Navigation Links
Psychemedics Corporation Announces Year End Results Record Annual and Quarterly Revenue

Declares Quarterly Dividend

ACTON, Mass., Feb. 14 /PRNewswire-FirstCall/ -- Psychemedics Corporation (Amex: PMD) today announced fourth quarter and year-end financial results for the period ended December 31, 2007, which included record revenues for both the quarterly and full-year periods. The Company also announced a quarterly dividend of $0.15 per share payable to shareholders of record as of March 7, 2008 to be paid on March 21, 2008. This will be the Company's 46th consecutive quarterly dividend.

The Company's revenue for the year ended December 31, 2007 was $24,568,824, up 5% as compared to $23,425,090 for all of 2006. Net income for the year ended December 31, 2007 was $4,483,687 or $0.85 per share, a decrease of 9% over the comparable period last year during which the Company earned $4,902,201 or $0.94 per share. Revenue for the fourth quarter was $5,891,412, an increase of 2% as compared to $5,797,012 in the fourth quarter of 2006. Net income was $906,817 or $0.17 per share, down 23% from $1,175,963 or $0.22 per share for the same period of 2006.

Raymond C. Kubacki, Chairman and Chief Executive Officer, said, "We are pleased to report that Psychemedics has once again set new records for revenue for both the fourth quarter and full year, despite a very challenging hiring environment. Our revenue increase, however, was below historical trends caused by a decline in our base business (accounts over one year), largely influenced by a major auto-related client who was off 84% from its spike in hiring in 2006. Our new business continues to remain healthy."

Kubacki continued, "While our earnings did not match last year's record results due to increased general and administrative expenses and extra R&D expenses, we continue to show very strong operating margins. Our gross margin remained at 60% for 2007 and 2006, while our pre-tax margin continued to be above 30%, despite higher than anticipated legal and accounting expenses and increased R&D. Our 2007 net income was also unfavorably impacted by a three percentage point increase in our effective tax rate, resulting in lower net income and earnings per share. It is important to note that the fourth quarter is seasonably low and, therefore fluctuations in revenue, expenses and/or tax rates have a disproportionate impact on the results.

"We continue to see significant opportunities for further growth. To capitalize on these prospects, we have already in 2008 added a Director of Marketing who will establish and manage our lead generation initiative, thereby increasing our sales team's productivity. In 2007, we added two regional sales professionals and anticipate further additions in 2008."

Kubacki concluded, "The Company's balance sheet remains strong with approximately $10.0 million of cash and short-term investments, no long-term debt and over $12.8 million of working capital. Our directors share our confidence in the future of Psychemedics and remain committed to rewarding shareholders and sharing the financial success of the Company with them as we grow. Therefore we are pleased to declare our 46th consecutive quarterly dividend."

Psychemedics is the world's largest provider of hair testing for drugs of abuse with thousands of corporations relying on the patented Psychemedics drug testing services. Psychemedics' clients include over 10% of the Fortune 500, some of the largest police departments in America and six Federal Reserve Banks.

Financial Highlights:

-- Record Revenue for 2007, an increase of 5% over 2006 to $24,568,824

-- Record Revenue for the fourth quarter, an increase of 2% over the prior

year quarter to $5,891,412

-- Pretax Income for 2007 of $7,555,687, down 4% from 2006

-- Pretax Income for the fourth quarter of $1,596,017, down 16% from the

prior year quarter

-- Net Income for 2007 of $4,483,687, or $0.85 per diluted share, down 9%

from 2006

-- Net Income for the fourth quarter of $906,817, or $0.17 per diluted

share, down 23% from the prior year quarter

The Psychemedics web site is

Cautionary Statement for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995: From time to time, information provided by Psychemedics may contain forward-looking information that involves risks and uncertainties. In particular, statements contained in this release that are not historical facts (including but not limited to statements concerning earnings, earnings per share, revenues, dividends, future business, new accounts, customer base, market share, test volume and sales and marketing strategies) may be "forward looking" statements. Actual results may differ from those stated in any forward-looking statements. Factors that may cause such differences include but are not limited to risks associated with the expansion of the Company's sales and marketing network, development of markets for new products and services offered, the economic health of principal customers of the Company, government regulation, including but not limited to FDA regulations, competition and general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission.

Contact: Jennifer Chmieleski

Vice President and Controller

(978) 206-8220



Three months ended Twelve months ended

Dec 31 Dec 31 Dec 31 Dec 31

2007 2006 2007 2006 REVENUE $5,891,412 $5,797,012 $24,568,824 $23,425,090 COST OF REVENUE 2,496,674 2,397,481 9,892,226 9,369,257

Gross profit 3,394,738 3,399,531 14,676,598 14,055,833 OPERATING EXPENSES:

