Velan Inc.
TSX : VLN

Velan Inc.

January 08, 2008 15:45 ET

Velan Inc. Reports its 2nd Quarter 2007/2008 Financial Results

MONTREAL, QUEBEC--(Marketwire - Jan. 8, 2008) - Velan Inc. (TSX:VLN) - Revenues for the second quarter reached $120.9 million, a 19.1% increase over the same quarter last year when the company recorded sales of $101.5 million. The increased sales were attributable mainly to our Italian and North American and French operations. The net loss for the quarter of $0.3 million, or $0.01 per share, compared to net earnings of $4.8 million, or $0.22 per share, in the prior year. For the six months ended November 30, 2007, net earnings amounted to $1.1 million, or $0.05 per share, versus net earnings of $5.7 million, or $0.26 per share, in the prior year.

The gross profit of the second quarter amounted to $28.4 million, or 23.5% of sales, compared to $28.4 million, or 28.0% of sales, recorded last year. The decrease in margin is due primarily to the rapid strengthening of the Canadian dollar versus the US dollar during the quarter, which went from 94.7 cents at August 31, 2007 to a high of $1.10, before closing at parity at November 30, 2007. Although the Company reports in Canadian dollars, a majority of its sales is in US dollars. Based on average exchange rates the Canadian dollar strengthened against the US dollar 13.9% and 9.8% for the three and six months respectively, which negatively impacted its sales as reported in Canadian dollars, as well as gross margin as the inventory related to the sales had been purchased when the Canadian dollar was weaker. The gross profit for the six months amounted to $51.8 million, or 24.1% of sales, this year compared to the $47.8 million, or 26.4% of sales, experienced last year.

The rapid strengthening of the Canadian dollar during the second quarter resulted in the Company recording an unrealized foreign exchange loss of $2.2 million on the translation of its integrated foreign subsidiaries compared to an unrealized gain of $1.1 million for the same quarter last year. For the six months, the Company recorded an unrealized loss of $3.0 million versus a gain of $1.1 million for last year. Based on period ending rates, the Canadian dollar strengthened by 14.2% from November 30, 2006, by 7.0% from May 31, 2007 and by 5.6% from August 31, 2007.

Net order bookings during the quarter amounted to $ 108.8 million, representing a 14.9% decrease from the comparative quarter last year. The reported order bookings would have been approximately 18.7% higher for the quarter if the Canadian dollar and the Euro had not strengthened against the U.S. dollar. Currency impact not withstanding, the order backlog of $378.1 million as at November 30, 2007 is 15.8% higher than November 30, 2006. The order backlog as of November 30, 2007 includes $55.4 million of orders scheduled for delivery after November 30, 2008.

The Company ended the quarter with shareholders' equity of $ 258.6 million, or $11.59 per share. The Company's net cash, defined as cash and cash equivalents plus short term investments less bank indebtedness and short-term bank loans, amounted to $15.7 million as at November 30, 2007, a decrease of $10.5 million from August 31, 2007 and an increase of $7.1 million from May 31, 2007. The fluctuations in net cash are primarily due to changes in accounts receivable, inventory and related payables required for the continued growth of the company, particularly in light of the higher order backlog, coupled with increases in customer deposits.

The Company's greenfield manufacturing operation in Suzhou, China is now under construction and key local management personnel are in place. The registered capital of the company is US$3 million, which is now fully invested. The investment is intended to help improve the cost competitiveness of the Company's global supply chain and eventually to help serve the Chinese market, the Company's largest market outside North America. This operation is not expected to have a significant impact on the current fiscal year's results.

