CompCare’s Net Income Rises for Second Quarter

Comprehensive Care Corp., of Irvine, reported a modest increase in net income for both the fiscal second quarter and first six months ended November 30.

Net earnings for the quarter totaled $4.7 million, up 9% from $4.3 million. Revenues for the quarter increased 25% to $46.7 million from $37.2 million.

For the fiscal first half, net earnings increased 12% to $9.4 million from $8.4 million and revenues of $90.9 million were up 28% from $71 million.

Although the company’s overall profits increased, price competition caused second-quarter, pre-tax profit margins to decline slightly, to 20% of revenues from 24% of revenues, said Jim Nichol, CompCare’s vice chairman.

CompCare’s stock shot up sharply last month because of rumors that the company was about to be acquired by New York-based Avon Products Inc. In heavy trading, CompCare common shares gained 26% to close at $22.13 a share on Dec. 20 from $17.50 six days earlier. On Monday, CompCare stock closed at $21.375 a share, down 75 cents. Both companies have declined to comment publicly on a potential merger but several industry analysts have said that Avon officials deny any plans to acquire CompCare.