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Martek Announces First Quarter 2009 Financial Results
Date:3/4/2009

reflecting higher revenues from Martek's infant formula customers, particularly outside of the United States. In addition, sales of life'sDHA(TM) to non-infant formula nutritional markets grew more than 12% over the prior year's first quarter.

The following is a breakdown of product sales by market for the first quarter (in thousands):

                                Three months ended January 31,

                                                        %
                                   2009      2008    increase

    Infant formula market       $74,591   $70,278       6%
    Food and beverage market      2,618     2,095      25%
    Pregnancy and nursing,
     nutritional supplements
     and animal feeds             5,664     5,292       7%
    Non-nutritional products      1,149       944      22%
       Total product sales      $84,022   $78,609       7%

Contract manufacturing sales in the first quarter totaled $3.3 million, compared with $4.3 million a year ago. During fiscal 2009, the Company anticipates continuing to reduce the scope of its contract manufacturing activities in order to focus more of its resources on the Company's higher margin nutritional oils business.

Gross Margin and Operating Expenses

Overall gross margin for the first quarter of fiscal 2009 was 42.4%, an increase over the 41.1% gross margin realized in the first quarter of fiscal 2008. The improvement resulted largely from improved productivity yields and increased capacity utilization at Martek's manufacturing facilities.

Research and development expenses in the first quarter of fiscal 2009 were $6.7 million, an increase of 13% over the corresponding quarter of last year. Research and development as a percentage of revenue increased to 7.7% from 7.2% in the prior year's first quarter. The Company continues to dedicate considerable resources to it
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SOURCE Martek Biosciences Corporation
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