The Company's president, Tom Velan, said "The strength of the Canadian dollar and its rapid rise against the US dollar is a serious concern for us as a Canadian based manufacturer reporting our results in Canadian dollars. Over the last 5 years, the Canadian dollar has increased more than 55% against the US dollar. We manage a portion of our short term foreign currency risk through the use of forward contracts but a sustained strengthening of the Canadian dollar has a significant negative impact, both realized and unrealized, on our results. We have made efforts over the last 5 years to expand globally and Canadian based production and employment now represents less than 50% of our total. We expect this trend to continue as we start up our 2 China manufacturing plants and continue to explore further opportunities to expand our production in lower cost countries. In view of our large backlog and inventory, it will take time to adjust to the rapid strengthening of the Canadian dollar. During the previous 13 quarters, we have demonstrated the ability to grow our sales and operating earnings during a period when the Canadian dollar increased by 29% from 73.3 cents to 94.7 cents US. Our challenge going forward is to turn our large backlog into growing sales revenues while limiting the impact of the strong Canadian dollar on our operating results."

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

T.C. Velan

President





Consolidated Statements of Earnings (Loss)
and Retained Earnings
Unaudited Unaudited
(in thousands of dollars, Three months ended Six months ended
excluding per share November 30 November 30
amounts) 2007 2006 2007 2006
-------------------------------------------------------------------------
Sales $120,865 $101,506 $214,941 $180,963
Cost of sales
(note 3) 92,426 73,089 163,101 133,177
-------------------------------------------------------------------------
Gross profit 28,439 28,417 51,840 47,786
-------------------------------------------------------------------------
Expenses (other
income)
Engineering,
selling, general
and administrative
and research
(note 4) 19,036 17,729 36,174 32,534
Interest
Long-term debt 276 90 345 156
Other 350 117 590 189
Amortization of
property, plant
and equipment 2,173 2,430 4,226 4,320
Other expense
(income) (108) (320) (576) (710)
Non-controlling
interest 1,695 1,173 2,130 1,883
Foreign exchange
loss (gain) on
translation of
integrated
subsidiaries 2,192 (1,047) 2,971 (1,080)
-------------------------------------------------------------------------
25,614 20,172 45,860 37,292
-------------------------------------------------------------------------
Earnings before
income taxes 2,825 8,245 5,980 10,494
Provision for
income taxes 3,136 3,426 4,893 4,759
-------------------------------------------------------------------------
Net earnings
(loss) $(311) $4,819 $1,087 $5,735
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Retained earnings
- beginning $149,791 $130,749 $148,245 $129,833
Transition adjustment
on adoption of
financial instrument
standards, net
of tax (note 1) - - 148 -
Net earnings (loss) (311) 4,819 1,087 5,735
-------------------------------------------------------------------------
Retained earnings
- ending $149,480 $135,568 $149,480 $135,568
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss)
per share (note 2)
Basic $(0.01) $0.22 $0.05 $0.26
-------------------------------------------------------------------------
Diluted $(0.01) $0.22 $0.05 $0.26
-------------------------------------------------------------------------



Consolidated Balance Sheets
Unaudited Unaudited
November 30 May 31
(in thousands of dollars) 2007 2007
-------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $35,811 $25,803
Short-term investments - 1,012
Accounts receivable 129,956 129,644
Income taxes recoverable 2,891 1,574
Inventories 181,262 176,061
Deposits and prepaid expenses 2,356 3,133
Future income taxes 2,414 2,404
-------------------------------------------------------------------------
354,690 339,631

Future income taxes 1,190 1,420
Property, plant and equipment 62,323 56,017
Goodwill 12,502 12,502
Other assets 951 1,216
-------------------------------------------------------------------------
$431,656 $410,786
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES
Current liabilities
Bank indebtedness $3,814 $5,487
Short-term bank loans 16,255 12,731
Accounts payable and accrued liabilities 76,687 81,190
Income taxes payable 3,999 3,159
Customers' deposits 27,125 18,192
Provision for performance guarantees 7,059 7,779
Future income taxes 194 194
Current portion of long-term debt 3,578 2,558
-------------------------------------------------------------------------
138,711 131,290
Future income taxes 1,499 1,523
Long-term debt 15,876 7,107
Non-controlling interest 9,550 7,476
Other long-term liabilities 7,395 6,737
-------------------------------------------------------------------------
173,031 154,133
-------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Capital stock (note 5) 109,390 109,390
Contributed surplus (note 5) 1,485 1,467
Retained earnings 149,480 148,245
Accumulated other comprehensive loss (1,730) (2,449)
-------------------------------------------------------------------------
258,625 256,653
-------------------------------------------------------------------------
$431,656 $410,786
-------------------------------------------------------------------------
-------------------------------------------------------------------------



