MISSISSAUGA, ON, May 28, 2014 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, is delighted to announce the following financial results for its second quarter ended March 31, 2014:
- Revenue for three months of $2,041,591, a 285% increase over the same period of the prior year
- Net income for the quarter of $431,211 compared to a loss of $558,831 during the same period of the prior year
For the six months ended March 31, 2014, Covalon recorded revenue of $6,563,792 and net income of $3,551,630 or $0.38 per share ($0.19 per share fully diluted). This is a substantial increase over the financial performance in the first half of the prior year with revenue of $1,101,860 and a loss of $1,353,301 or $0.15 per share.
Year to date, the net increase in revenue and profitability was primarily due to increases in advanced wound dressing sales and the initial payment of US$3,500,000 by Mölnlycke Health Care AB related to the licensing of two of Covalon's latest products, IV Clear and SurgiClear, which was announced on November 4, 2013. As previously announced, Covalon anticipates further revenue from this transaction including contractual progress payments, product sales, and royalties that will be continue to be recorded in future quarters.
Covalon's President and CEO, Brian Pedlar, said:
"Our second quarter financial results represent our fourth straight profitable quarter. We benefitted from increases in direct sales of our wound care products and increases in licensing and services revenues from existing and new licensing relationships during the three months ended March 31, 2014. Covalon is profitable, with strong working capital and we are positioned well for further major transactions. We are looking forward to building on these positive financial results with the introduction of new products and securing new licensing and distribution relationships for the benefit of our clients, shareholders and staff."
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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: firstname.lastname@example.org, Phone: 905.568.8400 x 233, Toll free: 1.877.711.6055, Web site: www.covalon.com, Twitter: @covalon