CALGARY, Feb. 18 /PRNewswire-FirstCall/ - The Westaim Corporation announced today that for the year ended December 31, 2008, it recorded a net loss of $10.2 million, or 11 cents per share, on revenues of $22.4 million compared to a net loss of $58.0 million, or 62 cents per share, on revenues of $31.8 million in the previous year. For the three months ended December 31, 2008, the Company posted a net income of $2.7 million, or 3 cents per share, compared to a net loss of $26.8 million, or 28 cents per share, in the same period in the previous year.
The loss from continuing operations for the year ended December 31, 2008 was $1.7 million compared to a loss of $2.8 million in 2007. At the operations level, this improvement resulted from lower manufacturing and research and development costs compared to 2007 and $4.9 million of severance costs included in the 2007 results, all of which was offset by $10.1 million milestone revenue earned by NUCRYST Pharmaceuticals Corp. in 2007. The improvement in results also benefitted from a $7.3 million favourable change in foreign exchange gains as a result of the stronger U.S. dollar in 2008 as well as lower write-downs in the value of asset-backed commercial paper (ABCP). These improvements were partially offset by an $8.7 million gain on the sale of real estate in 2007. The loss from discontinued operations, which includes windup and operating costs at the Company's wholly owned subsidiary, iFire Technology Ltd., declined significantly in 2008 to $8.5 million compared to $55.2 million in 2007. This improvement is the result of reduced operating costs of $26.7 million and lower severances and net asset write-downs in 2008 compared to 2007.
At December 31, 2008, Westaim had $46.8 million in consolidated cash and cash equivalents, compared to $31.0 million at December 31, 2007. Westaim's cash position, excluding cash and cash equivalents held by its 74.7 per cent owned subsidiary NUCRYST Pharmaceuticals Corp., was $18.0 million. In addition, Westaim held ABCP with a book value of $4.3 million.
"Westaim's strong cash position is a significant advantage for the Company as we continue our review of strategic alternatives," said Drew Fitch, President & CEO of Westaim. "Westaim's cash resources, together with the return of capital to be received from NUCRYST in Q1 2009, will provide the Company a strong consolidated footing as we examine new investment opportunities to enhance shareholder value."
The Westaim Corporation's common shares are listed on The Toronto Stock Exchange under the trading symbol WED. Westaim holds a 74.7 percent interest in NUCRYST Pharmaceuticals Corp. .
A more detailed discussion of Westaim's 2008 consolidated year end results can be found in the 2008 audited consolidated financial statements and Management's Discussion and Analysis, which will be available at www.westaim.com and 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 Westaim's pursuit of strategic alternatives and examination of possible new investment opportunities in an effort to enhance 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.
CONTACT: David Wills/Gillian McArdle, Investor Relations, (416) 504-8464,
info@westaim.com, www.westaim.com