Consolidated Statements of Cash Flows
Unaudited Unaudited
Three months ended Six months ended
November 30 November 30
(in thousands of dollars) 2007 2006 2007 2006
-------------------------------------------------------------------------


Cash provided from
(required for):
Operating activities
Net earnings
(loss) $(311) $4,819 1,087 $5,735
Items not affecting
cash -
Amortization 2,173 2,430 4,226 4,320
Stock options
expense 9 16 18 19
Loss (gain) on
disposal of
property, plant
and equipment (56) (6) (104) (12)
Non-controlling
interest 1,695 1,173 2,130 1,883
Net change in
other long-term
liabilities 115 596 351 689
-------------------------------------------------------------------------
3,625 9,028 7,708 12,634
-------------------------------------------------------------------------
Net changes in non-cash
working capital items
Accounts receivable (26,908) (26,766) 2,961 (11,940)
Income taxes
recoverable (820) - (1,290) -
Inventories 8,559 (18,727) (2,255) (30,721)
Deposits and prepaid
expenses 999 581 796 (398)
Accounts payable
and accrued
liabilities (4,244) 15,912 (7,486) 12,877
Income taxes
payable 169 1,488 620 730
Customers'
deposits 7,039 7,165 8,883 8,999
Provision for
performance
guarantees (331) 312 (1,065) 220
-------------------------------------------------------------------------
(15,537) (20,035) 1,164 (20,233)
-------------------------------------------------------------------------
(11,912) (11,007) 8,872 (7,599)
-------------------------------------------------------------------------

Investing activities
Net assets of
business
acquisitions
Net cash paid on
business
acquisition
(note 6) (1,827) - (3,265) -
Short-term
investments - 424 1,012 423
Additions to
property, plant
and equipment (3,151) (1,267) (6,264) (4,475)
Proceeds on
disposal of
property, plant
and equipment 33 11 33 23
Net change in
other assets 33 (141) 270 (259)
-------------------------------------------------------------------------
(4,912) (973) (8,214) (4,288)
-------------------------------------------------------------------------

Financing activities
Short-term bank
loans 6,348 - 3,524 -
Increase in
long-term debt 6,399 4 7,836 669
Repayment of
long-term debt (676) (336) (918) (498)
-------------------------------------------------------------------------
12,071 (332) 10,442 171
-------------------------------------------------------------------------
596 1,027 581 1,136
-------------------------------------------------------------------------
Net change in cash
and cash equivalents (4,157) (11,285) 11,681 (10,580)
Net cash - beginning 36,154 43,552 20,316 42,850
-------------------------------------------------------------------------
Net cash - ending $31,997 $32,267 $31,997 $32,270
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Net cash includes
cash and cash
equivalents less
bank indebtedness

Interest paid
amounted to : 562 - 855 354
Income tax paid
amounted to: 3,887 927 5,194 1,713



Consolidated Statements of Comprehensive Income
(Loss)
Unaudited Unaudited
Three months ended Six months ended
November 30 November 30
(in thousands of dollars) 2007 2006 2007 2006
-------------------------------------------------------------------------
Net earnings (loss) $(311) $4,819 1,087 $5,735
Other comprehensive
income (loss), net of
tax
Foreign currency
translation adjustment
on self-sustaining
operations (non
taxable) 767 3,264 599 3,422
-------------------------------------------------------------------------
Comprehensive income
(loss) 456 8,083 1,686 9,157
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other
comprehensive income
(loss), net tax
Accumulated other
comprehensive loss,
beginning of period (2,617) (2,738) (2,449) (2,896)
Other comprehensive
income (loss) for
the period 767 3,264 599 3,422
Realized translation
adjustment on the
reduction of the net
investment in
self-sustaining
foreign operations 120 - 120 -
-------------------------------------------------------------------------
Accumulated other
comprehensive income
(loss), end of
period (1,730) 526 (1,730) 526
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Notes to Consolidated Financial Statements

For the six months ended November 30, 2007
(in thousands, excluding number of shares and per share amounts)

1. SUMMARY OF ACCOUNTING POLICIES

These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles. They do not include all of the disclosures included in the company's annual consolidated financial statements and as such should be read in conjunction with the consolidated financial statements for the year ended May 31, 2007. In addition, an auditor has not performed a review of these interim consolidated financial statements.

