CV Technologies to restate revenues

CV Technologies Inc., the maker of the Cold-fX cold and flu treatment, said Wednesday it is restating some of its revenue from its U.S. sales.

The Edmonton company said that $8.6 million in U.S. sales from the fourth quarter of 2006 and the first quarter of 2007 was overstated in a March report because the revenue was based on product sold to retailers to stock shelves, not on sales to ultimate consumers.

The company said the actual revenue for the periods was disappointing and estimated to be $1.5 million to $2.5 million.

CV said its overall 2006 revenue of $47 million would be reduced by between $5 million and $5.6 million, while first quarter revenue for 2007 would be reduced by between $1.5 million and $2 million.

"Since it is very difficult to estimate consumer uptake and the risk of product return in these situations, the company has adopted a revised accounting policy for revenue recognition, which will apply to new markets and new products, and is intended to eliminate such revenue recognition issues going forward," CV said.

The company said its restated results would be released in early May.

CV shares fell nine cents to end at $1.38 on the TSX.