MONTREAL, QUEBEC — (Marketwire) — 10/12/12 — Velan Inc. (TSX: VLN) (the „Company“), a world-leading manufacturer of industrial valves, announced today its financial results for its second quarter ended August 31, 2012.
Highlights
Second Quarter Fiscal 2013 (unless otherwise noted, all comparisons are to the second quarter of fiscal 2012):
First Half Year Fiscal 2013 (unless otherwise noted, all comparisons are to the first half year of fiscal 2012):
„We are pleased that we are gradually working through our high backlog although perhaps not as quickly as we would like“, said John Ball, CFO of Velan Inc. „This is restoring our profitability as our shipments increase, although not without certain working capital challenges, and we continue to invest in our productive capacity both in Canada and abroad. The fluctuation of the euro this year, the current vagaries of the nuclear industry, and the uncertainty in certain world financial markets also contribute to these challenges, however they are outweighed by the longer term opportunities in our end user markets.“
Tom Velan, President and CEO of Velan Inc. said, „In view of our large order backlog, our main focus is on increasing our output and improving our execution of our complex project orders. We are investing both in Asia and North America to increase our global manufacturing capacity and to strengthen our presence in international markets. In the shorter term, we are focused on improved execution of our large project order backlog to satisfy the needs of our customers.“
Dividend
The Board declared an eligible quarterly dividend of Canadian dollar $0.08 per share, payable on December 31, 2012, to all shareholders of record as at December 14, 2012.
Conference call
Financial analysts, shareholders, and other interested individuals are invited to attend the second quarter conference call to be held on October 12, 2012, at 4:30 PM (EDT). The toll free call-in number is 1-888-224-7971, access code 21607087. A recording of this conference call will be available for seven days at 1-416-626-4100 or 1-800-558-5253, access code 21607087.
About Velan
Velan Inc. () is a world-leading manufacturer of industrial valves with sales of $437 million in its last reported fiscal year. The company employs over 2,000 people and has manufacturing plants in nine countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe harbour statement
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management-s best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company-s products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
Non-GAAP measures
In this press release, the Company presented measures of performance and financial condition that are not defined under Canadian GAAP („non-GAAP measures“) and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company.
Net cash is defined as cash and cash equivalents plus short-term investments less bank indebtedness, short-term loans, and current portion of long-term debt.
Contacts: Tom Velan President and Chief Executive Officer (514) 748-7743 (514) 748-8635 (FAX)
John D. Ball Chief Financial Officer (514) 748-7743 (514) 748-8635 (FAX)
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