Question-and-Answer Session
Operator
(Operator instructions) And our first question comes from the line of Ross Taylor with C.L. King; please go ahead.
Ross Taylor – C.L. King
Hi, I’ve got a couple of questions. I’ll try to keep them brief. First of all, why did the Abbott revenues dropped so sharply during the quarter? I just wonder, is there was any kind of explanation for that and also I think you’ve said that the royalty revenues from Abbott were $8.7 million through the first three quarters of the fiscal year and I just wondered that, all of that in the filling with the way when those patents expire or just part of it?
Phil Ankeny
Thanks for your question Ross. Let me try to address that, first of all just the numbers $8.7 million is the full-year number.
Ross Taylor – C.L. King
Okay.
Phil Ankeny
So, the $1.2 million was just that the fourth quarter portion of that and so, obviously first three quarters were much stronger. Probably, the biggest factor impacting the result in the fourth quarter are seasonality where you’re starting to see summer months, the flu and strep business that is a winter picking kind of product line and that’s in place for some of the sublicenses that are there, but more particularly there were some adjustments that one of the sublicenses was taking again some previous result and so that was the most significant component that we saw there.
Ross Taylor – C.L. King
Okay and it’s also part of my question was, in my understanding was not all of those Abbott royalties are going to go away when the patents expire in December or you ultimately expecting all of those essential go away after fiscal ’09?
Phil Ankeny
So, the timing will go somewhat like this, where the patents expire in December and so sales of customers product that are transacted before December are royalty bearing and so we will have royalty revenue from Abbott in the first quarter and then again in the second quarter of fiscal ’09. There is a chance with some principle beyond that, but that’s not guarantee just because we don’t know when the report those royalties to us.
Ross Taylor – C.L. King
Okay.
Phil Ankeny
And then the other reminder, of course is that there is amortization in of the actual Abbott acquisition deal that we did several years ago, and that will actually be included in Q1 results, but stops with the patent expirations. So, there will not be any amortization charge in the second quarter.
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