Laboratory testing services provider Medtox Scientific (NASDAQ:MTOX) said Thursday that first quarter profits grew by eight times from the prior year period as revenues increased across all operating segments, topping market views.
For the three months ending March 31, the St. Paul, Minnesota-based company, which provides clinical and diagnostic testing services, posted net income of roughly $0.8 million, or $0.09 per diluted share, compared to approximately $0.1 million, or $0.01 per share in the prior year period.
Total revenue rose by 22% to $25.7 million. Analysts were expecting earnings of $0.08 per share on revenue of $24.5 million.
In the core laboratory segment, the company's drugs-of-abuse testing services unit saw revenue increase 10% to $9.6 million, while clinical laboratory sales in the quarter jumped 16% to $8.0 million.
Clinical trial services sales improved by a whopping 204% to $2.5 million. Revenues from the diagnostic unit increased by 20%.
Gross margins were higher in both the laboratory services and diagnostic products segments, with overall gross margin increasing 230 basis points to 40.6%, compared to 38.3% in the first quarter of 2010.
At quarter-end, the company had cash on hand of $1.0 million and no long-term debt.
Medtox shares rose nearly 2% in pre-market trading on Thursday to $15.95.