TUSTIN, Calif., Aug. 15 (http://www.amdl.com)AMDL Inc. (Amex: ADL), a leading vertically integrated bio-pharmaceuticalcompany with major operations in China and the US, today reported todayunaudited results and the filing of its Quarterly Report on Form 10-Q with theSecurities and Exchange Commission ("SEC") for the quarter ended June 30,2008. The Company reported gross revenues of $5.8 million (unaudited) -- anincrease of 140% compared with $2.4 million in sales reported for the secondquarter of 2007.
Gross profits for the second quarter ended June 30, 2008 increased 152% to$2.9 million (unaudited) 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 (unaudited) compared to a consolidatednet 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 for thesecond quarter ended June 30, 2008 compared to a loss of $1.9 million or $0.17per share.
The lower than expected results for the second quarter of 2008 were inpart due delayed revenue recognition from unshipped product for the Company'sDomperidone and Goodnak products, higher than expected SG&A expenses, and lostrevenues of approximately $110,000 from product donations the Company providedin support of the Sichuan Earthquake disaster relief efforts. Revenue loss asa result of the unshipped Domperidone and Goodnak were the result ofinterrupted distributor sales cycles also from the earthquake disaster. AMDLis working with its distributor network to accelerate the sales cycles forthese products and expects to fully recoup lost revenues in the third andfourth 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 wewill 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 threeyears, leveraging our recent FDA clearance to market for our DR-70(R) cancermonitoring product, and securing additional regulatory approvals for other keyproducts including the MyHPV(R) Chip Kit Test."
For FY2008 AMDL has targeted net sales ranging between $30 to $38.7million with gross margins of 46% to 52% -- a 100% increase over the sameperiod in 2007 where the Company achieved gross revenues of $15 million with agross margin of 54% of gross revenues. For FY2008, R&D and SG&A expenses areexpected to range between $7.8 to $10.5 million, including stock-based (commonshares, warrants and options) compensation expenses. This is compared to $9.9million over the same period in 2007. Net income after taxes is expected to bebetween $8.5 and $11.2 million including any foreign currency adjustments.
Currently, AMDL is in process of securing up to $14 million in new debtfinancing including $4 million in private placement debt financing and up to$10 million in new China bank credit facilities, based upon the Company'scurrent AAA bank rating and its real estate and plant assets in China. Thesenew debt financings are anticipated to be used to fund on-going productdistribution and sales throughout China; the development of additionalproduction lines in China; execution on its business development strategy forthe 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 themarketing, sales and distribution for the newest Goodnak(R) anti-aging productformulations. The Company also plans to use a portion of the funds to acquirea China-based distributor which will in effect allow AMDL to become anindependent distributor in specific regions in China.
AMDL will conduct a conference call with investors to discuss its secondquarter 2008 financial resu