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Advanced Medical Biosystems
Message: Announces Fiscal 2008 Year End Financial Results
| January 26, 2009 |
| Covalon Technologies Ltd. Announces Fiscal 2008 Year End Financial Results |
| MISSISSAUGA, ONTARIO--(Marketwire - Jan. 26, 2009) - Covalon Technologies Ltd. (TSX VENTURE:COV), an advanced biomedical systems company, today reported its fiscal 2008 year end financial results. Product sales and licensing fee revenue of $1.8 million represented a 20% growth over the same period 2007. Gross profit increased to $577,141 or 41% of product sales in fiscal 2008. Interest income earned for the year totaled 626,260. As at September 30, 2008, Covalon reported cash and equivalent investments of $12.6 million and a working capital balance of $12.0 million. Net loss for the year ended 2008 was $3.7 million compared to a net loss of $3.1 million for the same period 2007. Loss per share remained unchanged at $0.05 per basic and fully diluted share. "We are very excited about the progress Covalon is continuing to make in research and development and the expanding product pipeline. The Company has built a strong infrastructure to support the roll-out of our products to enhance revenue growth in 2009." said Dr. Frank DiCosmo, Covalon's President & CEO. "Strategic investment in our product pipeline and further expansion of our partner-base will increase business opportunities and shareholder value." "I believe that we are much better positioned than many others in the industry with solid cash resources and multiple opportunities." commented Peter Hobbes, the Company's CFO. "Covalon is investing to meet expected market demand and I am thrilled to be a part of the team." Purchase orders for Covalon's antimicrobial catheters increased in the fourth quarter 2008. This reflects the initial stages of the growing demand for antimicrobial coatings in hospitals due to the October 1, 2008 regulation from the Centers for Medicare and Medicaid Services (CMS) ceasing reimbursement for the care and treatment of catheter associated urinary tract infections acquired during a hospital stay. Our current distribution partner, Medline Industries, Inc., has accelerated its orders demand for antimicrobial catheters since the fiscal year end, and Covalon expects this increased pace will continue throughout the year. The Company continues to do contract research and development applying its anti-microbial coating on medical devices. Revenues from this source more than tripled in the fourth quarter of 2008 compared to the prior year, and total year revenues more than quadrupled over the 2007 year. Covalon currently has 3 active contracts with two partners for development of products planned by the distributors to be brought to market in calendar 2009. Licensing and contract manufacturing contracts are planned to be signed early in the new calendar year, and we expect to see material revenues from these contracts in the second half of calendar 2009. Covalon has retained D Bamforth Consulting Inc. (DBC), an independent consulting firm owned by Ms. Debbie Bamforth to provide investor relations services. Ms. Bamforth has more than 11 years experience working in the financial services industry and will assist with Covalon's investor relations strategies and communications efforts. An annual fee of $75,000 per year will be paid in monthly installments and subject to Board and regulatory approvals, DBC will be granted incentive stock options to acquire 100,000 common shares of Covalon at a price of $1.00 per share, in accordance with the rules and policies of TSX Venture Exchange. The Company's consolidated financial statements and MD&A for the year ended September 30, 2008 are available at www.sedar.com and on the Company's website at www.covalon.com. |
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