ReadiCare Reports $60,000 Quarter Loss

Blaming rising expenses and the temporary closing of two clinics this summer, ReadiCare Inc., the Irvine-based chain of drop-in medical centers, Friday reported a loss of $60,000 for the second quarter and revealed that it has laid off about 20 employees.

James A. Ripp, senior vice president and chief financial officer, said the company’s expenses had grown faster than its anticipated revenues and the layoffs of about 6% of the staff in July had helped reduce costs. Ripp said the company also moved its accounting and data processing operations into less expensive quarters in the Silicon Valley in another cost-cutting move.

However, Ripp said the costs associated with the two moves, coupled with the temporary closing of two of its 24 clinics, had forced the company into red ink during the quarter ended Aug. 31. The company was forced to close its center in Fullerton for several days while fire fighters battled the blaze at the Fricker chemical plant in Fullerton. A second center in San Jose was temporarily closed by a power outage.

In the second quarter, the company posted revenues of $4.4 million, a 13% increase over the $3.8 million recorded in the prior year. In the year-ago quarter, the company had a profit of $142,000.

For the six months, ReadiCare lost $346,000, compared to a $3,000 profit last year. Revenues this year were $8.5 million, up 15% from the prior year.