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Chindex International Inc. Reports Second Quarter FY 2009 Financial Results
Date:11/10/2008

rop in markets worldwide.

Medical Products division business results:

For the second quarter of fiscal year 2009, revenue increased 9% to $19.0 million from $17.6 million for the prior year quarter. Revenue during the period included two robotic surgical systems.

Expenses for the Medical Products division increased 23.3% to $5.3 million from $4.3 million for the prior year quarter. Increased expenses during the period were a result of increased sales activity concurrent with and in advance of expected greater increases in sales.

Gross profit for the Medical Products division increased to $5.9 million from $4.6 million in the prior year's second quarter, representing an increase in gross profit margin to 31% from 26% in the prior year's second quarter. The gross profit margin in the current period was above historical averages due in part to higher margins on certain contract shipments which accounted for a significant portion of total division revenue in the period.

Healthcare Services division business results:

For the second quarter of fiscal year 2009, revenue increased 26% to $19.1 million from $15.1 million for the prior year quarter. The increase in revenue is attributable to growth in both inpatient and outpatient services provided in the Beijing and Shanghai markets. Revenue growth, however, continued to be negatively impacted during the July and August months due to disruptions in travel and tourism related to the Olympics.

During the period, operating costs increased 38% to $18.0 million from $13.1 million in the prior year quarter. The increase in costs was primarily due to an increase in salary expense, resulting from the renegotiation of multi-year physician contracts and an expected ramp-up in personnel needed to meet the increasing demand for services in Beijing and Shanghai, to costs related to the new clinic in Guangzhou, which opened in early October, and to other costs related to the development of
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SOURCE Chindex International, Inc.
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