Second Quarter Fiscal 2010 Financial Results
Revenue for the second quarter of fiscal 2010 was flat on a year over year basis at $38.1 million. Revenue from the Healthcare Services division increased 10% to $21.0 million from $19.1 million in the prior year period, and reflects continued growth of inpatient and outpatient volume offset by disruption due to construction of the expanded facility in Beijing. Revenue from the Medical Products division decreased 10% to $17.1 million from $19.0 million in the prior year period, and reflects delays in the order cycle for high value capital medical equipment, particularly robotic surgical systems, resulting from the Chinese government's review of import approvals and the timing of the tender process.
During the quarter, the Company recorded income from operations of $1.4 million, compared to $1.6 million in the same quarter of last year. Total operating costs and expenses were flat year over year at $36.7 million and reflect expense controls as well as normalized salary costs in the Healthcare Services division. Additionally, Chindex recognized development and startup expenses of approximately $313,000, equivalent to approximately $0.02 per diluted share, and non-cash stock compensation expense of $852,000, equivalent to approximately $0.05 per diluted share, in the second quarter of fiscal 2010. In the prior year period, the Company's development and startup expenses in the Healthcare Services division were $645,000, roughly $0.04 per diluted share, and non-cash stock compensation expense was $646,000 or roughly $0.04 per diluted share.
The Company's tax expense was approximately $1.0 million in the second quarter of fiscal 2010, an effective tax rate of 65.2%. The tax rate reflects losses in entities for which the Company cannot yet recognize benefit. In the prior year period, tax expense was approximately $251,000.
|SOURCE Chindex International, Inc.|
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