CHAD: first-quarter revenue drops, board to consider strategic alternatives with help from bank

By Lisa Kerner

Charlotte, N.C., Aug. 11 - CHAD Therapeutics, Inc. said for the three months ended June 30, revenue declined to $5.5 million, from $5.9 million for the quarter ended June 30, 2005.

The company's net loss for the first quarter of fiscal 2007 increased to $116,000, or $0.01 per share, from a net loss of $42,000, or $0.00 per share, for the first quarter of fiscal 2006.

CHAD reported a 7% decline in revenue from sales of oxygen conservers and therapeutic devices for the quarter from the prior year period.

Sales of CHAD's proprietary Total O(2) home oxygen filling system decreased 17% for the first quarter of 2007 compared to the same quarter of 2006. The decline is in part to changes in Medicare reimbursement procedures, according to a company news release.

Working capital was approximately $9.7 million at June 30, including cash and cash equivalents of $1,704,000 versus $935,000 at March 31, 2006. The company has no debt.

CHAD is now working with an investment banking firm as it considers strategic alternatives.

"While we will continue to evaluate appropriate strategic opportunities as they may arise, we intend to focus on improving our operating results and expanding our product offerings, and to explore distribution and marketing partnerships for certain of our products," president and chief executive officer Earl Yager said in the release.

CHAD, located in Chatsworth, Calif., develops and markets respiratory care devices for home health care and hospital treatment of patients with pulmonary diseases.

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