Shares of Hi-Tech Pharmacal Co. Inc. skidded Tuesday after the generic and branded drugmaker reported a loss of $4.6 million in its fourth quarter as revenue fell and it set aside more than $15 million for a possible investigation settlement.
The Amityville, N. Y., company said its loss amounted to 34 cents per share in the quarter that ended April 30. That compares to $9.9 million, or 73 cents per share, a year ago.
Revenue dropped 5 percent to $58.5 million from $61.3 million a year earlier.
Adjusted earnings totaled 50 cents per share, not counting one-time items, for the most recent quarter.
Analysts expected, on average, earnings of 66 cents per share on $67 million in revenue, according to FactSet.
Hi-Tech said it set aside $15.5 million in the fourth quarter to cover a potential settlement tied to an investigation by the Texas Health and Human Services Commission into the submission of price information.
The company also said its generic pharmaceutical sales fell 7 percent in the quarter to $48.9 million due in part to a drop in selling price for fluticasone propionate nasal spray. Revenue from the company's branded, over-the-counter products fell 7 percent to $4.9 million.
For the full year, Hi-Tech earned $16.3 million, or $1.19 per share, down from $48.35 million, or $3.59 per share, a year earlier. Revenue rose to $232.4 million from $230 million a year ago.
Its shares fell 7.3 percent, or $2.45, to $31.08 in premarket trading Tuesday. That put the stock down about 9 percent so far this year.