The decrease in Halotron revenues is driven by timing of customer orders. Halotron volumes are expected to be relatively consistent in fiscal 2008 as compared to fiscal 2007.
Specialty Chemicals operating income for the fiscal 2008 first quarter
was 38% of Specialty Chemicals revenue compared to 30% for the prior year
quarter, reflecting the following:
-- Specialty Chemicals segment depreciation and amortization expense,
which is included in cost of sales, was $1.3 million, or 8% of
Specialty Chemicals revenue for the fiscal 2008 first quarter, compared
to $1.3 million, or 11% of Specialty Chemicals revenue for the fiscal
2007 first quarter. As a result of the improved coverage of
depreciation and amortization expense by the higher revenue level in
the current quarter, and raw material cost reductions for Halotron
products, the Specialty Chemicals segment gross margin percentage
improved by approximately eight points.
-- An increase in operating expenses of $0.4 million primarily due to
environmental related costs and employee compensation.
Fine Chemicals Segment
Our Fine Chemicals segment reflects the operating results of our wholly-owned subsidiary Ampac Fine Chemicals LLC ("AFC").
Quarter Ended December 31, 2007 Compared to Quarter Ended December 31,
-- Revenues were $26.8 million compared to revenues of $17.6 million.
-- Operating income was $4.7 million, or 17% of revenue, compared to
$2.9 million, also 17% of revenue.
-- Segment EBITDA was $8.0 million, or 30% of revenue, compared to Segment
EBITDA of $6.6 million, or 38% of revenue.
The increase in
|SOURCE American Pacific Corporation|
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