To: StockDung who wrote (4402 ) 5/13/2003 11:24:35 PM From: DanZ Read Replies (1) | Respond to The sales and profit analysis in that post was right on target. The only thing that was off was how fast sales of Zicam would reach $25 to $35 million. I thought that it would happen in 2001 and it didn't happen until 2002. Big deal. I even revised my outlook after the mild 2000 cold season. Care to dig up that old post? Matrixx sold $23.5 million in 2002, and earned 14 cents per share. That fits right in to the estimates in the table, doesn't it? I believe that the gum business would have generated profits close to what I estimated had they not sold it to Wrigley. As it turned out, Matrixx received $25 million for the gum business, which was obviously based primarily on Wrigley's belief about how much profit they would make on the P&G dental gum contract. Why else do you think Wrigley paid $25 million for the gum business? Effectively, Matrixx realized several years of future profits from the gum business by selling to Wrigley, and it gave them cash to build their Zicam business.
