BioForm Announces Financial Results for Quarter Ended March 31, 2008, Third Quarter of Fiscal 2008
Domestic sales were $14.0 million for the quarter ended March 31, 2008compared to $10.3 million for the quarter ended March 31, 2007, an increase of$3.7 million or 36.6%. International sales were $2.9 million for the quarterended March 31, 2008, compared to $2.2 million for the quarter ended March 31,2007, an increase of $0.7 million or 34.9%. The Company attributes the growthin revenue primarily to increased physician adoption since the aestheticsapproval of Radiesse(R) dermal filler, the Company's extensive clinicaleducation programs, and the increase in direct sales personnel.
Gross profit was $13.7 million for the quarter ended March 31, 2008 ascompared to $10.4 million for the quarter ended March 31, 2007, an increase of$3.3 million, or 32.3%. As a percentage of sales, gross profit for the quarterended March 31, 2008 was 80.9% as compared to 83.4% for the quarter endedMarch 31, 2007. The decline in the gross profit margin was due primarily to alower average selling price for Radiesse in the United States (primarilyassociated with customers increasing their average purchase quantities andqualifying for lower prices under our volume pricing programs), and increasedcosts associated with certain promotional programs offered during the quarter,offset partially by lower overhead and royalty expense per unit.
Operating expenses were $19.2 million in the quarter ended March 31, 2008compared to $14.1 million in the quarter ended March 31, 2007. The increase inoperating expenses was primarily attributable to an increase in sales andmarketing costs as a result of the expansion of the Company's sales forces inthe United States and Europe in early FY 2008, expansion of the company'sclinical education programs, and higher employee related expenses in researchand development and general and administration.
Net loss per share applicable to common stockholders decreased to $0.10for the quarter ended March 31, 2008 as compared to $0.88 for the quarterended March 31, 2007, due primarily to the increase in the shares outstandingwhich resulted from the sale of 11.5 million common stock shares in ourNovember 2007 initial public offering and the conversion of 30.4 millionshares of preferred stock into common stock shares concurrent with this publicoffering.
"The March quarter, which is typically down from the December quarter, waslower for us this year than we had expected. We've seen early indications inApril of weakness in the June quarter. We believe that rapidly decliningconsumer confidence is having a significant impact on discretionary spendingand, consequently, our business. We have reduced our revenue guidance as aresult," stated Steve Basta, CEO of BioForm Medical. "We are taking stepsboth in the near-term and long-term to enable the Company to accelerate ourrevenue growth. In our core Radiesse business, one of the key near-termactivities for the Company is the expansion of our clinical education team.We have found that clinical comfort using Radiesse, and the experience ofseeing and understanding the benefits offered by Radiesse helps grow physic
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