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Orchid Cellmark Reports Second Quarter 2008 Financial Results
Date:7/31/2008

lect the transition we are undergoing and the core strengths of our business."

"While we were absorbing the substantial impact of the loss of revenue in the U.K. from our previous arrangement with LGC, we ramped up DNA testing and other forensics services work for a number of U.K. police forces under the new North West/South West and Wales regional forensic tender," Mr. Bologna explained. "Due to these new sources of revenue, even though the LGC-related business decreased by approximately $2.6 million, total U.K. revenue in this quarter only decreased by approximately $1.2 million. As expected, the work from the North West/South West and Wales regional forensics tender has started to flow significantly into our U.K. facility. Also, we anticipate forensics work through the National Procurement Plan will begin to be tendered and awarded in the fourth quarter of 2008 with work beginning in the first quarter of 2009. This is ahead of our earlier estimates."

Mr. Bologna continued, "During the second quarter, we believe we made significant progress on a broad array of operational matters in the U.S. We substantially completed the integration of the ReliaGene acquisition in the U.S. and eliminated duplicate costs associated with capacity from that acquisition. We fully expect the ReliaGene acquisition to be accretive in the second half of this year. In addition, we saw significant increases in our government paternity and CODIS businesses in the U.S., and we again ended the quarter with a large influx of new casework into our Dallas facility. We also prevailed in litigation in Florida against Laboratory Corporation of America (LabCorp) in connection with a contract awarded to Orchid Cellmark to conduct all of the publicly-funded paternity testing for the State of Florida. The costs of this lawsuit increased our operating expenses in the second quarter of 2008. Were it not for the legal costs incurred relative to this bid dispute, our net loss in the second qu
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SOURCE Orchid Cellmark Inc.
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