Navigation Links
Westaim announces 2007 year-end results
Date:2/15/2008

CALGARY, Feb. 15 /PRNewswire-FirstCall/ - The Westaim Corporation announced today that for the year ended December 31, 2007, it recorded a net loss of $58.0 million, or 62 cents per share, on revenues of $31.8 million compared to a net loss of $50.6 million, or 54 cents per share, on revenues of $27.6 million in the previous year. For the three months ended December 31, 2007, the Company posted a net loss of $26.8 million, or 28 cents per share, compared to a net loss of $11.0 million, or 12 cents per share, in the same period in the previous year.

The 2007 net loss includes significantly improved operating results at Nucryst Pharmaceuticals Corp. due to lower R&D spending and to milestone revenues from Smith & Nephew earned in the year; reduced operating costs at iFire Technology Ltd.; gains on sale of real estate; and gains on the sale of a non-core subsidiary. These improvements were offset in part by reorganization and severance costs related to operational changes in both Westaim and iFire that will reduce future annual operating costs; and by write-downs and realized losses incurred on the Company's investment in Canadian third-party asset-backed commercial paper (ABCP) totaling $5.1 million.

The 2007 results also include a net loss from discontinued operations of $55.2 million compared to a net loss from discontinued operations of $37.7 million in 2006. These losses, which relate to the Company's wholly owned subsidiary iFire Technologies Ltd., include a write-down of capital assets of $22.1 million in the fourth quarter of 2007.

At December 31, 2007, Westaim had $31.0 million in consolidated cash and short-term investments, compared to $62.5 million at December 31, 2006. Westaim's cash position, excluding cash and short-term investments held by its 74.5 per cent owned affiliate NUCRYST Pharmaceuticals Corp., was $13.2 million. In addition, Westaim held ABCP with a book value of $6.0 million.

"Westaim is continuing to explor99

Write-down of capital

assets and intangible

assets - 1,210 1,203 1,210

Dilution gain - - (4,525) -

Foreign exchange on

short-term investments - - - (52)

Accounts receivable (4,407) 1,690 (7,190) (320)

Inventories 1,508 (587) 4,128 (838)

Other 1,087 173 (98) (30)

Accounts payable and

accrued liabilities (5,808) (1,504) 1,131 (6,563)

-------------------------------------------------------------------------

Cash used in continuing

operations (5,150) (672) (11,033) (18,551)

Cash used in discontinued

operations (3,462) (6,290) (19,739) (25,703)

-------------------------------------------------------------------------

Cash used in operating

activities (8,612) (6,962) (30,772) (44,254)

-------------------------------------------------------------------------

Investing activities

Capital expenditures (402) (755) (2,376) (6,541)

Capital expenditures

- discontinued operations - (56) - (1,339)

Maturity of short-term

investments - 1,285 46,904 30,594

Purchase of short-term

investments - (17,450) (29,453) (44,039)

Purchase of short-term

investments reclassified

to investments - - (14,400) -

Reclassification of cash

equivalents to investments (16) - (2,650) -

Proceeds on sale of third

party asset-backed

commercial paper 5,968 - 5,968 -

Intangible assets (11) (50) (72) (245)

Intangible assets

- discontinued operations (12) (106) (480) (404)

Proceeds on sale of

investment 1,582 - 1,582 -

Proceeds on sale of

capital assets 75 - 14,437 -

Proceeds on sale of

discontinued operations 15 - 24 312

-------------------------------------------------------------------------

Cash provided from (used in)

investing activities 7,199 (17,132) 19,484 (21,662)

-------------------------------------------------------------------------

Financing activities

Repayment of long-term debt

- discontinued operations - - - (10,434)

Issuance of common shares

of subsidiary - 40 14 325

Issuance of common shares - - 27 4,484

Issuance of convertible

debentures of subsidiary - - - 2,000

Net cash outflow on

deconsolidation of former

subsidiary - - (2,306) -

-------------------------------------------------------------------------

Cash provided from (used in)

financing activities - 40 (2,265) (3,625)

-------------------------------------------------------------------------

Effect of exchange rate changes

on cash and cash equivalents 29 33 (489) 26

-------------------------------------------------------------------------

Net decrease in cash and

cash equivalents (1,384) (24,021) (14,042) (69,515)

