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Strategic Diagnostics Reports Fourth Quarter and Full-Year Financial Results
Date:2/28/2008

2,692

R&D Expense 754 671

Operating Profit 311 539

Pre-tax Income 409 650

Net Income 166 491

In 000s Full Year Full Year

2007 2006

Revenues $27,207 $25,522

Gross Profit 16,441 13,801

SG&A Expense 11,990 10,591

R&D Expense 2,938 2,630

Operating Profit 1,403 580

Pre-tax Income 1,836 966

Net Income 860 684

The Company continued to demonstrate ongoing improvement in gross profit (defined as total revenue less manufacturing expenses) stemming from a favorable shift from lower margin revenue, such as Ag/GMO sales, to higher margin antibody and food safety revenue. For the quarter ended December 31, 2007, gross profit totaled $4.4 million, as compared to $3.9 million for the same period in 2006. Gross profit margins were 60.5% for the fourth quarter of 2007 compared to 55.8% for the same period in 2006.

SG&A expenses were $3.3 million in the fourth quarter of 2007 compared to $2.7 million in the fourth quarter of 2006. The Company incurred increased costs for the period associated with the launch of the antibody catalog. Research and development costs for the fourth quarter of 2007 were 10.4% of revenue compared to 9.6% in the prior year. Increases in R&D are associated with the Company's new products and services utilizing the GAT(TM) platform as well
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SOURCE Strategic Diagnostics Inc.
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