Chembio Diagnostics sales jump 112% as loss shrinks

Chembio Diagnostics Inc. reported a smaller loss for the April-June period compared with a year earlier on increased sales of its rapid tests for HIV, syphilis and tropical diseases.

The Medford-based manufacturer said its loss totaled $1.7 million for the three months ended June 30 compared with the same quarter in 2017.

Sales climbed to $8.7 million, a gain of 112 percent year over year.

Chembio also announced the installation of robots on one production line in Medford. This “first automated manufacturing line ... [will] reduce cost and increase capacity” to make point-of-care tests, the company said in a statement on Wednesday.

In addition, Chembio recently filed paperwork to gain authorization from the World Health Organization to transfer production of some tests to Malaysia, where it purchased a small manufacturer in 2016 for $3.5 million.

Both moves are partially in response to New York State raising the state minimum wage, starting in late 2016, company executives said in interviews last fall.

On Long Island and in Westchester County, the minimum wage rate rose from $9 to $10 per hour on Dec. 31, 2016, followed by $11 on Dec. 31. The minimum will rise another $1 each year until $15 is reached in December 2021.

Chembio had 165 employees as of Dec. 31, according to a securities filing.

The company is “expanding our commercial and manufacturing capabilities and strengthening our leadership team to further penetrate the global point-of-care diagnostics market,” CEO John J. Sperzel said in a statement.

Last month, Chembio announced that it was among three companies selected by a Swiss not-for-profit to develop a rapid test for hepatitis C virus.

The earnings announcement came after the stock market closed on Wednesday. Chembio shares fell 45 cents, or 4 percent, to close at $11 on Thursday on the Nasdaq.

In after-hours trading, the stock rose $1.30, or 12 percent, to $12.30.

Executives weren't immediately available to comment on the after-hours rise in Chembio shares.