EDMONTON, ALBERTA--(Marketwire - Feb. 13, 2008) - CV Technologies Inc. (TSX:CVQ) today reported fiscal 2008 first quarter sales of $21.3 million, down 5.9% from sales of $22.6 million in the same period last year. Net earnings were a record $6.8 million ($0.06 per share, diluted) in the first quarter ended December 31, 2007, an improvement of $10.4 million from a net loss of $3.6 million (loss of $0.03 per share, diluted) in the quarter ended December 31, 2006.
Sales in Canada were $20.9 million in the first quarter of fiscal 2008 compared to $22.2 million in the comparable quarter of fiscal 2007, while U.S. sales were unchanged quarter over quarter at $0.4 million, and U.S. losses before tax were $0.2 million for the current quarter compared to $11.9 million in the same quarter of the prior year.
"While the cold and flu season began much later than usual, producing some decline in our quarterly revenue year over year, our results were very strong overall, with net earnings reflecting one of our best quarters ever, good cash flow and a solid balance sheet," said Dr. Jacqueline Shan, President, CEO and Chief Scientific Officer. "This performance underscores our success in refocusing our attention on achieving growth in Canada, our primary market. We continue our U.S. strategy of concentrating on existing customers and managing expenditures to ensure they are aligned with sales levels. Management believes we are on track to meet our growth and profitability goals for fiscal 2008. We believe the long-term prospects for our Company remain excellent."
- COLD-fX® Extra Strength was launched midway through the fiscal first quarter to brisk sales, although the product was available in only about half of retail outlets by December 31.
- The Company has applied to Health Canada for a Natural Product Number for COLD-fX Extra Strength.
- According to the most recent figures from ACNielsen, the Company's flagship product, COLD-fX, remains Canada's best-selling cold and flu remedy.
- A strong sales team has been recruited to replace our broker system and our marketing programs continue to be refined.
- The Company continues to pursue promising research and development opportunities, as well as evaluate licensing and strategic partnerships.
- We moved into our new headquarters and research and development facility in Edmonton, which provides the science infrastructure required to successfully support the Company's plans for the future.
ABOUT CV TECHNOLOGIES INC.
CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, therapeutics for disease prevention and health maintenance. The Company's lead product COLD-fX® strengthens the immune system and is widely used as a leading over the counter remedy (OTC) for preventing and relieving 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, financing and acceptance of COLD-fX® 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 the 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.