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Orchid Cellmark Reports Improved First Quarter 2009 Financial Results
Date:5/7/2009

g process that has given the states a more decisive role in deciding to whom they can outsource their CODIS business. Total U.S. based revenues for the first quarter of 2009 decreased less than 8% compared to the first quarter of 2008. Excluding CODIS revenues, U.S. revenues were up 12% in the first quarter of 2009 as compared to the first quarter of 2008.

Operating expenses, excluding cost of service revenue, for the first quarter of 2009 declined to $5.8 million from $7.0 million for the first quarter of 2008 as a result of continued management focus on reducing G&A, marketing and sales expenses, as well as the foreign exchange rate impact on U.K. based expenses.

Operating loss for the first quarter of 2009 was $1.0 million compared to a $2.9 million loss for the first quarter of 2008. The operating loss decrease was principally due to an increase in gross profit as a result of improved gross margins. The company's gross margin percentage was 34% for the first quarter of 2009 as compared to 28% for the first quarter of 2008.

Orchid Cellmark reported a net loss of $1.2 million, or $(0.04) per share, for the first quarter of 2009, compared to a net loss of $2.3 million, or $(0.08) per share, for the first quarter of 2008. Net losses for the first quarters of 2009 and 2008 include charges of $1.0 million and $1.2 million, respectively, for depreciation and amortization.

At March 31, 2009, cash and cash equivalents were $14.4 million.

Thomas Bologna, president and chief executive officer of Orchid Cellmark commented, "Our first quarter 2009 results reflect significant growth in our forensic casework business in both the U.S. and U.K. Although overall revenue declined because of adverse exchange rates and what we believe is a temporary decline in U.S. CODIS revenue, the increases in worldwide forensic casework revenues demonstrate the strength of this core business."

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SOURCE Orchid Cellmark Inc.
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