Research and development expenses in fiscal 2007 were $26.1 million compared to $24.8 million in fiscal 2006, an increase of 5.1%. R&D expenses in the fourth quarter of fiscal 2007 of $6.9 million were essentially unchanged as compared to the fourth quarter of fiscal 2006. The Company's research and development efforts continue to focus on developing new food and beverage applications for life'sDHA(TM), broadening the scientific evidence supporting the benefits of life'sDHA(TM) throughout life, improving manufacturing processes and developing new products to expand the Company's market offerings.
During fiscal 2007, selling, general and administrative expenses increased by $8.6 million, or 20.6%, from $41.6 million in fiscal 2006 to $50.2 million. This increase resulted primarily from additional resources invested in the Company's sales and marketing initiatives designed to grow its sales to infant formula customers overseas and to grow DHA markets outside of infant formula. More specifically, increased expenditures were made to expand the Company's sales, customer support and marketing personnel as well as to broaden the scope of the Company's advertising and public relations campaigns. The increase in SG&A costs over 2006 also included approximately $3.0 million of costs related to the Company's patent portfolio. Martek's intellectual property, and protection thereof, is critical to the Company's commercial success, and as such, the Company continues to invest resources in acquiring, maintaining and defending its intellectual property. The $700,000 sequential increase of SG&A costs over the third quarter of fiscal 2007 also relates primarily to higher patent-related costs.
|SOURCE Martek Biosciences Corporation|
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