CHAD Therapeutics Reports Dramatic Sales Increase.Business Editors CHATSWORTH, Calif.--(BUSINESS WIRE)--July 24, 2001 CHAD Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. Inc. (AMEX AMEX See: American Stock Exchange :CTU CTU Colorado Technical University CTU Czech Technical University in Prague CTU Counter Terrorist Unit CTU Clinical Trials Unit CTU Catholic Theological Union CTU Chicago Teachers Union CTU Computer Training Unit CTU Control Unit ), producer and distributor of oxygen- conserving con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: devices and oxygen systems used by pulmonary pulmonary /pul·mo·nary/ (pool´mo-nar?e) 1. pertaining to the lungs. 2. pertaining to the pulmonary artery. pul·mo·nar·y adj. Of, relating to, or affecting the lungs. patients who need supplementary oxygen, today announced operating results for the first quarter ended June 30, 2001. Sales for the quarter were $4,847,000, an increase of $1,882,000, or 63 percent, over the same quarter last year. The company's net earnings for the quarter were $13,000 (0 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ), compared with a loss of $720,000 (7 cents per share) for the same quarter last year. At June 30, 2001, the company had fully utilized its net operating loss carrybacks Net operating loss carrybacks The application of losses to offset earnings in previous years. and had approximately $4,006,000 and $3,076,000 in federal and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , respectively, available to offset future income tax expense. Thomas E. Jones, chief executive officer, stated: "We are pleased to report that with the dramatic sales increase achieved this quarter, we were able to generate our first quarterly profit since June of 1998. This is evidence that our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. strategy is producing positive results and represents the achievement of a significant milestone for the company and its shareholders. "The sales increase is being driven by increased domestic sales in our oxygen conserver con·serve v. con·served, con·serv·ing, con·serves v.tr. 1. a. To protect from loss or harm; preserve: line, led by the new OXYMATIC(R) 400 series conservers that were introduced during the past fiscal year and domestic and international sales of the TOTAL O2(R) Delivery System. We currently believe this trend should continue for the balance of the current fiscal year and may be aided by additional products under development that are designed to further improve our competitive position." Jones further stated, "The return to profitability has been our No. 1 priority, and if sales continue at the current pace for the balance of the current fiscal year, we believe CHAD will generate net earnings in the range of $800,000 to $1 million (8 cents to 10 cents per share) for the fiscal year ending March 31, 2002." The foregoing statements regarding prospects for future earnings, future sales trends for the OXYMATIC 400 series conservers and the TOTAL O2 system, and the introduction of products under development are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties. A number of important factors could cause actual results to differ materially from those contemplated by such forward- looking statements. These include slower-than-anticipated recovery of market share, the loss of one or more major customers, increased competition, and the company's ability to anticipate and respond to technological and economic changes in the home oxygen market. Moreover, the success of the OXYMATIC 400 series conservers, the TOTAL O2 system, and products under development will depend on the health- care community's perception of the products' capabilities and benefits, the degree of acceptance the products achieve among homecare providers and, with respect to products under development, obtaining timely regulatory approval. Additional factors that could cause actual results to differ materially from those contemplated in this news release can be found in the company's annual and quarterly reports filed with the Securities and Exchange Commission under the caption "Outlook: Issues and Risks."
CHAD THERAPEUTICS INC.
Selected Financial Data
June 30, 2001
(Unaudited)
Three months ended
June 30,
2001 2000
Net sales $4,847,000 $2,965,000
Interest income, net 14,000 11,000
Earnings (loss) before income taxes 14,000 (720,000)
Net earnings (loss) 13,000 (720,000)
Basic earnings (loss) per share .00 (.07)
Diluted earnings (loss) per share .00 (.07)
Balance as of
June 30,
2001 2000
Cash $1,623,000 $ 1,779,000
Total assets 11,566,000 13,017,000
Shareholders' equity $9,224,000 $11,491,000
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