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Orchid Cellmark Reports Fourth Quarter and Full Year 2007 Financial Results
Date:3/6/2008

erating 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 $5.8 million compared to $6.3 million for the fourth quarter of 2006. Operating expenses, excluding cost of service revenue, decreased from $29.2 million in 2006 to $24.2 million in 2007. These declines were primarily due to a decline in U.S. general and administrative, marketing and sales, and restructuring expenses resulting from our continued focus on reducing expenses.

The company's operating loss for the fourth quarter of 2007 was $1.3 million, compared to an operating loss of $956 thousand for the fourth quarter of 2006. The operating loss for the full year of 2007 was $4.1 million compared to $12.0 million in 2006. The increase in operating loss for the fourth quarter of 2007 compared to the fourth quarter of 2006 was principally due to the reduction in gross margin for the quarter compared to the same period in 2006 partially offset by a reduction in operating expenses, primarily reduced general and administrative expenses. The $7.9 million decrease in the operating loss for the full year of 2007 compared to 2006 primarily reflects stronger gross margins for the full year of 2007 coupled with lower operating expenses.

Orchid Cellmark reported net income of $168 thousand, or $0.01 per share, for the fourth quarter of 2007, compared to a net income of $885 thousand, or $0.03 per share, for the fourth quarter of 2006. The net loss for the full year of 2007 was $3.0 million, or $(0.10) per share, compared to a net loss of $11.3 million in 2006, or $(0.45) per share. The fourth quarters of 2007 and 2006 include proceeds from the sale of state net operating losses of $1.1 million and $749 thousand, respectively, which are reflected as reductions of income tax expense in the respective quarters and which po
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SOURCE Orchid Cellmark Inc.
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