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NEW YORK (GenomeWeb News) – Orchid Cellmark today reported flat fourth-quarter revenues as its profit declined on higher costs for performing DNA testing services.
The Princeton, NJ-based firm brought in revenues of $15 million for the three months ended Dec. 31 compared to revenues of $14.9 million in the fourth quarter of 2006.
Thomas Bologna, president and CEO of Orchid, said in a statement that the fourth quarter “proved to be challenging, primarily as a result of a decline in US forensic casework as well as the anticipated decrease in our UK agricultural revenue due to a government policy change to test only male sheep under the UK government National Scrapie Plan."
Orchid posted a profit of $168,000, or $.01 per share, down from net income of $885,000, or $.03 per share, in the comparable period a year ago. The firm said its costs of service revenue climbed to $10.5 million from $9.6 million year over year.
The company’s R&D expenses dropped to $213,000 from $318,000, while its SG&A costs declined to $5.2 million from $5.6 million year over year.
For full-year 2007, Orchid reported revenues of $60.3 million, up 6 percent from revenues of $56.9 million in 2006. Its net loss fell sharply to $3 million, or $.10 per share, from $11.3 million, or $.45 per share, in 2006.
The revenue increase for 2007 was due to increases in US and UK forensic revenues and the impact of its October 2007 acquisition of ReliaGene, but was partially offset by decreases in UK agricultural and government and private paternity revenues in the US, said Orchid.
The firm’s full-year R&D costs declined 16 percent to $1 million from $1.2 million, while SG&A costs fell 17.1 percent to $21.3 million from $25.7 million.
Orchid finished the year with cash and cash equivalents of $20.9 million.
Shares of Orchid tumbled 20 percent in Thursday trade on the Nasdaq to close at $3.11