ORLANDO, Fla.--Just a few years after emerging from bankruptcy, Rotech Healthcare reported a decrease in revenue but a sharp increase in profits. Last week, the company reported net earnings of $38.2 million for fiscal year 2004, more than triple the $8.4 million reported in 2003, though net revenue fell from $581.2 million in 2003 to $534.5 million in 2004. Respiratory therapy equipment and services accounted for 86.6 percent of total revenue for the fiscal year, while DME revenue made up 12.2 percent.

"They're operating efficiently, and putting profit ahead of actual revenue," said industry analyst Michael Barish of Coral Springs, Fla.-based AnCor Consulting. He added that these recent results put the company "on par with Lincare as far as the relationship between earnings and revenue."

Rotech has approximately 500 branches serving customers in 48 states.

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