Lab’s Profits Plummet: Nichols Institute, a San...

Lab’s Profits Plummet: Nichols Institute, a San Juan Capistrano-based company that provides medical diagnostic testing services, said Thursday that it expects its third-quarter earnings to be less than half the amount for the same period last year.

Preliminary figures show that earnings will be between 2 cents and 4 cents a share, compared to 8 cents a share for the third quarter of 1991. Revenue for the latest quarter, although expected to be up 13.8% to $70.5 million, would still be below expectations. In response, the company said, it is considering selling its Texas laboratories and is taking steps to reduce expenses.

Final quarterly results are expected within two weeks.