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UK Business Drives up Orchid Cellmark's Q3 Revenues 18 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Orchid Cellmark today reported an 18 percent jump in revenues year over year for the third quarter, led by a boost in its UK business.

For the three months ended Sept. 30, the Princeton N.J.-based DNA testing service firm said revenues totaled $17.3 million, compared to $14.7 million a year ago. In the UK, total revenues increased 44 percent year over year, primarily as a result of a rise in its forensic business there.

The rise in the UK business offset a 13 percent decrease in Orchid's US business. The decline was due to weaker forensics results, though CODIS and government paternity business increased, the company said.

In a statement, Thomas Bologna, president and CEO of the firm, said that in the US Orchid continues "to mitigate anticipated near-term challenges through careful planning and solid execution. The consolidation of our US testing facilities and increased CODIS and government paternity business has already favorably impacted our US results."

Service revenues for the quarter made up almost the entirety of Orchid's business in the quarter. Other businesses contributed $13,000 in the third quarter, compared to $14,000 a year ago.

Orhcid's net loss for the quarter came in at $665,000, or $0.02 per share, a 6 percent increase from $625,000 a year ago, $0.02 per share.

Its R&D costs were $344,000, compared to a year-ago figure of $228,000, and SG&A costs rose to $5 million from $4.6 million in the third quarter of 2009.

As of Sept. 30, Orchid Cellmark said it had $4.5 million in cash and cash equivalents. The firm also listed available-for-sale securities of roughly $14 million.

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