Psychemedics revenue grows despite lower sales
COURTESY
New business helped drug-testing company Psychemedics of Acton partially shake off sluggish business due to a lackluster hiring and job environment reducing the number of companies needing drug testing, as it posted a modest gain for the second quarter.
For the quarter ending Sept. 30, the company reported revenue of $7.7 million, an increase of 9 percent from the $7.1 million reported for the same quarter in 2013.
Net income, though, was down 13 percent from the $1.1 million reported in 2013, coming in at $917,000, it said.
Psychemedics also said it completed an expansion and purchases of new equipment, which required $7 million in financing, as it anticipates mandatory drug testing in Brazil to take effect in 2015, although it’s still being debated by that country’s lawmakers.
"We remain excited about this opportunity in Brazil. We estimate that the impact on third-quarter earnings from the increase in capacity and other costs related to the Brazil opportunity was about 7 cents per share,” Chairman and CEO Raymond C. Kubacki said in a statement. Kubacki said that hit was partially offset by a reduction in taxes due to a California research and development tax credit of $134,000, which added back two cents per share.
The company also announced its 73rd consecutive quarterly dividend of 15 cents per share, which will be payable to shareholders of record as of Nov. 10 and will be disbursed 10 days later
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