MISSISSAUGA, ON, Jan. 27, 2015 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, today announced financial results for its fourth quarter and year ended September 30, 2014.
For the twelve months ended September 30, 2014, revenue was $9,061,329, an increase of $4,927,186 or 119%. Operating expenses were up year-over-year by 34% to $4,139,669. Net income for the year was $2,401,769 or $0.26 per share ($0.13 per share fully diluted) which was significantly improved from the previous year's loss of $993,167 or $0.11 per share.
These results include the US$3,500,000 upfront payment the Company has received from the licensing of its IV Clear and SurgiClear technologies to Molnlycke Health Care which was announced on November 4, 2013. The results also include increased revenue from sales of the Company's advanced wound care products and specialized medical device coatings.
Revenue for the quarter was $1,206,159, operating expenses were $1,289,685, and net loss for the quarter was $909,704. Covalon uses an OEM business model for licensing its products and technologies to large medical companies and a wholesale distribution model to sell its own-branded products in various international markets. As a result, revenue and income from quarter to quarter can fluctuate and may not necessarily be indicative of the Company's overall performance or trend.
Covalon's President and CEO, Brian Pedlar, said,
"I am very pleased with Covalon's financial and operational progress this past year. Covalon has ended the year with strong working capital as we continue to actively engage in negotiations on new licences and new distribution relationships that have the potential to add significant additional shareholder value.
Our advanced wound care product distribution revenue in the North American market nearly doubled this year and we are encouraged with the progress we have made in developing distribution relationships in international markets. The Covalon team is working hard to develop new technologies in our world class lab and we expect to announce the launch of new advanced wound care and medical coating products in the near future.
Financially and operationally we are a transformed company, well on our way to making a significant impact on the healthcare market in North America and internationally."
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: [email protected], Phone: 905.568.8400 x 233, Toll free: 1.877.711.6055, Web site: www.covalon.com, Twitter: @covalon