Psychemedics' profit falls 50% in Q3
Courtesy/Psychmedics
Psychmedics's Acton offices.
Acton drug testing firm Psychemedics’ third-quarter net profit fell by 50 percent compared to last year’s Q3, the company announced Wednesday.
Net income for the quarter was $1.4 million and $0.25 per diluted share, a sharp decrease from the $2.7 million and $0.49 per share reported in last year’s third quarter.
Revenue also declined from $11.8 million to just $10 million over the same time period, the company announced.
For the year-to-date, although revenue was up by 6 percent compared to this point last year, net income is down by 13 percent, from $4.3 million to $3.8 million, the company said.
In a statement, Chairman and CEO Raymond Kubacki called the results disappointing, but said the company is poised for success going forward.
The company, Kubacki said, was hurt by a drop-off in its oil and gas sector, partially due to Hurricane Harvey.
“This sector had been up nicely in the first half, and we expect this business to recover in the near term,” he said.
He pointed to the company’s growing Brazilian customer base, largely due to a government mandate requiring professional drivers to get tested for drugs by hair every 2.5 years instead of every five.
Kubacki said the program’s success in reducing highway accidents and fatalities will lead to more opportunities for the company to expands its customer base in the country.
Despite the third-quarter struggles, the company has been progressing on several key fronts, including offering hair drug testing in Iowa, a synthetic cannabinoid hair test and a U.S. Food and Drug Administration-cleared hair test for commonly-abused prescription drugs like Xanax, Valium and Ativan.
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