(RTTNews) - Medical device provider China Medical Technologies, Inc. (CMED: News ) Thursday reported a loss for the second quarter, as compared with a profit in the comparable period last year, reflecting lower revenues and higher costs. The company also provided a revenue guidance for the third quarter.

For the second quarter, net loss was US$ 6.90 million or RMB 47.09 million compared with a profit of RMB 117.73 million in the prior-year period. Net loss per American Depositary Shares, or ADS, was US$ 0.26 or RMB 1.78 versus a profit of RMB 2.43 in the last year quarter.

On an adjusted basis, net earnings plunged to US$ 2.59 million or RMB 17.67 million from RMB 102.09 million in the 2008-year period. Adjusted net profit per ADS was US$ 0.10 or RMB 0.67 versus RMB 3.85 a year ago.

The China-based company's revenues for the quarter slumped 14.4% to US$ 24.33 million or RMB 166.07 million from RMB 193.97 million in the second quarter of fiscal 2008.

On a segmental basis, revenues from Immunodiagnostic systems were US$11.26 million or RMB 76.83 million versus RMB 122.16 million in the prior year. However, revenues from Molecular diagnostic systems rose to US$ 13.07 million or RMB 89.23 million from RMB 71.81 million a year earlier.

Quarterly, gross margin decreased to 65.4% from 70.5% in the corresponding period prior year, reflecting a price reduction on ECLIA reagent kits starting from September 2009.
During the three-month period, the company had a one-time cost of US$4.01 million or RMB 27.36 million with regard to amortisation of Surface Plasmon Resonance, or SPR, intangible assets. Research and development expenses were US$1.39 million or RMB 9.50 million compared to RMB 6.34 million, sales and marketing costs rose to US$ 2.55 million or RMB 17.43 million from RMB 11.25 million last year. General and administrative expenses climbed to US$ 6.61 million or RMB 45.13 million from RMB 25.47 million in the same quarter a year ago.

Total operating expenses incurred by China Medical were US$ 14.57 million or RMB 99.42 million, significantly higher than RMB 43.06 million in the 2008-year period. In the second quarter, the company had an income tax expense of US$ 2.7 million or RMB18.3 million.

Looking ahead to the third-quarter, China Medical expects revenues to be between US$ 24.9 million or RMB 170.0 million and US$ 26.4 million or RMB180.0 million. The company anticipates adjusted profit from continuing operations to be not less than US$ 5.6 million or RMB 38.0 million.

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