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

the United Family Healthcare network.

Fiscal 2009 Outlook:

Lipson stated, "Regarding the remainder of fiscal 2009, with continued progress in the Medical Products division, as we noted last week we are more enthusiastic about our prospects for the second half of the year. We now expect Medical Products revenue of $50.0-$55.0 million for the second half of the year and are now reporting profitability in the division on a quarterly basis earlier than expected.

"In the Healthcare Services division, we believe this quarter's results are reflective of the well-publicized business slowdown related to the Olympics. However, since the conclusion of the games, we have seen revenue levels return to normal and we continue to expect an increase in annual revenues of approximately 30% over fiscal 2008. Operating margins have been negatively impacted in the recent quarters primarily as a result of increased expense related to renewal of multi-year contracts for physicians in the existing markets of Beijing and Shanghai as well as development expenses for new UFH facilities. We expect to continue to see development expenses impact operations at similar levels over the next several quarters as operations in the new Guangzhou clinic get underway. Operating margins in existing markets will be slightly lower than expected due to larger than anticipated increases in compensation as reported in our first quarter results.

"Although we remain enthusiastic about our full-year operating results, we were disappointed with the effects of global economic events on our investments in certain CDs. As noted above, we have redeemed the CDs and will incur an early redemption penalty of $1.1 million which will be partially offset on the income statement by the reversal of $0.6 million of CD investment discounts previously recorded for a net charge in the third quarter of $0.5 million or an estimated $0.03 per diluted share in the third quarter of fiscal 2009. The reinvest
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SOURCE Chindex International, Inc.
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Related medicine news :

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5. Chindexs United Family Healthcare Launches ChinaHealthWatch.org - A global resource for travelers to China
6. Chindex International, Inc. Announces Receipt of Key Regulatory ApprovalsChina SFDA Certificates Received Include Intuitive Surgical daVinci S
7. Chindex and United Family Healthcare Respond to Sichuan Earthquake Disaster
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9. Chindex International, Inc. to Present at China Investment Conferences in New York City - May 20, 21, 22; Conferences Presented By Brean Murray, Carret & Co., Oppenhiemer & Co. and Citigroup
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11. Chindex International, Inc. Announces Three-For-Two Stock Split
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