JACKSONVILLE, Fla. (AP) -- Shares of medical supplies distributor PSS World Medical Inc. slumped Thursday after the company reported a 25 percent drop in net income for the first quarter of its fiscal year.
A 12 percent increase in general and selling expenses hurt results. About $3 million in new expenses came from two company acquisitions, InfoLabs and Physician Partners, which the company completed during the period.
The company reported net income of $10.7 million, or 21 cents per share, in the quarter ended in June, down from $14.2 million, or 25 cents per share, in the same period a year ago. Revenue rose 8 percent to $409.4 million, driven by a 15 percent boost in the company's dispensing business, which provides pre-packaged medications for use by doctors' offices and clinics. PSS acquired the business in early 2011.
Analysts polled by FactSet expected sales of 21 cents per share on revenue of $415.8 million.
PSS World Medical sells medical instruments and supplies through business units that serve four markets: Physicians, laboratories, dispensing home care and hospices. The company is in the process of divesting its specialty dental and skilled nursing businesses.
Shares of PSS World Medical lost $1.29, or 6 percent, to close at $20.32.