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Orchid Cellmark Reports Third Quarter 2008 Financial Results
Date:10/30/2008

PRINCETON, N.J., Oct. 30 /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 2008.

Total revenues were $14.9 million for the third quarter of 2008 compared to $15.6 million for the third quarter of 2007. The decrease in total revenues for the third quarter of 2008 compared to a year ago was largely due to lower revenues in the U.K.

Total U.S.-based revenues rose by 4% over the comparable quarter in 2007, principally due to increases in the U.S. paternity testing business. This was partially offset by lower revenues from forensic casework business as well as a decline in the company's business that generates DNA profiles for the federal CODIS (Combined DNA Index System) and state DNA databases. The decrease in U.K.-based revenues in the quarter compared to a year ago was due to lower volumes of animal DNA testing for scrapie susceptibility and slightly reduced forensics revenues due to adverse exchange rates.

Excluding cost of service revenue, operating expenses for the quarter declined to $5.8 million compared to $6.0 million for the third quarter of 2007 as a result of reduced general and administrative expenses.

Operating loss for the third quarter of 2008 was $1.4 million compared to a $466 thousand loss for the third quarter of 2007. The operating loss increase was principally due to decreases in gross margins in both the U.S. and the U.K. Gross margin for the U.S. business decreased for the third quarter of 2008 compared to the third quarter of 2007 largely as a result of a decline in the average selling prices in the CODIS and forensic casework businesses. Gross margin fo
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SOURCE Orchid Cellmark Inc.
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