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 an
|SOURCE AMDL, Inc.|
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