Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Rinkoff with Craig-Hallum Group.
Richard Rinkoff - Craig-Hallum Group
I want to clarify something; did you say that you received $1.25 million in basically back payments from Abbott in the fourth quarter?
Philip Ankeny
Yes, essentially.
Richard Rinkoff - Craig-Hallum Group
Okay and of the $0.5 million charge for write off of technology assets, where was that on the expense line?
Philip Ankeny
It is principally within R&D.
Richard Rinkoff - Craig-Hallum Group
Within R&D so that would account for why R&D went up so much?
Philip Ankeny
Yes that is a big factor in there, absolutely.
Richard Rinkoff - Craig-Hallum Group
Now that you have broken out customer R&D from non-customer R&D, I guess, on the expense line, should we assume that the markup that you said was about 29% is indicative of what we can expect going forward and should we also expect that the two lines, revenue and expense, should track each other going forward, or would there be randomness?
Philip Ankeny
Those are both good questions, Rick. I would say that first of all, our R&D revenue does tend to fluctuate from quarter-to-quarter as it has over the years and so the expense that is attributed to supporting that revenue is also going to fluctuate roughly in line with the margin that you see there. There may be some volatility to the margin, but in that general neighborhood is how you should think about it.
Richard Rinkoff - Craig-Hallum Group
All right and if you were successful in your goal of starting a human clinical, at least one, in drug delivery, would you receive a milestone for that?
Philip Ankeny
It depends upon which one we accomplish first, but it is highly possible.
Richard Rinkoff - Craig-Hallum Group
Would that be, well depending again on which one, could the number be an eight-digit number, or should we think of something a lot less than that?
Philip Ankeny
I can’t comment on that, Rick.
Richard Rinkoff - Craig-Hallum Group
Okay. I wanted to clarify one other statement that you made. You said three out of how many customers are top ten pharmas and were you counting Roche, Genentech as one or two?
Philip Ankeny
I commented that there were three current customers today in ophthalmology paying us to do development work that were top ten pharma and Roche, Genentech is one of the three.
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