CALGARY, Nov. 12 /PRNewswire-FirstCall/ -- The Westaim Corporation announced today that for the third quarter ended September 30, 2008, it recorded a net loss of $3.1 million or 3 cents per share, on revenues of $5.5 million. In the same quarter last year, the Company recorded a net loss of $17.1 million, or 18 cents per share, on revenues of $7.8 million.
The loss from continuing operations was $1.9 million for the quarter compared to a loss of $8.8 million in the same period in 2007. Included in the 2008 loss was a write-down of $0.9 million in the value of the Company's investment in Canadian third party asset-backed commercial paper (ABCP) compared to a write-down of $3.0 million in the third quarter of 2007. The third quarter of 2008 benefitted from lower corporate costs compared to 2007 as a result of reduced operations and $2.3 million of severance costs included in the 2007 results. The loss from discontinued operations, which includes windup and operating costs at the Company's wholly owned subsidiary, iFire Technology Ltd., declined significantly to $1.3 million compared to $8.4 million in the third quarter of 2007.
For the nine months ended September 30, 2008, the Company posted a net loss of $13.0 million or 14 cents per share on revenues of $15.4 million. For the same period in 2007, Westaim reported a net loss of $31.2 million or 33 cents per share on revenues of $20.7 million.
The loss from continuing operations for the nine months ended September 30, 2008 was $0.5 million compared to a loss of $4.0 million for the same period in 2007. Results from continuing operations in 2008 benefitted from a dilution gain of $6.0 million relating to the sale of a non-core subsidiary, a $4.6 million improvement in foreign exchange gains and losses and in 2007 benefitted from the $8.6 million gain on the sale of the Company's real estate assets in Fort Saskatchewan, Alberta and a dilution gain of $4.5 million. The loss from discontinued operations for the first nine months of 2008 was $12.5 million reflecting a write-down of capital assets of $7.1 million as well as severance and other windup costs at iFire, compared to a loss of $27.2 million for the first nine months of 2007.
At September 30, 2008, Westaim had $39.1 million in consolidated cash and short-term investments. Westaim's cash position, excluding cash and short-term investments held by its 74.5 per cent owned affiliate NUCRYST Pharmaceuticals Corp., was $11.3 million. In addition, Westaim held third-party ABCP with a book value of $5.1 million.
"Proceeds from the previously announced sale of iFire's assets has strengthened the Company's cash position as we examine Westaim's corporate structure moving forward," said Drew Fitch, President & CEO of The Westaim Corporation. "Westaim's Board of Directors has made a number of strategic decisions over the course of the past few months and will continue to examine all possible options in a concerted effort to maximize shareholder value."
The Westaim Corporation's common shares are listed on The Toronto Stock Exchange under the trading symbol WED. Westaim holds a 74.5 percent interest in NUCRYST Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS).
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 Westaim's examination of its corporate structure, and the Company's examination of all possible options in a concerted effort to maximize shareholder value. 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 2008 2007 2008 2007 ------------------------------------------------------------------------- Revenue $ 5,466 $ 7,839 $ 15,428 $ 20,656 Loss from continuing operations (1,851) (8,773) (511) (3,996) Net loss (3,122) (17,138) (12,981) (31,226) Net loss per common share - basic and diluted Continuing operations (0.02) (0.09) (0.01) (0.04) Net loss (0.03) (0.18) (0.14) (0.33) Weighted average number of common shares outstanding (thousands) 94,215 94,098 94,205 94,047 ------------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30 September 30 ------------------- ------------------- Segmented Information 2008 2007 2008 2007 ------------------------------------------------------------------------- Revenue from continuing operations Nucryst Pharmaceuticals $ 5,466 $ 7,839 $ 15,428 $ 20,656 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (Loss) income from continuing operations Nucryst Pharmaceuticals $ (114) $ (2,479) $ (4,133) $ (7,980) Other (including corporate costs) (1,737) (6,294) 3,622 3,984 ------------------------------------------------------------------------- Loss from continuing operations $(1,851) $ (8,773) $ (511) $ (3,996) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated Balance Sheets September December 30, 2008 31, 2007 ----------------------------------------------------- Cash and cash equivalents $ 39,147 $ 30,993 Current assets 50,249 51,561 Other assets 23,211 31,826 Current liabilities 11,141 8,461 Shareholders' equity 44,989 56,371
