This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Pacific's CEO Discusses F2Q 2012 Results - Earnings Call Transcript

Let us now discuss each of the business segments beginning with our Fine Chemicals segment. While our second quarter gross margin in this segment has improved compared to the previous quarter, we remain significantly lower than our expectations for the third and fourth quarters.

We have successfully restructured operations to streamline production in this segment, and have increased growth by means of operational excellence tool. More specifically, we have implemented solid recycling for a number of our products, which not only reduces costs, but also provide benefits to the environment.

We will see the full benefit of these improvements coupled with greater plant utilization in the third and fourth quarter. This performance improvement is a result of a major increase in throughput for a major anti-viral product. We are also pleased to announce the recent five year extension of our major central nervous system product. Despite this product now being off patent, our customer continues to retain significant market share with Ampac Fine Chemicals being the primary supplier of the active pharmaceutical ingredient.

Our development product pipeline has given rise to two new production products being introduced in fiscal 2012. One is the controlled substance product. This is the new area for us with a lot of promise. We have successfully overcome the substantial barriers to entry in the controlled substances area. We are very pleased and fortunate to have moved into this exciting area of the pharmaceutical business.

The second is the new cancer product. While we have been in oncology for a long time, this is a new type of cancer product that uses modern inhibitor type mechanism; it also has other clinical applications that are in late-stage clinical trials at this time.

Development products continue to be a significant portion of the Fine Chemicals segment sales for the second consecutive year. We continue to expect development products to represent 20% of the sales in this segment for fiscal 2012. Our pipeline continues to be strong providing the path for the future growth and stability of this business segment.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs