Sales up, net income down at Psychemedics
Photo/Emily Micucci
Psychemedics headquarters building in Acton.
Revenues soared while profits sunk for Psychemedics Corp. of Acton in the second quarter of 2014.
The maker of drug-detection tests on Monday reported quarterly net income of $856,919, down from $1.06 million last year. Earnings per share were 16 cents, down from last year’s performance of 20 cents.
Psychemedics also announced revenue of $7.7 million, up from $6.9 million in the same quarter of 2013.
“Our new business growth continues to be strong and accounted for the entire gain in the quarter, as well as offsetting the continued softness in our business due to the less-than-robust hiring/jobs environment,” Raymond Kubacki, chairman and CEO, said in a statement.
Kubacki said Psychemedics will compete for hair testing business in Brazil, where the nation’s Congress has proposed a bill requiring professional drivers to be drug tested on a more rigorously with technology that’s favorable to hair testing.
However, wrangling over the specifics in the bill has pushed back the start date for the new drug-testing requirements, which had previously been set for July 1.
The market has not reacted significantly to the earnings news, with Psychemedics stock price up 0.9 percent from $14.15 per share Monday morning – before earnings were announced – to $14.28 per share Tuesday morning.
The company also announced its 72nd consecutive quarterly dividend, of 15 cents per share, which will be paid Aug. 18.
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