SHENZHEN, China, Feb. 28, 2011 /PRNewswire-Asia-FirstCall/ -- Mindray Medical International Limited (NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today its selected unaudited financial results for the fourth quarter and full year ended December 31, 2010.
Highlights for Fourth Quarter and Full Year 2010
- Fourth quarter and full year 2010 net revenues increased 11.7% year-over-year to $211.0 million and 11.1% to $704.3 million, respectively.
- Robust fourth quarter and full year 2010 year-over-year international sales growth of 19.5% and 20.3%, respectively.
- Fourth quarter 2010 non-GAAP net income year-over-year increased 8.9% to $45.4 million. Excluding the tax benefit of $8.6 million recognized in the first quarter of 2010, full year 2010 non-GAAP net income year-over-year increased 10.1% to $162.3 million.
- In the fourth quarter of 2010, average accounts receivable and inventory days improved to 59 days and 82 days, respectively, compared to 68 days and 116 days in the previous quarter.
- Strong net operating cash inflow of $67.3 million was generated in the fourth quarter 2010, partially as a result of improved working capital management.
- Declared 2010 dividend of $0.30 per share.
- Met 2010 product development goals by launching 10 new products in markets around the world.
- Mindray's Shenzhen subsidiary was awarded the nationwide key software enterprise status for the 2010 calendar year in February 2011. The status grants Mindray a 10% corporate income tax rate for the Shenzhen subsidiary for 2010. The related tax benefit of approximately $7.8 million will be recognized in the first quarter of 2011.
- In February 2011, Mindray announced an agreement to acquire a controlling stake of Shenzhen Shenke Medical Instrument Technical Development Co. Ltd, an infusion pump manufacturer in China.
"In spite of the continued uncertainties caused by the stagnant global economy and various proposals for healthcare reform in 2010, we maintained our focus and executed our strategy successfully, resulting in solid growth and margins for the year. We are very proud to have achieved such strong operational results while enhancing our competitive position," commented Xu Hang, Mindray's Chairman and Co-Chief Executive Officer. "As we closed the year, we continued to see robust sales growth in our key international markets and gradual improvement in our non-tender business in China, allowing us to deliver full year double digit top-line and earnings growth, as well as strong cash flow."
SUMMARY --FourthQuarter and Year EndedDecember 31, 2010
(in $ millions, except per-share data) | Three Months Ended | Year Ended | |||||
December 31 | December 31 | ||||||
2010 | 2009 | % chg | 2010 | 2009 | % chg | ||
Net Revenues | 211.0 | 188.8 | 11.7% | 704.3 | 634.2 | 11.1% | |
Revenues generated outside China | 121.1 | 101.3 | 19.5% | 410.9 | 341.6 | 20.3% | |
Revenues generated in China | 89.8 | 87.5 | 2.7 % | 293.4 | 292.6 | 0.3% | |
Gross Profit | 115.3 | 102.0 | 13.0% | 401.0 | 353.9 | 13.3% | |
Non-GAAP Gross Profit | 116.5 | 103.7 | 12.4% | 406.3 | 360.5 | 12.7% | |
Operating Income | 37.4 | 38.0 | -1.6% | 155.6 | 140.6 | 10.6% | |
Non-GAAP Operating Income | 41.8 | 42.3 | -1.3% | 171.3 | 160.9 | 6.4% | |
EBITDA | 53.3 | 51.7 | 3.1% | 192.1 | 194.0 | -1.0% | |
Net Income | 41.0 | 37.4 | 9.7% | 155.5 | 139.2 | 11.7% | |
Non-GAAP Net Income | 45.4 | 41.7 | 8.9% | 170.9 | 147.4 | 16.0% | |
Diluted EPS | 0.35 | 0.33 | 5.7% | 1.32 | 1.23 | 7.4% | |
Non-GAAP Diluted EPS | 0.38 | 0.37 | 5.0% | 1.45 | 1.30 | 11.5% | |
Revenues
Mindray reported net revenues of $211.0 million for the fourth quarter 2010, an 11.7% increase from $188.8 million in the fourth quarter 2009.
Net revenues generated in international markets in the fourth quarter 2010 increased 19.5% to $121.1 million from $101.3 million in the fourth quarter 2009. Net revenues generated in China in the fourth quarter 2010 increased 2.7% to $89.8 million from $87.5 million in the fourth quarter 2009.
Performance by Segment
Patient Monitoring & Life Support Products: Patient monitoring & life support products segment revenues increased 19.9% to $99.1 million from $82.7 million in the fourth quarter 2009. The patient monitoring & life support products segment contributed 47.0% to the total net segment revenues in the fourth quarter 2010.
In-Vitro Diagnostic Products: In-vitro diagnostic products segment revenues increased 11.4% to $51.1 million from $45.8 million in the fourth quarter 2009. The in-vitro diagnostic products segment contributed 24.2% to the total net segment revenues in the fourth quarter 2010.
Medical Imaging Systems: Medical imaging systems segment revenues increased 4.3% to $50.6 million from $48.5 million in the fourth quarter 2009. The medical imaging systems segment contributed 24.0% to the total net segment revenues in the fourth quarter 2010.
Others: The other revenues, which are primarily comprised of service fees charged for post warranty period repair services, decreased 13.6% to $10.2 million from $11.8 million in the fourth quarter 2009. The other revenues contributed 4.8% to the total net segment revenues in the fourth quarter 2010.
The segment revenue amounts discussed above include shipping and handling fees charged to customers.
Gross Margins
Fourth quarter 2010 gross profit was $115.3 million, a 13.0% increase from $102.0 million in the fourth quarter 2009. Non-GAAP gross profit in the fourth quarter was $116.5 million, a 12.4% increase from $103.7 million in the fourth quarter 2009. The consolidated gross margin for the fourth quarter 2010 was 54.7% compared to 54.0% in the fourth quarter 2009 and 58.8% in the third quarter 2010. Non-GAAP gross margin was 55.2% in the fourth quarter 2010 compared to 54.9% in the fourth quarter 2009 and 59.5% in the third quarter 2010.
Operating Expenses
Selling expenses for the fourth quarter 2010 were $41.9 million, or 19.9% of the total net revenues, compared to 17.5% in the fourth quarter 2009 and 18.0% in the third quarter 2010. Non-GAAP selling expenses for the fourth quarter 2
