TUSTIN, Calif., Nov. 12 /PRNewswire-FirstCall/ -- AMDL, Inc. (Amex: ADL), a vertically integrated pharmaceutical company with operations in China and the US, announced today preliminary third quarter earnings and revised 2008 guidance information.
For the third quarter of FY2008, AMDL expects gross sales to be approximately $12.4 million and net sales after sales promotions of approximately $9.2 million. Gross profit is expected to be approximately $4.9 million and income from operations to be approximately $2.3 million. The Company expected net income before currency translation to be approximately $1.6 million.
Earnings were originally projected to be approximately $3.4 million. However, the Company made a strategic decision to offer promotional discounts of $3.2 million to promote new product sales in the Chinese marketplace, primarily for the newly released formulations of AMDL's best-selling Goodnak(R) anti-aging product line. The existing promotional discounts will carry forward into the fourth quarter of 2008 and the first quarter of 2009. Based upon this information, AMDL continues to anticipate targeted gross sales of approximately $32 to $36 million for 2008. With regards to earnings guidance, the Company now estimates net income before foreign currency translation to be between $1.8 and $ 2.2 million for FY2008.
"We're operating AMDL for long-term success in a period of accelerated growth," said AMDL's Chairman and newly appointed CEO Mr. Douglas MacLellan. "We made a strategic and conscious decision to provide sales promotion discounts for certain new products in the third and fourth quarters which we believe will accelerate the introduction and market penetration. Specifically, sales promotion discounts incurred this quarter are the result of a promotion campaign to expand AMDL's sales footprint for newly released formulation of our Goodnak anti-aging line -- AMDL's highest profit margin product line. This is an investment and important part of our marketing strategy to increase sales revenue; bolster AMDL's competitive position in China and new markets and to drive long-term growth for the Company & our shareholders."
AMDL will discuss its business outlook during its regular quarterly conference call which is scheduled for the end of November. Specific details will be announced later this month.
Mr. MacLellan continued, "With the recent adjustments made in our business -- including an expanded and strengthened senior management team and board of directors, revised business strategy, and prioritized focus on securing additional capital to support AMDL's future growth -- we have embarked on the most exciting era in the Company's history. What lies ahead is the perfect opportunity to establish AMDL as a market-winning leader that delivers lucrative, long-term returns for our employees, partners, customers and shareholders."
Mr. MacLellan will cover today's news in a scheduled presentation he will deliver at Rodman & Renshaw's Annual Global Investment Conference taking place today, November 12th, 2008 at the New York Palace Hotel in New York City. Additionally, interested parties can download a copy of Mr. MacLellan's presentation through the AMDL corporate website located http://www.amdl.com under the "news" section. For additional information please contact Kristine Szarkowitz, SVP, AMDL Investor Relations at 206-310-5323 or email@example.com.
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 over 490 people in the U.S. and China.
Forward Looking Statements:
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained in this document include certain
predictions and projections that may be considered forward-looking
statements under securities law. These statements involve a number of
important risks and uncertainties that could cause actual results to differ
materially including, but not limited to, the performance of joint venture
partners, as well as other economic, competitive and technological factors
involving the Company's operations, markets, services, products, and
prices. With respect to AMDL Inc., except for the historical information
contained herein, the matters discussed in this document are
forward-looking statements involving risks and uncertainties that could
cause actual results to differ materially from those in such
forward-looking statements. Potential risks and uncertainties related to
the Company's access to additional capital, competition and dependence on
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|SOURCE AMDL, Inc.|
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