Mindray Medical Q3 Profit Up, Lifts FY09 View

11/9/2009 8:07 PM ET

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(RTTNews) - Monday, China based medical appliance maker Mindray Medical International Limited (MR: News ), reported a higher third quarter profit reflecting an increase in revenue, as well as an increase in gross margins. Earnings topped analysts estimate for the quarter, while revenues fell short. The company also raised its outlook for the full-year 2009.

Mindray Medical's third quarter net income increased to $43.4 million or $0.38 per share from $27.9 million or $0.24 per share in the comparable quarter last year.

On a non-GAAP basis, net income for the third quarter rose to $37.37 million or $0.33 per share from $33.67 million or $0.29 per share in the same quarter last year.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the quarter. Analysts' estimates exclude one-time items.

Total revenue for the quarter improved 3.1% to $151.1 million from $146.5 million in the same quarter a year ago, mainly due to 9.3% rise in revenues generated in China. Nine analysts expected revenue of $154.98 million for the quarter.

On a segmental basis, Patient Monitoring & Life Support Products for the quarter declined 0.6% from the same quarter a year ago, while revenues from In-Vitro Diagnostic Products improved 5.8%. Revenues from medical imaging segment, improved 10.2% in the same quarter a year ago.

Gross margin for the quarter improved to $56.6% from $54.2% in the year ago period with 13.5% increase in operating income of
$34.2 million from $30.2 million in the same quarter last year.

For the nine-month period, the company reported net income of $101.7 million or $0.90 per share, compared to $77.0 million or $0.68 per share in the prior year. Non-GAAP net income increased to $105.7 million or $0.94 per share from $96.7 million or $0.85 per share last year. Year-to-date revenue was $205.1 million, up from $161.7 million in the prior year.

Looking ahead to fiscal 2009, the company expects non-GAAP earnings to grow slightly more than 10% over 2008 and net revenue to increase at a rate of 10% to 13% year-over-year.

MR closed Monday's regular trading at $34.09, up $1.05 or 3.18%, on a volume of 1.5 million on the NYSE. In after hours, the stock is trading at $32.50, down $1.59 or 4.66%.