EDMONTON, ALBERTA--(CCNMatthews - Nov. 30, 2005) - CV Technologies Inc. (CVT) (TSX VENTURE:CVQ) today released its financial statement for fiscal 2005 showing record sales and profits. The Company - maker of COLD-fX(R) - ended the year with net sales of $31.9 million - an increase of 398% over the $6.4 million achieved the previous year. More striking was the Company's $10.1 million in net after tax profit which is 67 times greater than the $151 thousand that the Company recorded in fiscal 2004 - the Company's first profitable year.
The significant sales increases were accomplished through sales growth of the Company's lead product - COLD-fX(R). Sales and distribution of new products REMEMBER-fX(R) and CELL-fX(R) also improved. COLD-fX(R) was the # 1 selling item in the category of cold and flu remedies for the 52-week period ending April 16, 2005, as reported by ACNielsen. Retail distribution increased to 6000 stores, versus 4000 during the prior year. Sales growth was enhanced through increased brand and corporate awareness, from news media coverage of CVT's significant scientific and business events. Strong marketing programs, combined with the education of pharmacy and healthcare professionals helped as well. Celebrity endorsements and sports sponsorships also supported CVT's leadership position within the market.
CVT President and CEO, Dr. Jacqueline Shan said, "It's been a remarkable year. Our strong financial performance in 2005 further confirmed our successful commercialization programs for COLD-fX(R), REMEMBER-fX(R) and CELL-fX(R). Our continued commitment to preventative, evidence-based medicine is the foundation of our business. The increased public demand for our products is proof of the power of prevention."
"We are grateful for the incredible support we've received from all of our partners at the retail and wholesale levels, as well as from all our loyal consumers who have expanded awareness of us by word of mouth", she added.
CVT also released its financial figures for the fourth quarter ending September 30, 2005. Fourth quarter net earnings were $3.3 million compared to $ 0.2 million in 2004, an increase of $3.1 million. Sales revenue for the fourth quarter grew to $7.2 million from $2.3 million the previous year. Sales growth from the third quarter was attributed to increased orders with the approach of the cold and flu season and the launch of CELL-fX(R), a joint pain reliever. At the year end CVT had only nominal debt, and working capital of $16.9 million including cash reserves of $6 million.
Financial Statements & MD & A will be posted on SEDAR tonight.All amounts are expressed in Canadian dollars.
In other Company developments of note:
- CVT expands awareness of COLD-fX(R) in Quebec with a new French media/marketing campaign involving a partnership with the Montreal Canadiens who have used the product for 5 seasons.
- CVT was included in the Deloitte Tech Fast 50 and was one of only four Canadian companies selected as a finalist for the prestigious "Red Herring Small Cap 100 " - a new list from the authors of the investor magazine. Two hundred companies were chosen from a pool of 1,000 companies from 21 countries. Red Herring says the companies on the list have market caps of between $300 million and $1Billion and were chosen for their financial performance and growth and because they're "dynamic and versatile."
- CVT attracted extensive national coverage including TV network reports on CTV and CBC-TV when the Canadian Medical Association Journal - one of the leading general medical journals in the world - published results of a pivotal clinical
trial. ABC-TV's "Good Morning America" devoted four and a half minutes to it.
- CEO Dr. Shan was featured in cover stories in November's Profit magazine and the Globe and Mail's Report on (Small) Business in October. Dr. Shan also recently received a number of scientific and business awards and was chosen by
Profit magazine for the W100 - a list of the top female entrepreneurs in Canada and was also selected for "Canada's Most Powerful Women: Top 100" - another ranking of Canadian female business leaders.
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. CVT's lead product -
COLD-fX(R), - the top selling cold and flu remedy in Canada according to ACNielsen, strengthens the immune system and is widely used as a leading anti-cold, anti-flu, non-prescription treatment. COLD-fX's unique, patented, mechanism of action was developed and standardized according to the Company's ChemBioPrint (CBP(R)) technology. The CBP(R) process precisely identifies the chemical profile and biological activity of multi-active components in natural compounds. The CBP(R) process provides a manufacturing protocol that ensures each batch of compound delivers verifiable and provable health benefits.
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "intends", "expects" and similar expressions are intended to identify forward-looking statements. Such risks and uncertainties include, but are not limited to, the need for capital, changing market conditions, completion of clinical trials, patient enrolment rates, uncertainty of pre-clinical, retrospective and early clinical trial results, the establishment of manufacturing processes and new corporate alliances, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time to time in the Company's filings with Canadian securities authorities.
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