Lake Success, N.Y. On the brink of removal from the Nasdaq SmallCap listing, Staff Builders has recorded a net loss of $45.4 million for its third quarter ended November 30, 1998.

Its financial situation-caused, company officials said, by Medicare audit results and restructuring costs-also has put Staff Builders at risk with its credit facility, they said. The bank has reduced the maximum amount the struggling company can borrow from $50 million to $40 million and has increased the rate of interest from 2 percent to 2.75 percent.

Audit reports from Medicare's fiscal intermediaries indicating money Staff Builders owes, estimation of results from future audits, and a settlement with Medicaid prompted the company to record an expense of $29 million, officials said. Another $9 million was allotted to location closures and the conversion of franchises to company-owned locations, they said.

Revenue for the third quarter was $99.4 million, down 24 percent from the $131.3 million reported for the third quarter a year ago. Net loss in the third quarter was $45.4 million, or a loss of $1.99 a share, compared with net income of $1 million, or a gain of 4 cents a share, for the same period the previous year.

Staff Builders' shares fell 57 percent, or 25 cents, to 19 cents when its financial results were announced. Nasdaq dropped Staff Builders from the SmallCap listing on February 1, placing it on the Over-the-Counter Bulletin Board.-K.S.