Covalon Technologies Ltd. Announces Annual Financial Results
MISSISSAUGA, ON, Jan. 27, 2016 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, today announced financial results for its fourth quarter and year ended September 30, 2015.
For the twelve months ended September 30, 2015, revenue was $7,588,721, operating expenses were $5,514,473 and net loss was $941,990 or $0.10 per share. These results compare to the prior year which saw revenue of $9,061,329, which included a US$3,500,000 license fee, operating expenses of $4,139,669 and net income of $2,401,769 or $0.13 fully diluted.
Revenue for the year ended September 30, 2015 included $6,241,661 of product revenue, a 55% increase compared to the prior year. Operating expenses included approximately $740,000 of non-recurring legal fees and costs. The prior year's results included the US$3,500,000 upfront payment that the Company has received from the licensing of its IV Clear and SurgiClear technologies to Molnlycke Health Care which was announced on November 4, 2013.
Revenue for the quarter was $2,097,421, up 74% year-over-year, operating expenses were $1,992,607, and net loss for the quarter was $847,033 or $0.09 per share. Operating expenses included approximately $575,000 of non-recurring legal fees and costs.
Covalon's President and CEO, Brian Pedlar, said, "I am very pleased with Covalon's financial and operational progress this past year. Covalon has ended the year with strong product distribution revenue, over 12 new products in our portfolio and strengthened international brand recognition of Covalon and its products. We have been successful in winning business in approximately 14 tenders in the Middle East, and established our first international sales office in Shanghai, China. We have expanded our new product pipeline as we continue to actively engage in negotiations on new licences and new distribution relationships that have the potential to add significant additional shareholder value.
Our advanced wound care, surgical procedure and infection management product development pipeline continues to expand. Our products under development includes several transformative products that have the potential to capture significant market share once cleared for sale by the relevant regulatory bodies and introduced to our distribution channels. The Covalon team is working hard to turn the new technologies we are working on in our world class lab into market-leading products that help improve healthcare practices around the globe. Operationally, we expect to continue to invest in additional sales and marketing resources in 2016 to support the new products we launched this year
We have started fiscal 2016 with a very strong foundation of products, products under development and revenue channels. We anticipate continued double digit growth of our product and services revenue during this current fiscal year. I look forward to updating our shareholders as our performance both in the United States and internationally continues in fiscal 2016."
Copies of Covalon's financial statements, MD&A and additional information on Covalon Technologies Ltd. can be obtained on SEDAR at www.sedar.com, as well as the Company's website at www.covalon.com.
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.
