Gross profit margin was 43.2% compared with 48.9% in the first quarter of 2007. The decrease in margin was primarily due to the low margin associated with the step-up of inventory on the books of STAAR Japan in accounting for the acquisition, which impacted cost of sales by approximately $1.5 million during the quarter. Stepped-up inventory was sold during the quarter and the company expects STAAR Japan to realize gross margin that improves the Company's overall gross margin beginning in the second quarter.
General and Administrative Expenses were $4,441,000, which represents a 24% increase over the first quarter of 2007 of $3,583,000. The increase is due to incremental costs of STAAR Japan of $1,437,000 and increased legal expense in the U.S., partially offset by non-recurrence of the expenses of the Domilens investigation in Q1 2007.
Marketing and selling expenses were $6,467,000, which represents a 22% increase over the first quarter of 2007 of $5,302,000. International marketing and selling expenses increased 60% due to incremental costs of STAAR Japan of $875,000, increased marketing and selling costs to drive continued sales growth internationally, and the effect of exchange. U.S. marketing and selling expenses decreased 14% as compared to the first quarter of 2007 due to decreased commissions and promotional activities partially offset by increased salaries of the recently created direct sales force. U.S. marketing and selling expenses decreased 24% compared to the fourth quarter of 2007.
Research and development expenses were $1.7 million which represents a
|SOURCE STAAR Surgical Company|
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