Cash and cash equivalents

at beginning of period 32,377 69,056 45,035 114,550

-------------------------------------------------------------------------

Cash and cash equivalents

at end of period $ 30,993 $ 45,035 $ 30,993 $ 45,035

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash and cash equivalents

is comprised of:

Cash $ 12,537 $ 9,180 $ 12,537 $ 9,180

Cash equivalents 18,456 35,855 18,456 35,855

Supplemental disclosure of

cash flow information:

Non-cash capital asset

additions included in

accounts payable and

accrued liabilities $ 452 $ 508 $ 452 $ 508

-------------------------------------------------------------------------

-------------------------------------------------------------------------

e strategic alternatives," said Drew Fitch, President & CEO of Westaim. "Late in 2007 we announced our intention to seek a buyer for the business or assets of iFire Technology and this process is still underway. We are continuing our effort to monetize non-core assets and early in 2008 we realized $4.5 million in proceeds from the sale of 75 per cent of our equity interest in a non-core subsidiary. At the same time, we are assessing alternative structures for the Company."

As a result of Westaim's announcement in late 2007 that it would seek a buyer for its iFire Technology subsidiary, the assets and liabilities of iFire are reflected on Westaim's consolidated balance sheet as held for sale and the results of iFire operations are reflected on the consolidated statement of operations as discontinued operations.

The Westaim Corporation's investments include iFire Technology Ltd., and a 74.5 per cent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS). Westaim's common shares are listed and on The Toronto Stock Exchange under the trading symbol WED.

A more detailed discussion of Westaim's 2007 consolidated year end results can be found in the 2007 audited consolidated financial statements and Management's Discussion and Analysis, which will be available at http://www.westaim.com and http://www.sedar.com.

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 effect of reorganization and severance costs related to operational changes in both Westaim and iFire to reduce future annual operating costs, and Westaim's intention to explore strategic alternatives, to seek a buyer for the business or assets of iFire, and to monetize non-core assets. 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 Twelve Months Ended

December 31 December 31

--------------------- ---------------------

Consolidated Statements of

Operations 2007 2006 2007 2006

-------------------------------------------------------------------------

Revenue $ 11,174 $ 5,140 $ 31,830 $ 27,591

Income (loss) from continuing

operations 1,169 (2,200) (2,830) (12,861)

Net loss (26,807) (11,019) (58,033) (50,557)

Net income (loss) per common

share - basic and diluted

Continuing operations 0.01 (0.02) (0.03) (0.14)

Net loss (0.28) (0.12) (0.62) (0.54)

Weighted average number of

common shares outstanding

(thousands) 94,136 93,797 94,070 93,523

-------------------------------------------------------------------------

Three Months Ended Twelve Months Ended

December 31 December 31

--------------------- ---------------------

Segmented Information 2007 2006 2007 2006

-------------------------------------------------------------------------

Revenue from continuing

operations

Nucryst Pharmaceuticals $ 11,174 $ 5,140 $ 31,830 $ 27,591

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Operating income (loss)

Nucryst Pharmaceuticals $ 3,532 $ (2,200) $ (635) $ (11,216)

Other (including

corporate costs) (1,826) (1,311) (10,805) (6,128)

-------------------------------------------------------------------------

Operating income (loss) from

continuing operations $ 1,706 $ (3,511) $ (11,440) $ (17,344)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

December December

Consolidated Balance Sheets 31, 2007 31, 2006

---------------------------------------------------

Cash and short-term

investments $ 30,993 $ 62,486

Current assets 51,561 80,256

Other assets 31,826 68,083

Current liabilities 8,461 15,977

Shareholders' equity 56,371 112,977

THE WESTAIM CORPORATION

Consolidated Statements of Operations and Consolidated Statements

of Comprehensive loss and Deficit

(unaudited)

