EDMONTON, ALBERTA--(CCNMatthews - Dec. 11, 2006) - CV Technologies Inc. (TSX:CVQ), today released its financial results for the year ending September 30, 2006. The Company reported an increase in annual net sales of 48% to $47 million from $32 million for the same period last year.
Pretax earnings decreased slightly to $8.4 million from $8.5 million last year. Earnings after tax were $4.1 million compared to $10.1 million for the previous year.
Higher operating and professional expenditures, with investments in marketing, were incurred in planning, implementing and executing the launch of COLD-fX(R) into the U.S market.
For the three month period ending September 30, 2006, net sales have increased 93% to $13.9 million from $7.2 million for the same period last year.
Highlights of the year include:
- Sales increase of 48%
- Entry into U.S. market
- Approval of construction of a new office headquarters and research centre
"Our management team is pleased with the progress made this past year. We had strong growth in Canada and the U.S. market is tracking to plan. Although the fourth quarter earnings were less than last year, we made important investments in manufacturing and marketing for our launch of COLD-fX(R) into the U.S. market this fall," said Dr. Jacqueline Shan, president, CEO and Chief Scientific Officer. "We are now on the shelves of leading drug chains and several large retailers in the U.S. We are excited about the market opportunity and are working to build the brand by creating awareness with the American consumer."
Despite a very mild cold and flu season last year which saw industry sales diminish, COLD-fX(R) continued its sales growth and maintained its ranking as the number one selling cold and flu remedy in Canada (ACNielsen's MarketTrack Drug Service for Cold Remedies, Natural Supplements & Vitamins Categories for the 52-week period ending September 2, 2006).
ABOUT CV TECHNOLOGIES INC.
CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, natural therapeutics for disease prevention and health maintenance. The Company's lead product - COLD-fX(R) - strengthens the immune system and is widely used as a leading over the counter remedy (OTC) for preventing and relieving cold and flu infections. In the United States it is marketed as an immune enhancing dietary supplement. COLD-fX continues to rank as the number one selling cold and remedy in Canada (ACNielsen's MarketTrack Drug Service for Cold Remedies, Natural Supplements & Vitamins Categories for the 52-week period ending September 2, 2006). COLD-fX(R), with its unique and patented mechanism of action was standardized according to the Company's ChemBioPrint (CBP) Process. The CBP process precisely identifies the chemical profile and biological activity of multi-active compounds in evidence-based natural therapeutics. The CBP process also provides a manufacturing protocol that ensures each batch of the final product delivers verifiable and provable health benefits.
This news release and the referenced complete set of Annual Financial Reports on SEDAR contain forward-looking statements that are subject to risks and uncertainties that may cause actual results or events to differ materially from the results or events predicted in this discussion, including those comments predicting the timing and/or initiation of clinical trials, whether enrolment in ongoing clinical trials will proceed at an acceptable rate, clinical trial results and associated regulatory clearances, the potential success of the U.S. marketing initiative for COLD-fX whether or not new indications will be developed for COLD-fX and whether business development initiatives will be successful with respect to in-licensing and out-licensing activities. In addition to the risks outlined in the Risk Management section at the end of the MD&A, factors which could cause actual results or events to differ include, but are not limited to: the impact of competition; 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; product development and the risk that clinical trials may not demonstrate the safety and efficacy required to satisfy the regulatory authorities. Although we believe that the forward-looking statements contained herein are reasonable, we can give no assurance that our expectations are correct and that the results, performance or achievements expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them. All forward-looking statements are expressly qualified in their entirely by this cautionary statement.