Earnings Sock Hythiam Stock

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Shares in Santa Monica biotech firm Hythiam Inc. dipped more than 6 percent Friday after the company reported worse-than-expected fourth quarter results, which the company blamed on high salary and benefit costs.


Hythiam reported a loss of $10.8 million (-27 cents per share), weaker than the loss of $8.4 million (-24 cents) for the same period a year earlier. Analysts had projected a 25-cent loss, according to a poll conducted by Thomson Financial. The firm’s revenue surged 70 percent to $1 million, but that failed to meet analysts’ expectations as well.


Hythiam said its salary and benefit costs rose to $5.1 million during the quarter, up from $2.8 million in the prior-year quarter. That offset a reduction in research-and-development costs to $976,000 from $1.5 million. For the year, losses totaled $38.3 million (-96 cents) while revenue rose to $3.9 million.


Hythiam shares were down 46 cents, or 6 percent, to $7.13 in afternoon trading on the Nasdaq.

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