Orchid Cellmark Reports Second Quarter 2008 Financi...( - U.S. Business Shows 9...),Health

- U.S. Business Shows 9% Increase In Revenues -

- Florida Upholds Contract Award To Orchid Cellmark For Multi-Year

Paternity Testing -

- Regional Tender Work Underway In U.K. -

PRINCETON, N.J., July 31 /PRNewswire-FirstCall/ -- Orchid Cellmark Inc. (Nasdaq: ORCH), a leading worldwide provider of identity DNA testing services, today reported its financial results for the second quarter of 2008.

Total revenues were $15.2 million for the second quarter of 2008 compared to $15.7 million for the second quarter of 2007 and $14.5 million for the first quarter of 2008. The decrease in total revenues for the second quarter of 2008 compared to the second quarter of 2007 was largely due to lower revenues in the U.K.

Orchid Cellmark recorded increases in its U.S. business that generates DNA profiles for the federal CODIS (Combined DNA Index System) and state DNA databases and in its U.S. paternity testing business, partially offset by lower revenues from its U.S. forensic casework business. Overall, U.S. revenues increased by 9% over the comparable quarter in 2007, largely as a result of the ReliaGene acquisition. The decrease in U.K.-based revenues in the second quarter of 2008, compared to the comparable period in 2007, was due to lower volumes of animal DNA testing for scrapie susceptibility and immigration identity testing, as well as reduced forensic revenue. The decrease was partially offset by increased revenues in the paternity testing business. Lower revenue for the U.K. forensics business was primarily due to the loss of revenue from the company's previous arrangement with LGC, which essentially ended in April 2008, as previously reported.

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