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Chindex International, Inc. Reports Second Quarter and First Half Fiscal 2011 Financial Results
Date:11/8/2010

fiscal year 2011, revenue increased 11.4% to $23.4 million from $21.0 million in the prior year period. The increase reflects continued growth of inpatient and outpatient volume across the Company's United Family Healthcare network.

In the second quarter of fiscal 2011, operating costs increased 6.0% to $19.9 million, a rate commensurate with revenue growth and inclusive of additional staffing efforts in advance of new facility openings. Income from operations before foreign exchange increased 47.8% to $3.4 million from $2.3 million in the prior year period.

Roberta Lipson, President and CEO of Chindex, stated, "Our performance this quarter reflects ongoing demand for services across our network. Volumes in Shanghai and Guangzhou continue to validate that we are replicating the UFH brand in these newer locations. We are on-track to more than double our capacity in the Beijing hospital by calendar year-end, and we intend to start accepting patients into our New Hope cancer facility in the next several weeks."

Medical Products division business results:

In the second quarter of fiscal 2011, the Company reported revenue from the Medical Products division of $21.8 million compared to $17.1 million in the prior year period. Revenue increased 27.5% on a year over year basis and reflects strong demand for the Company's diagnostic ultrasound and imaging products despite a reduction in revenue from government-backed loan programs and lack of daVinci sales versus prior periods. While revenue performance continues to reflect general uncertainty around healthcare reform and expenditure, which impacts demand and order flow for medical devices, the Company's second quarter revenue illustrates ongoing market opportunities and consistent demand for high-end medical products in China.

Gross profit for the Medical Products division was $6.7 million, compared to $4.7 million in the prior year period. Gross margin was 30.7% compared to 27.7 %
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SOURCE Chindex International, Inc.
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