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Cardiogenesis Reports Fourth Quarter and Fiscal Year 2008 Results
Date:3/31/2009

t inventory was limited and those components were are no longer manufactured, it could not guarantee future component availability to service and support the TMR 2000 System. Accordingly, the Company recorded an impairment charge for the TMR 2000 System finished goods and excess parts used to maintain and service the TMR 2000 System. Also in 2007, an inventory obsolescence charge of $221,000 related to expired product associated with the Company's PMC product line was incurred.

Research and development expenses were $271,000 in the fourth quarter of 2008 as compared with $69,000 in the 2007 fourth quarter. Full year 2008 research and development expenses of $904,000 were $223,000 or 33% higher than the prior year period of $681,000.

Sales and marketing expenses of $1,629,000 in the quarter ended December 31, 2008 increased $456,000, or 39%, compared with $1,173,000 for the quarter ended December 31, 2007. For the year ended December 31, 2008, sales and marketing expenses totaled $6,487,000, an increase of $2,046,000, or 46%, compared with $4,441,000 for the year ended December 31, 2007. The dollar and percentage increase in sales and marketing expenditures resulted primarily from higher compensation expense of approximately $1,240,000 related to investments made to strengthen the sales and marketing organization and an increase in employee benefits expense of $119,000 associated with a higher average headcount in 2008 as compared to 2007. Travel and entertainment expenses also increased in 2008 by $329,000 due to higher headcount and increased sales activity.

General and administrative expenses for the quarter ended December 31, 2008 totaled $436,000 as compared to $521,000 during the quarter ended December 31, 2007. For the year ended December 31, 2008, general and administrative expenses totaled $2,840,000 as compared to $3,132,000 for the year ended December 31, 2007. This reduction of $292,000, or 9% res
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SOURCE Cardiogenesis Corporation
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