Basic loss per share is calculated by dividing the loss for the period by the equivalent weighted average number of shares in issue during the period.

Diluted loss per share is calculated by dividing the loss for the period by the equivalent weighted average number of shares in issue during the period adjusted for the effects of dilutive options, warrants and convertible notes. Diluted loss per share is the same as the basic loss per share during the period when the Group incurs a loss which renders the options, warrants and convertible notes anti-dilutive.

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Balance Sheet

Net assets per share is calculated by dividing the net assets by the equivalent number of shares in issue as at the balance sheet date.

Review of Performance

Financial Review for fourth quarter and full year ended 31 March 2008

Revenue:

Total product revenue for the quarter ended 31 March 2008 increased by 22% to US$11.7 million from US$9.6 million recorded in the corresponding quarter in the previous year. Total revenue, including licensing revenue, for the quarter increased 23% to US$11.9 million from US$9.7 million in the previous corresponding quarter. The increase was mainly attributed to a 85% growth in sales of interventional cardiology products from US$3.6 million to US$6.6 million due to rising sales of bare metal stents in the Japanese market and market growth in Indonesia, offset by a drop in sales of drug-eluting stents ("DES") from US$3.4 million to US$2.3 million in the current quarter. The decrease in DES was primarily attributed to the slower sales of our older generation of DES as our focus shifted to our new generation of DES which received Conformite Europeenne ("CE") mark approval in the current quarter. Critical care products remained comparable with the corresponding quarter in the previous year, with a slight increase of 6%.

For the full year ended 31 March 2008, total product revenue grew 14% to US$38.7 million from US$34.0 million in the previous year. Consistent with the product revenue for the quarter ended 31 March 2008, the increase was mainly attributed to sales of conventional interventional cardiology products, offset by a reduction of DES sales. The 29% increase in total revenue from US$34.4 million to US$44.3 million was due to an increase in related to a non-recurring milestone payment received from a licensee in the first quarter of the current fiscal year, combined with the product revenue increase described above.

The tables below show the Group's revenue, and the principal components of the revenue, as a percentage of total revenue, for the periods indicated:

Cost of sales and gross profit:

For the current quarter ended 31 March 2008, overall gross margins on product revenues were 36% compared to the gross margins of 38% for the quarter ended 31 March 2007. Critical care product gross margins decreased due to costs associated with the restructuring of the Group's manufacturing activities in Asia which is currently expected to be completed by September 2008, or the end of the first half of fiscal year 2009. The gross margin percentage for interventional cardiology products remains comparable at 38% for the current quarter. This was primarily due to improved margins realized on our conventional interventional cardiology products, offset by decreased margins for DES products caused by increased provisions recorded for inventory obsolescence related to our older generation of DES products.

The Group's gross margins on product sales for the year ended 31 March 2008 were 39%, also consistent with fiscal 2007. Product sales gross margins activity for the fiscal year was very similar to the results for the quarter ended 31 March 2008. Gross margins for critical care products declined due to costs associated with the restructuring activities in Asia, gross margins for DES decreased due to higher provisions made for inventory obsolescence for the older generation of DES and gross margins for other interventional cardiology products improved primarily due to improved product pricing generated from our increased sales in Asian markets with strong pricing.

The tables below show the Group's gross profit by business segments, as a percentage of segment revenue, for the periods indicated:

Operating expenses:

The Group's total operating expenses for the quarter ended 31 March 2008 were US$17.1 million, comparable to the corresponding quarter in the previous year.

Operating expenses for the year ended 31 March 2008 totaled US$57.6 million, compared to US$54.5 million in 2007, an increase of US$3.1 million or 6% over 2007. This spending growth was anticipated, as the Group continues to make progress in the development and commercialization of its drug-eluting stent programs.

