Fraud, huh bill? OOOOOps...
Tuesday February 1, 10:43 am Eastern Time
Company Press Release
SOURCE: Gum Tech International, Inc.
Gum Tech International Reports Profitable Fourth Quarter, Nets Thirteen Cents a Share
First Profitable Quarter Due to Increased Zicam Sales
PHOENIX, Feb. 1 /PRNewswire/ -- Gum Tech International, Inc. (Nasdaq: GUMM - news) reported consolidated fourth quarter net sales of $8.9 million, almost 400% greater than third quarter 1999. Net sales for Zicam(TM) totaled $8 million. The company earned 13 cents a share (unaudited) based on 8.8 million shares on a fully diluted basis.
According to William Hemelt, Gum Tech's Chief Financial Officer, ``The demand for Zicam(TM) during the quarter was tremendous after our formal launch on November 1, 1999. Two months after the launch, according to sales data, Zicam(TM) was in the top 2% of the cough and cold category. We are pleased with our initial success, which was achieved without the benefit of a major marketing campaign. To generate increased sales, we plan to aggressively market Zicam(TM) with a major marketing campaign. The campaign began January 31, 2000, and will run for the remainder of the cold season. We also plan on beginning international distribution in the near future.'
Hemelt continued, ``Our earnings would have been higher, but we incurred some one-time non-cash charges associated with redeeming a good portion of our debt with Citadel. Our gross margin on Zicam(TM) remained high. We were also able to keep operating expenses to a minimum, since our successful PR launch mitigated the need for extensive advertising during the period.'
``Scientific support for Zicam(TM)'s unparalleled ability to reduce the duration and severity of the common cold continues to grow,' Hemelt concluded, noting that results from a recent independent clinical study (released February 1, 2000) confirm the initial findings of internal clinical research on Zicam(TM).
Gum Tech specializes in the development of unique and innovative systems for the delivery of bioactive compounds, particularly in the area of functional chewing gums. In addition, Gum Tech is 60% owner of Gel Tech LLC, a joint venture between Gum Tech and BioDelivery Technologies, Inc. Gel Tech LLC owns and markets Zicam(TM), a homeopathic remedy for the common cold. |
