ATP POSTS QUARTERLY PROFIT, CHANGES NAME
ATP POSTS QUARTERLY PROFIT, CHANGES NAME SAN ANTONIO, Texas, Nov. 21 /PRNewswire/ -- San Antonio-based
Advanced Tobacco Products, Inc. (ATP) (NASDAQ: ATPI) announced today its intent to change its name to better reflect its focus, and posted earnings of $4,288 on revenues of $45,016 for the first quarter ended Sept. 30. The profit compares to a net loss of $24,413 on revenues of $80,381 for the same quarter a year ago.
Earnings per share of these results are nil based upon ATP's 8,001,270 outstanding shares of common stock. The board of directors of the company, which has developed technologies designed to help smokers stop smoking, has approved changing the firm's name to Advanced Therapeutic Products, Inc., pending final approval by shareholders, said ATP President Jim Linehan. In the meantime, the company will be doing business as Advanced Therapeutic Products, Inc. "Since the company ceased marketing its smokeless cigarette in 1987, and has since used its technology to develop a nicotine inhaler for smoking cessation, we believe 'Therapeutic' more accurately describes the company's focus," Linehan said. "So, this name change is simply a way for us to make a clearer statement." ATP has developed and sold technology to a subsidiary of Kabi- Pharmacia Therapeutics AB, a worldwide pharmaceutical company headquartered in Sweden that markets Nicorette chewing gum and is now developing a nicotine inhaler for smoking cessation using technology developed by ATP. The inhaler recently completed clinical trials and Kabi-Pharmacia expects to decide within the next nine months whether to pursue an approval by the Food and Drug Administration to market the device in the United States. ATP will receive payment based upon sales of such device. ATP has shown a profit for three consecutive quarters, including a $200,579 profit, or 2.5 cents per share, for the fiscal year ended June 30, 1991, resulting from the receipt of minimum royalty payments. Linehan said the company expects to continue to receive minimum royalty payments for Kabi-Pharmacia, including a $400,000 payment in September 1992, as minimum royalties for the current fiscal year. Because minimum royalty payments are optional, this expected payment will not be recorded as revenue until it is received, Linehan said. He said that profits would have exceeded $70,000 in the quarter ended Sept. 30 if a pro rata portion of the expected fiscal 1992 payment had been recorded as income for the quarter. -0- 11/21/91 /CONTACT: Jim Linehan of ATP, 512-490-4506, or Robin Magers of Dublin-McCarter & Associates, 512-227-0221, for ATP/ (ATPI) CO: Advanced Tobacco Products, Inc. ST: Texas IN: HOU SU: ERN PS -- NY116 -- 6147 11/21/91 18:23 EST
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|Date:||Nov 21, 1991|
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