Respiratory Company CHAD Cites Losses

CHAD Therapeutics Inc., a Chatsworth developer of respiratory care devices, has reported a net earnings loss of $673,000 or $0.07 per diluted share on revenues $22.4 million for the fiscal year 2006. The numbers are far below the CHAD’s net earnings for 2005, which tallied $1.8 million or $0.17 per diluted share on revenues of $24.3 million. During the fourth quarter, which ended March 31, earnings sank to $460,000, or $0.05 per diluted share, compared to the $589,000 profit for 2005. Revenue dropped to $5.2 million from $5.4 million a year prior. Revenue from the sale of oxygen and therapeutic devices were especially affected during fiscal year 2006, dropping 11 percent from a year prior. In a statement to investors, President and CEO Earl Yager said company growth was partially impacted by new Medicare reimbursement procedures that changes when patients receive the title for the devices. “This new policy has intensified pressure on homecare providers to reduce operating and equipment costs,” he said.