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IDEXX Laboratories Announces Fourth Quarter and Full Year Results
Date:1/30/2009

ign exchange hedge contracts more than offset the unfavorable impact on revenue of changes in foreign currency exchange rates, and higher average sales prices in certain businesses.

Research and development ("R&D") expense for the fourth quarter of 2008 was $17.1 million, compared to $16.8 million for the fourth quarter of 2007, representing 7% of revenue in both periods.

Selling, general and administrative ("SG&A") expense for the fourth quarter of 2008 was $66.1 million, compared to $68.7 million for the fourth quarter of 2007, representing 27% of revenue in 2008 and 28% of revenue in 2007. The decrease in SG&A expense resulted primarily from the favorable impact of exchange rates on foreign currency denominated expenses, a decrease in sales and distributor commissions and decreased spending related to employee related incentives and benefits. These favorable items were partly offset by increased headcount and worldwide expansion of sales, marketing and customer support resources and higher spending related to general support functions.

Additionally, operating expenses for the fourth quarter of 2008 were negatively impacted by $1.5 million related to the disposition of certain pharmaceutical product lines and the related restructuring of the remaining pharmaceutical business, as discussed above.

Supplementary Analysis of Results

The accompanying financial tables provide more information concerning our revenues and other operating results for the three and twelve months ended December 31, 2008, as well as a reconciliation of non-GAAP diluted EPS to earnings per share.

Outlook for 2009

The Company provides the following updated guidance for the full year of 2009. This guidance reflects an assumption that the value of the U.S. dollar relative to other currencies will remain at its current level for the balance of 2009. Fluctuations in fore
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SOURCE IDEXX Laboratories, Inc.
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