Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Scott Henry - Roth Capital Partners.
Scott Henry - Roth Capital Partners
When I look at the GAAP versus non-GAAP, I just wanted to make sure where everything is coming out of. Obviously the 233 is coming out of the COGS line. Are the other adjustments wholly coming out of SG&A with the exception of tax?
Preston Romm
On the COGS line is the $400,000 of inventory reserves and the $207,000 of SoluCLENZ operating gross margin. Out of the SG&A line comes $1,159,000 of SG&A related to selling and marketing SoluCLENZ in the pharmacy channel along with $416,000 reserved for the non-contractual obligations.
Scott Henry – Roth Capital
How many reps do you currently have?
Preston Romm
We have 114 sales people inside sales and management, and that’s up four from a year ago, normalizing for the contract salesforce.
Scott Henry – Roth Capital
How many managers on top of that?
Preston Romm
That includes managers.
Scott Henry – Roth Capital
Shifting gears, is there any timeline for the SoluCLENZ out-licensing or how should we think about that?
Preston Romm
There is no timeline. Steve and I continue to talk to people. They’re in various stages of discussion with various people, and I think we just wait and see, so no comment at this time.
Scott Henry – Roth Capital
Shifting to Rosaclear, certainly a very strong launch. Could you talk about the run rate in March and how we should think about it going forward? I’m just trying to trying to think about the rest of year relative to the number you guys put up in Q1 of $1.3 million.
Preston Romm
The $1.3 million, we’re quite pleased with, and that’s really from launch in late January through the end of March, and a good reorder rate and a good pickup by our customers, and so the question we’re going to look at going through Q2 is that really the initial stocking which we generally see when launch a new product, or is that going to be a continuation, so what I like to do is report back to you in the second quarter and give you an indication of how well Rosaclear is doing post launch.
Scott Henry – Roth Capital
What are the expectations for new product launches now? I know you just launched one, but if we could just think, do you expect to launch another product within 2009? How should we think about that?
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