 in cash upon completion of the amalgamation. The amalgamation agreement follows the execution of an asset purchase agreement between NUCRYST and subsidiaries of Smith & Nephew plc. under which NUCRYST has agreed to sell all of its operations and assets including all rights to its proprietary nanocrystalline silver technology to Smith & Nephew for US$21 million, plus the value of working capital, subject to certain adjustments.
"The amalgamation of Westaim and NUCRYST announced earlier this week is expected to significantly strengthen our balance sheet," said Cameron MacDonald, President & CEO of Westaim. "We remain committed to enhancing shareholder value and the strengthened cash position will provide additional resources to deploy in the assessment of new business opportunities."
The Westaim Corporation invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim holds an approximate 75 per cent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS). Westaim's common shares are listed on The Toronto Stock Exchange under the trading symbol WED.
Certain portions of this press release as well as other public statements by Westaim, contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning the transactions described herein; investment strategies and expected rates of return; and strategic alternatives to maximize value for shareholder. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and Westaim can give no assurance that these expectations are correct. Westaim's actual results could differ materially from those anticipated by forward-looking statements for various reasons generally beyond our control, including but not limited to: (i) failure to complete one or both of the transactions referred to herein; (ii) changes in market conditions or deterioration in underlying investments; (iii) general economic, market, financing, regulatory and industry developments and conditions; and (iv) other risk factors set forth in Westaim's Annual Report or Annual Information Form. Westaim disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise except as required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
------------------------------------------------------------------------- Three Months Ended September 30 Three Months Ended Nine Months Ended Consolidated Statements September 30 September 30 of Operations 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue $ 6,672 $ 5,466 $ 17,644 $ 15,428 Loss from continuing operations (18) (1,851) (3,382) (511) Net loss (175) (3,122) (4,144) (12,981) Net loss per common share - basic and diluted Continuing operations (0.00) (0.02) (0.04) (0.01) Net loss (0.00) (0.03) (0.04) (0.14) Weighted average number of common shares outstanding (thousands) 94,221 94,215 94,219 94,205 ------------------------------------------------------------------------- Three Months Ended Three Months Ended Nine Months Ended September 30 September 30 September 30 Segmented Information 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue from continuing operations Nucryst Pharmaceuticals $ 6,672 $ 5,466 $ 17,644 $ 15,428 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (Loss) income from continuing operations Nucryst Pharmaceuticals $ 506 $ (114) $ (1,381) $ (4,133) Other (including corporate costs) (524) (1,737) (2,001) 3,622 ------------------------------------------------------------------------- Loss from continuing operations $ (18) $ (1,851) $ (3,382) $ (511) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated September 30, December 31, Balance Sheets 2009 2008 -------------------------------------------------- Cash and cash equivalents $ 38,562 $ 46,768 Current assets 50,792 59,783 Other assets 15,891 17,494 Current liabilities 9,002 10,091 Shareholders' equity 46,018 50,002
SOURCE Westaim Corporation
