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
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
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.
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.