These interim consolidated financial statements have been prepared using the same accounting policies as outlined in Note 1 of the consolidated financial statements for the year ended May 31, 2007, except for the following:

Accounting changes

On June 1, 2007, the Company adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1506, Accounting Changes. This standard establishes criteria for changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies and estimates, and correction of errors.

Financial instruments

On June 1, 2007, the Company adopted CICA Handbook Section 1530, Comprehensive Income and Section 3855 Financial Instruments - Recognition and Measurement. These standards provide accounting guidelines for recognition and measurement of financial assets, financial liabilities and non-financial derivatives as well as the introduction of a new statement of comprehensive income. Section 3865, Hedges, did not have an impact on the Company as it does not use hedge accounting.

The Company's adoption of these new Financial Instruments standards resulted in changes in the accounting for financial instruments as well as the recognition of certain transition adjustments that have been recorded in opening retained earnings and accumulated other comprehensive income as described below. The comparative interim consolidated financial statements have not been restated other than for the foreign currency cumulative translation adjustment, which is now disclosed within accumulated other comprehensive loss. The principal changes in the accounting for financial instruments due to the adoption of these accounting standards are as follows:

(a) Comprehensive income (loss)

Comprehensive income (loss), established under CICA Section 1530, is defined as the change in equity, from transactions and other events and circumstances from sources other than shareholders, and is composed of the Company's net earnings (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that are recognized in comprehensive income (loss), but excluded from net earnings (loss), and include foreign currency translation gains and losses on the net investment in self-sustaining operations. The components of comprehensive income (loss) are disclosed in the interim consolidated statements of comprehensive income (loss).

(b) Financial assets and financial liabilities

Under the new standards, financial assets and financial liabilities are initially recognized at fair value and are classified into one of these five categories: held-for-trading, held-to-maturity investments, loans and receivables, available-for-sale financial assets or other financial liabilities. They are subsequently accounted for based on their classification as described below. The classification depends on the purpose for which the financial instruments were acquired and their characteristics. Except in very limited circumstances, the classification is not changed subsequent to initial recognition.

Held-for-trading

Financial instruments classified as held-for-trading are carried at fair value at each balance sheet date with the changes in fair value recorded in net earnings (loss) in the period in which these changes arise.

Held-to-maturity investments, loans and receivables and other financial liabilities

Financial instruments classified as loans and receivables, held-to-maturity investments and other financial liabilities are carried at amortized cost using the effective interest method. The interest income or expense is included in net earnings (loss) over the expected life of the instrument.

Available-for-sale

Financial instruments classified as available-for-sale are carried at fair value at each balance sheet date with the changes in fair value recorded in other comprehensive income (loss) in the period in which the changes arise. Securities that are classified as available-for-sale and do not have a readily available market value are recorded at cost. Available-for-sale securities are written down to fair value through earnings (loss) whenever it is necessary to reflect other-than-temporary impairment. Upon derecognition, all cumulative gain or loss is then recognized in net earnings (loss).

As a result of the adoption of these new standards, the Company has classified its cash and cash equivalents, short-term investments, bank indebtedness, short-term debt and derivatives as held-for-trading. Accounts receivable are classified as loans and receivables. Account payable and accrued liabilities, customer deposits, provision for performance guarantees, long-term debt, including interest payable and other long-term liabilities are classified as other liabilities, all of which are measured at amortized cost.

