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China Medical Technologies Reports First Fiscal Quarter Financial Results
Date:8/16/2011

e assets from operating expenses to cost of revenues after the commencement of sales of HPV-DNA chips in 2Q FY2010. Such factor was partially offset by the positive impact of more contribution from the sales of FISH probes and HPV-DNA chips which generate higher gross margin and a decrease in the number of free ECLIA analyzers provided to distributors and free SPR analyzers provided to hospitals. Non-GAAP gross margin was 83.1% for 1Q FY2011 which increased year-over-year from 79.1% for the corresponding period of FY2010. The year-over-year increase in non-GAAP gross margin was primarily due to more contribution from the sales of FISH probes and HPV-DNA chips and the decrease in free ECLIA analyzers and SPR analyzers as noted above.

Research and development expenses were RMB10.8 million (US$1.7 million) for 1Q FY2011, representing a 1.1% year-over-year increase. The year-over-year increase was primarily due to an increase in salaries of research personnel offset by a decrease in stock compensation expense. Non-GAAP research and development expenses were RMB9.7 million (US$1.5 million) for 1Q FY2011, representing a 5.3% year-over-year increase. The year-over-year increase was primarily due to the increase in salaries of research personnel.

Sales and marketing expenses were RMB23.3 million (US$3.6 million) for 1Q FY2011, representing a 27.4% year-over-year increase. Non-GAAP sales and marketing expenses were RMB23.0 million (US$3.6 million) for 1Q FY2011, representing a 26.5% year-over-year increase. The year-over-year increases were primarily due to an increase in direct sales efforts for molecular diagnostic systems.

General and administrative expenses were RMB22.6 million (US$3.5 million) for 1Q FY2011, representing a 10.1% year-over-year decrease. The year-over-year decrease was primarily due to a decrease in stock compensation expense. Non-GAAP general and administrative expenses were RMB16.3 million (US$2.5 million) for 1Q FY2011, representi
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SOURCE China Medical Technologies, Inc.
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