MISSISSAUGA, ON, Feb. 27, 2015 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, today announced financial results for its first quarter ended December 31, 2014.
For the three months ended December 31, 2014, revenue was $1,336,685. Operating expenses were $1,063,393. Net loss for the quarter was $229,820 or $0.02 per share.
Covalon's President and CEO, Brian Pedlar, said "I am very pleased with the significant progress we have made over the past several quarters building Covalon's distribution network for our products in the United States and internationally. While our first quarter results reflect a modest loss, I do not believe they are in any way indicative of what to expect for the rest of the year, based on what I see in the current sales pipeline and based on historical experience. Covalon's OEM technology licensing model and wholesale distribution sales channels do result in quarterly fluctuations in reported revenue and profits.
We continue to engage with medium and large medical companies who have expressed interest in licensing our existing and new advanced wound care products. We have also launched a Covalon branded version of our antimicrobial urinary catheters this year, which previously was only available through a large United States medical products distributor. Operationally we continue to focus on keeping our costs under control by utilizing cost-effective sales channels and leveraging third party contract manufacturers to make our advanced wound care products and antimicrobial catheters.
Going forward, I am pleased to report we have received increased orders for our advanced wound care products which we expect to fill over the next several quarters. In addition, we expect to launch new products this year, which we expect to begin contributing to revenue in the latter half of 2015. This is an exciting time for Covalon and I look forward to report the results of our licensing and distribution wins in the coming months."
Copies of Covalon's financial statements, MD&A and additional information on Covalon Technologies Ltd. can be obtained on SEDAR at www.sedar.com, as well as the Company's website at www.covalon.com.
Covalon Technologies Ltd. researches, develops and commercializes new healthcare technologies that help save lives around the world. Covalon's patented technologies, products and services address the advanced healthcare needs of medical device companies, healthcare providers and individual consumers. Covalon's technologies are used to prevent, detect and manage medical conditions in specialty areas such as wound care, tissue repair, infection control, disease management, medical device coatings and biocompatibility. To learn more about Covalon, visit our website at www.covalon.com
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This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
SOURCE Covalon Technologies Ltd.
For further information: To learn more about Covalon, please contact: Brian Pedlar, CEO, Covalon Technologies Ltd.Email: email@example.com, Phone: 905.568.8400 x 233, Toll free: 1.877.711.6055, Web site: www.covalon.com, Twitter: @covalon