Despite record sales for the period, the Nichols Institute of San Juan Capistrano said it recorded a substantial loss for the second fiscal quarter ended May 31.
The company, which performs hospital assays and manufactures the Allegro medical diagnostic kit, posted a $60,000 loss on $8.8 million in revenues, contrasted with income of $255,000 on revenues of $5.8 million last year. The second quarter results bring the company's loss for the first half of the fiscal year to $28,000 on revenues of $16.4 million, compared to last year's profit of $489,000 on sales of $10.8 million.
Dr. William Patterson, president of the institute's reference laboratories, said that much of the revenues were brought in by two companies that were acquired by Nichols late last year, American Clinical Laboratories in San Diego and BioDiagnostic Laboratories in San Pedro, which have expanded the number of assays the company can perform to more than 900 from about 260 two years ago. He said that the company should be able to perform about 1,000 assays by the end of the year, which would account for virtually every kind of assay requested by hospitals.
The loss was attributed to heavy investment in internal development. Patterson said that the company had added laboratory personnel and equipment in San Juan Capistrano, in addition to training new sales representatives, and that it had stepped up its use of marketing and educational materials.