This was a very ugly quarterly report, the company made those cautionary statements in the last PR about the timing of the Saudi Arabian order, but I thought they had a stronger base in product sales than they reported here.....this was worse than I would have imagined.
COVALON ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Covalon Technologies Ltd. has released financial results for its second quarter ended March 31, 2016.
Brian Pedlar, Covalon's President and CEO, stated "As we previously disclosed, delays in the awarding of tenders by the healthcare authorities in Saudi Arabia resulted in Covalon not receiving revenue it expected to receive by the end of the second quarter ending March 31, 2016. However, as disclosed in the press release of May 24, 2016, Covalon did receive an order from Saudi Arabia for $1.9 million after the end of the second quarter which will be recognized in the third quarter ending June 30, 2016. Due to this anomaly, for the three months ended March 31, 2016, revenue was $797,748, operating expenses were $1,501,824 and net loss was $1,065,517 or $0.10 per share. For the six months ended March 31, 2016, revenue was $3,238,381, operating expenses were $2,801,413 and net loss was $798,533 or $0.08 per share.
"With the $1.9 million order, we fully expect to be back on track with our financial results in the third quarter ending June 30, 2016. As of May 26, 2016 we have over $2.4 million of cash in the bank and expect to collect on the $1.9 million order prior to the end of June."
"Furthermore, I fully expect our success in the healthcare tender process in Saudi Arabia will prove to be financially beneficial to Covalon in the quarters and years to come. Of even greater importance, this success is transformative in giving Covalon clear evidence of its ability to win major business when going up against some of the largest and most respected medical companies in the world."
"Our success in Saudi Arabia has proven that our business strategy works and early results in Latin America are showing us that we can replicate this model in other worldwide markets. Covalon is actually off to an excellent start for the first half of fiscal 2016."
"I look forward to updating our shareholders on a conference call which is scheduled for Tuesday, May 31, 2016 at 9:00 am EST."
To participate in the call please dial: Local / International: 416-640-5946 North American Toll- Free: 1 866-233-458
"Our houses are such unwieldy property that we are often imprisoned rather than housed in them." - Henry David Thoreau, Walden: Economy, 1854
