AMDL, Inc. Announces 2009 Financial Guidance and First Quarter Business Objectives
January 26 2009 - 9:30AM
PR Newswire (US)
TUSTIN, Calif., Jan. 26 /PRNewswire-FirstCall/ -- AMDL, Inc. (NYSE
Alternext US: ADL), a leading vertically integrated
bio-pharmaceutical company with operations in the U.S. and China,
announced today its fiscal year 2009 preliminary financial guidance
and first quarter business objectives. Fiscal Year 2008 Guidance
AMDL reaffirms its fiscal year 2008 financial guidance of gross
revenues in the previously announced range of US$32 million to $36
million, which represents more than a 100% increase over the US$15
million in gross revenues in fiscal year 2007. For fiscal year
2008, AMDL estimates net income after taxes but before foreign
currency translation gains of between US$900,000 and $1.3 million.
Comprehensive gains after foreign currency translations are
estimated to be between US$2.4 and $2.6 million, a downward
adjustment that is due to the recently announced equity incentive
plan and one-time adjustment for severance payments accrued for
AMDL's prior CEO. Fiscal Year 2009 Preliminary Guidance AMDL has
successfully achieved over 100% gross revenue growth for the past
consecutive four years and expects to achieve a comparable gross
revenue growth rate for fiscal year 2009 with estimated gross
revenues of US$64 million to $72 million and net income between
US$8 million and $12 million after taxes and before foreign
currency translation gains or losses for its China-based operations
only. This represents an approximate 100% increase in gross
revenues over the Company's fiscal year 2008 performance and does
not include sales revenue projections for the AMDL ELISA DR-70(R)
(FDP) cancer test or export sales for the Company's Human Placental
Extract (HPE) anti-aging product line, both of which AMDL
anticipates it will begin selling in the second quarter of 2009.
AMDL believes anticipated revenues from these two products could
potentially result in an additional US$25 million in gross revenues
and plans to provide formal revenue guidance for these products in
the second quarter of 2009. To achieve its fiscal year 2009 revenue
projections, AMDL will execute three key business strategies that
include: -- Launching at least eight new Human Placenta Extract
(HPE) product formulations, expanding the sales of our HPE
anti-aging products to at least 36 additional Chinese markets
serving over 1 million people and exporting select HPE product
formulations to strategic international markets. -- Commercializing
the AMDL ELISA DR-70 (FDP) cancer monitoring test in the U.S. for
monitoring of colorectal cancer and developing and marketing the
product as a complementary test to other existing molecular
diagnostic tests. Specifically, the Company expects to the sell the
AMDL DR-70 ELISA (FDP) cancer test as a lung cancer screening test
in Canada, as a general cancer screening test in Korea, Taiwan,
Europe, and other non-harmonized countries in the Asian-Pacific
market, and as a general cancer screen and/or a cancer specific
test in Latin America and the Middle East. -- Continuing aggressive
sales of the Company's top-selling pharmaceutical products in China
with a focus on expanding to at least 36 additional Chinese markets
serving over 1 million people. In fiscal year 2008 pharmaceutical
product sales through AMDL's China-based wholly-owned subsidiary
Jade Pharmaceuticals Inc. (JPI), which has sole ownership of two
China-based pharmaceutical companies (Jiangxi Shangrao Kangda
Pharmacy Co., Ltd. (JJB) and Yangbian Yiqiao Biochemistry Pharmacy
Co., Ltd. (YYB), accounted for approximately 97% of the Company's
total sales; and sales of the AMDL ELISA DR-70 (FDP) cancer test
accounted for the remaining 3% of revenues. In fiscal year 2009,
AMDL anticipates a shift in its revenue mix with product exports
for the HPE anti-aging line and the AMDL ELISA DR-70 (FDP) cancer
test combined to comprise up to 20% of total fiscal year 2009
sales, and pharmaceutical sales in China to account for the
remaining 80%. AMDL's Chairman and CEO, Douglas MacLellan, stated,
"We are implementing a 2009 strategic business plan focused on
three primary activities. This includes expanding product
distribution and sales in China, continuing R&D on high-margin
products that include HPE and the AMDL ELISA DR-70 (FDP) cancer
test, and driving distribution and product sales in international
markets beyond China where there is significant revenue opportunity
for high-demand, high-margin products like HPE and DR-70." Q1 2009
Business Objectives In support of the Company's fiscal year 2009
financial projections, AMDL is focused on the following key
business objectives for the first quarter of 2009: -- Launch a new
international and domestic brand strategy that effectively
communicates the Company, its specific lines of business and
expanded line of HPE export products. -- Establish various U.S. and
China-based credit facilities to provide up to US$12-16 million in
additional working capital to meet AMDL's 12-18 month funding
requirements. In fiscal year 2008 the Company worked diligently to
attract additional capital with limited success that was primarily
due to the less than attractive U.S. and China capital and banking
markets. With significant and consistent revenue growth in 2008 and
a solid platform for success already underway for fiscal year 2009,
the Company expects to successfully secure credit facilities in
both the U.S. and China during the first half of 2009. -- Expand
the Company's investor relations strategy to target and reach
retail broker communities across the U.S. and secure independent
analyst research coverage from at least two broker dealers. --
Establish an expanded world-renowned scientific advisory board
consisting of industry specialists in the fields of 1) in vitro
diagnostics ("IVD") research & development and 2) anti-aging
skin care products to support expanded sales of AMDL's Human
Placenta Extract (HPE) anti-aging products. -- Secure a minimum of
12 new international distributors for the AMDL ELISA DR-70 (FDP)
cancer monitoring test and HPE anti-aging product line.
