(Source: PrimeNewswire)

ST. PAUL, Minn., April 15, 2009 (GLOBE NEWSWIRE) -- MEDTOX Scientific, Inc. (Nasdaq:MTOX) today announced results for the first quarter ended March 31, 2009. MEDTOX achieved a significant increase in new laboratory business for the quarter ended March 31, 2009.
For the three-month period, revenues were $20.7 million, even with the prior-year period. The Company recorded operating income of $0.9 million for the three-month period, compared to $2.7 million for the prior-year period. The Company recorded net income of $0.4 million for the three-month period, compared to $1.6 million for the prior-year period. Earnings per diluted share were $0.05, compared to $0.18 in the first quarter of 2008.
In our Laboratory Segment, revenues from drugs-of-abuse testing decreased a net 14%, to $8.4 million from $9.8 million in the prior-year period. The decrease is a result of lower testing volumes from our workplace clients due to economic conditions. Revenues from existing clients were $7.0 million, down 28% for the quarter compared to the prior-year period. The decrease in revenue was mitigated by very strong new business from laboratory drugs-of-abuse clients of $1.4 million, or a 14% increase from the prior-year period for a total of $8.4 million. New account activity in our drug laboratory both confirms and validates our strategy of gaining market share and preserving our existing clients during this recessionary period.
Our clinical laboratory expansion initiated in 2008 continues to gain momentum with record revenues of $7.7 million, compared to $5.7 million for the prior-year period. This is a quarterly increase of 36%. Within the clinical laboratory, Clinical Trial Services (CTS) revenues increased to a record $2.3 million for the quarter, compared to $1.3 million for the prior-year period; and the rest of the clinical laboratory increased to $5.4 million from $4.4 million in the prior-year period. New account activity in the clinical laboratory for the quarter was encouraging and continues to strengthen our long term view of clinical laboratory diversification efforts.
In the Diagnostic Segment, revenues were down 13% for the quarter. The reduction in revenues is primarily due to lower testing volumes from our workplace drugs-of-abuse clients.
There will be a continuing negative impact on our drugs-of-abuse testing revenues caused by economic conditions affecting hiring in 2009. This should be mitigated by our expectation of strong on-going new business activity in this market segment in 2009. Gains in drugs-of-abuse testing market share in 2007, 2008 and anticipated in 2009, will have a positive impact on our performance when economic conditions improve and hiring rebounds, since our client attrition rate continues to be minimal.
MEDTOX will hold a teleconference to discuss 2009 first quarter 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. To access the teleconference, dial (877) 795-3638 ten minutes before the scheduled start time today. International callers may access the call by dialing (719) 325-4800.