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Mindray Medical posts lower profit in 3Q

Mon, 11/08/2010 - 4:45pm
The Associated Press

Mindray Medical International Ltd. said Monday its profit sank 17 percent from a year ago, when the medical device maker benefited from the early termination of a contract.

The company reported net income of $35.9 million, or 30 cents a share, for the three months ended Sept. 30. That compares with net income of $43.4 million, or 38 cents a share, a year earlier.

Excluding special items such as an $11.8 million benefit from the early termination of a contract, Mindray earned $39.5 million, or 34 cents a share, the company said.

Analysts polled by Thomson Reuters had expected, on average, a profit of 32 cents a share. The analysts typically exclude one-time items from their estimates.

Revenue climbed 11.3 percent to $168.3 million from $151.1 million in the prior-year quarter.

Xu Hang, Mindray's chairman and co-CEO, noted international sales grew 17.7 percent.

In China, revenue grew 3.3 percent on an annual basis, not as strong as the year prior, largely as a result of continued softening in government spending for medical device purchasing, he said.

"While the long-term prospects of the healthcare sector in China driven by reform remain favorable, the timing associated with medical device purchasing under the plan remains unclear," Hang said.

The Chinese company expects its capital expenditure for 2010 to remain in the range of $60 million to $70 million.

Mindray's U.S.-traded shares fell $1.03, or 3.5 percent, to $28.80 in aftermarket trading after adding 5 cents to $29.83 during the regular session.

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