Chiron Corp. Reports First Quarter 1995 Losses and Record Revenues

Chiron Corp. reported its first quarter 1995 results, which included a significant loss of $385,778,000, compared to net income of $4,817,000 in the first quarter of 1994. Despite this loss, the company's quarterly revenues reached a record high, driven by the acquisitions of Ciba Corning Diagnostics Corp. and interests in The Biocine Company and Biocine S.p.A. from Ciba Geigy Limited. The partnership transaction with Ciba resulted in Chiron holding approximately 49.9% of Ciba's outstanding common stock.

Key Takeaways:

Chiron Corp. reported a net loss of $385,778,000 for the first quarter of 1995, compared to net income of $4,817,000 in the first quarter of 1994.
Quarterly revenues reached a record high of $218,246,000, driven by the acquisitions of Ciba Corning and Biocine S.p.A.
The company's gross profit margin decreased to 51% from 52% due to increased obsolesence reserves on ophthalmic products and operating expenses associated with the idled Puerto Rico facility.
Research and development expenses increased to $99,100,000 in the first quarter of 1995 from $38,400,000 in the first quarter of 1994, due to the inclusion of Ciba Corning and Biocine S.p.A. research and development expenses.
Chiron's long-term debt and other noncurrent liabilities totaled $458,000,000 on March 31, 1995, compared to $357,500,000 on December 31, 1994.
The company consumed approximately $57 million of cash and investment assets during the first quarter of 1995, largely for acquisitions and capital expenditures.

Statistics:

Record quarterly revenues: $218,246,000 (up 139% from $91,381,000 in Q1 1994)
Net loss for the first quarter of 1995: $385,778,000
Research and development expenses: $99,100,000 (up 159% from $38,400,000 in Q1 1994)
Long-term debt and noncurrent liabilities: $458,000,000 on March 31, 1995

Sources:

Business Wire press release, May 8, 1995
Chiron Corp. website, www.chiron.com
Securities and Exchange Commission filings