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

dical equipment, particularly for robotic surgical systems, resulting from the Chinese government's review of import approvals, and also reflects the overall timing of the tender process in China. Gross profit margin was 28% and was in line with historical averages. The division had a loss from operations before foreign exchange gains of $1.5 million compared with income from operations of approximately $582,000 in the prior year period.

"The government's review of importing high value technologies into public hospitals is a routine process impacting new, big ticket medical products. We believe that the review itself substantiates the continued demand we see for premium medical technology in China, and bodes well for future sales across our portfolio despite causing disruptions to daVinci sales this quarter. Our expectation for the order flow for daVinci's has not changed and we continue to expect sales of one to two systems per quarter on average, over time. We also see excitement in the market for the other new technologies we have introduced recently, including in ultrasound and digital mammography, for example. In addition, over the first and second quarters this year we have shipped products under our KfW Development Bank and U.S. Export Import Bank contracts and expect to execute additional government backed contracts in the future," concluded Lipson.

Conference Call

Management will host a conference call today at 8:00 am ET today to discuss financial results. To participate in the conference call, international callers dial 1-913-312-1510 and domestic callers dial 1-888-724- 9518 approximately 10 minutes before the conference call is scheduled to begin.

The telephone replay will be available from the day of the call until November 23, 2009 by dialing (international) 1-719-457-0820 and (domestic) 1- 888-203-1112, passcode 9542409.

A webcast will be accessible via Chindex's website
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SOURCE Chindex International, Inc.
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