MISSISSAUGA, ON, Jan. 28, 2014 /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, 2013.
Revenue for the quarter was $1,554,650, operating expenses were $594,016, and net income for the quarter was $121,308.
Revenue for the quarter increased by $618,968 or 66% over the same period of the prior year.
The net increase was primarily due to the sales of the Company's two new products IV Clear and SurgiClear as well as Covalon's ColActive Plus product which is designed to help heal chronic wounds.
For the twelve months ended September 30, 2013, revenue was $4,134,143. Operating expenses were down year-over-year by $2,036,348 to $3,096,234. Net loss for the year was $993,167 which was significantly reduced from the previous year's loss of $3,991,382
Most significantly, none of these results include any of the US$3,500,000 upfront payment the Company has received, nor any progress payments and royalties, from the licensing of its IV Clear and SurgiClear technologies to Molnlycke Healthcare which was announced on November 4, 2013.
Covalon's President and CEO, Brian Pedlar, said, "I am so delighted with the Covalon's progress this year. We are a transformed company, well on our way to making a significant impact on the healthcare market."
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