ST. PAUL, Minn.--(BUSINESS WIRE)--April 12, 2006--MEDTOX Scientific, Inc. (Nasdaq: MTOX ) today announced results for the first quarter ended March 31, 2006:
• Revenues increased $1.7 million to $16.4 million, or 11.3% • Consolidated gross margin increased to 43.7% from 40.6% • Gross profit increased $1.2 million to $7.1 million, or 19.9% • Operating income increased to $1.6 million from the prior-year $1.0 million, or 53.2% • Net income increased to $754,000 from the prior-year $421,000, or 79.1%
For the three-month period, revenues were $16,350,000, compared to $14,689,000 from the prior-year period. The Company recorded operating income of $1,550,000 for the three-month period, compared to $1,012,000 for the prior-year period. The Company recorded net income of $754,000, or $0.09 per diluted share for the three-month period, compared to $421,000, or $0.05 per diluted share for the prior-year period. Results for the first quarter of 2006 include share-based employee compensation expense of approximately $30,000 related to the adoption of Statement of Financial Accounting Standards No. 123® on January 1, 2006.
During the quarter, the Company's new SURE-SCREEN® lower detection drugs-of-abuse device represented 4% of total device sales and 23% of sales to the government market. Approximately 80% of the SURE-SCREEN® sales were to new customers.
In the quarter, eChain® was installed in 264 clinics and collection sites. In the second quarter, the Company will begin contacting its Preferred Provider Network of clinics and collection sites regarding implementation of eChain® with the objective of having the system installed in more than 1,000 locations in 2006.
MEDTOX will hold a teleconference to discuss first quarter 2006 results today at 9:30 a.m. Central Time (10:30 a.m. Eastern). The Company will discuss these results and other corporate matters. During the conference call the Company may discuss and answer questions concerning business and financial developments and trends. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed. Dialing (877) 421-3959 a few minutes prior to the scheduled start time on April 12 will access a listen-only broadcast of the teleconference. International callers may access the call by dialing 706-634-5527. Callers should ask for the MEDTOX quarterly conference call, hosted by Dick Braun, president and CEO of MEDTOX. A simultaneous webcast of the conference call will be available on the MEDTOX website in the "investors" section under "webcasts" at www.medtox.com. An audio replay of the conference call will be available through April 19 at 800-642-1687 conference ID # 7256782. International callers may access the replay at 706-645-9291 with the same conference ID # 7256782.
MEDTOX Scientific, Inc., headquartered in St. Paul, Minn., is a provider of high quality specialized laboratory testing services and on-site/point-of-collection testing (POCT) devices. The company also supports customers with complete logistics, data and program management services. MEDTOX is a leader in providing esoteric laboratory testing services to hospitals and laboratories nationwide. This includes both central laboratory and bio-analytical testing for pharmaceutical clinical trials. MEDTOX develops and manufactures diagnostic devices for quick and economical on-site/point-of-collection analysis for drugs-of-abuse, therapeutic drugs and biological and agricultural toxins and provides employment drug screening and occupational health testing. For more information see www.medtox.com. <<
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