Chad Therapeutics Inc. on Tuesday said pricing pressure from competitors of its line of oxygen conservers and related therapeutic devices for pulmonary patients contributed to a drop in revenue and a larger net loss in its second quarter.

For the second quarter ended Sept. 30, the Chatsworth-based medical device company reported net loss of $307,000 (3 cents a share) down from $210,000, (2 cents) for the same period a year ago. Revenue fell 7.4 percent to $4.98 million. Sales of oxygen conservers and therapeutic devices were down 4 percent in the six-month period, the company said.

Chad has been able to cut production costs by sourcing several products and components from Asia, Chief Executive Earl Yager said in a statement, and the company is developing lower cost conservers that could make it more competitive in certain sectors of the U.S. market.

The company also announced it expects to apply for U.S. Food and Drug Administration approval of its first products in a sleep disorder line, with a goal of launching its first product next summer.

Chad reported earnings after the Tuesday market close, during which shares closed up 3 percent to $2.27.