-------------------------------------------------------------------------

Three Months Twelve Months

Ended December 31 Ended December 31

--------------------- ---------------------

(thousands of dollars except

per share data) 2007 2006 2007 2006

-------------------------------------------------------------------------

Revenue $ 11,174 $ 5,140 $ 31,830 $ 27,591

Costs

Manufacturing 3,226 2,899 14,617 17,324

Research and development 1,334 1,966 6,356 12,112

General and administrative 2,660 2,101 9,348 6,762

Depreciation and amortization 403 635 2,093 2,614

Corporate costs 1,845 1,050 10,856 6,123

-------------------------------------------------------------------------

Operating income (loss) 1,706 (3,511) (11,440) (17,344)

Foreign exchange (loss)

gain (305) 1,331 (3,804) (720)

Interest 141 653 1,822 3,242

Change in fair value of

third party asset-backed

commercial paper (1,067) - (4,048) -

Loss on sale of third

party asset-backed

commercial paper (1,067) - (1,067) -

Write-down of capital

assets and intangible

assets - (1,210) (1,203) (1,210)

Gain on sale of capital

assets 75 - 8,722 -

Dilution gain - - 4,525 -

Gain on sale of investment 2,648 - 2,648 -

Loss on issuance of shares

of subsidiary (14) (5) (134) (99)

Non-controlling interest (806) 466 1,293 3,222

-------------------------------------------------------------------------

Income (loss) from

continuing operations

before income taxes 1,311 (2,276) (2,686) (12,909)

Income tax (expense) recovery (142) 76 (144) 48

-------------------------------------------------------------------------

Income (loss) from continuing

operations 1,169 (2,200) (2,830) (12,861)

Loss from discontinued

operations net of income

taxes (27,976) (8,819) (55,203) (37,696)

-------------------------------------------------------------------------

Net loss $ (26,807) $ (11,019) $ (58,033) $ (50,557)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Income (loss) per common share

Continuing operations

- basic and diluted $ 0.01 $ (0.02) $ (0.03) $ (0.14)

Net loss - basic and

diluted (0.28) (0.12) (0.62) (0.54)

Weighted average number of

common shares outstanding

(thousands) 94,136 93,797 94,070 93,523

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Consolidated Statements of

Comprehensive Loss

Net loss for the period $ (26,807) $ (11,019) $ (58,033) $ (50,557)

Unrealized (loss) gain on

translation of net foreign

operations (145) 103 (1,103) (173)

-------------------------------------------------------------------------

Comprehensive loss $ (26,952) $ (10,916) $ (59,136) $ (50,730)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Consolidated Statements of

Deficit

Deficit at beginning of

period $(349,074) $(306,829) $(317,848) $(267,291)

Net loss for the period (26,807) (11,019) (58,033) (50,557)

-------------------------------------------------------------------------

Deficit at end of period $(375,881) $(317,848) $(375,881) $(317,848)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

THE WESTAIM CORPORATION

Consolidated Balance Sheets

(unaudited)

-------------------------------------------------------------------------

December 31 December 31

(thousands of dollars) 2007 2006

-------------------------------------------------------------------------

ASSETS

Current

Cash and cash equivalents $ 30,993 $ 45,035

Short-term investments - 17,451

Accounts receivable 14,931 8,189

Inventories 4,373 8,506

Other 674 589

Current assets held for sale 590 486

-------------------------------------------------------------------------

51,561 80,256

Investments 5,968 -

Capital assets 12,581 19,201

Capital assets held for sale 10,086 44,757

Intangible assets 799 951

Intangible assets held for sale 2,392 3,174

-------------------------------------------------------------------------

$ 83,387 $ 148,339

-------------------------------------------------------------------------

-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current

Accounts payable and accrued liabilities $ 7,018 $ 6,165

Accounts payable and accrued liabilities held

for sale 1,443 1,812

Current portion of long-term debt - 8,000

-------------------------------------------------------------------------

8,461 15,977

Deferred gain 218 -

Provision for site restoration 6,580 6,580

-------------------------------------------------------------------------

15,259 22,557

-------------------------------------------------------------------------

Non-controlling interest 11,757 12,805

Shareholders' equity

Capital stock 426,262 426,122

Contributed surplus 7,769 5,379

Accumulated other comprehensive loss (1,779) (676)

Deficit (375,881) (317,848)

-------------------------------------------------------------------------

56,371 112,977

-------------------------------------------------------------------------

$ 83,387 $ 148,339

-------------------------------------------------------------------------

-------------------------------------------------------------------------

THE WESTAIM CORPORATION

Consolidated Cash Flow Statements

(unaudited)

