ORCHID CELLMRK 
By
Total revenues were
Total operating expenses, excluding cost of service revenue, for the first
quarter of 2008 were
Operating loss for the first quarter of 2008 was
Orchid Cellmark reported a net loss of
At
Mr. Bologna continued, "During the first quarter we believe we made
significant progress both in the U.S. and U.K. that will position the company
for future growth. Specifically, the integration of the ReliaGene acquisition
in the U.S. is proceeding very well and ahead of our expectations. We expect
to eliminate duplicate costs associated with capacity from that acquisition by
the end of the second quarter of this year. We fully expect the acquisition
of ReliaGene to be accretive in the second half of this year. In addition, we
ended the quarter with a large influx of new casework into our
"We are particularly pleased with the size and scope of new business we
recently won in the form of multi-year contracts to our U.K. operations as a
result of our winning bid in the North West/South West and
Mr. Bologna concluded, "With our business expansion well underway in the U.K., our ReliaGene acquisition on track for accretive growth, and recent landmark regulations from the Department of Justice in the U.S., we believe we are well positioned for improving results this year and for future growth in the coming years. With our strong balance sheet and our continued focus on cost containment and opportunistic business expansion, we believe the company is on the right path to achieve sustainable profitability."
Conference Call Information
A conference call with Orchid Cellmark management will be held on
About Orchid Cellmark
Orchid Cellmark is a leading provider of identity DNA testing services for the human identity and agriculture markets. In the human identity area, the company provides DNA testing services for forensic, family relationship and security applications. In the agriculture field, Orchid Cellmark 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 world-renowned Cellmark brand that has been associated with exceptional quality, reliability and customer service for nearly two decades. More information on Orchid Cellmark can be found at www.orchid.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 our first quarter results reflect a truth about our
business -- DNA identity testing has a degree of workflow lumpiness that can
result in short-term fluctuations that primarily reflect timing rather than
changes in the underlying demand for our services, the belief that this
lumpiness was apparent in the first quarter, when important areas of strength
were obscured by a few areas of weakness related to the timing of work,
especially in our forensic casework businesses in the U.S. and U.K., the
belief that we made significant progress both in the U.S. and the U.K. that
will position the company for expanded growth, the expectation that we will
eliminate further duplicate costs associated with capacity from the
acquisition of ReliaGene by the end of the second quarter of this year, the
expectation that the acquisition of ReliaGene will be accretive in the second
half of this year, the belief that the multi-year contracts awarded under 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.
Contacts
Investors: Media:
Mary Bashore Barbara Lindheim
Orchid Cellmark Inc. GendeLLindheim BioCom Partners
(609) 750-2324 (212) 918-4650
Orchid Cellmark Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
Three months ended March 31, 2008 and 2007
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
2008 2007
Revenues:
Service revenues $14,395 $13,895
Other revenues 132 137
Total revenues 14,527 14,032
Operating expenses:
Cost of service revenues 10,436 9,519
Research and development 220 279
Marketing and sales 1,572 1,484
General and administrative 4,692 3,936
Amortization of intangible assets 477 445
Total operating expenses 17,397 15,663
Operating loss (2,870) (1,631)
Other income, net 350 207
Loss before income tax expense (2,520) (1,424)
Income tax expense (benefit) (246) 259
Net loss $(2,274) $(1,683)
Basic and diluted net loss per share $(0.08) $(0.06)
Shares used in computing basic and
diluted net loss per share: 29,934 29,319
Orchid Cellmark Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, 2008 and December 31, 2007
(In thousands)
(Unaudited)
March 31, December 31,
2008 2007
Assets:
Current assets
Cash and cash equivalents $19,056 $20,918
Accounts receivable, net 9,993 9,516
Inventory 1,471 1,443
Prepaids and other current assets 1,588 2,151
Total current assets 32,108 34,028
Fixed assets, net 6,801 7,440
Goodwill 9,664 9,519
Other intangibles, net 9,214 9,694
Restricted cash 958 958
Other assets 504 490
Total assets $59,249 $62,129
Liabilities and Stockholders' Equity:
Current liabilities
Accounts payable $1,644 $2,027
Accrued expenses and other current liabilities 5,036 4,611
Income taxes payable 178 543
Short-term debt and current portion of
long-term debt 400 428
Deferred revenue 992 964
Total current liabilities 8,250 8,573
Other liabilities 604 1,123
Total liabilities 8,854 9,696
Total stockholders' equity 50,395 52,433
Total liabilities and stockholders' equity $59,249 $62,129
SOURCE Orchid Cellmark Inc.
