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Gross Margin and Operating Expenses Overall gross margin for the fourth quarter of fiscal 2010 was 52%, an increase over the 44% gross margin realized in the fourth quarter of fiscal 2009. For the full year 2010, gross margin was 48%, an increase from the 43% gross margin realized for the full year 2009. Gross margin improvements were largely due to both ARA and DHA cost reductions and the positive impact of higher gross margins on sales of branded consumer health products.
Research and development (R&D) expenses for the fourth quarter of fiscal 2010 were $9.2 million, or 8% of sales, consistent with previously stated guidance. R&D expenses for the full year increased to $33.6 million, up from $27.4 million in fiscal 2009. R&D continues to focus on broadening the market applications for life'sDHA through new product and process innovations, as well as leveraging the Company's microbial technology platform to develop new product offerings for its core nutritional markets and new high-value opportunities beyond nutrition.
Selling, general and administrative (SG&A) expenses for the fourth quarter of fiscal 2010 were $21.6 million, or 18% of sales, consistent with prior guidance. Full year SG&A expenses increased to $71.2 million, or 16% of sales. Year-to-year increases in fourth quarter and full year 2010 SG&A expenses are attributable to incremental expenses associated with Amerifit, and to a lesser extent, increases in the variable component of Company-wide compensation resulting from Martek's improved overall financial performance.
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