ORCHID CELLMRK 
By
Total revenues were
Total U.S.-based revenues rose by 4% over the comparable quarter in 2007, principally due to increases in the U.S. paternity testing business. This was partially offset by lower revenues from forensic casework business as well as a decline in the company's business that generates DNA profiles for the federal CODIS (Combined DNA Index System) and state DNA databases. The decrease in U.K.-based revenues in the quarter compared to a year ago was due to lower volumes of animal DNA testing for scrapie susceptibility and slightly reduced forensics revenues due to adverse exchange rates.
Excluding cost of service revenue, operating expenses for the quarter
declined to
Operating loss for the third quarter of 2008 was
Orchid Cellmark reported a net loss of
At
Mr. Bologna added, "We did achieve important gains in core business
segments, including U.S. paternity, U.S. forensic casework in the
Mr. Bologna concluded: "The challenges encountered in the third quarter
will continue in the fourth quarter of 2008 and put downward pressure on our
previously discussed operating targets. Specifically, the impact of the
adverse foreign exchange rate, the timing of sample receipts in the U.S., and
the continuing buildup of casework management capabilities in the U.K. will
influence revenue and gross margin in the fourth quarter. However, we believe
the fundamentals of our core business are sound; we have achieved efficiencies
in our operations; and we have a strong balance sheet with
Conference Call Information
A conference call with Orchid Cellmark management will be held on
About Orchid Cellmark
Orchid Cellmark (Nasdaq: ORCH) is a leading international provider of DNA testing services primarily for forensic and family relationship applications. Orchid Cellmark is one of the largest providers of forensic DNA testing services and its DNA results are used by the criminal justice system to assist with the identification of perpetrators, the exclusion of suspects and the exoneration of wrongfully convicted individuals. The company provides DNA family relationship testing to numerous child services organizations and individuals seeking to verify parentage. Orchid Cellmark also serves immigration and security authorities for DNA testing of individuals. In the agriculture field, the company provides DNA testing services for selective trait breeding. Orchid Cellmark's strong market positions in these areas reflect the company's accredited laboratories in the U.S. and U.K., its innovative genetic analysis technologies and expertise, and the company's reputation for exceptional quality, reliability and customer service for nearly two decades. More information on Orchid Cellmark can be found at www.orchidcellmark.com.
All statements in this press release that are not historical are forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, but not limited to, statements regarding:
expectations regarding Orchid Cellmark's business operations and outlook; the
belief that the fundamentals of our core business are sound; and the belief
that the DNA testing market offers growth opportunities with market dynamics
favorable in the U.S. and a changing market in the UK that affords us good
prospects for gaining market share. Such statements are subject to the risks
and uncertainties that could cause actual results to differ materially from
those projected, including, but not limited to, the risk that we are not able
to replace the work that we previously provided to several police forces in
the U.K. under an arrangement with LGC, the risk that the amount of revenue
resulting from the North West/South West and
Information contained in our press releases should be considered accurate only as of the date of the release. Information in any press release may be superseded by more recent information we have disclosed in later press releases, filings with the Securities and Exchange Commission or otherwise. Press releases may contain forward-looking statements based on the expectations of our management as of the date of the release. Actual results may materially differ based on several factors, including those described in the press release.
Contact:
Investors: Media:
Mary Bashore Rick Anderson
Orchid Cellmark Inc. The Torrenzano Group
(609) 750-2324 (212) 681-1700
ir@orchid.com randerson@torrenzano.com
Orchid Cellmark Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three months and nine months ended September 30, 2008 and 2007
(In thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
Revenues:
Service revenues $14,845 $15,511 $44,404 $45,100
Other revenues 27 47 219 222
Total revenues 14,872 15,558 44,623 45,322
Operating expenses:
Cost of service revenues 10,500 10,054 31,159 29,779
Research and development 228 264 654 832
Marketing and sales 1,536 1,503 4,659 4,500
General and administrative 3,588 3,831 12,639 11,747
Restructuring - (75) - (75)
Amortization of intangible assets 475 447 1,429 1,337
Total operating expenses 16,327 16,024 50,540 48,120
Operating loss (1,455) (466) (5,917) (2,798)
Other income, net 128 301 846 817
Loss before income tax expense (1,327) (165) (5,071) (1,981)
Income tax expense (benefit) 132 542 (117) 1,154
Net loss $(1,459) $(707) $(4,954) $(3,135)
Basic and diluted net loss per share $(0.05) $(0.02) $(0.17) $(0.11)
Shares used in computing basic and
diluted net loss per share: 29,935 29,327 29,935 29,323
Orchid Cellmark Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2008 and December 31, 2007
(In thousands)
(Unaudited)
September 30, December 31,
2008 2007
Assets:
Current assets
Cash and cash equivalents $15,857 $20,918
Accounts receivable, net 11,319 9,516
Inventory 1,497 1,443
Prepaids and other current assets 2,041 2,151
Total current assets 30,714 34,028
Fixed assets, net 6,399 7,440
Goodwill 9,558 9,519
Other intangibles, net 8,185 9,694
Restricted cash - 958
Other assets 487 490
Total assets $55,343 $62,129
Liabilities and Stockholders' Equity:
Current liabilities
Accounts payable $2,668 $2,027
Accrued expenses and other current
liabilities 4,297 4,611
Income taxes payable - 543
Short-term debt and current portion of
long-term debt 385 428
Deferred revenue 852 964
Total current liabilities 8,202 8,573
Other liabilities 284 1,123
Total liabilities 8,486 9,696
Total stockholders' equity 46,857 52,433
Total liabilities and stockholders' equity $55,343 $62,129
SOURCE Orchid Cellmark Inc.
