MISSISSAUGA, ON, Feb. 29, 2016 /PRNewswire/ - 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, 2015.
For the three months ended December 31, 2015, revenue was $2,440,633, operating expenses were $1,299,588 and net income was $267,310 or $0.02 per share on a fully diluted basis. These results compare to the prior year's first quarter which saw revenue of $1,336,685, operating expenses of $1,063,393 and a net loss of $229,820 or $0.02 per share.
Revenue for the three months ended December 31, 2015 included $1,943,231 of product revenue, a 136% increase compared to the prior year's first quarter. Operating expenses increased by $236,195 or 22%, which relates to two additional facilities, an increase in consulting services, and increased support for our global marketing initiatives.
Covalon's President and CEO, Brian Pedlar, said,
"I am very pleased with Covalon's financial and operational progress during the first quarter of our fiscal 2016, compared to the same quarter a year ago. Covalon's product revenue continues to grow and has begun to reflect the addition of multiple products released in the prior year. We expect continued growth in product sales as we fulfil future successful tenders, expand the adoption of our newly released products with clinicians, and continue to achieve further regulatory clearance in new markets.
During the first quarter, Covalon announced United States Food and Drug Administration clearance of its new SilverCoat Silicone Foley Catheter, the establishment of a legal entity and office in Shanghai, China, and a licensing agreement with the University of Michigan for intellectual property that, when commercialized, could prevent or reduce the occurrence of Ventilator-Associated Pneumonia. We continue to make progress in building our distribution channels through participation in tenders, entrance into new geographies, and active marketing of our new products.
Covalon is off to an excellent start for the 2016 fiscal year in which we anticipate continued double-digit growth in our business. I look forward to updating our shareholders on our performance as fiscal 2016 continues."
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.