EDMONTON, ALBERTA--(Marketwire - May 12, 2008) - CV Technologies Inc. (TSX:CVQ) today reported fiscal 2008 second quarter sales of $10.7 million, up 36.5% from sales of $7.8 million in the same quarter last year. The net loss was $768 thousand or $0.01 of diluted net loss per share in the second quarter ended March 31, 2008, a sharp improvement from the net loss of $3.3 million or $0.03 of diluted net loss per share in the comparable period last year.
In the first six months of fiscal 2008, sales rose 5.0 % to $32.0 million from $30.5 million in the first half of the prior year. Net earnings improved to $6.0 million or $0.06 diluted net income per share from a net loss of $6.9 million or $0.07 diluted net loss per share in the six months ended March 31, 2007.
"We are confident the year-over-year improvement in our financial results indicates CV Technologies remains on track to achieve its growth and profitability goals for fiscal 2008," said Dr. Jacqueline Shan, President, CEO and Chief Scientific Officer. "During the second quarter we incurred the majority of our advertising and marketing costs for the first six months, resulting in a loss; however, we anticipate that we will incur only modest advertising and marketing costs for the balance of this year. Our robust second quarter sales were due to the late onset of an active cold and flu season, our aggressive advertising campaign, our public relations efforts, the launch of COLD-fX® Extra Strength, and our success in refocusing on the excellent growth potential of the Canadian market."
Canadian sales were $10.2 million in the second quarter of fiscal 2008 compared to $7.5 million in the same quarter last year. U.S. sales in the fiscal 2008 second quarter were $0.5 million, up from $0.4 million in the same period last year. "As previously announced, we have dramatically revamped our U.S. strategy to concentrate on existing customers, while ensuring that expenditures are closely aligned with sales levels," Dr. Shan said.
- COLD-fX Extra Strength, launched midway through the first fiscal quarter, has posted strong results in terms of both shipments to retailers and consumption by consumers. Extra Strength sales are significantly ahead of plan.
- According to the March 15, 2008 figures from ACNielsen(i), COLD-fX remains Canada's best-selling cold and flu remedy.
- We have recruited a strong sales team to replace our broker system and we continue to refine our marketing programs.
- The Company is pursuing promising research and development opportunities, as well as evaluating licensing and strategic partnership prospects.
(i) ACNielsen MarketTrack National all Channel service for the categories of Cold Remedies and Supplements & Products, 52 weeks ending March 15, 2008.
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 remedy (OTC) 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, 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 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.