Selling, general, and administrative expenses (SG&A) decreased by 23.2% to $2.7 million, or 38.0% of net revenue, for the three months ended March 31, 2009, compared to $3.5 million, or 46.4% of net revenue, for the three months ended March 31, 2008. The decrease in SG&A resulted primarily from staff reductions and reductions in overhead expenses in the Company's U.S. operations.
Depreciation and amortization expense decreased by 70.4% to $190,929 for the three months ended March 31, 2009 from $645,277 for the three months ended March 31, 2008 primarily as a result of certain intangible assets acquired as part of the Remedium acquisition being fully amortized.
The Company reported a significant reduction in its net loss for the first quarter of 2009 to $195,220, or $(0.01) per diluted share, from a net loss of $2.0 million, or $(0.10) per diluted share in the first quarter of 2008.
Encorium has entered into two letters of intent ("LOI") with respect to the sale of the assets used to conduct its U.S. operations and for the sale of its wholly owned European subsidiary, Encorium Oy.
Dr. David Ginsberg, Encorium Group's Chief Executive Officer, commented, "We are very pleased with the results of our cost cutting efforts, which significantly reduced our direct expenses and SG&A to better align our costs to our current book of business. We have entered into two separate LOIs to sell the assets used in the U.S. Operations and the European Operations, which we believe will maximize stockholder value and are in the best interest of our stockholders, customers and employees."
Encorium's balance sheet at March 3
|SOURCE Encorium Group, Inc.|
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