PharmChem, Inc. is an independent laboratory providing integrated drug testing services to corporate and governmental clients. For the 9 months ended 9/30/02, net sales decreased 20% to $22.9M. Net loss from continuing operations decreased 84% to $1.3M. Revenues reflect a decrease in laboratory analysis sales. Net loss reflects the absence of a $1M restructuring charge and a higher gross profit due to operating efficiencies.