Apollo Medical Holdings Inc. reported increasing losses Friday as it invests in a new business unit focused on Medicare patients.
The Glendale medical practice management firm reported a net loss of $525,000 (-2 cents a share) in the fiscal fourth quarter ended Jan. 31, compared to a loss of $269,000 (-1 cent) a year earlier. Revenue increased 64 percent to $2.53 million.
No analysts follow the company.
For the fiscal year, the company reported a loss of $8.9 million (-27 cents), compared to a loss of $720,000 (-2 cents) for the previous year. Annual revenue rose 52 percent to $7.78 million.
The company said the fourth quarter loss was the result of development and expansion costs associated with ApolloMed ACO, a Medicare account-management subsidiary formed in July 2012.
Chief Executive Dr. Warren Hosseinion said Apollo expanded the number of hospitals and patients it serves in the past year, gaining penetration in the Southern California market. But, he added, that “practicing strict expense discipline and aggressively ramping sales are among are chief priorities in the current fiscal year.”
Shares lost 7 cents, or 14 percent, to close at 44 cents in over-the-counter trading.