MISSISSAUGA, ON, May 28, 2012 /CNW/ - Mr. Brian Pedlar, President and CEO of Covalon
Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an
advanced medical technologies company, is pleased to provide the
following update.
"During the six months ended March 31, 2012, Covalon continued to progress in
expanding wound care sales, establishing international distribution
networks and moving new products through the regulatory clearance
process.
On May 15, 2012
Covalon reached a significant milestone with the announcement of
United States Food and Drug Administration ("FDA") clearance of IV
Clear, the Company's breakthrough antimicrobial silicone adhesive
film dressing designed for securing vascular intravenous access
devices. We expect to begin sales of IV Clear in the coming
months.
During the quarter-ended March 31, 2012, Covalon presented at the Arab
Health Congress in the Ontario
Canada pavilion in Dubai,
U.A.E. This was the first time the Company formally presented its
line of advanced wound care and medical coating products, including
ColActive® Plus Ag in a trade show outside of North America. We expect to announce a
number of new distribution relationships as a result of our
successes at the Arab Health show in the coming months.
At the same time, Covalon continues to evaluate
acquisition opportunities that have the potential to significantly
add new capabilities and new market opportunities.
During the six months ended March 31, 2012, Covalon recognized modest revenue
from shipments to a number of new wound care distribution partners.
We expect to sign additional new distribution partners in the
coming months, and expect the shipment volumes of wound care
products to our new distributors to increase both within
North America and internationally
over time.
We continue to see very promising changes
underway at Covalon and I am confident that these improvements will
translate into improved financial results in the coming quarters
and beyond", stated Brian Pedlar,
Covalon's President and CEO.
The Company announced financial results for its
second quarter of fiscal 2012 ended March
31, 2012. Revenue for the quarter was $1,090,038. Revenue was up marginally compared to
the prior year's second quarter, however product and services
revenue substantially increased compared to non-cash license fees,
which were significantly lower. Product and services revenues were
driven mostly by sales of the Company's wound care product
ColActive Plus and medical coating products and services.
Quarterly operating expenses were $1,115,823 or a decrease of $23,754 over the comparative period. The
Company continues to invest in sales and marketing activities
including adding additional sales and marketing staff and
attendance at sales-related trade shows compared to last year.
Net loss was $604,146 or $0.01
per share. Covalon continues to have a strong balance sheet with no
long-term debt and over $3,400,000 in
cash, cash equivalents and short-term investments as of
March 31, 2012.
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
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.