Option Care, Bannockburn, Ill., reported record revenue of $114.4 million for the fiscal year ended December 31, 1998, a 14 percent increase over revenue of $100 million reported in fiscal 1997. However, the company had a net loss for fiscal 1998 of $691,000, or 6 cents a share, compared with a net loss of $2.1 million, or 20 cents a share, for fiscal 1997. Officials said the fiscal 1998 results included a charge of $739,000, or 7 cents a share, because of tax adjustments and changes in reserves related to the settlement of an IRS audit in previous years.

Option Care also posted net income for its first quarter ended March 31, reversing a trend of losses for several consecutive quarters. Net income was $763,000, or 7 cents a share, compared with $865,000, or 8 cents a share.

Revenue grew to $28.9 million, up 9 percent from $26.6 million in 1998. Also, the company's debt as of March 31, 1999, was $14.3 million, down almost 50 percent from $26.8 million.

In Home Health, Minnetonka, Minn., has reported revenue of $18.6 million for its first quarter ended December 31, 1998, down from $27.9 million for the same period a year ago. Net loss available to shareholders was $132,000, or 2 cents a share, compared with net income available to shareholders of $186,000, or 3 cents a share, for the same period a year ago. Results were negatively affected by payment of a preferred stock dividend to HCR ManorCare, officials said.

The company also reported net income of $1.4 million, or 13 cents a share, for its second quarter ended March 31, a 74 percent increase from $795,000, or 2 cents a share, a year earlier.

Revenue decreased from $26.4 million to $21.1 million because of Medicare reductions, according to the company. "Cost-based Medicare revenue now represents less than 50 percent of our total revenue for the six months ended March 31, as compared with 59 percent one year ago," said Wolfgang von Maack, chairman and chief executive officer.