Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Your first question comes from the line of Liana Moussatos with Wedbush.
Liana Moussatos – Wedbush Morgan
What was the non-cash stock option expense in Q1?
Tom Staab
Liana, I don’t have that number on my – at my fingertips, but typical to historical quarters, we are expecting in our financial guidance to have about $5 million in stock op expense for the year. So it’s roughly $1 million, $1.5 million.
Liana Moussatos – Wedbush Morgan
Okay. And are there going to be anymore restructuring cost for rest of the year or just for Q1?
Tom Staab
Well, obviously the restructuring was a difficult thing that we needed to do, and so we did the majority of the restructuring cost in the first quarter. There are some things with our restructuring activity that will bleed into the second quarter, but it will be effectively immaterial dollars and probably a pretty small charge.
Liana Moussatos – Wedbush Morgan
Okay. And when you were talking about the pattern of expense, you said in the second half it would – expenses would drop and would that be more SG&A, R&D?
Tom Staab
It's going to be a combination of everything. Obviously with AzaSite, the revenue continues to go up so that will reduce the cash burn, but also sales and marketing and promotion expenses generally tend to be the highest in the first quarter particularly with Elestat and the seasonal aspects of that product. But you will see some decreases over the year in both R&D and sales and marketing expense.
Liana Moussatos – Wedbush Morgan
Okay. And you mentioned the wholesale inventory level drop in Q1 this year versus last year, what was that percent and where is inventory level? Can you describe them now?
Tom Staab
Yes, the drop was 30% and that is effectively just taking the weekly run rate for the various months. Generally, what you are seeing that the wholesaler balances which we have the best data on are less than a month, and like I said, they decreased from the fourth quarter to the first quarter. And what you see on the retail side, specifically what the CVS stocking in the fourth quarter is there was a big jump from the third quarter to the fourth quarter, and those levels have based on the knowledge that we have and the information that we have, have essentially been flat between the fourth quarter and the first quarter, which you would expect would be initial CVS stocking.
- To read the full transcript on Seeking Alpha, click here »