Distributors targeted will serve the North American, Latin
American, European, Middle-Eastern and Asia-Pacific markets. --
Secure at least two clinical trial contracts at world-renowned U.S.
clinical hospitals to test a next generation version of the AMDL
ELISA DR-70 (FDP) colon cancer monitoring test. (Successful
completion of these studies could establish the AMDL ELISA DR-70
(FDP) cancer test as the standard of care for the monitoring of
colon cancer patients.) -- Develop and launch a minimum of eight
new HPE anti-aging product formulations. -- Explore the potential
acquisition of one or more China-based pharmaceutical distribution
companies with the goal of expanding distribution reach and
increasing gross sales for certain products specifically in China.
-- Enter into agreements to consolidate both of JPI's
wholly-foreign owned enterprise (WFOE) pharmaceutical manufacturing
and sales operations (JJB & YYB) into a single operation
located in Shangrao, Jiangxi Province - a location in closer
proximity to China's urban regions. The Company anticipates
receiving over $8 million of relocation cost reimbursements and
proceeds from the sale of certain of its existing properties. These
funds would be used to underwrite the development of a new
single-site facility. The Company expects these new facility
development activities to: 1) attract regional tax and development
incentives; 2) significantly improve JPI's operational
efficiencies; 3) support the retention of highly qualified
employees; and 4) lower overall operational costs. The relocation
process is expected to take up to 24 months and will be implemented
in a manner that will not disrupt existing operations, product
manufacturing and/or distribution. Mr. MacLellan continued, "Guided
by an aggressive business strategy and quarterly objectives¸ AMDL
is in the strongest position the business has ever been in its
history. With the support of our incredibly strong team, both in
the U.S. and China, we have complete confidence the Company will
meet, and possibly exceed, our Corporate and financial targets for
2009. We look forward to a strong year for our customers, partners,
employees and shareholders." About AMDL: Headquartered in Tustin,
CA with operations in Shenzhen, Jiangxi, and Jilin, China, AMDL,
Inc., along with its subsidiary Jade Pharmaceutical Inc. (JPI), is
a vertically integrated bio-pharmaceutical company devoted to the
research, development, manufacturing, and marketing of diagnostic,
pharmaceutical, nutritional supplement, and cosmetic products. The
company employs approximately 500 people in the U.S. and China.
Forward-Looking Statements: Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: The statements contained
in this document include certain predictions and projections that
may be considered forward-looking statements under securities law.
These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially
including, but not limited to, the performance of joint venture
partners, as well as other economic, competitive and technological
factors involving the Company's operations, markets, services,
products, and prices. With respect to AMDL, Inc., except for the
historical information contained herein, the matters discussed in
this document are forward-looking statements involving risks and
uncertainties that could cause actual results to differ materially
from those in such forward-looking statements. AMDL Contact:
Kristine Szarkowitz Director-Investor Relations (Tel :) 206.
310.5323 DATASOURCE: AMDL, Inc. CONTACT: Kristine Szarkowitz,
Director-Investor Relations of AMDL, +1-206-310-5323,
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