MISSISSAUGA, ON, May 29, 2015 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, is delighted to announce its financial results for its second quarter ended March 31, 2015, which includes revenue for three months of $2,180,276 and net income for the quarter of $264,340. Revenue from advanced wound care product sales for the three month period ended March 31, 2015 increased 24% to $1,742,672 compared to $1,400,065 for the same period last year. Revenue from specialized medical device coatings for the three month period ended March 31, 2015 was $312,519 compared to $462,000 for the same period of the prior year.
Covalon's President and CEO, Brian Pedlar, said:
"This quarter saw Covalon recognize sales on approximately seven new products in addition to our existing advanced wound care offering, bringing our total product offering to 16 products. The new products included initial sales of the Company's SilverCoat antimicrobial Foley catheter, and some early initial sales of six new CovaWound advanced wound care dressings, designed to complement our ColActive Plus wound balancing matrix dressing. We expect sales of our new products to grow modestly over the next several quarters to be in a position to contribute more significantly to revenue in 2016.
We continue to build distribution relationships through established networks of distributors in the United States, Middle East, Asia and Latin America. As we continue to gain regulatory approval for our products within individual countries in these markets, we anticipate introducing our full lineup of products through our distribution partners. Interest from medium and large medical companies in licensing and private-labeling our existing and new advanced wound care products continues to grow as we launch new exciting products in the market.
Operationally, we continue to focus on controlling our costs so Covalon can continue to remain profitable, with strong working capital. Our ability to leverage our cost-effective sales channels and third party contract manufacturers to make our advanced wound care products and antimicrobial catheters allows Covalon to grow revenue and profits without significant operational investments of cash. I am encouraged by our results this quarter and look forward to updating our shareholders in the coming months."
About Covalon 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.