Chad Therapeutics Reports First-Quarter Results.CHATSWORTH, Calif.--(BUSINESS WIRE)--July 29, 1998--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, Wednesday announced operating results for the first quarter ended June 30, 1998. Sales for the quarter were $4,197,000, a decrease of $1,231,000, or 23 percent from the same quarter last year. The company's net earnings for the quarter were $107,000 (1 cent per share) compared with $804,000 (8 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. ) for the same quarter last year. Thomas E. Jones, chief executive officer, stated: "The total sales decline from the previous year's quarter resulted from several previously reported factors Reported factor The pool factor as reported by the bond buyer for a given amortization period. . "However, sales increased 19 percent over the immediately preceding quarter and net earnings improved to $107,000 from a loss of $10,000, as the company's OXYMATIC oxygen-conserving device and related products made a recovery in the current quarter. "Despite ongoing concerns over home-oxygen reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. cuts by Medicare, which finally went into effect Jan. 1, 1998, and increased competition in the oxygen-conserver market, sales of these products increased 25 percent over the quarter ended March 31, 1998. Total sales for the quarter ended June 30, 1998, also included $218,000 from sales of the new TOTAL O2 Delivery System." Jones further stated: "Our recently announced alliance with Salter salt·er n. 1. One that manufactures or sells salt. 2. One that treats meat, fish, or other foods with salt. Noun 1. Labs and the resulting utilization of their field sales force should enhance the potential for revenue gains in upcoming quarters. A face-to-face field sales force we believe will enable the company to better respond to competitive pressures and allow it to capitalize more rapidly on the potential of the revolutionary new TOTAL O2 system." Jones noted that operating results continue to be affected by initial start-up costs to manufacture and increase production of TOTAL O2 systems. He also observed that sales and earnings for the quarter were consistent with the company's expectations and, while no assurances can be given, the company anticipates continued improvement in upcoming quarters as the TOTAL O2 system gains greater acceptance with home-care dealers and oxygen patients. Any statements in this release that are not historical facts 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 risks and uncertainties. The success of the new product will depend on the health-care community's perception of the system's capabilities and benefit to patients. In addition, prospective sales will be impacted by the degree of acceptance it achieves among home-oxygen dealers and patients requiring supplementary oxygen. -0-
CHAD THERAPEUTICS INC.
Selected Financial Data
Three Months Ended
June 30,
1998 1997
Net sales $ 4,197,000 $ 5,428,000
Interest income 17,000 27,000
Earnings before income taxes 178,000 1,342,000
Net earnings 107,000 804,000
Basic earnings per share .01 .08
Diluted earnings per share .01 .08
Balance as of
June 30,
1998 1997
Cash & marketable securities $ 980,000 $ 3,154,000
Total assets 18,260,000 16,475,000
Shareholders' equity $16,272,000 $15,717,000
CONTACT: 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 Inc., Chatsworth Earl L. Yager, 818/882-0883 |
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