TUSTIN, Calif., June 23 AMDL, Inc. (Amex: ADL),http://www.amdl.com, a world leader in specialty pharmaceuticals headquarteredin Tustin, Ca., with operations in Shenzhen, Jiangxi, and Jilin, China, issuedtoday financial guidance for fiscal year ending December 31, 2008. AMDL'sgross FY2008 sales are anticipated to be between $30 million and $38.7 millionwith gross margins expected to range between 46% and 52%.
AMDL has targeted net sales for 2008 to increase at least 100% percent forthe same period in FY2007 and anticipates they will be in the range of $30 to$38.7 million with gross margins of 48% to 52% or $14.4 to $21.2 million.Gross revenues for FY2007 were $15 million with gross margin of $8.1 millionor 54% of gross revenues. The FY2008 R&D and SG&A expenses are expected tototal approximately $6.8 to $8.7 million, which includes stock-based (commonshares, warrants and options) compensation expenses. R&D and SG&A expenses forFY2007 were $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 are veryoptimistic about the Company's near-term outlook and confident we willcontinue meeting our stated business and financial targets. Specifically, weremain focused on, at a minimum, doubling sales annually over the next threeyears, thereby establishing JPI as one of the top 10 pharmaceutical companiesin China, and securing necessary regulatory approvals to introduce other keyproducts like DR-70(R) and MyHPV(R) to the marketplace."
Significant enhancements in AMDL's China operations and other previouslyannounced business opportunities have created a financial platform for theCompany to improve its sales and earnings profile during the second half ofFY2008. This projected growth is driven by the following business trends andinitiatives:
-- In FY07 AMDL signed 11 new distribution agreements for new andexisting products that include Ondansetron Hydrochloride, Domperidone tablets,Levofloxacin injectables, Diavitamin tablets and Goodnak injectible solutions.Historically, the China pharmaceutical industry and JPI's business haveexperienced strong sales during the 2nd, 3rd and 4th quarters, with the Q3 andQ4 quarters experiencing the greatest gains. AMDL anticipates sales throughthese distribution channels could yield up to $54 million for FY08 with anoverall increase in sales during Q2, Q3 & Q4 FY08;
-- Because of its expanded distribution network the Company expects toincrease annual gross sales in China by at least 100%, to approximately$30 - 38 million in FY08, while continuing to grow sales at a rate of 100%over the next 3 years;
-- In Q2/08 AMDL announced the availability of two new formulations underthe Goodnak(R) anti-aging product line. The Company expects to begin sellingthese products through retail channels in Q3/08;
-- A key focus for AMDL is securing JPI as one of the top 45 Chinapharmaceutical companies (ranked by sales) in 2008 and in the top 10companies by 2010**;
-- AMDL also has initiatives underway to expand its geographic expansioninto other China provinces for its Goodnak anti-aging product line, (includingthe recently released Goodnak capsule and lotion formulations which areexpected to significantly help broaden market penetration); and,
-- AMDL continues work to secure FDA and SFDA regulatory approvals forthe DR-70 cancer diagnostic test kit and MyHPV diagnostic chip kit*.
* Guidance numbers do not include revenues from DR-70 or MyHPV as theCompany is currently pursuing FDA and SFDA regulatory approvals in the U.S.and China respectively.
** The China pharmaceutical industry information noted above was citedfrom http://www.cpi.gov.cn sponsored by SFDA Information Center.
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