Chad’s revenue grows, but losses persist

Monday, May 26, 2003

May 27, 2003

CHATSWORTH, California - Chad Therapeutics’ domestic sales of its oxygen conservers jumped 22% last year, boosting the company’s share in a market it pioneered in the 1980s.

Although sales of its Total O2 Delivery System declined in the quarter ending March 31, Chad blamed that slide on the loss of one of the transfilling concentrator’s big customers. That customer had been purchased by a national chain that doesn’t use the Total O2. Chad says that Oct. 2001 acquisition will no longer impact sales trends for the Total O2.

In the recently concluded fourth quarter, Chad realized revenue gains of 13% to $4.7 million but a net loss for the quarter of $841,000. For the year, the company’s sales climbed 3%, but it lost $433,000 on the year.

$165,000 of that loss represented expenditures incurred when a group of “dissident” shareholders tried unsuccessfully to elect nominees to the company’s board.