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Martek Announces Second Quarter 2009 Financial Results
Date:6/3/2009

er totaled $4.3 million, compared with $2.9 million a year ago. This increase was primarily due to a change in the timing of orders from one existing customer. While the Company expects to continue reducing the scope of its contract manufacturing activities, Martek will, at times, provide such services to both existing and new customers if reasonable profit margins are expected and there is no impact to the Company's higher margin nutritional oils business.

Gross Margin and Operating Expenses

Overall gross margin for the second quarter of fiscal 2009 was 42.3%, an increase over the 41.2% gross margin realized in the second quarter of fiscal 2008. The improvement resulted largely from ARA cost reductions and increased capacity utilization at Martek's manufacturing facilities.

Research and development expenses in the second quarter of fiscal 2009 were $7.2 million, an increase of 5% over the corresponding quarter of last year. Research and development as a percentage of revenue increased to 7.7% from 7.5% in the prior year's second quarter. The increase relates primarily to development work focusing on offerings for new markets and broadening the array of foods and beverages in which the Company's life'sDHA(TM) can be incorporated. The Company continues to expect quarter-to-quarter fluctuations in research and development expenses mainly due to the timing of outside services, including third-party clinical trial services.

During the second quarter of fiscal 2009, selling, general and administrative expenses ("SG&A") were $12.9 million, or 13.9% of revenue, a decrease from $14.2 million or 15.7% of revenue in last year's second quarter. The Company continues to closely manage its SG&A spending levels. Martek expects that for fiscal 2009, SG&A will be lower than fiscal 2008 levels on both a percentage of revenue and absolute dollar basis reflecting the cost ma
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SOURCE Martek Biosciences Corporation
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