Chad Therapeutics Reports First Quarter Results.Business Editors CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 14, 2000 Chad Chad (chăd, chäd), Fr. Tchad, officially Republic of Chad, republic (2005 est. pop. 9,826,000), 495,752 sq mi (1,284,000 sq km), N central Africa. 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, 2000. Sales for the quarter were $2,965,000, a decrease of $673,000 or 18% from the same quarter last year. The Company's net loss for the quarter was $720,000 ($0.07 per share) compared to a loss of $154,000 ($0.02 per share) for the same quarter last year. The loss for the current year's quarter includes no income tax benefit as the Company has previously utilized its ability to carryback net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. . The Company has approximately $1,820,000 in Federal income tax net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. for which the income tax benefit has not been recognized. Thomas E. Jones, Chief Executive Officer, stated, "The sales decline in the current quarter was primarily the result of ongoing competitive factors affecting our oxygen conserver line. We believe the recently announced introduction of the OXYMATIC(R) Model 401 electronic oxygen conserver should enable us to begin to regain at least a portion of the market share that has been lost over the past several years. The OXYMATIC 401 conserver has features we believe will make it attractive to the homecare provider at a competitive price. Sales and shipments of the new product started in July of 2000 and the initial reaction by homecare providers has been very positive. Work also continues on several other projects for products designed to improve our competitive position in the conserver field." Jones also stated, "Sales of the TOTAL O2(R) Delivery System continued to increase slowly. We continue our efforts to increase the rate of market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of this product by promoting its cost efficiency to homecare providers. Additionally, as more and more patients become aware of the TOTAL O2 system's features, which allow them to control their own portable oxygen supplies, we believe faster market penetration may occur." Jones also noted that initial shipments of the CE marked international version of the TOTAL O2 system started during the first quarter. To date there have been a limited number of units shipped to allow the Company's international distributors to obtain local regulatory approvals. As these approvals are obtained, the number of units sold internationally may increase. The foregoing statements regarding prospects for the TOTAL O2 system, OXYMATIC 401 conserver and 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. The success of these products will depend upon, among other things, the health care community's perception of the products' capabilities and benefits, the degree of acceptance the products achieve among homecare providers and patients, the availability of comparable products from competitors and with respect to products under development and international TOTAL O2 system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. , obtaining timely regulatory approval.
CHAD THERAPEUTICS INC.
Selected Financial Data
June 30, 2000
Three Months Ended
June 30,
2000 1999
Net Sales $2,965,000 $3,638,000
Interest Income 11,000 (1,000)
Earnings (Loss) before
Income Taxes (720,000) (254,000)
Net Earnings (Loss) (720,000) (154,000)
Basic Earnings (Loss)
Per Share (.07) (.02)
Diluted Earnings (Loss)
Per Share (.07) (.02)
Balance As of
June 30,
2000 1999
Cash & Marketable Securities $ 1,779,000 $ 1,039,000
Total Assets 13,017,000 15,906,000
Shareholders' Equity $11,491,000 $14,545,000
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion