MISSISSAUGA, ON, March 3, 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 first quarter ended December 31, 2013:
- Revenue for three months of $4,522,201,
- Operating expenses of $993,412,
- Net income for the quarter of $3,121,499
The net increase in revenue and profitability was primarily due to 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 recorded in future quarters.
Covalon's President and CEO, Brian Pedlar, said:
"I am absolutely delighted with the results posted by Covalon today. The major licensing deal reflected in these financial results clearly demonstrates three things about Covalon:
- One, Covalon has the proven capability to generate significant revenue from the research, development and licensing of major technologies to world-class healthcare companies just as it has with Molnlycke.
- Two, such major transactions can generate significant profit that can rapidly increase the value of Covalon, as it has with this transaction.
- Three, Covalon currently has other products, as well as other technologies in development, that have the further potential to be licenced to major healthcare corporations.
These results clearly demonstrate a transformation of Covalon's balance sheet. Covalon is profitable, has over $5 million in cash, no bank debt and strong working capital. This positions Covalon well for further major transactions. We are looking forward to building on these positive financial results for the benefit of our clients, shareholders and staff."
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.
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