(c) Embedded derivatives

All derivative instruments are recorded in the consolidated balance sheets at fair value at each balance sheet date. Derivatives may be embedded in other financial instruments (the "host instrument"). Prior to the adoption of the new standards, such embedded derivatives were not accounted for separately from the host instrument. Under the new standards, embedded derivatives are treated as separate derivatives if their economic characteristics and risks are not clearly and closely related to those of the host instrument, the terms of the embedded derivative are the same as those of a stand-alone derivative, and the combined contract is not held for trading or designated at fair value. These embedded derivatives are measured at fair value at each balance sheet date with subsequent changes recognized in net earnings (loss) in the period in which the changes arise. The Company selected June 1, 2002 as its transition date for embedded derivatives, which is the latest date that could be selected according to the accounting standard.

The Company enters into certain contracts for the purchase and sale of non-financial items that are denominated in currencies other than the Canadian dollar, the Company's functional currency. In cases where the foreign exchange component is not leveraged and does not contain an option feature, the contract is denominated in the functional currency of the counter-party or the non-financial item is routinely denominated in the currency of the contract or the currency of the contract is commonly used in the economic environment in which the transaction takes place, the embedded derivative is considered to be closely related and is not accounted for separately.

Adopting these new standards resulted in the following impact on the balance sheet as at June 1, 2007:



Increase (decrease)
--------------------------------------------------------------
Accounts receivable 217
Future income tax liability - current portion 69
Retained earnings 148


Embedded foreign currency derivatives gave rise to these transition amounts and were the only items that had an effect on the financial statements as a result of the adoption. The fair value of financial instruments is determined using recognized valuation models using observable market-based inputs.

The fair value of the derivatives related to sales contracts is recorded in sales; purchase contracts are recorded in cost of sales.

ACCOUNTING PRINCIPLES ISSUED BUT NOT YET IMPLEMENTED

Financial instruments - disclosure and presentation

In December 2006, the CICA published the following two sections of the CICA Handbook: Section 3862, Financial Instruments - Disclosures and Section 3863, Financial Instruments - Presentation. These standards introduce disclosure and presentation requirements that will enable financial statements' users to evaluate, and enhance their understanding of, the significance of financial instruments for the entity's financial position, performance and cash flows, and the nature and extent of risks arising from financial instruments to which the entity is exposed, and how those risks are managed.

Capital disclosures

In December 2006, the CICA published section 1535 of the Handbook, Capital disclosures, which requires disclosure of both qualitative and quantitative information that enables financial statements' users to evaluate the entity's objectives, policies and processes for managing capital.

Inventories

In January 2007, the CICA published section 3031 of the Handbook, Inventories, which prescribes the accounting treatment for inventories. Section 3031 provides guidance on the determination of costs and its subsequent recognition as an expense, and provides guidance on the cost formulas used to assign costs to inventories.

These standards must be adopted for the Company's fiscal year beginning on June 1, 2008. While the Company is currently assessing the impact of these new recommendations on its financial statements, it does not expect the recommendations to have a significant impact on its financial position, earnings or cash flows.

Certain of the prior year's numbers have been reclassified to conform to the current year's presentation.

2. EARNINGS PER SHARE

Earnings per share are calculated using the weighted average number of shares outstanding of 22,318,968 (November 2006 - 22,318,968). The options do not have a dilutive effect.

3. FOREIGN EXCHANGE TRANSLATION

Foreign exchange gains and losses realized on the translation of foreign currency balances and transactions is included in cost of sales and amounted to:



-------------------------------------------------------------------------
Three months ended Six months ended
November 30 November 30
2007 2006 2007 2006
$ $ $ $
-------------------------------------------------------------------------
Actual net gain
(loss) on translation
of foreign currencies (14) 318 247 350
-------------------------------------------------------------------------
-------------------------------------------------------------------------


4. RESEARCH EXPENSE

Research Expenses included the following:

-------------------------------------------------------------------------
Three months ended Six months ended
November 30 November 30
2007 2006 2007 2006
$ $ $ $
-------------------------------------------------------------------------
Research Expenditures 1,663 1,501 2,996 2,900
Less: Scientific
research tax credits (493) (399) (986) (857)
-------------------------------------------------------------------------
1,170 1,102 2,010 2,043
-------------------------------------------------------------------------
-------------------------------------------------------------------------

