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Total revenues for the second quarter of 2008 were $68.6 million, up 32.3%from $51.8 million for the second quarter of 2007. Net income for the secondquarter of 2008 was $14.3 million, or $0.63 per basic share, compared to $5.8million, or $0.28 per basic share, for the second quarter of 2007. Grossmargins from sales were $60.6 million in the second quarter of 2008, comparedto $45.8 million in the second quarter of 2007. The increases in revenues andgross margins corresponded to the growth in sales of our lead product,Remodulin. Earnings before non-cash charges, defined as net income beforenon-cash income taxes, depreciation, amortization, impairment charges andshare-based compensation (stock option and share tracking award expense), were$30.7 million for the second quarter of 2008, up 70.3% from $18.0 million forthe second quarter of 2007.
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"It is gratifying that we are on track to grow our annual revenues inexcess of 30% for the sixth consecutive year," said Martine Rothblatt, Ph.D.,United Therapeutics' Chairman and Chief Executive Officer. "I am also pleasedthat, after twelve years of operations, our accumulated deficit has beeneliminated and we are now able to report accumulated earnings. These financialaccomplishments reflect the decisions of hundreds of doctors and patients touse Remodulin and make it the leading form of prostacyclin therapy in theUnited States."
Research and Development Expenses
The table below summarizes research and development expenses by majorproject and non-project components (dollars in thousands):
The increase in cardiovascular expenses was primarily due to increasedexpenses related to our inhaled and oral treprostinil programs.
Selling, General and Administrative Expenses
The table below summarizes selling, general and administrative expenses bymajor category (dollars in thousands):
The increase in sales and marketing related expenses reflects increases insalary and related expenses and professional fees incurred in connection withnew marketing campaigns and initiatives.
Earnings Before Non-Cash Charges
The following table provides a reconciliation of net income to earningsbefore non-cash charges for the three-month periods ending June 30, 2008 and2007, respectively (in thousands, except per share data):
United Therapeutics will host a half-hour teleconference on Thursday,July 31, 2008, at 9:00 a.m. Eastern Time. The teleconference is accessible bydialing 1-800-603-1777, with international callers dialing 1-706-679-8129. Arebroadcast of the teleconference will be available for one week and can beaccessed by dialing 1-800-642-1687, with international callers dialing1-706-645-9291, and using conference code: 56186490.
This teleconference is also being webcast and can be accessed via UnitedTherapeutics' website at http://ir.unither.com/events.cfm.
About United Therapeutics
United Therapeutics is a biotechnology company focused on the developmentand commercialization of unique products to address the unmet medical needs ofpatients with chronic and life-threatening cardiovascular and infectiousdiseases and cancer.
Non-GAAP Financial Information
This press release contains a financial measure that does not comply withU.S. generally accepted accounting principals (GAAP). This measure supplementsour financial results prepared in accordance with GAAP as reported below.
We use earnings before non-cash charges, a financial non-GAAP measure,internally for operating, budgeting and financial planning purposes and as ametric to determine the efficiency of our operations. We believe ourinvestors' understanding of our performance is enhanced by disc
