Covalon Technologies Ltd. announced earnings results for the first quarter 2019. For the quarter, the company reported revenue was $7.2 million, 13% or $856,701 more than the prior year. Net loss was $1.9 million or $0.09 per share, compared to a profit of $0.5 million or $0.02 per share (diluted) a year ago. Net income included approximately $1.0 million of acquisition costs, accretion, interest, and purchase accounting expenses associated with the acquisition of AquaGuard that were incurred during the quarter.

The company provided earnings guidance for the fiscal year 2019. The company anticipates recognizing in revenue in fiscal 2019 from the three-year series of contracts in the Middle East valued at $100 million. As previously disclosed, the $30 million in revenue will be more heavily weighted in the second half of fiscal 2019, due to the agreed-upon delivery schedule of products to hospitals. Combined revenue in the United States is on track to exceed $25 million in fiscal 2019. Sales of the recently-acquired AquaGuard product line are growing according to plan and United States sales force has been engaged in the process of educating new customer base of 1,500 hospitals on Covalon's infection prevention products.