1. Sales and marketing expenses

   Sales and marketing expenses increased by 58%, US $2.1 million, from US$ 3.6 million to US$ 5.7 million for the quarter ended 31 March 31 2008 compared to the quarter ended 31 March 2007. For the year ended 31 March 2008 sales and marketing expenses grew to US$17.1 million from US$12.4 million, an increase of 38%. The quarterly and annual increases were partially due to additional provisions for doubtful accounts of US$1.1 million and US$3.1 million for the quarter and year ended 31 March 2008, respectively. Additional increases were attributed to expenses incurred for brand-building activities in Asia as well as higher payroll and related expenses associated with building up of the sales and marketing functions in Europe.

2. General and administrative expenses

   General and administrative expenses were US$6.1 million and US$5.0 million for the quarters ended 31 March 2008 and 2007, respectively. For the years ended 31 March 2008 and 2007, general and administrative expenses were US$19.1 million and US$18.7 million, respectively. The increase in the current quarter for general and administrative expenses was mainly due to additional payroll expenses related to key management personnel, offset by reduced non-cash share-based option expenses.

3. Research and development expenses

   Research and development expenses were US$8.1 million for the quarter ended 31 March 2008 compared to US$8.8 million for the quarters ended 31 March 2007.For the years ended 31 March 2008 and 2007 research and development expenses were US$26.7 million and US$24.9 millionrespectively. Increased research and development expenses for the full year were primarily due to increases in clinical trial expenses in Europe.

4. Other operating income/(expenses)

   Other operating income was primarily unrealised exchange gains arising from the revaluation of US-dollar denominated long term loans to subsidiaries.

   Other operating expenses for the quarter and year ended 31 March 2008 and 2007 were not significant.

Share of results of joint venture companies:

The Group used the equity method of accounting for its 50% ownership interest in JW Medical Systems Ltd. ("JW Medical"), acquired on September 28, 2007 and its 50% ownership interest of JW-ICU Medical Limited ("JW-ICU"), previously known as Shandong Weigao Biosensors Medical Products Manufacturing Co., Ltd. Operating results for these entities are summarized as follows:

Exceptional items:

Allowances for impairment for Netherlands operations
During the current quarter and year, the Group made an additional one-time goodwill impairment charge of US$1.9 million and impairment charge for inventories and property, plant and equipment of US$1.8 million for a subsidiary in Netherlands, "Occam". Under International Financial Reporting Standards, the Group assesses the recoverable value of goodwill and assets and ascertains whether it is in line with the carrying value. The difference between the recoverable values and carrying values was taken as an impairment charge in the current quarter and the year. The impairment charge has little impact on the Group's business operations or prospects.

Fair value adjustment of financial assets
This amount represented the decrease in fair value of warrants to purchase shares of a licensee, adjusted through the profit and loss account in accordance with IAS 39 Financial Instruments: Recognition and Measurement.

Net result after taxation:

The net result for the quarter ended 31 March 2008 was a net loss after taxation of US$19.2 million as compared to a net loss of US$10.0 million for the same quarter in the previous year. This is primarily due to the one-time impairment and fair value adjustments recorded. For the full year under review, the net loss after taxation was US$30.0 million, a reduction of 17% as compared to a net loss after taxation of US$36.3 million in 2007. The lower net loss was primarily due to the settlement of a legal action and the receipt of licensing milestone from a licensee, offset by the one-time Occam impairment, fair value adjustments to the warrants to purchase shares from a licensee and increased operating expenses.

Use of proceeds from the issue of US$45 million convertible notes due 2009

As mentioned in the Company's announcement dated 5 January 2007, the Company has raised a total of US$45 million from the issue of convertible notes.

As of 31 March 2008, the Board of Directors of the Company wishes to announce that out of the total proceeds from the convertible notes issue, approximately US$6 million has been utilised to finance its clinical trials and approximately US$2 million has been utilised to finance its new research and development programs.

The Company will continue to make periodic announcements on the utilisation of the balance of the total proceeds from the convertible notes issue as and when such proceeds are materially deployed.

