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On March 10, 2009, Gafisa ( ANPI) reported that it swung to a net loss for Q4 FY08, hurt by higher operating costs and expenses. Net loss for the quarter stood at Brazilian Reais (R$) 12.61 million or R$0.10 per share compared to a profit of R$49.50 million or R$0.40 per share in the prior year's quarter. The most recent consensus estimate was a profit of $0.27 per share.

Net operating revenue surged 63.9% to R$624.18 million from R$380.78 million a year ago. The total number of units launched by Gafisa dropped 35.7% to 3,201 from 4,975. Total potential sales (PSV) value decreased 27.9% to R$746.77 million from R$1.04 billion in the year-ago quarter. Total pre-sales PSV decreased 8.3% to R$607.41 million from R$662.41 million in Q4 FY07. The company's land bank was approximately worth R$17.80 billion, composed of 247 different sites equivalent to 115,000 units.

Total operating costs increased 85.7% to R$475.58 million from R$256.04 million. Gross profit margin contracted 895 basis points to 23.81% from 32.76%. Furthermore, selling expenses more than doubled to R$63.61 million, while general and administrative expenses climbed 73.5% to R$76.30 million.

During the quarter under review, total backlog under percentage of completion method rose 92.2% to R$1.02 billion from R$528.00 million in Q4 FY07. Moreover, both Equity International and Marsico Capital Management LLC increased its stake in Gafisa S.A. to 18.7% and 10.25%, respectively.

Recently, Gafisa SA canceled its agreement with Odebrecht Empreendimentos Imobiliarios LTDA.

For FY08, net operating revenue soared 41.5% to R$1.70 billion from R$1.20 billion in the previous year. Net income for the year advanced 19.9% to R$109.92 million or R$0.85 per share from R$91.64 million or R$0.73 per share in FY07.

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