Orchid Cellmark Inc. (ORCH, Financial) filed Quarterly Report for the period ended 2009-09-30.
Orchid Cellmark provides identity DNA testing services for the human identity and agriculture markets. In the human identity area the company provides DNA testing services for forensic family relationship and security applications. In the agriculture field Orchid Cellmark provides DNA testing services for food safety and selective trait breeding. Orchid Cellmark's strong market positions in these segments reflect the company's accredited laboratories in the U.S. and U.K. and its innovative genetic analysis technologies and expertise. Orchid Cellmark Inc. has a market cap of $45.8 million; its shares were traded at around $1.53 with and P/S ratio of 0.8.
Revenues from our UK-based testing services of $8.0 million for the three months ended September 30, 2009 increased by $793 thousand, or approximately 11%, as compared to $7.2 million for the comparable period in 2008. For the three months ended September 30, 2009, as compared to the comparable period in 2008, our UK revenues were unfavorably impacted by approximately 13% as a result of the exchange rate movement of the British pound as compared to the US dollar. Despite the adverse effect of exchange rate movements, our UK-based revenue increase was driven by an increase in forensics revenues, as work awarded under the North West/South West and Wales s regional tender and pilot work has replaced and surpassed revenues previously generated under our expired arrangements with LGC.
Our US service revenues for the nine months ended September 30, 2009 of $21.6 million decreased by $2.5 million, or approximately 10%, as compared to $24.1 million for the comparable period in 2008, primarily due to a significant decrease in CODIS business and individual state database testing services from the nine months ended September 30, 2008, as well as decreased revenues from paternity testing services. This decrease was partly offset by increases in revenues from our forensic casework testing services due to increased volume.
Other expense for the nine months ended September 30, 2009 was $15 thousand, primarily due to exchange rate gains and losses on foreign currency transactions, partially offset by finance charges received on outstanding receivables. Other income for the nine months ended September 30, 2008 was $553 thousand. Other income for the nine months ended September 30, 2008 included a gain of $185 thousand related to a change in estimate of a fair value of a lease guarantee and a loss of $386 thousand related to a liability for royalty payments.
During the nine months ended September 30, 2009, we recorded income tax expense of $479 thousand primarily related to our UK business. During the nine months ended September 30, 2008, we recorded an income tax benefit of $117 thousand, primarily as a result a write down in our unrecognized income tax benefits and corresponding recognition of an income tax benefit of $175 thousand. No tax benefit was recorded relating to our US business losses as management deemed that it was not likely that such tax benefit would be realized.
As of September 30, 2009, we had $17.0 million in cash and cash equivalents, as compared to $15.0 million as of December 31, 2008. Working capital increased to $23.5 million at September 30, 2009 from $21.5 million at December 31, 2008.
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Orchid Cellmark provides identity DNA testing services for the human identity and agriculture markets. In the human identity area the company provides DNA testing services for forensic family relationship and security applications. In the agriculture field Orchid Cellmark provides DNA testing services for food safety and selective trait breeding. Orchid Cellmark's strong market positions in these segments reflect the company's accredited laboratories in the U.S. and U.K. and its innovative genetic analysis technologies and expertise. Orchid Cellmark Inc. has a market cap of $45.8 million; its shares were traded at around $1.53 with and P/S ratio of 0.8.
Highlight of Business Operations:
Our US service revenues for the three months ended September 30, 2009 of $6.7 million decreased by approximately $1.0 million, or approximately 13%, as compared to $7.6 million for the comparable period in 2008, primarily due to a significant decrease in CODIS business and individual state database testing services, from the third quarter of 2008, as well as decreased revenues from paternity testing services. This decrease was partly offset by increases in revenues from our forensic casework testing services due to increased volume.Revenues from our UK-based testing services of $8.0 million for the three months ended September 30, 2009 increased by $793 thousand, or approximately 11%, as compared to $7.2 million for the comparable period in 2008. For the three months ended September 30, 2009, as compared to the comparable period in 2008, our UK revenues were unfavorably impacted by approximately 13% as a result of the exchange rate movement of the British pound as compared to the US dollar. Despite the adverse effect of exchange rate movements, our UK-based revenue increase was driven by an increase in forensics revenues, as work awarded under the North West/South West and Wales s regional tender and pilot work has replaced and surpassed revenues previously generated under our expired arrangements with LGC.
Our US service revenues for the nine months ended September 30, 2009 of $21.6 million decreased by $2.5 million, or approximately 10%, as compared to $24.1 million for the comparable period in 2008, primarily due to a significant decrease in CODIS business and individual state database testing services from the nine months ended September 30, 2008, as well as decreased revenues from paternity testing services. This decrease was partly offset by increases in revenues from our forensic casework testing services due to increased volume.
Other expense for the nine months ended September 30, 2009 was $15 thousand, primarily due to exchange rate gains and losses on foreign currency transactions, partially offset by finance charges received on outstanding receivables. Other income for the nine months ended September 30, 2008 was $553 thousand. Other income for the nine months ended September 30, 2008 included a gain of $185 thousand related to a change in estimate of a fair value of a lease guarantee and a loss of $386 thousand related to a liability for royalty payments.
During the nine months ended September 30, 2009, we recorded income tax expense of $479 thousand primarily related to our UK business. During the nine months ended September 30, 2008, we recorded an income tax benefit of $117 thousand, primarily as a result a write down in our unrecognized income tax benefits and corresponding recognition of an income tax benefit of $175 thousand. No tax benefit was recorded relating to our US business losses as management deemed that it was not likely that such tax benefit would be realized.
As of September 30, 2009, we had $17.0 million in cash and cash equivalents, as compared to $15.0 million as of December 31, 2008. Working capital increased to $23.5 million at September 30, 2009 from $21.5 million at December 31, 2008.
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