Rudd Report Updates AMDL's Achievements; Predicts Significantly Improved Future Operating Results
September 04 2007 - 8:27AM
PR Newswire (US)
TUSTIN, Calif., Sept. 4 /PRNewswire/ -- AMDL, Inc. (AMEX:ADL),
headquartered in Tustin, California, with operations in Shenzhen,
Jiangxi and Jilin China, through its wholly owned subsidiary Jade
Pharmaceutical Inc., is an international biopharma company. AMDL
together with Jade, engages in the development, manufacture and
marketing of proprietary pharmaceutical and diagnostic products.
Set forth in this news release are highlights of the recent Rudd
Report including AMDL's achievements as cited by Mr. Rudd. Mr.
Rudd, a nationally syndicated columnist, is CEO of Savannah Capital
Management, a money management firm. 1. We feel that it is
important to recognize that on an operating cash basis, AMDL came
close to breaking even in the first six months of this year and
will likely be even or operating cash positive by the end of the
year. 2. With AMDL's most recent round of funding now completed, we
look for the additional funds to enable Jade to generate net
revenues for the year 2007 to $14.2 million or about double what
Jade did in 2006. 3. As Jade's new distribution agreements develop
their full potential, we believe that net sales will again double
by the end of 2008, reaching a total of $28.4 million. That should
result in gross profits for the company of about $7.1 million in
2007 and about $14.2 million in 2008. 4. We believe that Jade will
be able to show a net profit at the close of 2008 of approximately
$4.26 million, or 15 percent of net sales. With 12.58 million
shares outstanding after the recent financing that equates to a
profit of about 35 cents per share. 5. AMDL will receive FDA
approval for DR-70(R) sometime during the fourth quarter of 2007.
As such DR-70(R) will not contribute significantly to 2007 revenues
or profits. 6. An approval by the FDA of DR-70(R) in 2007 will
result in about $16 million in gross profits for AMDL in 2008, of
which at least $12 million will fall to the bottom line pre-tax
because the majority of all overhead expenses are already covered
in the Jade numbers. The after-tax net should then be about $8
million, or about 66 cents per share. 7. We do not believe that
DR-70(R) will have an appreciable effect on AMDL's earnings in this
calendar year even if it is approved in 2007. While we believe that
receiving approval is certainly an important factor to the
company's ongoing success, we also continue to stand by our opinion
that the importance of FDA approval has diminished somewhat in
light of the company's current and projected performance in China.
8. We feel that DR-70(R) is likely to be approved in China before
the FDA acts on AMDL's application. As such, we are basing our
projection for AMDL's performance in 2007 exclusively on the
performance of Jade. 9. With DR-70(R) approval, the two divisions
of AMDL would show total earnings for 2008 of $12.26 million, or
about $1.01 per share. We are assuming a multiple of 22 times
earnings, which is comparable other companies in the same industry.
Therefore, we continue to stand by our 2008 target for AMDL's
shares to $22 per share. 10. From a risk viewpoint, we feel
relatively certain that the Jade division will produce earnings of
35 cents per share in 2008. A multiple of 22 equates to $7.70 per
share. Therefore, we feel that the downside risk is not only
minimal but that there is an opportunity for substantial
appreciation in the share price even without FDA approval of
DR-70(R). About AMDL: More information about AMDL and its products
can be obtained at http://www.amdl.com/. About Jade: Jade has
access to the fastest growing pharmaceutical and consumer market in
the world: China. AMDL, through its subsidiaries, Jade currently
manufactures large volume injection fluids, tablets and other
related products, holding licenses for 133 products. It also
manufactures 107 generic, over the counter and supplemental
pharmaceutical products under certified Chinese Good Manufacturing
Practice (CGMP) standards. About The Rudd Report Disclaimer: This
disclaimer is an integral part of our service. Please read it
before investing in any security on which we report. Opinions are
solely those of the staff of The Rudd Report and are subject to
change without notice. Our reports are for information only and we
do not offer securities or solicit the offer of securities of any
company. Our reports are to inform the public and not to promote
any company or its securities. We do not inform any company in
advance of the nature or conclusions of our reports nor can a
company change what we write. In the case of AMDL we received a fee
for coverage of the current quarter in the amount of $6,000. Our
reports contain factual statements and opinions. We derive these
factual statements from sources that we believe are accurate.
However, we do not represent that the facts presented are accurate
or complete. Furthermore, the information contained in this report
may become inaccurate because of the passage of time and should
therefore be read for historical information only. 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. Contact: AMDL, Inc Mr. Paul
Knopick AMDL Investor Relations Direct Line: 949.707.5365 Voice
Mail: 714.505.4460 DATASOURCE: AMDL, Inc. CONTACT: Mr. Paul
Knopick, Investor Relations of AMDL, Inc, +1-949-707-5365, voice
mail, +1-714-505-4460 Web site: http://www.amdl.com/
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