Velan Inc. Reports Its Fiscal 2024 Third Quarter Financial Results

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MONTREAL, Jan. 11, 2024 (GLOBE NEWSWIRE) — Velan Inc. (TSX: VLN) (the “Company”), a world-leading manufacturer of industrial valves, announced today its financial results for its third quarter ended November 30, 2023. All amounts are expressed in U.S. dollars unless indicated otherwise.

THIRD QUARTER RESULTS:

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• Sales of $80.9 million, down $14.3 million or 15.0% compared to last year, but up $0.6 million or 0.8% from the second quarter of the current fiscal year.
• Gross profit of $16.4 million, or 20.2% of sales, compared to $29.0 million, or 30.4% of sales, last year.
• Net loss¹ of $7.3 million compared to net income¹ of $2.7 million last year.
• Net new orders (“bookings”)² of $78.3 million, compared to $99.2 million last year.
• Order backlog² of $485.0 million at quarter end, up $20.7 million or 4.5% since the beginning of the year.
• Net cash of $26.4 million at the end of Q3, versus $39.4 million three months ago. Liquidity remains strong with $97.5 million of available cash-on-hand and credit facilities.
• Following the termination of the arrangement agreement with Flowserve, after an eight-month interim period, the Company resumes its objectives as an independent organization with a renewed focus on profitable growth.