Commentary

On 18 January 2008, the Group announced that it has received Conformite Europeenne ("CE") mark approval for its BioMatrix drug-eluting stent system, enabling commercialisation of this product in the European Union and the countries in Asia and Latin America that recognise the CE mark. Terumo Corporation ("Terumo"), a licensee, also announced CE mark approval for its NOBORI drug-eluting stent. Biosensors will share a portion of the revenues from Terumo sales of the NOBORI system.

In September 2007, the Group completed the acquisition of 50 percent of JW Medical Systems Ltd ("JW Medical"), a company that manufactures and sells drug-eluting stents, with a primary focus on the Chinese market. On 9 January 2008, the Group announced the proposed acquisition of the remaining 50% of JW Medical through the purchase of 30 percent of JW Medical shares and a put option (exercisable by 31 July 2009) to acquire the remaining 20 percent. The acquisition of the additional equity of JW Medical will help accelerate Biosensor's strategy to penetrate the fast-growing Chinese market and establish a stronger presence for Biosensors in China. Upon completion of the acquisition of the additional 30 percent, the financial results of JW Medical will be consolidated in the Group's financial results. The proposed acquisition is conditional upon the approvals of shareholders of Biosensors and Weigao Medical as well as the approvals from the relevant authorities in China and Singapore.

While the Company recorded initial sales of its BioMatrix drug-eluting stent system during the quarter ended 31 March 2008, the Company officially launched the BioMatrix drug-eluting stent in major European markets as well as key markets in the Middle-East, Africa and Asia, in April 2008. The Company believes that revenues from BioMatrix sales will represent a major portion of the product sales in the second half of the fiscal year ending 31 March 2009.

With the recent European launch of its flagship BioMatrix drug-eluting stent system, and with the Company's growing focus on Asian operations, including the pending acquisition of JW Medical Systems, Biosensors has implemented restructuring efforts to better focus its operations and capital resources. The Company plans to divest or discontinue its Occam operation ("Occam"), a manufacturing facility based in the Netherlands, and has implemented a plan to close its US operating facility based in Newport Beach, California.

During the quarter ended 31 March 2008, the Company recorded impairment charges of US $3.7 million related to Occam. Except for existing orders, the Company will no longer manufacture Occam interventional cardiology products, including the Axxion drug-eluting stent system. Existing product lines manufactured in the Singapore facilities will be actively marketed to replace the discontinued Occam products and the Company may seek distribution arrangements to provide customers with alternatives for discontinued products. Biosensors will continue to serve its European, Middle East, Indian and Latin America customer base from its European headquarters in Morges, Switzerland. The Company is currently exploring strategic options for the Occam operation, and a final plan should be in place during the first half of the fiscal year ending 31 March 2009. Additional charges may be recorded in future periods related to the Occam operation.

Plans to close the Newport Beach facility were implemented on 15 April 2008. The operational functions performed in this facility are being transferred to Singapore and the research and development functions will be transferred to Singapore and the Company's other US facility located in La Jolla, California. Restructuring charges, including severance to terminated employees, are estimated to range from US$3.0 million to US$4.0 million and will be recorded in first quarter of the fiscal year ending 31 March 2009. The Company will continue to evaluate future USopportunities for its drug-eluting stent technologies and remain optimistic that the technology will someday be available in the US.

The Company believes that on an overall basis, annual operating expense reductions will range from US$7.0 million to US$9.0 million as a result of these restructuring efforts. While the restructuring should have a positive effect on future operating results, the Company is planning to continue its expansion efforts in the international markets and expects future operating expense increases to offset the savings related to the restructuring.

On April 22 2008, the Group announced that a revised licensing agreement has been signed with Terumo, where Terumo has agreed to pay Biosensors US$40.0 million in exchange for a reduction of the revenue sharing provisions applicable to sales of the NOBORI drug-eluting stent system outside of Japan. The revised agreement also clarified other operational and development aspects of the companies' relationship going forward. The US$40.0 million will be recognized as revenue over the licensing period.