UPDATE 1-Hi-Tech Pharmacal posts Q3 loss

(Recasts, adds details, share movement)

March 10 (Reuters) - Hi-Tech Pharmacal Co Inc (HITK.O) posted a third-quarter loss hurt by lower sales due to a milder-than-expected cough and cold season, sending shares down as much as 11 percent.

The maker of generic drugs said the milder season affected its higher margin prescription products and it faced increased competition on selected generic products.

The company posted a quarterly loss of $1.5 million, or 14 cents a share, compared with net income of $726,000, or 6 cents a share, in the year-ago period.

Sales fell 16 percent to $15.1 million for the quarter.

One analyst was expecting a profit of 1 cent a share, on revenue of $20.4 million, according to Reuters Estimates.

Shares of the company were trading down more than 7 percent at $9.37 in early morning trade on Nasdaq. They touched a low of $8.99 earlier in the session. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Amitha Rajan)