Chad Therapeutics to Cut 12% of Work Force
Chad Therapeutics Inc., a maker of respiratory-care devices, said it is cutting 12% of its work force and will report a fiscal third-quarter loss because of higher costs and weaker sales. The company, which employs 93 people, said the 11 workers to be cut could be rehired if sales improve. The company lost $286,000, or 3 cents a share, on sales of $3.23 million in the year-earlier quarter. Chad said the quarterly loss for the three months ending today will reflect the weak sales and job-cut costs. Sales have been hurt by competition and Medicare reimbursement cuts, the company said, in addition to the costs of having to find new parts suppliers for its Total 02 oxygen delivery system. Chatsworth-based Chad said its cost-cutting moves, which also include salary reductions for its executives, are expected to save about $900,000 a year. Chad shares fell 6 cents to close at $1.50 on the American Stock Exchange.