Mindray Announces Preliminary 2008 Operating Results
Preliminary 2008 Operating Results
For the year ended December 31, 2008, Mindray expects net revenues to bein the range of US$540 million to US$550 million, compared to US$294.3 millionin 2007, or 84% to 87% year-over-year growth. Based on the estimated fullyear revenue range, fourth quarter 2008 revenue grew 76% to 87% year-over-yeardespite a challenging global operating environment that included volatileforeign exchange fluctuations, a slow down in hospital spending and creditfreezes.
Based on the estimated full year revenue, the company anticipates the 2008non-GAAP diluted EPS to be no less than US$1.16, compared to US$0.79 in 2007,or 47% year-over-year growth. The estimated non-GAAP diluted EPS is based onthe assumption that Mindray's Shenzhen subsidiary receives a preferentialincome tax rate at 15% as a qualified "New and Hi Tech Enterprise." Thesubsidiary has already received approval of such qualification from theShenzhen local government, and the Company does not anticipate any delay inclosing 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 operationalexcellence," commented Mr. Xu Hang, Mindray's chairman and co-chief executiveofficer. "As a result, we achieved excellent growth across all product linesand geographies throughout the fourth quarter. Additionally, we continued toimprove operating performance, driving very strong earnings growth in 2008 andour vertically integrated model and sensible expense controls have allowed usto focus on generating cash flow and improving our operating margins."
"We are well positioned as we head into 2009 and look to grow market sharein the coming year," added Mr. Li Xiting, Mindray's president and co-chiefexecutive officer. "Despite broader economic uncertainties, we are confidentabout achieving overall revenue growth of at least 20 percent based on thecurrent foreign exchange rates. We strive to hold steady gross margins withtargeted improvements in operating margins. We expect our growth to primarilybe driven by the continued expansion and improvement in our product mix andstrengthened distribution worldwide. Additionally, we look forward to therelease of seven to nine new products this year, including the launch of ourfirst jointly developed products with DPM. Overall, we believe that ourability to be nimble and closely manage costs allows us to pass savings to ourcustomers. We look forward to continuing to provide high-quality andaffordable medical devices to doctors and hospitals around the world in 2009."
Mindray's preliminary 2008 results are unaudited and remain subject to thefinalization of the company's year-end closing, reporting and audit processes.
The company noted that 2009 full-year guidance will be provided in thefourth quarter and 2008 year-end earnings announcement.
Mindray is a leading developer, manufacturer and marketer of medicaldevices worldwide. Established in 1991, Mindray offers a broad range ofproducts across three primary business segments: patient monitoring & lifesupport products, in-vitro diagnostic products and medical imaging systems.Mindray is globally headquartered in Shenzhen, China, with U.S. headquartersin Mahwah, New Jersey. Mindray also has another 12 international sales andservice offices in Amsterdam, Frankfurt, Istanbul, London, Mexico City, Moscow,Mumbai, Paris, Sao Paolo, Seattle, Toronto and Vancouver. For moreinformation, please visit http://www.mindray.com .
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within themeaning of the safe harbor provisions of the Private Securities LitigationReform Act of 1995. Statements that are not historical facts, includingstatements about Mindray's anticipated net revenues and earnings per share for2008, 15% preferential income tax rate for 2008, growth of market share in2009, growth of net revenues in 2009, continued expansion and improvement inproduct mix, strengthened distribution, and the release of new products areforward-looking statements. Readers are cautioned that these forward-lookingstatements are only predictions and may differ materially from actual resultsdue to a variety of factors. The anticipated results for 2008 remain subjectto the finalization of Mindray's year-end closing, reporting, and auditprocesses, particularly as related to accrued expenses, income taxes, share-based compensation expenses, and expense and/or amortization of intangibleassets. The financial information contained in this release should be read inconjunction with the consolidated financial statements and notes theretoincluded in our public filings with the Securities and Exchange Commission.For a discussion of other important factors that could adversely affect ourbusiness, financial condition, results of operations and prospects, see "RiskFactors" beginning on page 6 of our annual report on Form 20-F, filed on June30, 2008. Our results of operations for the fourth quarter of 2008 and forfiscal year 2008 are not necessarily indicative of our operating results forany future periods. Any projections in this release are based on limitedinformation currently available to us, which is subject to change. Althoughsuch projections and the factors influencing them will likely change, we willnot necessarily update the information. Such information speaks only as ofthe date of this release.
Use of Non-GAAP Financial Measures
The company has announced its expected diluted earnings per share for fullyear 2008 on a non-GAAP basis.
Because the estimated earnings per share is subject to the finalization ofthe company's year-end closing, reporting, and audit processes, the companyhas not yet finalized with any certainty the numbers required to provide aspecific non-GAAP to US GAAP reconciliation. A reconciliation of non-GAAPresults of operations measures to the nearest comparable GAAP measures will beprovided with the company's audited financial results and will be adjusted forthe effects of share-based compensation, inventory fair value adjustments,restructuring or any one-time charge, amortization of acquired assets and inrelated tax impact.For more information, please visit http://www.mindray.com . For investor and media inquiries, please contact: In the U.S: Evan Smith, CFA FD Tel: +1-212-850-5606 Email: firstname.lastname@example.org John Capodanno FD Tel: +1-212-850-5705 Email: email@example.com In China: Susan Du Mindray Medical International Limited Tel: +86-755-2658-2518 Email: firstname.lastname@example.org
SOURCE Mindray Medical International Limited
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