NEW YORK, June 22 (GenomeWeb News) - Orchid Cellmark said today that its first-quarter revenues dropped 14 percent as net losses ballooned to $6.6 million from $1.7 million in the year-ago period.
The company's earnings reports for the quarter ended March 31 and the full year 2005 were delayed, resulting in two delisting notices from Nasdaq. Orchid Cellmark said today that it will continue to be listed on the Nasdaq exchange despite that delay.
"Our first quarter results were, to say the least, extremely disappointing," said Thomas Bologna, Orchid president and CEO, in a statement. "The company's poor results reflect operational weaknesses in the company that we are now addressing aggressively. Restructuring, including senior management changes at the company's Princeton office, and other remedial actions are underway. However, we expect operating challenges will continue for the remainder of 2006," he said.
Orchid's revenues declined to $12.6 million in the first quarter of 2006, from $14.7 million during the first quarter of 2005. the company attributed the decline to a reduction in price and volume of US forensic cases billed, a drop in the price of US government paternity testing services, and lower demand for its UK crime and agricultural testing services.
Service revenue was adversely affected by currency translation from Britain to the United States, the company said.
Orchid reported a net loss for the first quarter of 2006 of $6.6 million, or $0.27 per share, compared to $1.7 million, or $0.07 per share, for the first quarter of 2005.
Orchid spent $397,000 on R&D in the first quarter of 2006, compared to $278,000 in the first quarter of 2005.
The company had cash and equivalents of $19.8 million as of March 31.
The Nasdaq Listing Qualifications Panel granted Orchid's request to remain listed on the exchange despite having missed the filing deadline for its 2005 full-year earnings report, as well as failing to file its earnings report for the quarter ended March 31 on time.