EDMONTON, ALBERTA--(CCNMatthews - Aug. 11, 2006) - CV Technologies Inc. (TSX:CVQ) today released its financial and operating results for the third quarter of fiscal 2006 which includes the three month period ending June 30, 2006. The Company reported an increase in sales of 14% from $2.8 to $3.2 million for the same period last year. The Company reported an after tax loss of $1.8 million for the third quarter compared to a loss of $0.5 million for the same period last year.
The Company also showed a Q3 pretax loss of $2.4 million compared to $0.5 million reported last year. Higher fixed operating costs and expenditures in planning for international growth and U.S. market entry have impacted the bottom line.
There were a number of significant accomplishments during the quarter:
- Investment and structuring for international growth and U.S. market entry
- Began implementation of strategy to enter the U.S. market
- Six-time Stanley Cup champion Mark Messier agrees to be official spokesperson for COLD-fX(TM) for North America
- Board approval of the construction and financing of new office headquarters and research centre including a 10 year land lease for $1 per year
"The results for the third quarter reflect the necessary investments that CV Technologies has made in preparation for our launch into the U.S. market," said Dr. Jacqueline Shan, president, CEO and Chief Scientific Officer. "We remain confident in our future growth opportunities throughout North America and believe that we are executing well against our strategy. Our lead product, sold as COLD-fX(TM) in Canada, is expected to be on retail shelves in the U.S. for the upcoming cold and flu season and we anticipate sales from this new market to make an important financial contribution to the Company."
On a year to date basis for the nine month period ending June 30, 2006, net sales have increased 34% to $33.1 million from $24.7 million for the same period last year. Pretax earnings increased to $7.1 million from $6.8 million last year. Net earnings after tax are $3.6 million compared to $6.8 million for the previous year.
ABOUT CV TECHNOLOGIES INC.
CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, clinically tested, medicines for disease prevention and health maintenance. The Company's lead product - COLD-fX(TM), the top selling cold and flu remedy in Canada according to ACNielsen (52 weeks ending January 21,2006), strengthens the immune system and is widely used as a leading over the counter remedy (OTC) for preventing and relieving cold and flu infections. COLD-fX(TM) with its unique and patented, mechanism of action was standardized according to the Company's ChemBioPrint(R) (CBP) Process. The CBP process precisely identifies the chemical profile and biological activity of multi-active components 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 Interim 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, clinical trial results and associated regulatory clearances, entry and timing of entry into the U.S. market and the potential success of such initiatives. 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 entirety by this cautionary statement.