Revenue increased 9% to $3.01 million in the first quarter of 2009 from $2.77 million in the first quarter of 2008. This was driven by year-over-year total revenue increases in SPY capital sales and SPY recurring revenues.

Largely as a result of the company's product mix continuing to move toward the higher margin SPY product set, the gross margin percentage increased to 55% in the first quarter of 2009 compared to 47% in the first quarter of 2008.

Arun Menawat, Novadaq's president and CEO of Novadaq, said: "Our strategy of becoming the SPY imaging company continues to take shape. SPY registry data analysis further validates that SPY imaging improves clinical outcomes and reduces hospital costs. We also made major progress towards entering the minimally invasive surgical market, by creating a technology alliance with Intuitive Surgical for SPY imaging in robotic surgery and by furthering the development of SPY scope for non-robotic procedures.

"Our revenues are up over last year and the revenue mix continues to move towards higher margin products. We have successfully adjusted to the current economic reality by reducing our cash burn and raising the necessary capital to continue focusing on the execution of our business plan."

A service of YellowBrix, Inc.