Groupe Athena, Inc. Clarifies Previous Guidance
MUMBAI, India, Aug. 24, 2011 /PRNewswire/ -- Groupe Athena, Inc. (Pink Sheets: GATA) announced on August 15, 2011 they have approximately $60 million in customer orders that they are currently processing, and they are expecting this number to increase in the near term. Based on the orders in hand the company expects to be able to convert at least two thirds or approximately $40 million into revenue during the current fiscal year.
The company also stated that due to the recent capital investments in equipment and facilities which has increased their ability to perform more services in-house, they will to be able to increase net profit margins on future revenues by 1.5-2%. To clarify this projection the company issued the following example:
Approximate current hourly rate for outsourcing of tests: $1,750
Approximate In-house hourly rate for same process: $3-400
Based on this scenario the company expects to reduce these costs up to 80% over current levels.
The resulting savings to net earnings would have added several hundred thousand dollars to fiscal 2011 net earnings and will have a positive impact on any future earnings.
The company is on track to report revenue of $12,000,000 for the current quarter, which would be more than the first and second quarters combined of the previous fiscal year and well in line with their expectations for the current fiscal year.
The company is still committed to funding all capital expenditures entirely from internal cash accruals without any further dilution or debt increases.
As was previously stated, the Indian pharmaceutical industry is increasingly focusing on exports to the United States and GATA is well positioned to help them get their products approved by the FDA for sales in the US. All of these are potential clients and the Company believes it has an advantage over competitors due to the facilities based in India, and their ability to deliver quick feedback to clients that could result in expedited order generation. With recent additions to equipment, the company will continue to take on additional contracts and continue to anticipate further growth.
About Groupe Athena, Inc.
Groupe Athena, Inc. was incorporated in June 2008 and began operations on July 1 of that year. The company is a research and testing organization and helps various pharmaceutical and medical products and devices companies in India and Southeast Asia to get regulatory approvals and facilitate exports of their products to the United States. The Company accomplishes this by assisting clients from concept through development, providing consultation on regulatory requirements, filings and processes.
The company has a research and marketing facility in India that currently employs 15 consultants and marketing personnel and is working towards aggressively expanding its presence in the Indian pharmaceutical industry. The Company's web address is www.groupeathena.com
For more information contact:
Corporate Shareholder Relations, Inc.
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SOURCE Groupe Athena, Inc.