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Orchid Cellmark Reports Third Quarter 2007 Financial Results
Date:11/1/2007

-Operating Loss Decreases by 27% Compared to the Third Quarter of 2006-

-Cash Increases by $650 Thousand During the Quarter-

PRINCETON, N.J., Nov. 1 /PRNewswire-FirstCall/ -- Orchid Cellmark Inc. (Nasdaq: ORCH), a leading worldwide provider of identity DNA testing services, today reported its financial results for the third quarter of 2007.

Total revenues were $15.6 million for the third quarter of 2007, compared to $15.7 million for the third quarter of 2006, a decrease of 1%. The decrease in revenues was primarily due to lower U.K. agriculture sample testing and to a lesser extent lower U.S. paternity revenues. The overall decrease was essentially offset by higher forensic testing service revenues in the U.S. and U.K.

Service revenues gross margin for the third quarter of 2007 was 35%, compared to gross margin of 36% for the corresponding quarter of 2006. The decrease in gross margin in the third quarter of 2007 as compared to the same period of 2006 resulted from decreased revenues of approximately 49% from our U.K. agriculture testing services. That decrease was partially offset by improved operating leverage resulting from increased volumes from our U.S. and U.K. forensic business coupled with increased laboratory efficiencies and cost reduction programs implemented over the last 15 months.

Total operating expenses, excluding cost of service revenues, for the third quarter of 2007 were $6.0 million, compared to $6.3 million for the third quarter of 2006. General and administrative and research and development expenses for the third quarter of 2007 decreased from the third quarter of 2006 by $276 thousand while marketing and sales expenses were essentially unchanged. The third
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SOURCE Orchid Cellmark Inc.
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