SUNNYVALE, Calif. -- ChemTrak Inc. said last week that it hastemporarily suspended shipments of its self-containedAccuMeter Total Cholesterol test after discovering amanufacturing problem that effected certain lots of theproduct.
Production resumed after the problem was identified andadditional quality-control procedures were instituted toprevent a recurrence of the problem, ChemTrak said. Productin inventory was checked.
ChemTrak (NASDAQ:CMTR) said that as a result of thesuspension of shipments, it expects to report a larger second-quarter loss than the approximately $1.8 million forecasted byinvestment analysts. The company in 1991 posted a $996,000loss for the comparable quarter ending June 30, said TerryDuryea, the company's vice president of finance.
Company management does not believe that the problem willhave a long-term impact on the company's performance. Thesuspension is considered more likely to shift product sales intofuture quarters and cause no significant overall decline in sales,Duryea said.
ChemTrak said no user was adversely affected by the problem,which was traced to a faulty component, which in turn causedcontamination of certain chemical parts.
Overseas marketing of the AccuMeter Cholesterol test wasstarted early this year by ChemTrak's Italian partner, A.Menarini SRL. The do-it-yourself test, which provides aquantitative measurement of cholesterol in the blood, has beenavailable in the United States through physicians since May1991. Over-the-counter sales in the United States are awaitingFDA approval.
ChemTrak discovered the recent problem through replies to asurvey of new customers, Duryea said.
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