Before I share my perspective, I will ask Brian to review the financial results.Brian Smrdel Thank you, Stryker. Revenue for the first quarter was $3.4 million, 3% higher than the $3.3 million reported in the fourth quarter of the 2010 fiscal year and 13% less than the $3.9 million reported in the same period of fiscal year 2010. The increase in revenue compared to fourth quarter is a result of the continuation of sales of our Prostaprobes to third-party mobiles following a temporary back order for the product in the prior quarter. The year-over-year revenue decline is primarily a result of the benefit from the temporary withdrawal of a competitors product in the prior year and the impact of changes in our sales force during the first quarter To further break down the sources of Urologix's revenue on a sequential basis, revenue from catheter sales to direct accounts contributed 38% of overall revenue in the first quarter of fiscal year 2011 compared to 39% in the previous quarter. Urologix mobile service treatment revenue contributed 46% of overall revenue and third-party mobile revenue contributed 14% of overall revenue in the first quarter of fiscal 2011 compared to 49% and 10%, respectively, for the fourth quarter of the prior year. The net loss for the fiscal 2011 first quarter was $708,000 or $0.05 per diluted share. This represents a 14% increase in net loss compared to the $622,000 or $0.04 per diluted share loss in the fourth quarter of 2010 fiscal year and a 5% increase in our net loss compared to the net loss of $677,000 or $0.05 per diluted share in the first quarter of fiscal year 2010. Cash and cash equivalents were $4.7 million at September 30 of 2010 compared to $5.7 million at June 30 of 2010 and $6 million at September 30 of 2009. Cash utilization increased $939,000 from the prior quarter but decreased $42,000 from the first quarter of fiscal year 2010.
Historically, cash utilization is the greatest in the first quarter as annual payments including insurance premiums, bonuses earned in the prior year, year end audit fees and other yearly expense items are made during this period.On a trailing 90-day sales basis our day sales outstanding at the end of the first quarter was 40 days, slightly higher than the 38 days reported at the end of the fourth quarter of fiscal year 2010 but an improvement compared to 46 days at the end of the third quarter of fiscal year 2010. As mentioned in today's press release based on our fiscal year 2011 projection management believes that the $4.7 million cash balance at September 30th, of 2010 will be sufficient to fund our working capital needs beyond the next 12 months. Gross profit for the first quarter of fiscal year 2011 was $1.8 million or 55% of revenue an increase of 1% point when compared to the gross profit rate in the prior quarter. Gross profit as a percentage of revenue was unchanged when compared to the prior year first quarter. The 1 percentage point increase in the gross profit rate compared to prior quarter is a result of our favorable product sales mix. Reported first quarter operating expense totaled $2.5 million an increase of $79,000 or 3% when compared to the fourth quarter of fiscal year 2010 and a decrease of $287,000 or 10% when compared to the $2.8 million reported in the first quarter of fiscal year 2010. The increase in operating expense when compared to the fourth quarter of the 2010 fiscal year is a result of the $227,000 increase in general and administrative expense and the $33,000 increase in research and development partially offset by a $181,000 decrease in sales and marketing expense. The decrease in operating expense when compared to the first quarter prior fiscal year is primarily the result of reduction of $306,000 in sales and marketing expense partially offset by an increase of $104,000 in research and development as the company increased its investment in additional R&D headcount. I will now turn the call back to Stryker. Read the rest of this transcript for free on seekingalpha.com