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To: Johnny Canuck who wrote (44070)	3/26/2007 8:56:39 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69913

CV Technologies stock drops 20 pct on sales outlook Mon Mar 26, 12:25 PM Email Story IM Story Printable View TORONTO (Reuters) - Shares of cold-remedy maker CV Technologies dropped more than 20 percent on Monday after the company said sales would be flat or lower because of a mild winter and a late and light season for colds and flu. CV's shares were down 50 Canadian cents, or 21.1 percent, at C$1.89 on the Toronto Stock Exchange at midday after falling as low as C$1.84 earlier in the day. The maker of the COLD-fX cold and flu remedy said sales for the six months ending March 31 would be lower or little changed compared with C$29.9 million a year earlier. Net sales for Canada for the second quarter will be less than the C$10.9 million posted for the year-earlier quarter, the company said. CV Technologies said "significant rebalancing and product returns" in the United States "could have a serious impact on the company's cash position and working capital" and could lead to a loss in its second quarter. To help cut the losses, the company said it would implement steps including "immediate reductions in expenditures in the U.S. and Canada to trim manufacturing and operating expenses to better align them with anticipated sales and to improve earnings and limit manufacturing to permit a reduction in inventory. It also said it would seek a strategic business partner to help cultivate its U.S. business, acknowledging it had "underestimated" U.S. marketing regulations. "We underestimated the effect our compliance with U.S. marketing regulations of dietary supplements would have on our sales and bottom line in the face of significant competitor noncompliance," Jacqueline Shan, president and chief executive, said in a release. "Our new, more targeted marketing strategy in the U.S. will take advantage of our strong scientific foundation by also focusing on medical channels to communicate directly with doctors and other health care professionals about the benefits of COLD-fX."