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Currency Translation Drags Orchid's Revenues Down 3 Percent

NEW YORK (GenomeWeb News) – Orchid Cellmark today reported that its first-quarter revenues were down 3 percent, due to the adverse impact of foreign currency translation.

The Princeton, NJ-based DNA testing services firm brought in revenues of $14 million for the three-month period ended March 31, compared to revenues of $14.5 million for the first quarter of 2008. The company said that its revenues were up 13 percent year over year on a constant currency basis.

Orchid's net loss was halved to $1.2 million, or $.04 per share, from $2.3 million, or $.08 per share, primarily due to lower spending.

Its R&D expenses declined to $159,000 from $220,000, while its SG&A spending fell to $5.2 million from $6.2 million.

"Our results for the first quarter of 2009 continue to validate an important growth driver for the company — the successful transition of our company in the UK market from a sub-contractor to a direct provider of forensic services," said Orchid President and CEO Thomas Bologna in a statement. "Our UK forensic casework revenue grew by 26 percent in the first quarter over the first quarter of last year."

The firm's US forensic casework revenue grew 40 percent year over year, the firm noted.

Orchid finished the quarter with $14.4 million in cash and cash equivalents.

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