By Stephen Nakrosis
Psychemedics’ net loss widened in the second quarter amid a labor shortage and a lawsuit settlement.
The provider of hair testing for drug abuse said Friday its loss was $726,000, or 13 cents a share, compared with $338,000, or 6 cents a share, in the year-ago period.
Revenue fell to $5.54 million from $6.5 million.
Psychemedics said a labor shortage continued to have an impact on their clients in the use of hair testing in hiring, adding this offset growth in add-on tests for fentanyl and benzodiazepines and price increases in the fourth quarter of last year.
The company also paid $500,000 as part of a settlement with a consultant related to a contract dispute. Without admitting wrongdoing, Psychemedics agreed to the sum in exchange for the dismissal of the lawsuit. The sum is payable over the next 18 months.
Psychemedics said it had about $2.4 million of cash and cash equivalents as of June 30.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
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