5. CAPITAL STOCK

a) Authorized - in unlimited number

Preferred Shares, issuable in series
Subordinate Voting Shares
Multiple Voting Shares (five votes per share), convertible into
Subordinate Voting Shares

b) Issued

-------------------------------------------------------------------------
November 30 May 31
2007 2007
$ $
-------------------------------------------------------------------------
6,752,401 (May 31, 2007 - 6,707,401)
Subordinate Voting Shares 100,566 100,541
15,566,567 (May 31, 2007 - 15,611,567)
Multiple Voting Shares 8,824 8,849
-------------------------------------------------------------------------
109,390 109,390
-------------------------------------------------------------------------
-------------------------------------------------------------------------

c) During the second quarter, 45,000 Multiple Voting Shares with a stated
capital of $25 were converted to an equivalent number of Subordinate Voting
Shares.

d) Stock Options

The fair value of the options is estimated as at the date of grant using an
option pricing model with the following weighted average assumptions:

Risk-free interest rate 4.1 %
Expected dividend yield 2.0 %
Expected life of the options 4.6 years
Expected volatility 28.55 %

The weighted average fair value at grant date of the options is $3.31 per
option.

A compensation cost of $9 for the quarter and $18 year to date was recorded
in the statement of earnings and credited to contributed surplus.

The table below summarizes the status of the share option plan:

-------------------------------------------------------------------------
Three months ended November 30, 2007
-------------------------------------------------------------------------
Number of Weighted average Weighted average
Shares exercise price ($) contractual life
-------------------------------------------------------------------------
Outstanding, beginning
of period 30,000 12.81 47.5 months
Granted - - -
Exercised - - -
Expired/Forfeited - - -
-------------------------------------------------------------------------
Outstanding, end of
period 30,000 12.81 44.5 months
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Exercisable, end of period 10,000 12.81 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------


-------------------------------------------------------------------------
Six months ended November 30, 2007
-------------------------------------------------------------------------
Number of Weighted average Weighted average
Shares exercise price ($) contractual life
-------------------------------------------------------------------------
Outstanding, beginning
of period 30,000 12.81 50.5 months
Granted - - -
Exercised - - -
Expired/Forfeited - - -
-------------------------------------------------------------------------
Outstanding, end of period 30,000 12.81 44.5 months
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Exercisable, end of period 10,000 12.81 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------


6. BUSINESS ACQUISITION

On July 31, 2007, the company acquired all of the equity of Segault S.A., a valve manufacturer located in France, for a total consideration of $8,768 (6,000 Euros) of which $6,576 (4,500 Euros) has been paid and $2,192 (1,500 Euros), under certain conditions, will become due on July 31, 2013. Cash and cash equivalents acquired on acquisition amounted to $3,311 (2,266 Euros).

In accordance with Canadian GAAP the company reports ownership of all the equity of Segault S.A. The company owns 75% of the common shares which were purchased for $6,576 (4,500 Euros). The legal owner of the remaining 25% of the common shares has an unconditional put to sell his shares to the company, which has been recorded as a debt of the company at the initial estimated amount of $2,192 (1,500 Euros).

The acquisition was accounted for using the purchase price method and the purchase price was allocated as follows:



$ Euros

Current assets 9,425 6,449

Property, plant and equipment 3,735 2,556
-------------------------------------------------
13,160 9,005

Current liabilities (3,968) (2,715)
Long-term liabilities (424) (290)
-------------------------------------------------

8,768 6,000
-------------------------------------------------
-------------------------------------------------


7. SEGMENT DISCLOSURE

Consistent with the prior year, the company reflects its results under a single reportable operating segment.

Contact Information

  • VELAN Inc.
    Tom Velan
    President
    514-748-7743
    514-748-8635 (FAX)
    or
    VELAN Inc.
    John D. Ball
    Chief Financial Officer
    514-748-7743
    514-748-8635 (FAX)
    www.velan.com