Nichols Institute Reports Loss of $108,000 for 1986

Nichols Institute said it lost $108,000 during 1986, contrasted with net earnings of $1.3 million in 1985. Yearly revenues climbed 47%, to $34.9 million in 1986 from $23.7 million in 1985.

Fourth-quarter net earnings fell 79%, to $101,000 from $489,000 a year earlier, while fourth-quarter revenues increased 42%, to $9.5 million from $6.7 million.

The San Juan Capistrano-based diagnostic testing company blamed the loss in part on the cost of expanding the number of clinical tests it performs to more than 1,000 from about 600 at the end of 1985. William Mahan, chief financial officer, also blamed the loss on increased marketing costs associated with Nichols’ line of diagnostic test kits that it sells to hospitals.

Although Nichols had a loss for the year, Mahan said the fourth-quarter profit marks a turnaround when compared to the $181,000 loss Nichols sustained in the third quarter.

Mahan, who credits the improvement to the new tests and test kits, said Nichols expects to be profitable during 1987.