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

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Mr. Bologna added, "Our results for the first quarter of 2009 continue to validate an important growth driver for the company - the successful transition of our company in the U.K. market from a sub-contractor to a direct provider of forensic services. Our U.K. forensic casework revenue grew by 26% in the first quarter over the first quarter of last year. In British pounds, U.K. forensic casework revenues for the first quarter of 2009 rose 74% compared to the first quarter of 2008. With the initial tender filed this quarter under the National Procurement Plan, we expect, on a local currency basis, to continue to grow our U.K. forensic casework business in 2009. Another key metric is the transformation of our U.S. casework business. That business increased 40% over the first quarter of last year and, while we experienced lower average casework prices, the gross margin for our U.S. casework business serviced from our Dallas facility increased significantly."

Mr. Bologna continued: "The first quarter of 2009 also showed a solid improvement in our overall gross margin, another primary metric. The increase in the company's gross margin percentage to 34% for the first quarter of 2009 as compared to 28% for the first quarter of 2008 demonstrates that our continuing productivity enhancements and cost containment efforts are favorably impacting results."

Mr. Bologna concluded: "We believe there is significant momentum in the forensics markets that can benefit our business. The U.K. forensics market is relatively mature with all forensics work expected to be tendered by the U.K. police forces over the next few years. We believe our success last year in the North West/South West and Wales regional tender bodes well for the tendering under the National Procurement Plan. In the U.S., all-arrestee legislation is expanding, violent crime casework backlogs are growing, and the effectiveness of DNA testing of property crime evi
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SOURCE Orchid Cellmark Inc.
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