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Chindex International, Inc. Reports Third Quarter Fiscal Year 2010 Financial Results
Date:2/8/2010

health imaging products and delivery of two robotic surgical systems.

Revenue performance year to date also reflects continued delays in the order cycle for high value capital medical equipment, particularly for robotic surgical systems, resulting from the Chinese government's review of these technologies as well as the overall timing of the tender process in China. Sales excluding daVinci were lower than the prior year period, reflecting the introduction of a new generation of technology in diagnostic ultrasound which replaced the previous market leading product. During this quarter, the Company also recorded revenues of approximately $3.2 million under its current KfW Development Bank contracts.

Gross profit for the Medical Products division increased to $7.3 million from $5.6 million in the prior year's third quarter, representing an increase in gross profit margin to 29% from 26% in the year over year period. The variance in gross profit margin is in line with historical averages.

Lipson concluded, "The government's review of high value technologies used in public hospitals is a routine process impacting new, big ticket medical products. We believe that the review itself substantiates the continued demand we see for premium medical technology in China, and bodes well for future sales across our portfolio despite causing disruptions to daVinci sales this quarter."

Fiscal 2010 Third Quarter Conference Call

Management will host a conference call today at 8:00 am ET to discuss financial results.

To participate in the conference call, international callers should dial 1-719-325-4757 and domestic callers should dial 1-877-874-1568 approximately 10 minutes before the conference
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SOURCE Chindex International, Inc.
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