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.
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