Included in selling, general, and administrative expenses for the three months ended March 28, 2008, was a non-cash settlement loss of approximately $3.9 million associated with the Company's acquisition of STAAR Japan. Prior to the acquisition, Canon Marketing Japan, Inc. had an exclusive right to distribute STAAR Japan's products in Japan on terms that were deemed unfavorable to STAAR Japan and to STAAR when compared to the terms of a comparable at-market distribution arrangement. The $3.9 million loss represents the portion of the purchase price allocated under the accounting rules to the settlement of the unfavorable pre-existing distribution arrangement.
Net loss was $8.9 million or $0.30 per common share, compared with $3.5 million or $0.14 per common share in the first quarter of 2007 and $4.3 million or $0.15 per common share in the fourth quarter of 2007. Of the $8.9 million, $6.0 million resulted from the net loss recorded by STAAR Japan for the quarter, which included $3.9 million in settlement costs and $1.5 million in charges to cost of goods that were recorded as a result of the acquisition.
At March 28, 2008, cash and cash equivalents were $10.5 million compared with $10.9 million at December 28, 2007. During the first quarter of 2008, the Company used approximately $3.4 million in cash for operating activities compared with $2.7 million used during each of the first and fourth quarters of 2007. Approximately $2.5 million of the total cash used in operating activities in the first quarter of 2008 was used by STAAR Japan in assuming distribution from Canon Marketing and for payments on inventory purchased from Canon Marketing.
Cash provided by investing activities was approximately $2.5 million
for the first quarter of 2008 and consisted of $2.7 million in ne
|SOURCE STAAR Surgical Company|
Copyright©2008 PR Newswire.
All rights reserved