TUSTIN, Calif., Aug. 1 (http://www.amdl.com)AMDL, Inc. (Amex: ADL), a leading vertically integrated bio-pharmaceuticalcompany with major operations in China and the U.S., announced today itadjusted its financial guidance for the second quarter of 2008, which ended onJune 30, 2008, based upon unexpected delays in revenue recognition fromunshipped product of its Domperidone anti-emetic drug sold in China. AMDLreiterates that its gross FY2008 sales are anticipated to be between $30million and $38.7 million with gross margins expected to range between 46% and52%.
The delay in these shipments was the result of the May 12, 2008 earthquakedisaster in Southwestern China. Due to the earthquake, AMDL's subsidiary JJBwas forced to delay a portion of its Q2 Domperidone orders. Consequently, theCompany's second quarter gross revenues will be approximately $5.8 million,which is still approximately a 140% increase over Q2/2007. Net earnings aftercurrency 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, aone-time non-reoccurring land use payment and the donation of JJB products tothe China earthquake relief efforts. The lower than anticipated Q2 sales andearnings are now fully expected to be made up in both the third and fourthquarters of 2008.
AMDL has targeted net sales for FY2008 to increase at least 100% percentover FY2007 and anticipates they will be in the range of $30 to $38.7 millionwith gross margins of 46% to 52%. Gross revenues for FY2007 were $15 millionwith gross margin 54% of gross revenues. The FY2008 R&D and SG&A expenses areexpected to total approximately $6.8 to $8.7 million, which includesstock-based (common shares, warrants and options) compensation expenses. R&Dand SG&A expenses for FY2007 were a total of $9.9 million. Net income aftertaxes is expected to be between $9.5 and $12.2 million including any foreigncurrency adjustments.
According to Gary Dreher, Chief Executive Officer of AMDL, "We remainhighly optimistic about the Company's near-term outlook and confident we willcontinue meeting our FY2008 stated business and financial targets.Specifically, we remain focused on, at a minimum, doubling sales annually overthe next three years, and securing necessary regulatory approvals to introduceother key products like DR-70(R) and MyHPV(R) to the marketplace. We aredriving to establish JPI as one of the top 10 pharmaceutical companies inChina by 2011."
Headquartered in Tustin, CA with operations in Shenzhen, Jiangxi, andJilin, China, AMDL, Inc., along with its subsidiary Jade Pharmaceutical Inc.(JPI), is a vertically integrated bio-pharmaceutical Company devoted to theresearch, development, manufacturing, and marketing of diagnostic,pharmaceutical, nutritional supplement, and cosmetic products. The Companyemploys approximately 320 people in the U.S. and China. The Company has anadditional four pharmaceutical and diagnostic products under review by variousregulatory authorities.
Statements in this press release may constitute forward-looking statementsand are subject to numerous risks and uncertainties, including the market'sacceptance or demand for DR-70 or any of the Company's products, failure tocomplete successfully the development of other new or enhanced products, theCompany's future capital needs, any actions by the Company's distributionchannels that may be adverse to the Company, the success of competitiveproducts, other economic factors affecting the Company and its markets, andother risks detailed from time to time in the Company's filings with theSecurities and Exchange Commission. The actual results may differ materiallyfrom those contained in this press release. The Company disclaims anyobligation to update any statements in this press release.Kristine Szarkowit