Gross margin for the first quarter of 2008 increased to 69.2 percent, compared to 65.3 percent in last year's first quarter and from 67.1 in the fourth quarter of 2007. Gross margin continues to benefit from production efficiencies and manufacturing cost reductions, but these were somewhat offset in the 2008 first quarter by adjustments to inventory reserves which reduced gross margin by 1.5 percentage points.
Net loss for the 2008 first quarter was $1.7 million, or $0.14 loss per share. For the first quarter of 2007, the net loss was $3.3 million, or $0.32 loss per share.
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), which excludes non-cash stock compensation expense, was a loss of $681,000 for the first quarter of 2008, compared to an adjusted EBITDA loss of $2.1 million for the 2007 corresponding period. A reconciliation of the differences between the GAAP net losses and the adjusted EBITDA losses is included in an accompanying table.
Chief Financial Officer Michael R. Rodriguez said, "Growth and cost- controls continue to propel the company towards adjusted EBITDA and cash flow positive territory. In addition, our access to working capital via cash on hand, our asset-based line of credit and our stock purchase agreement announced in October 2006 remains strong as we look forward into 2008."
New Business Metrics
As announced on the 2007 third quarter conference call, the Company is
augmenting and will soon be replacing procedure estimates as a business
metric with probe sales data. Probe sales are reported in two categories:
straight probes, which are typically, although not always, used in prostate
procedures and right-angle probes, which are typically used in procedures
other than prostate procedures. Given the Company's migration to a
disposable sales model, the increased variability in the way physicians use
|SOURCE Endocare, Inc.|
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