Research and Development ("R&D") Expenses for the third quarter 2008 were $1.8 million compared to $3.1 million in the third quarter 2007. The decrease is primarily due to the Company's decision in 2007 to consolidate its New Jersey technical center into the Company's Iowa facility in order to create increased operating efficiencies. Cambrex also utilized certain R&D personnel on custom development projects resulting in these costs being classified as Cost of Goods Sold.
Strategic Alternative and Restructuring Costs totaling $1.2 million in the third quarter 2008 include $0.3 million of costs related to the consolidation of operations at the New Jersey technical center into the Iowa facility, and $0.9 million of expense related to severance, change-in-control liabilities, and the ongoing project to streamline the Company's legal entity structure in order to lower operating costs and increase tax efficiency.
Net Interest Expense in the third quarter 2008 was $1.0 million compared to $1.1 million in the third quarter 2007. The Company capitalized interest of $0.5 million on long-term projects in the third quarter of 2008.
The effective tax rate for the third quarter 2008 was 9.8% and the Provision for Income Taxes totaled $0.3 million. Favorable resolution of certain tax issues resulted in a benefit to tax expenses of $1.5 million during the third quarter 2008. The Company's effective tax rates have been and are expected to remain highly sensitive to the geographic mix of income due to the Company's inability to recognize tax benefits for U.S. GAAP purposes in certain jurisdictions where there has been a recent history of losses, primarily the U.S.
Third Quarter 2008 Capital Expenditures and Depreciation
|SOURCE Cambrex Corporation|
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