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Cardiogenesis Reports Fourth Quarter and Full-Year 2009 Results
Date:3/3/2010

,781,000 for the 2008 fourth quarter.  The higher gross margin in the 2009 fourth quarter results primarily from higher average sales prices for both our handpieces and lasers.  In addition, fourth quarter 2008 results included approximately $166,000 in inventory reserve charges that did not recur in the fourth quarter of 2009.

For the full year ended December 31, 2009, gross margin was 83% of net revenues as compared to 82% for the twelve months ended December 31, 2008.  As a result of lower sales revenues in 2009, gross profit in absolute dollars decreased by $1,364,000 to $8,547,000 for the year ended December 31, 2009, as compared with $9,911,000 for the 2008 year.

Research and development expenses were $318,000 in the fourth quarter of 2009 as compared with $271,000 in the 2008 fourth quarter.  For the full year 2009, R&D expenses of $1,331,000 were $427,000 or 47% above 2008 R&D expenses of $904,000.  The dollar increase for the three month and full year periods are primarily attributed to submissions and follow-up with the Food and Drug Administration related to the PMA Application for the PEARL 8.0 handpiece and the Investigational Device Exemption to initiate a safety and feasib
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