TUSTIN, Calif., Aug. 1 /PRNewswire-FirstCall/ -- (http://www.amdl.com) AMDL, Inc. , a leading vertically integrated bio-pharmaceutical company with major operations in China and the U.S., announced today it adjusted its financial guidance for the second quarter of 2008, which ended on June 30, 2008, based upon unexpected delays in revenue recognition from unshipped product of its Domperidone anti-emetic drug sold in China. AMDL reiterates that its gross FY2008 sales are anticipated to be between $30 million and $38.7 million with gross margins expected to range between 46% and 52%.
The delay in these shipments was the result of the May 12, 2008 earthquake disaster in Southwestern China. Due to the earthquake, AMDL’s subsidiary JJB was forced to delay a portion of its Q2 Domperidone orders. Consequently, the Company’s second quarter gross revenues will be approximately $5.8 million, which is still approximately a 140% increase over Q2/2007. Net earnings after currency adjustments are now anticipated to be between $50,000 to $113,000. The drop in anticipated Q2 earnings was also due to lower Domperidone sales, a one-time non-reoccurring land use payment and the donation of JJB products to the China earthquake relief efforts. The lower than anticipated Q2 sales and earnings are now fully expected to be made up in both the third and fourth quarters of 2008.
AMDL has targeted net sales for FY2008 to increase at least 100% percent over FY2007 and anticipates they will be in the range of $30 to $38.7 million with gross margins of 46% to 52%. Gross revenues for FY2007 were $15 million with gross margin 54% of gross revenues. The FY2008 R&D and SG&A expenses are expected to total approximately $6.8 to $8.7 million, which includes stock-based (common shares, warrants and options) compensation expenses. R&D and SG&A expenses for FY2007 were a total of $9.9 million. Net income after taxes is expected to be between $9.5 and $12.2 million including any foreign currency adjustments.
According to Gary Dreher, Chief Executive Officer of AMDL, “We remain highly optimistic about the Company’s near-term outlook and confident we will continue meeting our FY2008 stated business and financial targets. Specifically, we remain focused on, at a minimum, doubling sales annually over the next three years, and securing necessary regulatory approvals to introduce other key products like DR-70(R) and MyHPV(R) to the marketplace. We are driving to establish JPI as one of the top 10 pharmaceutical companies in China by 2011.”
About AMDL:
Headquartered in Tustin, CA with operations in Shenzhen, Jiangxi, and Jilin, China, AMDL, Inc., along with its subsidiary Jade Pharmaceutical Inc. (JPI), is a vertically integrated bio-pharmaceutical Company devoted to the research, development, manufacturing, and marketing of diagnostic, pharmaceutical, nutritional supplement, and cosmetic products. The Company employs approximately 320 people in the U.S. and China. The Company has an additional four pharmaceutical and diagnostic products under review by various regulatory authorities.
Forward-Looking Statements
Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the market’s acceptance or demand for DR-70 or any of the Company’s products, failure to complete successfully the development of other new or enhanced products, the Company’s future capital needs, any actions by the Company’s distribution channels that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
CONTACT: Kristine Szarkowitz, Director-Investor Relations of AMDL, Inc.,
mobile, +1-206-310-5323, office, +1-206-201-3286, kszarkowitz@amdl.com
Web site: http://www.amdl.com/
