Velan Inc. Reports Solid First Quarter Results for Fiscal 2026

Core Insights - Velan Inc. reported a strong financial performance for the first quarter of fiscal 2026, with significant sales growth and improved gross profit margins [3][4][5] Financial Performance - Sales from continuing operations reached $72.2 million, an increase of $11.3 million or 18.6% compared to $60.9 million in the same period last year [5][11] - Gross profit rose to $20.6 million, representing a gross margin of 28.6%, up from 27.6% in the previous year [5][12] - Net income from continuing operations was $17.8 million, or $0.83 per share, compared to a net loss of $2.2 million, or a loss of $0.10 per share, in the prior year [5][16] Cash Position and Dividends - The company ended the quarter with cash and cash equivalents of $59.1 million, the highest level in five years, following the divestiture of asbestos-related liabilities and the sale of French assets [3][4][18] - A significant increase in the quarterly dividend payment was approved, raising it from CA$0.03 to CA$0.10 per common share, reflecting confidence in future performance [20][21] Backlog and Bookings - The backlog stood at $286.1 million, up 4.1% from $274.9 million at the end of the previous quarter, with 84.4% expected to be delivered within the next 12 months [9][19] - Bookings for the quarter amounted to $78.2 million, down from $83.0 million in the previous year, resulting in a book-to-bill ratio of 1.08 [10][19] Significant Transactions - The company completed the sale of its French subsidiaries for a total consideration of $208.2 million, resulting in a gain of $95.8 million recorded in the first quarter [7][8] - Concurrently, Velan sold its exposure to asbestos-related litigation in the U.S. for $143.0 million [8]