Sharp profit drop for drug-testing firm Psychemedics
Courtesy/Psychmedics
Psychmedics's Acton offices.
Psychemedics, an Acton drug-testing company, had flat revenue growth in the second quarter and saw profits fall by nearly half.
The company also paid what it says is its 84th straight quarterly dividend.
Psychemedics, which uses hair to test for drugs, had a drop of 44 percent in its quarterly profit, it announced Thursday, from $1.6 million to $907,000.
Revenue declined very slightly, from $9.70 million to $9.68 million. For the first six months of the year, revenue remains up 22 percent from last year at $19.9 million.
The company continues to see significant growth in Brazil, where professional drivers are required by law to pass a drug test using hair samples in order to get and renew their driver's license. Brazil will also expand the law so that by September 2018, professional drivers will have to renew their driver's license every two and a half years instead of every five, according to Psychemedics. The Brazilian government is even considering requiring drug tests using hair samples for other types of driver's licenses, the company said.
Psychemedics says it has a large market share in Brazil and has created a subsidiary for its operations in the country.
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