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Nuvo announces 2009 first quarter financial results
Date:4/30/2009

ian dollars) Three months Three months ended ended March 31, March 31, 2009 2008 ------------------------------------------------------------------------- Revenue $ 3,047 $ 2,236 Net loss $ (2,868) $ (2,271) -------------------------------------------------------------------------

Revenue, consisting of product sales, license fee revenue, and research and other contract revenue, for the three months ended March 31, 2009 increased 36% to $3.0 million compared with $2.2 million for the three months ended March 31, 2008. The increase was attributable to many factors including a $0.3 million increase in Pennsaid product sales, the recognition of additional licensing fee revenue and research revenue earned on a collaboration agreement with a Fortune Global 500 company that develops and markets skin care products.

Gross margin on product sales was $1.2 million for the three months ended March 31, 2009 compared to $0.9 million for the comparable quarter in 2008. The increase in gross margin is primarily attributable to an 18% increase in Pennsaid product sales, a 38% increase in WF10 based product sales and significant improvements and efficiencies achieved in the Pennsaid manufacturing process, partially offset by price increases in the raw materials used to compound and package Pennsaid and the stronger U.S. dollar. The overall gross margin percentage was 52% in 2009 versus 45% in 2008.

Total operating expenses, excluding foreign exchange currency gains for the three-month period ended March 31, 2009 increased to $4.8 million versus $3.7 million for the three months ended March 31,
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SOURCE Nuvo Research Inc.
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