Comprehensive Care Corp. Loses $11.5 Million
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NEWPORT BEACH — Comprehensive Care Corp., capping a year of turmoil, reported Thursday that the health-care management company lost $11.5 million, or $5.11 a share, for the fiscal year ended May 31, compared with a loss of $7.9 million, or $3.57 a share, for the previous year. Revenue declined 15% to $29.3 million from $34.3 million.
Shortly before the end of the fiscal year, the company had to search for a new auditor after Arthur Andersen & Co. resigned, saying the Newport Beach company no longer met the accounting firm’s “client profile.”
The company also faced federal tax liabilities of $52 million, but later reached a $5.7-million settlement with the Internal Revenue Service.
The company, which has been losing money since 1989, “is now positioned to achieve profitability in 1996,” said Chriss W. Street, chairman and chief executive.
In the fourth quarter, the company recorded a net loss of $3.3 million, or $1.39 a share, compared with a year-earlier net loss of $4 million, or $1.84 a share. Revenue was down 18% to $7.4 million from $9 million.
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