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Original Source: FD (FAIR DISCLOSURE) WIRE
OPERATOR: Good day, ladies and gentlemen, and welcome to the Molecular Imaging Corporation earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (OPERATOR INSTRUCTIONS) As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Steve Davis. Mr. Davis, you may begin.
STEVE DAVIS, GENERAL COUNSEL, MOLECULAR IMAGING CORPORATION: Thank you. Good afternoon. Welcome to the Molecular Imaging Corporation fiscal year 2003 earnings conference call. My name is Steve Davis and I'm General Counsel of Molecular Imaging Corporation. The format for today's call will begin with the introduction of Paul Crowe, President and CEO of the Company, who will discuss highlights in the fiscal year 2003, followed by a presentation of the financial results by VP of Finance Tony Turnbull. During the presentation portion of the call, all listeners will be on listen-only mode until the formal question-and-answer segment of the call.
Before opening the call to investor questions, Paul Crowe will close the formal phase of the earnings call by discussing the highlights of fiscal year 2003 and the growth opportunities for fiscal year 2004. After this, we will open the call for questions. The press release detailing our results is available on the Company Website at www.molecularimagingcorp.com.
Before we get started, I have a couple of announcements. During the call, we may make forward-looking statements regarding future events and our future financial performance that involve risks and uncertainties, including statements about future profitability (technical difficulty) and cash positions. Some forward-looking statements can be identified by forward-looking words such as "believe," "think," "may," "could," "will," "estimate," "continue," "anticipate," "intend," "seek," "plan," "expect," "should," "would" and similar expressions. Listeners are cautioned that these are forward-looking statements, are only predictions, and may differ materially from actual future events or results. Listeners are referred to our documents filed with the SEC, specifically the most recent reports on Form 10-K, 8-K and 10-Q, as they may be amended from time to time. These identify important factors that could cause actual results to differ from those contained in the forward-looking statements. Now I would like to turn the call over to Paul Crowe, President and CEO of the Company.
PAUL CROWE, CHAIRMAN, PRESIDENT, CEO, MOLECULAR IMAGING CORPORATION: Thank you, Steve. Good afternoon, everyone. Thank you very much for joining us today. Fiscal year 2003 represented a number of significant achievements for Molecular Imaging, and I think to start out sharing some of those with you, I will ask Tony Turnbull, our Vice President Finance, to speak about the most important achievement, and that was our financial performance.
TONY TURNBULL, VP-FINANCE, ASSISTANT SECRETARY, MOLECULAR IMAGING CORPORATION: Thank you, Paul. Revenues for the year 2003 were 20,887,924, reflecting a 28 percent increase over revenues of 16,302,009 for the prior year. The increased results were due from increased utilization of units and three new units leased over the past year. Gross profit for the year of 8,432,628, or 40.4 percent of revenue, was a considerable increase over the prior year of 6,083,022, or 37.3 percent of gross revenues. The improvements result primarily from decreased transportation costs and depreciation expense, offset by an increase in service contracts and repairs.
While we had an income from operations of 589,705 for the year compared to a loss from operations of 3,394,708 for the prior year, …