Total revenues were
The decline in 2008 fourth quarter revenues was primarily due to the impact of foreign exchange rates as the dollar rose against the British pound reducing U.K. revenues by 23%, and to a lesser degree from a substantial drop in the federal CODIS (Combined DNA Index System) and state DNA databases business, which the company believes to be a temporary decline as state backlogs continue to build in the absence of outstanding bids.
Total U.K.-based revenues for the fourth quarter of 2008 rose 6.7% compared to the fourth quarter of 2007 before accounting for the exchange rates. Revenues were boosted by a 30% increase in forensic revenues from a year ago, as these gains were partially offset by lower volumes of animal DNA testing for scrapie susceptibility. U.S.-based revenues for the 2008 fourth quarter were impacted by a substantial drop in CODIS revenue that was partially offset by increased revenues in paternity testing and forensic casework businesses.
The decrease in total revenues for the full year 2008 compared to a year ago was largely due to lower revenues in the U.K. that were reduced by 8% due to unfavorable exchange rates. Total U.S.-based revenues rose by 3% over the full year 2007, principally due to increases in the U.S. paternity testing business and revenue associated with the company's acquisition of ReliaGene Technologies, Inc. The revenue gain was partially offset by lower revenues from the company's forensic casework and CODIS businesses. In addition to the impact of adverse exchange rates, the decrease in U.K.-based revenues for the full year 2008 compared to a year ago was due to lower volumes in the company's scrapie susceptibility testing, forensics and immigration businesses.
Excluding cost of service revenue, operating expenses for the quarter declined to
Operating loss for the fourth quarter of 2008 was
Operating loss for the full year 2008 was
Orchid Cellmark reported net income of
At
Mr. Bologna added, "For the year, we did achieve important gains in core business segments including U.S. paternity, U.S. forensic casework serviced from our
Mr. Bologna concluded: "Our primary metric, especially in these difficult economic times, is to manage our cash judiciously, which we believe we are doing. We ended 2008 with approximately
Conference Call Information
A conference call with Orchid Cellmark management will be held on
About Orchid Cellmark
Orchid Cellmark (Nasdaq: ORCH) is a leading international provider of DNA testing services primarily for forensic and family relationship applications. Orchid Cellmark is one of the largest providers of forensic DNA testing services and its DNA results are used by the criminal justice system to assist with the identification of perpetrators, the exclusion of suspects and the exoneration of wrongfully convicted individuals. The company provides DNA family relationship testing to numerous child services organizations and individuals seeking to verify parentage. Orchid Cellmark also serves immigration and security authorities for DNA testing of individuals. In the agriculture field, the company provides DNA testing services for selective trait breeding. Orchid Cellmark's strong market positions in these areas reflect the company's accredited laboratories in the U.S. and U.K., its innovative genetic analysis technologies and expertise, and the company's reputation for exceptional quality, reliability and customer service for nearly two decades. More information on Orchid Cellmark can be found at www.orchidcellmark.com.
All statements in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: expectations regarding Orchid Cellmark's business operations and outlook; the belief that the decline in the federal CODIS and state DNA database businesses is temporary; the belief that we have made up completely for the loss of the LGC-related business despite the significantly adverse foreign exchange rates; and the belief that we are managing our cash judiciously. Such statements are subject to the risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, the risk that we are not able to replace the work that we previously provided to several police forces in the U.K. under an arrangement with LGC, the risk that the amount of revenue resulting from the North West/South West and
Information contained in our press releases should be considered accurate only as of the date of the release. Information in any press release may be superseded by more recent information we have disclosed in later press releases, filings with the Securities and Exchange Commission or otherwise. Press releases may contain forward-looking statements based on the expectations of our management as of the date of the release. Actual results may materially differ based on several factors, including those described in the press release.
(See attached Financial Tables)
Orchid Cellmark Inc. and Subsidiaries Condensed Consolidated Statements of Operations Three months and twelve months ended December 31, 2008 and 2007 (In thousands, except per share data) (Unaudited) Three months ended Years ended December 31, December 31, 2008 2007 2008 2007 Revenues: Service revenues $12,961 $14,948 $57,365 $60,048 Other revenues 11 33 230 255 Total revenues 12,972 14,981 57,595 60,303 Operating expenses: Cost of service revenues 9,128 10,451 40,287 40,230 Research and development 192 213 846 1,045 Marketing and sales 1,201 1,521 5,860 6,021 General and administrative 3,437 3,638 16,076 15,385 Restructuring - - - (75) Amortization of intangible assets 466 469 1,895 1,806 Total operating expenses 14,424 16,292 64,964 64,412 Operating loss (1,452) (1,311) (7,369) (4,109) Other income, net 334 345 1,180 1,162 Loss before income tax expense (1,118) (966) (6,189) (2,947) Income tax expense (benefit) (1,591) (1,134) (1,708) 20 Net income (loss) $473 $168 $(4,481) $(2,967) Basic and diluted net income (loss) per share $0.02 $0.01 $(0.15) $(0.10) Shares used in computing basic net income (loss) per share: 29,935 29,711 29,935 29,583 Shares used in computing diluted net income (loss) per share: 29,935 29,810 29,935 29,583 Orchid Cellmark Inc. and Subsidiaries Condensed Consolidated Balance Sheets December 31, 2008 and December 31, 2007 (In thousands) (Unaudited) December 31, December 31, 2008 2007 Assets: Current assets Cash and cash equivalents $14,998 $20,918 Accounts receivable, net 9,826 9,516 Inventory 1,262 1,443 Prepaids and other current assets 1,392 2,151 Total current assets 27,478 34,028 Fixed assets, net 5,859 7,440 Goodwill 9,336 9,519 Other intangibles, net 7,570 9,694 Restricted cash - 958 Other assets 406 490 Total assets $50,649 $62,129 Liabilities and Stockholders' Equity: Current liabilities Accounts payable $2,544 $2,027 Accrued expenses and other current liabilities 2,288 4,611 Income taxes payable - 543 Short-term debt and current portion of long-term debt 338 428 Deferred revenue 842 964 Total current liabilities 6,012 8,573 Other liabilities 269 1,123 Total liabilities 6,281 9,696 Total stockholders' equity 44,368 52,433 Total liabilities and stockholders' equity $50,649 $62,129
SOURCE Orchid Cellmark Inc.