ORCHID CELLMRK 
By PRINCETON, N.J.,
Total revenues were essentially flat at
Gross margin for the fourth quarter of 2007 was 30% compared to a gross margin of 36% for the fourth quarter of 2006. Gross margin for the fourth quarter of 2007 as compared to the fourth quarter of 2006 was negatively impacted by decreased testing volumes in U.K. agricultural testing services and U.S. forensic casework and costs associated with expanding our U.K. capabilities and capacity in anticipation of new tender awards. Gross margin for the full year of 2007 was 33% compared to a gross margin for the full year of 2006 of 30%. The increase in gross margin for the full year of 2007 compared to 2006 primarily reflects improved pricing in U.S. forensic casework and CODIS testing services and operating cost efficiencies, partially offset by reduced gross margin contribution associated with the reduced U.K. agricultural testing services.
Total operating expenses, excluding cost of service revenue, for the
fourth quarter of 2007 were
The company's operating loss for the fourth quarter of 2007 was
Orchid Cellmark reported net income of
At
Orchid Cellmark recently was awarded a significant portion of the work
that it bid for in the North West/South West and Wales regional tender
(internally referred to as the mega tender) primarily for DNA related work.
The award followed a lengthy competitive bidding process. Under the award,
Orchid Cellmark will provide forensic services for several police forces from
this region and will carry out DNA testing of database crime scene samples,
forensic casework and PACE samples (DNA database under the Police and Criminal
Evidence Act). It is anticipated that work from this award will commence in
the second quarter of 2008 after the completion of contracts with each of the
police forces. Also in the U.K., as previously reported, Orchid Cellmark
performs forensic testing services for several police forces in the U.K.
through an arrangement with LGC, the successor to Forensic Alliance Ltd. The
agreement with LGC was terminated effective
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
anticipation that work from the North West/South West and Wales regional
tender award will commence in the second quarter of 2008 after the completion
of contracts with each of the police forces, the belief that the remaining
police forces in the U.K. will tender their forensics work through the
National Procurement Plan which is expected to be implemented later this year
with the police forces going to tender over the subsequent 18-month period and
the belief that the National Procurement tender process is an opportunity for
Orchid Cellmark to realize further new incremental business and also regain
some or all of the work that it is at risk of losing under its current
arrangement with LGC. 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
continue providing services to two key police forces in the U.K. under our
current arrangement with LGC or that we are not able to regain or replace this
work if our arrangement with LGC is terminated and/or if LGC provides testing
services directly to these police forces, the risk that the amount of revenue
resulting from the North West/South West and Wales regional tender in the U.K.
is not significant, the risk that implementation of the work from the North
West/South West and Wales regional tender in the U.K. is delayed, Orchid
Cellmark's ability to timely and successfully integrate ReliaGene's business,
uncertainties relating to technologies, product development, manufacturing,
market acceptance, cost and pricing of Orchid Cellmark's products and
services, dependence on government funding and collaborations, regulatory
approvals, competition, intellectual property of others, patent protection,
litigation, the timing of release of federal funds, the timing and amount of
contracts put up for bid, and Orchid Cellmark's ability to successfully offer
its services directly to U.K. police forces. These risks and other additional
factors affecting these forward-looking statements and Orchid Cellmark's
business are discussed under the headings "Risks Related to Our Business" and
"Risks Associated with Our Common Stock" in Orchid Cellmark's Annual Report on
Form 10-K, as amended, for the year ended
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 and twelve months ended December 31, 2007 and 2006
(In thousands, except per share data)
(Unaudited)
Three months ended Years ended
December 31, December 31,
2007 2006 2007 2006
Revenues:
Service revenues $14,948 $14,875 $60,048 $56,566
Other revenues 33 37 255 288
Total revenues 14,981 14,912 60,303 56,854
Operating expenses:
Cost of service revenues 10,451 9,558 40,230 39,705
Research and development 213 318 1,045 1,228
Marketing and sales 1,521 1,307 6,021 6,766
General and administrative 3,638 4,332 15,385 18,980
Restructuring - (90) (75) 437
Amortization of intangible assets 469 443 1,806 1,765
Total operating expenses 16,292 15,868 64,412 68,881
Operating loss (1,311) (956) (4,109) (12,027)
Other income, net 345 778 1,162 899
Loss before income tax expense (966) (178) (2,947) (11,128)
Income tax expense (benefit) (1,134) (1,063) 20 143
Net income (loss) $168 $885 $(2,967) $(11,271)
Basic and diluted net income (loss)
per share $0.01 $0.03 $(0.10) $(0.45)
Shares used in computing basic net
income (loss) per share: 29,711 26,505 29,583 24,892
Shares used in computing diluted net
income (loss) per share: 29,810 26,530 29,583 24,892
Orchid Cellmark Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, 2007 and December 31, 2006
(In thousands)
(Unaudited)
December 31, December 31,
2007 2006
Assets:
Current assets
Cash and cash equivalents $20,918 $24,144
Accounts receivable, net 9,516 11,603
Inventory 1,443 1,072
Prepaids and other current assets 2,151 1,751
Total current assets 34,028 38,570
Fixed assets, net 7,440 8,469
Goodwill 9,519 2,321
Other intangibles, net 9,694 9,755
Restricted cash 958 958
Other assets 490 543
Total assets $62,129 $60,616
Liabilities and Stockholders' Equity:
Current liabilities
Accounts payable $2,027 $2,417
Accrued expenses and other current
liabilities 4,611 4,342
Income taxes payable 543 1,013
Short-term debt and current portion
of long-term debt 428 -
Deferred revenue 964 825
Total current liabilities 8,573 8,597
Other liabilities 1,123 1,113
Total liabilities 9,696 9,710
Total stockholders' equity 52,433 50,906
Total liabilities and stockholders' equity $62,129 $60,616
SOURCE Orchid Cellmark Inc.
