Psychemedics Corp. of Acton reported a 9.5-percent gain in revenue for the first quarter, as the maker of highly sensitive drug tests prepares to move into the Brazilian market later this year.
The company reported revenue of $7 million during the quarter that ended March 31, up from $6.4 million in the first quarter of 2013. Psychemedics also reported net income of $756,000, or 14 cents per share, down from $822,000 (16 cents per share) in the first quarter of last year.
The company also announced it will pay a dividend of 15 cents per share to stockholders of record as of May 9. It’s the 71st consecutive quarter in which Psychemedics will pay a dividend.
Raymond C. Kubacki, Psychemedics’ CEO, said the company’s new business growth accounted for the entire quarterly gain. He said Psychemics is preparing to begin testing in Brazil in July after its government announced new regulations requiring professional drivers in the transportation industry to undergo hair drug testing.
Kubacki, in a statement, called that an “exciting opportunity” that has required the company to spend $6 million on equipment. That will hurt the company’s cash flow in the short term, he said, until the testing begins.
