Psychemedics' net income plummets in Q2
Citing spotty hiring and a delay in a Brazilian drug-testing law, Pschemedics Corp. of Acton said net income for the second quarter declined 71 percent, to $252,000, or 5 cents a share. It was $857,000, or 16 cents per share, in the year-earlier quarter.
The employment drug-testing company also said Tuesday that second-quarter revenue fell 9 percent, to $7.0 million. Revenue was $7.7 million in the second quarter of 2014.
Even so, Psychemedics declared quarterly dividends of 15 cents a share. It is its 76th consecutive quarterly dividend payment.
Raymond C. Kubacki, Chairman and Chief Executive Officer, said results are the reflection of a “very spotty hiring environment,” as well as administrative delays in Brazil over the implementation of a law requiring drivers in the transportation industry to have hair samples tested for drugs when obtaining or renewing their driver's license. That law was to have been enacted June 1.
“We view both these headwinds are more near-term,” Kubacki said in the statement.
He said the company’s balance sheet is strong, with $2.1 million in cash as of the end of the quarter on June 30.
Kubacki also noted that the company added two new drugs to its drug-testing panels. “In response to growing abuse concerns, the addition of Oxymorphone (brand name Opana) was made to the synthetic opiate testing panel and D-Amphetamine/Adderall was added as an option to the amphetamine panel.”
WBJ Web Partners
Most Recent
Most Recent
0 Comments