General and

administrative 978,962 812,431 3,948,642 3,278,826

Marketing and selling 822,833 682,328 3,099,909 2,769,310

Research and

development 111,526 103,870 489,007 444,532

1,913,321 1,598,629 7,537,558 6,492,668

Income from

operations 1,481,417 1,800,902 7,139,040 7,563,165

Interest income 114,600 94,061 416,647 294,036


FOR INCOME TAXES 1,596,017 1,894,963 7,555,687 7,857,201


TAXES 689,200 719,000 3,072,000 2,955,000

NET INCOME $906,817 $1,175,963 $4,483,687 $4,902,201


PER SHARE $0.17 $0.23 $0.86 $0.95


PER SHARE $0.17 $0.22 $0.85 $0.94


PER SHARE $0.15 $0.125 $0.60 $ 0.475



BASIC 5,220,326 5,172,247 5,205,032 5,170,258



DILUTED 5,303,474 5,248,503 5,301,620 5,240,155



December 31,

2007 2006



Cash and cash equivalents $6,096,734 $4,180,235

Short-term investments 3,875,000 3,683,192

Accounts receivable, net of allowance

for doubtful accounts of $235,337 in

2007 and $333,281 in 2006 3,555,342 3,196,384

Prepaid expenses and other current assets 498,919 506,161

Deferred tax assets 429,472 412,486

Total current assets 14,455,467 11,978,458


Computer software 1,205,840 1,205,840

Office furniture and equipment 2,146,269 2,021,991

Laboratory equipment 6,545,889 6,254,228

Leasehold improvements 894,659 894,659

10,792,657 10,376,718

Less - Accumulated depreciation and

amortization (9,977,315) (9,630,190)

815,342 746,528

DEFERRED TAX ASSETS 231,346 183,555

OTHER ASSETS 58,613 39,830

$15,560,768 $12,948,371



Accounts payable $488,640 $499,420

Accrued expenses 951,242 553,043

Deferred revenue 242,955 392,403

Total current liabilities 1,682,837 1,444,866


Preferred stock, $0.005 par value; 872,521

shares authorized and none outstanding - -

Common stock, $0.005 par value; 50,000,000

shares authorized, 5,811,982 shares issued

in 2007 and 5,756,044 shares issued in 2006 29,060 28,780

Paid-in capital 26,539,764 25,609,800

Accumulated deficit (3,527,269) (5,012,384)

Less - Treasury stock, at cost; 586,197

shares in 2007 and 583,797 shares in 2006 (9,163,624) (9,122,691)

Total shareholders' equity 13,877,931 11,503,505

$15,560,768 $12,948,371

SOURCE Psychemedics Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Psychemedics Corporation Joins Accenture in Co-Sponsoring Innovative Chief Talent Officer Book
2. Jennifer Chmieleski Joins Psychemedics Corporation as Top Financial Officer
3. The ScottCare Corporation Completes Acquisition of Rozinn Electronics, a Leading Manufacturer of Cardiac Diagnostic Products
4. Brooke Franchise Corporation Announces Selected July Results
5. MedThink Communications Retained by NanoBio Corporation
6. EaglePicher Corporation Completes Transaction to Sell EaglePicher Boron, LLC to Ceradyne, Inc. for $69 Million
7. Dana Corporation, Inc. Enters Into Settlement Agreement With Dana Retiree Committee
8. Memry Corporation Announces Fiscal Fourth Quarter and 2007 Year End Earnings Release and Conference Call
9. Somanetics Corporation to Release Third Quarter 2007 Financial Results and Host Conference Call September 19
10. LifeQuest World Corporation Proud Contributor to Dietary Supplement Education Alliance (DSEA)
11. DTI Medical Corporation Announces Reverse Split and Other Corporate Developments
Post Your Comments:
(Date:11/25/2015)... Nairobi (PRWEB) , ... November 26, 2015 , ... ... African Union Commission (AUC), European Union (EU), ANDI Pan African Centres of Excellence, ... Nations Office in Nairobi (UNON) for the opening of the 5th African Network ...
(Date:11/25/2015)... ... November 25, 2015 , ... Lakeview Health, a Jacksonville-based ... celebrate their sobriety and show through pictures what a positive difference it makes. ... Thanksgiving with the hashtag #FacesOfGratitude on their Facebook, Twitter, and Instagram accounts. ...
(Date:11/25/2015)... Crystal Lake, IL (PRWEB) , ... November 25, 2015 , ... ... pleased to announce a recent successful appellate decision obtained by Attorneys Francisco J. Botto ... the case Adcock v. Illinois Workers’ Compensation Comm’n, 2015 IL App (2d) 130884WC. , ...
(Date:11/25/2015)... ... , ... Beddit® has launched a new Android app for use ... a more intuitive SleepScore™ that rates sleep quality on a 100-point scale and makes ... by a proprietary algorithm. Beddit analyzes the data to provide an easy to understand ...
(Date:11/25/2015)... ... November 25, 2015 , ... Today, Mothers Against Drunk Driving ... dropped below 10,000 for the first time since 2011. In 2014, there were 9,967 ... data released by the National Highway Traffic Safety Administration (NHTSA), 32,675 people were killed ...
Breaking Medicine News(10 mins):
(Date:11/25/2015)... , Nov. 25, 2015  Linden Care, LLC, ... optimizing treatment outcomes for patients suffering from chronic pain, ... for a Temporary Restraining Order (TRO) enjoining Express Scripts ... two companies. --> --> ... all of its legal options. --> ...
(Date:11/25/2015)... AVIV, Israel , November 25, 2015 ... (NASDAQ: KTOV ) (TASE: KTOV), a biopharmaceutical company ... simultaneous treatment of various clinical conditions, today announced the ... 3,158,900 American Depository Shares ( ADSs ), each representing ... purchase up to 3,158,900 ADSs. The ADSs and warrants ...
(Date:11/25/2015)... DUBLIN , Nov. 25, 2015 Endo International ... Rajiv De Silva , President and CEO, will discuss ... Healthcare Conference in New York on ... . Click on Investor Relations, and then the ... prior to the presentation,s start time to visit the site ...
Breaking Medicine Technology: