08Return on Average Shareholders' Equity221 Expense from LifeCell inventory stepup 07 million for the prior years fourth quarterThey already have given up big returns this yearThey might have been people from Pau GrandeFirst a few thank yous for the '09 season8 million from operations equating to a 1 Michigan loses this game but covers the 8 point spread a subsidiary of Rosen's Diversified IncThrough the first two games the power play was excellent but could not finishWith a strong shot, with the inside of his foot, he scored the second, crucial, goal of the match. In the 27th minute, the reds from Bulgaria had the chance to come back in the match after Ivan Stoyanov was left alone in front of the Brazilian goalkeeper Julio Sergio ,but the ball was saved by Riise. In the second half, both teams played a relatively balanced game. The head coach of CSKA, Luboslav Penev, let the young Delev and Platini play. In the 68th minute, Roma had an opportunity to win with a "classic" result (3-0), but Alesio Cerci failed to score the third goal. Notwithstanding the great efforts and motivation during the second part of the game, CSKA did not achieve to create something valuable and Roma took 2-0 victory over the Bulgarian team. After two played matches, one point won, and a goal difference of 1-3, The Army Men (CSKA) hold the last fourth position in their Group E. Roma are third, while Basel are second one, whereas the temporary leader is the English team Fulham. . Excellent Operating Cash Flow and Strong Balance SheetEDEN PRAIRIE, Minn.(Business Wire)SurModics, Inc. (Nasdaq: SRDX), a leading provider of drug delivery and surfacemodification technologies to the healthcare industry, today reported financialresults for the first quarter ended December 31, 2008. 
First Quarter Summary: GAAP results: Revenue of $63.2 million Operating income of $42.7 million Net income of $27.1 million Diluted EPS of $1.53 Operating cash flow of $17.4 million Cash and investments of $69.9 million; no debt Non-GAAP results (adjusting for accounting treatment of Merck agreement andexcluding restructuring charges and IPR&D charge related to PR Pharmaceuticalsacquisition): Adjusted total revenue of $28.4 million Adjusted operating income of $12.9 million Adjusted net income of $8.4 million Adjusted diluted EPS of $0.48 Revenue by market: Therapeutic: Cardiovascular - $10.4 million Ophthalmology - $44.8 million Other Markets - $3.7 million Diagnostic - $4.3 million Acquisition of drug delivery technologies and collaborative programs from PRPharmaceuticals Repurchased $12.8 million of SurModics stock; cumulative $25.5 millionpurchased in $35 million program authorized in November 2007 Eight new licenses with SurModics customers Two new customer product classes introduced"SurModics achieved record revenue and earnings for the first quarter of fiscal2009, driven primarily by the recognition of previously deferred revenue, whichwas triggered by Mercks termination of the collaborative research agreement,"said Bruce Barclay, president and CEO. "Mercks decision to terminate theagreement was based on its company-wide restructuring initiative aimed atreducing costs, not because of any concerns about the safety or efficacy of theproduct and technology licensed from SurModics. Mercks termination resulted inthe recognition of $34.8 million of revenue, which was previously beingdeferred. In addition, as previously disclosed, Mercks decision triggered anadditional $9 million payment to SurModics, which was received and recognized inthe quarter. Looking at non-GAAP results, which we have often said provide abetter indicator of our results, we delivered a solid quarter with excellentcash flow.
"In particular, we are makingexcellent progress in our partner-supported product development programs. Inophthalmology, SurModics scientists continue to work on development projectswith numerous customers for back-of-the-eye and front-of-the-eye diseases. Theseprojects leverage our multiple drug delivery platforms and polymer matrixtechnologies for sustained delivery of customers proprietary drugs to the eye,including both large and small molecule compounds. Encouragingly, we continue tohelp our customers advance toward the next stages of their respective programs.""Furthermore, we are making excellent progress integrating the proprietary drugdelivery technologies and collaborative programs we acquired from PRPharmaceuticals," added Barclay. "While there was little top-line impact in thefirst quarter from these new collaborative programs, we believe the PR Pharmaacquisition will benefit our business both in the current year and beyond ascustomer projects utilize these innovative technologies." On a GAAP basis, revenue for the first quarter of fiscal 2009 was $63.2 million,compared with $23.8 million in the year earlier period. Operating income was$42.7 million, compared with $7.6 million in the prior-year period.
Net incomewas $27.1 million, compared with $5.6 million in the same period last year.Diluted earnings per share was $1.53, compared with $0.31 in the first quarterof fiscal 2008. Included in the results for the first quarter of fiscal 2009 were threeevent-specific items. First, in connection with Mercks termination of itsagreement with SurModics, the Company recognized $34.8 million of previouslydeferred revenue in the quarter. Excluding these event-specific charges and adjusting revenuefor the accounting treatment of the Merck agreement, non-GAAP results were asfollows. Total revenue was $28.4 million, compared with $25.3 million in thefirst quarter of fiscal 2008; operating income was $12.9 million, compared with$9.1 million in the prior year period; net income was $8.4 million, comparedwith $6.6 million a year ago; and diluted earnings per share was $0.48, comparedwith $0.36 in the first quarter of fiscal 2008. SurModics pipeline continues to represent significant potential. The Companyadded eight new licenses in the first quarter, against its goal of signing 18new licenses in fiscal 2009.
