Covalon Announces Third Quarter Financial Results

MISSISSAUGA, ON, Aug. 7, 2013 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical technologies company, today announced financial results for its third quarter ended June 30, 2013. Revenue for the quarter was $1,477,632, operating expenses were $694,146, and the net income for the quarter was $238,826 or $0.003 per share.  For the nine months ended June 30, 2013, revenue was $2,579,492 and net loss was $1,114,475 or $0.02 per share.

Revenue for the three months ended June 30, 2013 increased by $399,069 or 37% over the same period of the prior year. The net increase was primarily due to the sales of the Company's two new products IV Clear and SurgiClear in addition to the Company's ColActive Plus product, which is designed to help heal chronic wounds. Revenue in the three months ended June 30^th of the previous year included $392,333 from medical coatings services in addition to advanced wound care product sales.

During the quarter, Covalon generated positive cash flow of $33,517 from operations, and invested $15,698 in patents, trademarks and other manufacturing assets, mainly associated with the launch of IV Clear and SurgiClear. This compares to operating cash outflows of $1,180,387 and investing outflows of $81,733 last year at the same time.

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.