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Chindex International, Inc. Reports Third Quarter FY 2009 Financial Results
Date:2/9/2009

network, as well as $653,000, or $0.03 per diluted share, in connection with variable-return CDs described above.

Medical Products division business results:

For the third quarter of fiscal year 2009, revenue increased 15% to $21.1 million from $18.3 million in the prior year quarter. As of December 31, 2008, deferred revenue increased to $3.8 million, which mainly reflects $2.4 million of deferred revenue recorded in the fiscal third quarter of 2009 related to the execution of one of the KfW Development Bank contracts.

Gross profit for the Medical Products division increased to $5.6 million from $5.2 million in the prior year's third quarter, representing a decrease in gross profit margin to 26% from 28% in the year over year period. A 2% variance in gross profit margin is in line with historical averages.

Selling, marketing, general and administrative expenses for the Medical Products division increased 24% to $6.2 million from $5.0 million in the third quarter of the prior year. Increased expenses during the period were a result of increased selling activity in advance of expected sales increases.

Lipson added, "Our Medical Products division continues to be well positioned to capitalize on the increased need for high end, high margin medical products in China. We approach this division with a long-term view. While our costs did not increase substantially in this division versus the second quarter of fiscal 2009, results were impacted by timing of revenue recognition."

Healthcare Services division business results:

For the third quarter of fiscal year 2009, revenue increased 16% to $20.5 million from $17.7 million for the prior year quarter. The increase in revenue is attributable to growth in both inpatient and outpatient revenues provided in the Beijing and Shanghai markets, but which was less than expected.

During the period,
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SOURCE Chindex International, Inc.
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