-------------------------------------------------------------------------

Three Months Ended Twelve Months Ended

December 31 December 31

--------------------- ---------------------

(thousands of dollars) 2007 2006 2007 2006

-------------------------------------------------------------------------

Operating Activities

Net income (loss) from

continuing operations $ 1,169 $ (2,200) $ (2,830) (12,861)

Items not affecting cash

Gain on sale of capital

assets (75) - (8,722) -

Gain on sale of investment (2,648) - (2,648) -

Change in fair value of

third party asset-backed

commercial paper 1,067 - 4,048 -

Loss on sale of third

party asset-backed

commercial paper 1,067 - 1,067 -

Depreciation and

amortization 403 635 2,093 2,614

Stock-based compensation

expense 667 372 2,469 1,412

Non-controlling interest 806 (466) (1,293) (3,222)

Loss on issuance of shares

of subsidiary 14 5 134
'/>"/>

SOURCE Westaim Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Webcast Advisory - The Westaim Corporation Webcast of Conference Call to Discuss 2007 Fourth Quarter Results
2. Westaim reduces ABCP exposure
3. Westaim announces 2007 third quarter results
4. Webcast Advisory - The Westaim Corporation Webcast of Conference Call to Discuss 2007 Third Quarter Results
5. The Westaim Corporation update on status of short-term investments
6. Abbott Announces 10.8 Percent Increase in Quarterly Dividend
7. China Holdings Announces Starwood Research Institute Initiates Research Coverage
8. Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuits Have Been Filed Against American Dental Partners, Inc.
9. Hillenbrand Announces Mailing of Proxy Regarding Changing of Company Name in Conjunction with Planned Separation
10. Nerites Corporation Announces Closing of Series A Funding Round
11. Concentric Medical Names Kimberly Bridges as Vice President of Sales, Announces Receipt of $15 Million Growth Funding
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... June 24, 2016 , ... ... Markarian, DDS, are co-chairs for the Illinois State Dental Society (ISDS) Foundation’s Mission ... at the Gateway Convention Center in Collinsville. , They expect to ...
(Date:6/23/2016)... LAKEWOOD, Colo., USA (PRWEB) , ... June 23, ... ... company, and Sanquin Blood Supply Foundation, a not-for-profit organization responsible for clinical transfusion ... completion of patient enrollment for the Pathogen Reduction Evaluation and Predictive Analytical Rating ...
(Date:6/23/2016)... ... 23, 2016 , ... SyncDog, Inc. , the leading ... is featured in the current issue of Silicon Review magazine. Silicon ... technology solutions and features them in their magazine. The magazine allows top-level executives ...
(Date:6/23/2016)... NJ (PRWEB) , ... June 23, 2016 , ... ... today’s Appellate Court ruling a victory for consumers seeking relief from the crushing ... Docket No. A2913-15T2 & A2929-15T2. , In their ruling ( http://www.judiciary.state.nj.us/opinions/a2913-15a2929-15.pdf ...
(Date:6/23/2016)... Nationwide (PRWEB) , ... June 23, 2016 , ... A ... Washington DC area, which is one of the best known examples of areas that ... already amassed almost a thousand daily users. , Any participant within the marijuana ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)...   Pulmatrix, Inc ., (NASDAQ: PULM ... announced today that it was added to the Russell ... comprehensive set of U.S. and global equity indexes on ... milestone for Pulmatrix," said Chief Executive Officer Robert ... progress in developing drugs for crucial unmet medical needs, ...
(Date:6/23/2016)... Research and Markets has announced the addition of ... report to their offering. ... kidney failure, it replaces the function of kidneys by removing ... thus the treatment helps to keep the patient body,s electrolytes ... Increasing number of ESRD patients & substantial healthcare expenditure ...
(Date:6/23/2016)... , June 23, 2016 Roche (SIX: ... 510(k) clearance for its Elecsys BRAHMS PCT (procalcitonin) assay ... sepsis or septic shock. With this clearance, Roche is ... a fully integrated solution for sepsis risk assessment and ... with bacterial infection and PCT levels in blood can ...
Breaking Medicine Technology: