Amityville-based Hi-Tech Pharmacal Co., a maker of generic and branded gel and liquid-form drugs, saw its profits rise about 7 percent, while its sales rose 11 percent in its fiscal quarter ended Jan. 31.
Its quarterly report showed net income of $10.8 million on sales of $55.6 million compared to income of $10.1 million on sales of $49.7 million in the same quarter last year.
Diluted net earnings per common share remained unchanged at 79 cents in the year-to-year quarterly comparison. That met with market disapproval because it failed to reach analysts' expectations of 83 cents per share, Reuters reports.
Hi-Tech Pharmacal shares continued a two-day decline Friday after the report was made public. Shares on Thursday fell from $41.25 to close at $39.63, then fell another 57 cents by midday Friday. Share prices have ranged from $19.10-$44.50 in the past 52 weeks.
The company attributed the results to increases in several areas of spending -- the cost of goods sold, research and development, and expenses for sales and administration.
The cost of goods sold increased to $24.8 million, or 45 percent of net sales, compared to $21 million, or 42 percent of net sales, for the prior-year quarter.
Research and product development costs increased 13 percent to $3 million compared to $2.6 million for the prior-year quarter.
Selling, general and administrative expense increased to $13.2 million from $10.7 million, compared to the prior year quarter. Part of that expense came as the company added 30 contract sales representatives to expand the sales force for its ECR Pharmaceuticals subsidiary to new areas of the country.
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