Obagi Medical Products, Inc. (OMPI), a major player in the skin care systems arena this past week on May 5, 2008, reported financial results for the first quarter ended March 31, 2008.

CEO and OMPI President Steve Carlson stated, “This quarter’s performance was below our expectations as economic conditions prevented the Company from achieving targeted revenue and earnings growth. Most significantly, sales from our core Nu-Derm product line were down as a result of more cautious purchasing patterns, especially from our largest physician accounts that we believe service our most economically sensitive end-consumers. As has been our experience with other new product introductions, our decision to focus our sales and marketing resources on the introduction of ELASTIderm Decolletage System, which has been very well received, also impacted the performance of Nu-Derm during the quarter.

“While the current economic environment is unlikely to improve in the near term, our strong cash position, positive cash flow and debt-free capital structure makes Obagi Medical Products more competitively positioned than ever before. In light of these economic conditions, we have re-examined and re-aligned our expenditures for 2008 with our current growth expectations, while continuing to invest in product development, clinical support for our products, growth of our sales organization and other growth initiatives. We believe we will achieve double-digit revenue growth in 2008 through our active account growth, the development of our international business, further acceptance of the new ELASTIderm offering, and a new product launch planned for the fourth quarter.”