TUSTIN, Calif., Aug. 15 /PRNewswire-FirstCall/ -- (http://www.amdl.com) AMDL Inc. (Amex: ADL), a leading vertically integrated bio-pharmaceutical company with major operations in China and the US, today reported today unaudited results and the filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission ("SEC") for the quarter ended June 30, 2008. The Company reported gross revenues of $5.8 million -- an increase of 140% compared with $2.4 million in sales reported for the second quarter of 2007.
Gross profits for the second quarter ended June 30, 2008 increased 152% to $2.9 million compared to $1.1 million for the same period in 2007. The Company's consolidated net losses for the second quarter ended June 30, 2008 were $429,567 or ($0.03) per share compared to a consolidated net loss of $2,264,305 or ($0.17) per share for the same period in 2007. Comprehensive gains after foreign currency translation were $94,448 or $0.006 per share for the second quarter ended June 30, 2008 compared to a loss of $1.9 million.
The lower than expected results for the second quarter of 2008 were in part due delayed revenue recognition from unshipped product for the Company's Domperidone and Goodnak products, higher than expected SG&A expenses, and lost revenues of approximately $110,000 from product donations the Company provided in support of the Sichuan Earthquake disaster relief efforts. Revenue loss as a result of the unshipped Domperidone and Goodnak were the result of interrupted distributor sales cycles also from the earthquake disaster. AMDL is working with its distributor network to accelerate the sales cycles for these products and expects to fully recoup lost revenues in the third and fourth quarters of 2008.
According the Gary Dreher, President and Chief Operating Office of AMDL, "We remain highly optimistic about AMDL's near-term outlook, and confident we will meet our 2008 business and financial targets. This means, at a minimum, we are focused on doubling sales in 2008 and annually over the next three years, leveraging our recent FDA clearance to market for our DR-70(R) cancer monitoring product, and securing additional regulatory approvals for other key products including the MyHPV(R) Chip Kit Test."
For FY2008 AMDL has targeted net sales ranging between $30 to $38.7 million with gross margins of 46% to 52% -- a 100% increase over the same period in 2007 where the Company achieved gross revenues of $15 million with a gross margin of 54% of gross revenues. For FY2008, R&D and SG&A expenses are expected to range between $6.8 to $9.5 million, including stock-based (common shares, warrants and options) compensation expenses. This is compared to $9.9 million over the same period in 2007. Net income after taxes is expected to be between $9.5 and $12.2 million including any foreign currency adjustments.
Currently, AMDL is in process of securing debt financing based on its AAA bank rating for its real estate and plant assets in China. The Company plans to secure $4 million in debt financing, which will be primarily used to fund on-going product distribution and sales throughout China; the development of additional production lines in China; execution on its business development strategy for the recently FDA-approved DR-70(R) monitoring test for colorectal cancer; securing SFDA-approval for DR-70(R) and MyHPV(R) Chip Test Kit: and the marketing, sales and distribution for the newest Goodank(R) anti-aging product formulations. The company also plans to use a portion of the funds to acquire a China-based distributor which will in effect allow AMDL to become an independent distributor in specific regions in China.
AMDL will conduct a conference call with investors to discuss its second quarter 2008 financial results and current financial prospects on Tuesday, August 19, 2008 at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time). To listen to the conference call, or to view the financial or other statistical information required by Securities and Exchange Commission (SEC) Regulation G, please visit the Investors section of the AMDL website at http://www.amdl.com/investors . The conference call script will be recorded and available for viewing until 5:00 p.m. Pacific Time, Wednesday, August 20, 2008.
Consolidated financial statements for the second quarter ended June 30, 2008, which were included in AMDL's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2008, contained a 'going concern' qualification from its independent registered public accounting firm KMJ Corbin & Company, LLP. This announcement is in compliance with the AMEX Company Guide Rule 610(b) requiring a public announcement of the receipt of an audit opinion that contains a going concern qualification. This announcement does not reflect any change or amendment to the consolidated financial statements as filed. Further information regarding the going concern qualification is contained in AMDL's Quarterly Report on Form 10-Q for the second quarter ended June 30, 2008.
About AMDL: More information about AMDL and its products can be obtained at http://www.amdl.com. AMDL, together with Jade, engages in the development, manufacture and marketing of proprietary pharmaceutical and diagnostic products.
About Jade Pharmaceuticals Inc.: JPI has access to the fastest growing pharmaceutical and consumer market in the world: China. AMDL, through its Jade subsidiaries, currently holds licenses for 133 products that are manufactured as large volume injection fluids, tablets and other related products. It currently manufactures over 20 key generic, over-the-counter and supplemental pharmaceutical products under certified Chinese Good Manufacturing Practice (CGMP) standards.
Forward-looking Statements: This news release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Such statements are subject to certain risks and
uncertainties, and actual circumstances, events or results may differ
materially from those projected in such forward-looking statements. The
Company cautions readers not to place undue reliance on any forward-looking
statements. The Company does not undertake, and specifically disclaims any
obligation, to update or revise such statements to reflect new
circumstances or unanticipated events as they occur.
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