Dehaier Medical Systems Ltd. provided earnings guidance for the fiscal year ended December 31, 2015. For the year, the company expects to report revenues from the continuing operation of approximately $1.32 million, representing a year-over-year decrease of approximately 67.6%. This decrease in revenue was mainly due to weak sales both in sleep respiratory business and in traditional medical devices business.

The company expects gross loss from the continuing operation of approximately $58,000, compared to gross profit of $1.1 million in 2014. This gross loss was attributable to the substantially lower revenues, which exceeded even the lower fixed costs allocated to the continued business lines. The company expects to realize an operating loss of around $18.57 million, compared to operating loss of $2.36 million for the year ended December 31, 2014.

As a result of the foregoing, the company expects net loss from continuing operations of approximately $18.11 million in 2015. The company expects net loss from discontinuing operations of approximately $18.38 million in 2015. Based on the estimated full-year revenues, the company anticipates net loss attributable to the company from both continuing and discontinuing operations to be approximately $35.96 million, or fully diluted loss per share of $6.13, compared to net income of $1 million, or $0.18 per diluted share a year ago.

This substantial loss resulted from gross loss and negative leverage, combined with higher than expected operating costs off of a weak revenue base.