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"Our strategic review and on-going turnaround of NMHC continue," saidThomas W. Erickson, NMHC's Interim President and CEO. "The Company continuesto evaluate its SG&A expenses with a goal of reducing these expenses in thefuture. On a strategic level, we will continue to focus on our core PBMbusiness, emphasizing improvements in client support and pursuing morebusiness similar to the State of Hawaii which was successfully implementedthis past quarter. In addition, we plan to grow our Medicare Part D, Mail andSpecialty programs as much as possible."
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Revenue for the 2008 fiscal first quarter was $164.9 million as comparedto revenue of $188.7 million for the same period last year, a 12.6% decrease.This decrease is primarily attributable to a decrease in prescription countoffset by an increase in gross revenue per prescription as compared to lastyear.
For the 2008 fiscal first quarter, gross profit was $19.7 million, ascompared to $22.2 million for the same period last year, reflecting a decreaseof 11.3%. The $2.5 million decrease in gross profit is primarily attributableto (i) a $2.6 million reduction in gross profit from our PBM segment, offsetby a $606,000 increase in gross profit from our Specialty Pharmacy segment.In addition, there was a $492,000 benefit related to errors identified duringthe preparation of our Quarterly Report on Form 10-Q for the period endedSeptember 30, 2006 and is more fully described below. Gross profit as apercentage of revenue, or gross margin, increased to 11.9% for the 2008 fiscalfirst quarter, as compared to 11.8% for the same period last year primarilyrelated to a change in customer mix. Adjusted prescriptions for the 2008fiscal first quarter were 5.6 million, as compared to 6.9 million for the sameperiod last year. Gross profit per adjusted prescription increased to $3.52from $3.22 for the same period last year. Adjusted prescription volume equalsour Mail Service prescriptions multiplied by three, plus our retail andSpecialty prescriptions. These Mail Service prescriptions are multiplied bythree to adjust for the fact that they typically include approximately threetimes the amount of product days supplied compared with retail prescriptions.
Selling, general and administrative expenses ("SG&A") increased $1.8million, or 9.1%, from $19.8 million for the fiscal 2007 first quarter to$21.6 million for the 2008 fiscal first quarter. This increase is primarilyrelated to: (i) a $1.2 million increase in compensation and related items, ofwhich $649,000 relates to fees incurred from an unrelated consulting firm whois assisting us with our strategic review, and (ii) a $1.3 million increase ininformation-technology costs. Reducing these increases is $247,000 related toerrors identified during the preparation of our Quarterly Report on Form 10-Qfor the period ended September 30, 2006 and more fully described below.
Our operating loss for the 2008 fiscal first quarter was $1.9 million, ascompared to operating income of $2.4 million for the same period last year.
Our effective tax rate was an 11.1% benefit for the 2008 fiscal firstquarter, as compared to 47.0% for the 2007 fiscal first quarter. The 11.1%effective tax rate provides us with a tax benefit for the 2008 fiscal firstquarter whereas the 47.0% effective tax rate resulted in tax expense for the2007 fiscal first quarter. The decrease in the effective tax rate primarilyresulted from our pre-tax loss.
EBITDA (earnings before interest, taxes, depreciation and amortization)for the 2008 fiscal first quarter was $124,000, as compared to $4.7 millionfor the 2007 fiscal first quarter. EBITDA before stock-based c
