Brentwood, Tenn. American HomePatient reported a net loss of $39 million, or $2.60 a share, for fiscal 1998 ended December 31, 1998, marking an official end to one of its most challenging years, company executives said. The loss compares with a net loss of $25.9 million, or $1.75 a share, for fiscal 1997. Fiscal 1998 revenue was $403.9 million, up 4 percent from $387.3 million in fiscal 1997.

Also, the company has amended its credit line agreement. Under new terms, AHP's credit availability has been reduced from $340 million to $328.6 million, officials said.

Net loss for the fourth quarter ended December 31, 1998, was $36 million, or $2.40 a share, compared with net income of $4.7 million, or 31 cents a share, for the fourth quarter of 1997. The fourth quarter of 1998 included a write-down of $37.8 million in goodwill and $1.3 million for severance agreements for several senior executives. Fourth-quarter revenue was $96.1 million, down 9 percent from $105.3 million for the same period in 1997.

Hoping to improve results in 1999, the company has cut 41 employees from its corporate office and 180 field positions, officials said. Also, the company will focus on improving internal operations rather than seek acquisitions or new hospital joint ventures this year.

The cost-control efforts made for modest improvements in earnings before interest and taxes and a reduced pre-tax loss for the first quarter ended March 31, officials noted.

Net loss was $5.6 million, or 37 cents a share, compared with net income of $3 million, or 20 cents a share, for the same period in 1998.

"This is a good first step, but only that," said Joseph Furlong, president and chief executive officer. "We clearly have much more to do, particularly in the areas of revenue growth and accounts receivable management."

First-quarter revenue fell 11 percent to $91.2 million, compared with $102.8 million the previous year. Officials attribute the decline to decreased Medicare oxygen reimbursement, as well as the exit of certain lower-margin businesses and payer contracts.