MedGroup Reports Loss in 3rd Quarter of $474,890

MedGroup Inc., an Encino supplier of medical products, posted a $474,890 net loss for its fiscal third quarter, contrasted with a profit of $24,048 a year earlier.

Revenue dipped 2% in the quarter that ended Dec. 31 to $969,749 from $991,323 a year earlier.

Medgroup blamed its net loss largely on the cost of launching several new products. The company expects two of those products, a car seat for the disabled and a system for shipping temperature-sensitive medical supplies, to begin producing revenue later this quarter.

During the third quarter, Med group also said it absorbed a one-time loss of $381,000 from the 1992 sale of its physical therapy clinics because the buyer defaulted on its note.

For the nine months, Medgroup’s net loss nearly doubled to $422,470 from $224,933 for the same period last year. Revenue fell 31% to $2.74 million from $3.98 million a year earlier.