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STAAR Surgical Reports 33% Third Quarter Revenue Growth
Date:10/28/2008

ting rules. The revalued inventory was sold within the first quarter.

General and administrative expenses for the quarter were $3.5 million, representing a 21% increase over the $2.9 million incurred in the third quarter of 2007. General and administrative expenses for the first nine months of 2008 were $11.4 million, representing a19% increase over the $9.9 million incurred in the first nine months of 2007. The increase resulted from incremental G&A costs of STAAR Japan and increased costs in Europe, partially offset by decreased costs in the U.S.

Marketing and selling expenses for the third quarter were $6.5 million, representing a 13% increase over the $5.8 million incurred in the third quarter of 2007. Marketing and selling expenses for the first nine months of 2008 were $20.6 million, representing a 20% increase over the $17.2 million incurred in the first nine months of 2007. Changes in currency accounted for $187,000 and $855,000 of the increase in marketing and selling expenses for the three and nine months ended September 26, 2008, respectively. Other components of the increase in expense included incremental costs of STAAR Japan, increased marketing and selling costs to drive continued sales growth internationally, and increased salaries of the new U.S. refractive sales organization. The increase was partially offset by a decrease in U.S. marketing and selling expenses due to decreased commissions and promotional activities.

Research and development expenses were $1.9 million, which represents an eight percent increase over the $1.7 million incurred in the third quarter of 2007. Research and development expenses for the first nine months of 2008 were $6.0 million, which represents a 20% increase over the $5.0 million incurred in the first nine months of 2007. The increase is due to the incremental costs of STAAR Japan, partially offset by cost reductions in the U.S.

For the quarter ended September 26, 2008, net loss was $2.3 mil
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SOURCE STAAR Surgical Company
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