FY2009 Outlook
AMDL reaffirms that it is on track with its FY2009 projections and expects to meet its FY2009 financial guidance of estimated gross revenues of $64 – $72 million and net income between $8 – $12 million after taxes and before foreign currency translation gains or losses.
Financial Results
Gross profits for the first quarter FY2009 declined to about $1.1 million compared to about $1.4 million for the same period in FY2008.
Selling, general and administrative expenses for the company were about $2.59 million for the quarter ended March 31, 2009 as compared to about $2.80 million for the same period in FY2008 due to a reduction in payroll expense and professional fees.
As earlier announced, AMDL has discontinued operations at its YYB subsidiary and is negotiating the sale of that facility. For the quarter ended March 31, 2009 the company recognized income of about $ 247,000 from discontinued operations.
Seasonally the first quarter is consistently our most challenging, and as we communicated in our FY2008 earnings call, we anticipated first quarter results to be slightly lower than the corresponding period last year, commented Douglas MacLellan, chairman and chief executive officer of AMDL Downward first quarter sales resulted from the combination of a traditional slower business environment surrounding the Chinese New Year holiday and product sales impact resulting from a non-operational China-based production line and expired distributor contracts.
We remain confident in the Company’s near-term outlook, 2009 business strategy and financial forecast, continued MacLellan. Our China operations remain solid and sales are on track. We are also making strong traction with our in vitro diagnostics division and the commercialization of AMDL’s DR-70 cancer test. This includes the signing of a collaborative partnership with Mayo Clinic and securing our first customer and distributor partnerships with Precision Diagnostics Laboratories Inc. and GenWay Biotech Inc. respectively. As we move further into the second quarter we expect to secure additional partnerships which we believe will have substantial impact on the commercialization of DR-70. Lastly, management continues to assess AMDL’s overall operations and has already taken direct steps to strengthen the Company’s expense structure and increase cash flow. With cost control and financing initiatives underway, we expect to maintain our track record of profitability in China, proceed down a path to profitability in our Tustin-based operations, and meet AMDL’s 2009 guidance.