WILLIAMSVILLE, N.Y., May 8 /PRNewswire-FirstCall/ -- CVF Technologies Corporation's (OTC:CNVT) (BULLETIN BOARD: CNVT) holding BIOREM announced its results for the first quarter ended March 31, 2008, which are summarized in the following table: ---------------------- First quarter ended March 31, ------------------------------------------------------------------------- Information in table is in Cdn thousands except per share data 2008 2007 ------------------------------------------------------------------------- REVENUE $3,184 $1,769 ------------------------------------------------------------------------- GROSS PROFIT 1,455 618 ------------------------------------------------------------------------- EBITDA(1) 236 (336) ------------------------------------------------------------------------- NET EARNINGS 104 (375) ------------------------------------------------------------------------- BASIC EARNINGS PER SHARE 0.01 (0.03) ------------------------------------------------------------------------- DILUTED EARNINGS PER SHARE 0.01 (0.03) ------------------------------------------------------------------------- WEIGHTED AVERAGE COMMON SHARES 11,978 11,978 ------------------------------------------------------------------------- First quarter revenue was Cdn $3,184,000 which is up Cdn $1,415,000 or 80% over the comparative period in the prior year. This also represents an 8.4% increase over revenue in Q4 2007 and a very encouraging trend of four continuous quarters with revenue increases. Strong revenue growth has resulted from the successful implementation of the major sales initiatives adopted in early 2007 to bring special attention separately to the municipal and industrial marketplaces and to build a very strong manufacturing representative network. New orders in the first quarter were Cdn $2,150,000 resulting in a current order backlog of Cdn $9 million. The backlog is up Cdn $1.3 million or 17% from March 31, 2007. Gross profit in the quarter of Cdn $1,455,000 is up Cdn $837,000 from last year's comparative quarter resulting from increased revenue as well as improved margins on projects. This improvement has driven the gross margin up to 45.7% compared to Q1 2007 of 34.9%. Operating Expenses were Cdn $1,219,000 which is up Cdn $265,000 or a 27.8% increase compared to the comparative quarter of Cdn $954,000. The largest increases are as follows: -- Sales and marketing expenses of Cdn $620,000 are up Cdn $231,000 or 59.4% to account for higher commissions as well as increased personnel costs. -- Research and development expenses are up Cdn $94,000 or 61.8% from 2007 primarily due to activity associated with an ongoing research program targeting industrial air pollution product development. -- There was an exchange gain of Cdn $102,000 in Q1 2008 as compared to an exchange loss in the comparative period of 2007 of Cdn $14,000. Although Operating Expenses were higher than last year's first quarter, the significant increase in gross margin brought the Company to a positive net earnings of Cdn $104,000 compared to a loss of Cdn $375,000 in Q1 2007. The Company's liquidity improved significantly in Q1 2008. Net working capital increased by Cdn $337,000 in the three-month period. Total working capital at March 31, 2008 was Cdn $4,201,000. Commenting on the quarterly results, Peter Bruijns, BIOREM President and CEO said, "The very favorable results confirm the positive direction of the Company's sales restructuring from last year. Not only are the number of orders per quarter increasing, the average deal size is rising as the Company is winning many large orders. It is also encouraging to see a healthy gross margin which is expected to continue throughout 2008." BIOREM went on to announce that, as part of an internal reorganization, the Director of Operations has departed from the Company. Peter Bruijns will take responsibility for this function in the interim as the Company builds best-practices and determines the most cost effective structure to deliver on the expanding business and new orders from both North America and internationally. In addition, BIOREM has recently announced the receipt of orders in the second quarter totaling Cdn $1.7 million for odor control systems in Cape Coral, Florida and Corpus Christi, Texas as well as five systems in three separate locations in the Middle East. "BIOREM's technology has gained a great deal of traction in the Middle East", said Peter Bruijns, President & CEO of BIOREM. "We maintain strong relationships with representatives worldwide in key market segments and these organizations are successfully educating local owners, contractors and engineers on the value of biological odor removal technologies." BIOREM(R) manufactures BIOSORBENS(R) biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications, including BIOCUBE(R) modular units and the MYTILUS(R) biotrickling filters. With over 500 installed systems and over a decade of experience, the Company's products are the technology of choice for odor control at wastewater treatment plants across North America. Additional information on BIOREM is also available at http://www.biorem.biz/. CVF Technologies Corporation (http://www.cvfcorp.com/) is headquartered in Williamsville, New York. CVF is a technology development company, whose principal business is sourcing, funding and managing emerging pre-public, clean-tech companies with significant market potential. Certain statements made in this press release which are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve risks and uncertainties, which may cause actual results or achievements to be materially different from any future results and achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, product demand and market acceptance risks for the products and technologies of CVF's subsidiary companies and investees; the impact of competitive products, technologies and pricing; delays or difficulties in developing, producing, testing and selling new products and technologies; the ability of the company's subsidiaries and investees to obtain necessary financing for their operations and to consummate initial public offerings of their stock; the effect of the Company's accounting policies; the effect of trade restrictions and other risks detailed in the company's Statement on Form 10-SB/A filed with the U.S. Securities and Exchange Commission and any subsequent filings with the Commission. For more information please contact: http://www.cvfcorp.com/ (1) EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization. This measure is important to management since it is used by potential investors and lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts they are willing to invest in the Company. DATASOURCE: CVF Technologies Corporation CONTACT: Robert L. Miller, Chief Financial Officer, or Jeffrey Dreben President & CEO, both of CVF Technologies Corporation, +1-716-565-4711 Web site: http://www.cvfcorp.com/ http://www.biorem.biz/

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