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Chindex International, Inc. Reports Second Quarter and First Half Fiscal 2010 Financial Results
Date:11/9/2009

Net income in the second quarter of fiscal 2010 was $538,000, or $0.03 per diluted share. This compares to net income of $862,000, or $0.05 per diluted share, in the second quarter of fiscal 2009.

Healthcare Services division business results:

Revenue in the second quarter of the fiscal year 2010 was $21.0 million, an increase of 10% from $19.1 million in the prior year quarter. Operating costs increased by 4% to $18.7 million from $18.0 million in the prior year's second quarter. Salary expense represented 48% of divisional revenue, down from 51% in the prior year period, and reflects the normalization of physician salary costs as well as increased staffing compared to the year before. Income from operations before foreign exchange gains increased to $2.3 million from $1.1 million in the prior year period.

Lipson stated, "Continued growth in patient volume throughout our hospital and clinic network during the second fiscal quarter demonstrates our unique offering, proven operating history and the continued growing demand for premium quality care in China. While on-site construction in Beijing caused some disruption in our existing offerings such as pediatrics, we remain extremely confident that high-end healthcare services in China address an increasingly affluent and growing, underserved market. Our sights remain set on our long-term goal to substantially grow our network in the coming years."

Medical Products division business results:

For the second quarter of fiscal 2010, revenue decreased 10% to $17.1 million from $19.0 million in the prior year period. The Company did not realize any sales of robotic surgical systems during the quarter and sales of diagnostic ultrasound, women's health imaging, clinical chemistry and cosmetic laser systems products increased at lower than expected rates. Revenue performance reflects delays in the order cycle for high value capital me
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SOURCE Chindex International, Inc.
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