CV Technologies Inc. (TSX:CVQ) today reported fiscal 2008 third quarter sales of $3.4 million, up 4.4% from sales of $3.2 million in the same quarter last year. The net loss was $2.0 million or $0.02 of net loss per share in the third quarter ended June 30, 2008, compared to a net loss of $1.9 million or $0.02 of net loss per share in the comparable period last year.
In the first nine months of fiscal 2008, sales rose 4.9% to $35.3 million from $33.7 million in the first nine months of the prior year. Net earnings improved to $4.1 million or $0.04 diluted net earnings per share from a net loss of $8.8 million or $0.08 net loss per share in the nine months ended June 30, 2007.
"Historically, the third quarter is the weakest of the year and fiscal 2008 is no exception. However given the year-over-year improvement in our financial results for nine months and the outlook for the fourth quarter, we anticipate that CV Technologies will realize its fiscal 2008 growth and profitability goals. Moreover, our financial position continues to be strong", said Dr. Jacqueline Shan, President, CEO and Chief Scientific Officer.
- While total Canadian sales of over-the-counter (OTC) cold remedies slipped in the 2007/2008 season, a notable exception was CV Technologies' COLD-fX which posted 7% growth. According to the July 5, 2008 figures from ACNielsen (1), COLD-fX remains Canada's best-selling cold and flu remedy. Strong consumer appeal and the brand loyalty COLD-fX continues to attract as the country's number one selling cold and flu remedy helped produce a sharp and favorable contrast with the performance of the category as a whole.
- COLD-fX Extra Strength, launched midway through the fiscal first quarter, has posted strong results in terms of both shipments to retailers and consumption by consumers. Extra Strength sales are significantly ahead of plan.
- The Company completed the restructuring of its Canadian sales force and now has a team of account managers covering Western Canada, Ontario, Quebec, and the Atlantic provinces, servicing existing customers and seeking new ones. A Montreal office officially opened in July. In addition, new distribution channels are being pursued.
- Discussions are ongoing with potential strategic partners regarding the development and expansion of CV Technologies' science to create new product opportunities worldwide.
- Clinical trial results are expected in Q4 for two clinical trials: 1) the Canadian multi-centre clinical trial examining the impact of a two-fold higher dose of COLD-fX on upper respiratory infections in vaccinated seniors versus the standard Natural Product Number (NPN) approved dose, and 2) the U.S. clinical trial assessing the safety and effects on immunological parameters of a three-day high dose of COLD-fX on front-line medical workers at Hackensack University Medical Center. To ensure study integrity is maintained, both remain under blinded conditions while in the analysis stage. We anticipate the results of these studies will extend the understanding of the optimal conditions of use for COLD-fX and how it works, as well as add to the safety profile.
- The Company has initiated a new pre-clinical study in collaboration with McMaster University on the precise molecular mechanism of action of COLD-fX. The study will extend the positive results of the initial project funded by the National Research Council (NRC) under the Industrial Research Assistance Program (IRAP) and open the possibility for application in other conditions such as cancer, asthma, allergies, and adjuvants to vaccines such as the flu shot.
- Results of a pilot clinical trial measuring the safety and tolerability of COLD-fX for treatment of cold and flu in children were published in the August issue of Pediatrics, the top journal in the field.
A complete set of Financial Statements and Management's Discussion and Analysis will be posted on CV Technologies web site today (www.cvtechnologies.com) and will be available on SEDAR (www.sedar.com) tomorrow. The financial results presented in this news release are a summary only and readers are encouraged to review the full text of the Financial Statements and Management's Discussion and Analysis for important additional information.
ABOUT CV TECHNOLOGIES INC.
CV Technologies, founded in 1992, strives to transform people's lives to be healthier and happier by focusing on prevention and recovery through the use of evidence-based naturally-derived health products. The Company's lead product COLD-fX® strengthens the immune system and is widely used as a leading over the counter (OTC) remedy for helping to prevent and relieve cold and flu infections.
This news release and the referenced MD&A contain certain forward-looking information within the meaning of applicable securities laws. The forward-looking information included in these documents does not guarantee future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation; those comments predicting the timing and/or initiation of clinical trials, clinical trial results and associated regulatory clearances, the Company's ability to secure financing and the ability to negotiate arrangements with potential strategic partners, and acceptance of COLD-fX® and COLD-fX Extra Strength in the marketplace. The use of any of the words "aims", "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "would", "project", "could", "should", "believe", "plans", "targets", "intends" and similar expressions are intended to identify forward-looking information. In addition to the risks outlined in the Risks and Uncertainties section of the MD&A, the MD&A and this news release contain forward-looking information pertaining to the following: the impact of competition; incidence of cold and flu; consumer confidence and spending levels; general economic conditions; interest and currency exchange rates; unseasonable weather patterns; the cost and availability of capital; the cost and availability of grants/funding; and product development. The Company believes that the expectations and assumptions reflected in the forward-looking information contained herein are reasonable but no assurance can be given that these expectations and assumptions are correct and that the results, performance or achievements expressed in, or implied by, forward-looking information within this disclosure will occur, or if they do, that any benefits may be derived from them. All forward-looking information is expressly qualified in its entirety by this cautionary statement. The Company assumes no duty to update or revise forward-looking information, except as may be required pursuant to applicable laws. The Company is a 12g3-2(b) SEC registrant.