SysteMed Expects Profits to Fall 31% in 3rd Quarter

SysteMed Inc. here said Wednesday that it expects its third-quarter earnings to fall as much as 31% because of the company’s relocation of its mail-service pharmacy subsidiary to larger facilities.

Company officials said that profits for the three-month period ending Sept. 30 are expected to be between $250,000 and $300,000, or about 1 cent per share, compared to $364,000, or 3 cents per share, in the same period a year earlier. Revenue is expected to be about $30 million, up 38% from $21.8 million in the same period a year earlier. Final figures are expected to be announced next week.

America’s Pharmacy Inc., SysteMed’s mail service unit, has relocated to a 56,000-square-foot facility in Des Moines, Iowa. Its previous facility, also in Des Moines, was about half the size.

Because of the fall in earnings, analysts are expected to revise the company’s year-end per-share estimate from 12 cents to 10 cents, company officials said.

Shares of SysteMed closed at $4.25 Wednesday, up 50 cents, in trading on the NASDAQ exchange.