For fiscal 2008, we reported sales of $16,294,423 as compared to net revenues of $18,732,069 for fiscal 2007, a decrease of $2,437,646 or approximately 13%. Of our total net revenues for fiscal 2008, approximately $14,886,699 is attributable to third party product sales by our IceWEB Solutions Group, approximately $982,049 is attributable to our sale of storage products, and approximately $425,676 is attributable to revenues from our online products and services.
Gross profit increased to $2,226,794 in fiscal 2008, from $1,920,795 in fiscal 2007, an increase of 15.9%. Gross margin percent improved from 10.25% to 13.67%. The improvement in margins is attributable to the sale of higher margin storage products and improving margins in the hardware and software solutions business.
The fiscal 2008 net loss of $6,410,793, or $0.35 per share, included the impact of the acquisition of Inline Corporation, which contributed $1,244,105 to the loss. In addition, non cash expenses included depreciation and amortization of $575,498, share-based compensation of $1,573,363, and amortization of deferred compensation expense of $910,930.
John R. Signorello, Chairman and Chief Executive Officer of IceWEB, Inc., stated, In 2008 we invested in our future while simultaneously lowering overhead expenses - by acquiring INLINE Corporation, a data storage company. Over the course of the year, we continued to make strategic product and marketing investments to enhance our efforts into the fast-growing GIS markets. Our IT Solutions business compliments our storage efforts and is targeted for both the defense and civilian agency sides of the Federal Government market places. We anticipate 2009 to be a year in which our 2008 investments will yield significantly improved gross margins and fuel our growth in GIS and other fast growth storage markets.