Comprehensive Care Losses Shaved, but Future in Doubt

Comprehensive Care Corp. narrowed its losses in the fiscal year ended May 31 on higher revenue.

The company, which provides health-care management services, reported a loss of $4.2 million, or $1.60 a share, which included a $2.5-million tax benefit related to the carry-back of fiscal 1995 losses. For the previous fiscal year, Comprehensive Care posted a net loss of $11.5 million, or $5.11 a share. Revenue advanced 11% to $32.5 million from $29.3 million.

For the fourth quarter, the company posted a loss of $2.5 million, or 94 cents a share, compared to a loss of $3.3 million, or $1.39 a share, for the same quarter last year. Revenue increased 15% to $8.5 million from $7.4 million.

The company said its independent auditor, Ernst & Young LLP, again cited uncertainties about Comprehensive Care’s ability to continue as a going concern, including the company’s financial position, history of losses and default on the company’s 7 1/2% convertible subordinated debentures. The company said it is seeking to remedy the default on the $9.5 million in bonds through an exchange offer pending with the Securities and Exchange Commission.