Specialty Laboratories Sees More Disappointing Results

Specialty Laboratories

(SP) - Get Report

missed first-quarter analyst estimates, citing industry consolidation.

The clinical research company posted pro forma net income of 9 cents a share on revenue of $43.6 million, down from 15 cents on revenue of $43.8 in the year-ago period. Wall Street had been expecting the company to earn 16 cents a share on revenue of $46.8 million, according to Thomson Financial/First Call.

In a press release, the company blamed the shortfall on a string of mergers in the industry, saying they resulted in an unprecedented loss of testing business from regional clients. Additionally, there was a slowdown in the launch of new hospital accounts, which helped depress the company's selling prices.

Without providing specific guidance, the company said it expects the disappointing results to continue into 2002, as the company struggles to hire additional licensed personnel to comply with new state of California requirements.

Shares of Specialty Labs closed at $18.00 Wednesday before the earnings release.