Mindray Medical International Limited (Mindray) has reported preliminary, unaudited results for the fiscal year ended December 31, 2008. For the period, Mindray expects net revenues to be in the range of $540 million to $550 million, compared to $294.3 million in 2007, or 84% to 87% year-over-year growth.
Based on the expected full year revenue range, fourth quarter 2008 revenue grew 76% to 87% year-over-year despite a challenging global operating environment that included volatile foreign exchange fluctuations, a slow down in hospital spending and credit freezes. Based on the expected full year revenue, the company projects the 2008 non-GAAP diluted EPS to be no less than $1.16, compared to $0.79 in 2007, or 47% year-over-year growth. The expected non-GAAP diluted EPS is based on the assumption that Mindray’s Shenzhen subsidiary receives a preferential income tax rate at 15% as a qualified “New and Hi Tech Enterprise.” The subsidiary has already received approval of such qualification from the Shenzhen local government, and the Company does not anticipate any delay in closing the process from the central government level in the near future.
“Despite the recent unprecedented and challenging global environment, Mindray maintained its focus on outstanding execution and operational excellence,” commented Xu Hang, Mindray’s chairman and co-chief executive officer. “As a result, we achieved excellent growth across all product lines and geographies throughout the fourth quarter. Additionally, we continued to improve operating performance, driving very strong earnings growth in 2008 and our vertically integrated model and sensible expense controls have allowed us to focus on generating cash flow and improving our operating margins.”
“We are well positioned as we head into 2009 and look to grow market share in the coming year,” added Mr. Li Xiting, Mindray’s president and co-chief executive officer.
“Despite broader economic uncertainties, we are confident about achieving overall revenue growth of at least 20 percent based on the current foreign exchange rates. We strive to hold steady gross margins with targeted improvements in operating margins. We expect our growth to primarily be driven by the continued expansion and improvement in our product mix and strengthened distribution worldwide. Additionally, we look forward to the release of seven to nine new products this year, including the launch of our first jointly developed products with DPM. Overall, we believe that our ability to be nimble and closely manage costs allows us to pass savings to our customers. We look forward to continuing to provide high-quality and affordable medical devices to doctors and hospitals around the world in 2009.”