Mindray Medical Reports Higher 2008 Than Expected

Jan.13.09 | About: Mindray Medical (MR)

Mindray Medical International Limited (NYSE: MR) reported preliminary 2008 results for its medical device business, showing that the company continued to perform well, despite the difficult economic environment. For Mindray, the year was especially notable because the company completed its $202 million acquisition of Datascope’s (NSDQ: DSCP) Patient Monitoring Division on May 1, 2008.

Mindray expects 2008 revenues to be in the range of $540 million to $550 million, an 85% jump. However, its huge acquisition added about $8 million per month to revenues (a ballpark figure from 2007), about $64 million for the eight months the division was part of Mindray in 2008. Taking into account the $64 million of “bought” revenues, the actual increase over 2007 is closer to 52%, which is still a very respectable rate of growth.

Mindray points out that it achieved its growth despite the very difficult economic environment, including volatile foreign exchange fluctuations, a slowdown in hospital spending and credit freezes.

For net income, Mindray is predicting non-GAAP EPS will be at least $1.16, a 47% increase over the 2007 figure. To achieve this, Mindray still needs official notification that its Shenzhen subsidiary will be awarded the preferential 15% tax rate given to High Tech industries. Mindray says this process is on track and expected, but it has not been completed as yet.

The company predicts revenue growth of at 20% or more in 2009, though it will wait until its Q4/year-end earnings announcement to make a more specific forecast.

Disclosure: none.