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ev3's net sales were $107.7 million in the second quarter of 2008representing a 65% increase over the same quarter of the prior year and a 6%increase over the first quarter of 2008. Legacy ev3 peripheral vascular andneurovascular net sales, excluding atherectomy and research collaborationrelated revenues, increased 17% in the second quarter of 2008 compared to theprior year quarter. Atherectomy net sales increased 10% on a sequential basisin the second quarter of 2008 compared to the first quarter of 2008.
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Robert Palmisano, president and chief executive officer of ev3 Inc.,commented, "I am pleased to report strong second quarter results for thecompany, which exceeded our expectations. Our stronger than anticipated salesresults were driven by the increased productivity we are seeing from our U.S.peripheral vascular sales organization, continued improvement in atherectomyproduct sales and expansion in our neurovascular and internationalbusinesses."
Palmisano continued, "We were encouraged to see a double-digit sequentialquarter increase in our atherectomy net sales, and believe that our efforts toexpand the body of clinical evidence and generate awareness in the referringphysician community will be important factors in expanding the role of ouratherectomy products in the treatment of peripheral artery disease in the U.S.We are particularly pleased by the growing interest in atherectomy shown byendovascular specialists outside the U.S., providing the company anotheravenue for growth."
ev3 also reported that its collaboration and license agreement withMerck & Co., Inc. has been terminated. As a result of the termination, ev3anticipates that Merck collaboration related revenues will be approximately$4.1 million in the second half of 2008. ev3 also recorded a one-timenon-cash impairment charge related to the contract termination ofapproximately $10.5 million in the second quarter of 2008.
Palmisano commented further, "Due to the strong performance of ourbusiness and our expectations for the remainder of the year, we aremaintaining our full-year 2008 guidance despite the termination of the Merckagreement that was reported earlier today. Over the last several months, wehave been actively engaged with Merck and had fully expected to renegotiatethe terms of the agreement. Although Merck's decision to terminate theagreement was unexpected, the research collaboration was not a vital,strategic program for ev3. We are encouraged by the growing momentum in ourperipheral vascular division, including the recovery of our U.S. atherectomybusiness, as well as the continued strong performance of our neurovascular andinternational businesses."
ev3's net loss for the second quarter of 2008 increased to $27.4 millioncompared to $11.9 million in the second quarter of 2007. ev3's net loss percommon share was $0.26 for the second quarter of 2008 compared to a net lossper share of $0.20 in the second quarter of 2007. Total weighted averagecommon shares outstanding used in the per share calculations were104.2 million and 59.5 million for the second quarter of 2008 and 2007,respectively.
ev3's earnings before interest, taxes, depreciation and amortization(EBITDA), excluding charges for non-cash stock-based compensation of$3.9 million and a one-time, non-cash $10.5 million impairment charge relatedto the termination of ev3's collaboration and license agreement with Merckreported earlier today, was a negative $1.6 million in the second quarter of2008, compared to a negative $3.5 million in the second quarter of 2007. ev3uses the non-GAAP financial measure, EBITDA, excluding charges for non-cashstock-based compensation and the resea
