MISSISSAUGA, ON, Aug. 27, 2014 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, announces the following financial results for its third quarter of fiscal 2014:
For the three months ended June 30, 2014:
- Revenue of $1,291,378, a 13% decrease over the same period of the prior year
- Net loss for the quarter of $240,156 compared to net income of $238,826 during the same period of the prior year
For the nine months ended June 30, 2014:
- Revenue of $7,855,170, compared with $2,579,492 in the same nine month period of the prior year, a 205% increase
- Net income of $3,311,473 or $0.36 per share ($0.22 per share fully diluted), compared with a loss of $1,114,475 or $0.12 per share in the same nine month period of the prior year
Covalon's President and CEO, Brian Pedlar, said:
"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 from quarter to quarter can fluctuate and may not necessarily be indicative of the Company's overall performance or trend.
While our financial performance fluctuated this particular quarter due to this OEM business model, the progress for the first nine months of this year is a major turnaround over last year. Covalon has 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 shareholder value.
Through increased interest in our existing products and technologies as well as the introduction of exciting new products, I am very pleased with our progress to date. I am looking forward to making future announcements of new licensing and distribution relationships that will benefit our customers, 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
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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.