NEW YORK (GenomeWeb News) – Orchid Cellmark today reported fourth-quarter revenue growth of 21 percent, driven by its forensic testing services in the UK and US.
The Princeton, NJ-based firm had total revenues of $15.7 million for the three-month period ended Dec. 31, compared to $13 million for the fourth quarter of 2008. Its service revenues rose to $14.9 million from $13 million year over year, led by forensic testing in the UK and US, the firm said.
Orchid Cellmark's net income for the quarter was $858,000, or $.03 per share, compared to $473,000, or $.02 per share, for the fourth quarter of 2008.
Its R&D expenses increased to $255,000 from $192,000, while its SG&A spending was flat at $4.6 million.
"Fourth quarter results demonstrate continued strong growth in our core forensics business with a 36 percent increase in forensic revenues in the UK and a 25 percent increase in forensic revenues in the US," Thomas Bologna, president and CEO of Orchid Cellmark, said in a statement. "This growth, together with the licensing revenues we received in the Illumina transaction, produced a profitable fourth quarter."
In October, Orchid licensed to Illumina its single base nucleotide extension technology for an $850,000 license fee, a potential $150,000 in milestone payments, and royalties from Illumina through any subcontracting agreements.
For full-year 2009, Orchid Cellmark had revenues of $59.1 million, up from $57.6 million for full-year 2008.
The firm posted a net loss for the year of $1.5 million, or $.05 per share, compared to a net loss of $4.5 million, or $.15 per share, for full-year 2008.
Its R&D expenses for 2008 were $834,000 versus $846,000 for the prior year, while its SG&A spending dropped to $19.4 million from $21.9 million. In both years, orchid recognized a charge of $1.9 million for amortization of intangible assets.
Orchid recently said that it would consolidate some its operations into fewer facilities in a bid to cut costs.
"The consolidation of our Nashville forensic operations into Dallas and the consolidation of our East Lansing paternity operations into our Dayton facility will lead to additional operational efficiencies and increased scalability," Bologna said. "We expect to realize approximately $2.4 million in aggregate annual cost savings from these consolidations which are expected to be completed by Aug. 31, 2010."
Orchid Cellmark finished the year with cash, cash equivalents, and short-term investments of $18.1 million.