Quantum Health Resources Reports Leap in Sales and Earnings for First Quarter : Finances: Supplier of blood supplements and support services credits 46% revenue increase to purchase of competitor, more demand.

Quantum Health Resources Inc., which provides support services and blood supplements to people born with lifelong ailments, posted sharply higher sales and earnings for its first quarter.

The company said sales increased with the purchase of a large, Fresno-based competitor and because demand for its services is increasing overall.

Quarterly revenue was up 46% to $22.6 million, contrasted with $15.4 million in the year-earlier quarter. First-quarter profit was $2.03 million, equal to 15 cents per share, contrasted with net income of $758,800, or 7 cents per share, a year ago.

James Nicol, chief financial officer and senior vice president, said Quantum’s earnings are up, in part, because the company is cutting costs. It is buying blood supplements more cheaply because it is buying in bulk.

Quantum is a 3-year-old company that went public in April, 1991, selling shares for $12 each. On Wednesday, the company’s stock was trading over the counter at $24.36, up $1 after the announcement of the first-quarter figures.

The company provides protein supplements for the blood that assist in the control of three ailments: hemophilia, genetic emphysema and genetic immunodeficiency syndrome (as opposed to AIDS, which is acquired immunodeficiency syndrome). About 70% of the company’s revenue comes from the treatment of hemophilia, for which it provides a blood-clotting protein.

Quantum also provides counseling for patients and their families and helps them seek financial help for treatment. The company has 17 customer service branches and seven sales offices, which serve patients in 49 states. While most of its business is in California, the company has opened three branches this year in Seattle, Atlanta and Pompano Beach, Fla.

After raising $31 million in its initial offering, Quantum purchased Comprehensive Home Services in Fresno last June in a deal valued at about $9.2 million. The acquired company provided home therapies and support services for hemophiliacs, as does Factor Care Plus of Tampa, Fla., which Quantum said it intends to acquire.

Quantum said March 24 that it plans to purchase all of the Florida company’s stock in exchange for 235,000 shares of Quantum common stock, a deal valued at about $5.7 million.

Quantum Health Resources Inc.

Quantum Health, which has purchased two companies since going public last April, saw its first-quarter sales jump 46% over last year. Earnings have more than doubled, which the company credited to economies of scale.

(Dollars in thousands, except per-share data)

Percent 1992 1991 Change Total revenue $22,594 $15,446 46 Net earnings $2,028 $758 167% Earnings per share 0.15 0.07 114%

Source: Quantum Health Resources Inc.