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American Pacific Reports Fiscal 2013 Results; Provides Outlook For Fiscal 2014
Date:12/12/2013

cts and Development Products.  "Core Products" include active pharmaceutical ingredients and registered intermediates manufactured for use in drugs that are commercially approved and for which our Fine Chemicals segment has been approved as a commercial producer.  The products categorized as Core Products are used by our customers primarily for anti-viral, oncology and central nervous system ("CNS") drugs.  Conversely, "Development Products" are products which are not yet commercialized (generally in the later stages of clinical trials), or products which are commercial but for which we are not a current approved commercial producer.  Typically, Development Product activities are the source of fostering new long-term customer relationships and often lead to future Core Products. Development Product activities also result as an outgrowth of existing long-term customer relationships for Core Products.  The products categorized as Development Products are used by our customers primarily for anti-viral, CNS, oncology and pain management drugs. As part of our business development strategy, we currently target Development Product revenues at approximately 20% of Fine Chemicals segment revenues over time. 

A key characteristic of the Fine Chemicals segment manufacturing and revenue cycle is that not all Core Products are manufactured in each reporting period.  Our Fine Chemical segment's capacity employs numerous production lines which vary in terms of technologies employed and scale.  Typically Core Product customers place orders based on a calendar year.  Our Fine Chemicals segment collaborates closely with each of its customers to develop a production schedule that meets our customers' quality and delivery requirements and most efficiently utilizes available capacity.  As a result, when comparing revenues between reporting periods, revenue variances can occur as a result of production scheduling, without a substa
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SOURCE American Pacific Corporation
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