Selling, general, and administrative expenses (SG&A) increased slightly to $3.3 million, or 46.5% of net revenue, for the three months ended December 31, 2008, compared to $3.2 million, or 38.6% of net revenue, for the three months ended December 31, 2007.
Depreciation and amortization expense decreased by 72.8% to $203,077 for the three months ended December 31, 2008 from $745,375 for the three months ended December 31, 2007 primarily as a result of a reduction in the amount of amortization related to the intangible assets acquired from the Remedium acquisition.
The Company reported a net loss for the fourth quarter of 2008 of $13.7 million, or $(0.67) per diluted share. Included in the results is a non cash $12.5 million, or $(0.61) per share, impairment charge related to the Company's goodwill and certain of its intangible assets. This resulted from the second step of the Company's impairment analysis. The impairment was triggered by a number of factors, including the sustained decline in the Company's stock price during the third quarter of 2008 and the continued deterioration of the underlying comparable companies within the CRO industry as it related to the market value approach methodology. In the fourth quarter of 2007, the Company reported a net loss of $732,000, or $(0.04) per diluted share.
Dr. David Ginsberg, Encorium Group's Chief Executive Officer, commented, "We continue to work on differentiating the Company, pursuing new business as well as enhancing shareholder value."
2008 Full Year Financial Results
Net revenue for the twelve months ended December 31, 2008 decreased to $30.2 million as compared to $31.7 million for the twelve months ended De
|SOURCE Encorium Group, Inc.|
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