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Mindray Medical (NYSE: MR) reported Q1 revenues rose a modest 9% to $145.8 million while net income was $36.2 million ($40.1 million, non-GAAP). Interestingly, sales from China were flat, though international revenues climbed 17%. Mindray said international revenues from emerging markets were exceptionally strong, though it did not provide specific numbers.

In the company’s conference call, Mindray added that US sales were up 9% in the quarter, indicating a rebound from the economic slump, but Western Europe’s revenues were unchanged, as the region continues to work through its difficulties.

The company explained China sales were flat in part because of a drop in government tender sales this year. Also, last year’s Q1 was helped by a $6.5 million retroactive VAT refund. Mindray pointed out that non-tender sales rose 47% during the quarter.

Following the announcement, Mindray’s share price dropped $4.07 to $30.93, a 12% fall, in early, very volatile trading.

The company’s Patient Monitoring & Life Support division reported a 5% increase in revenues, which rose to $61.7 million. In-Vitro Diagnostic Products was the biggest gainer at 18% year-over-year and $37.9 million or sales. Medical Imaging Systems rose 4% to $37.1 million. The remaining $9.1 million in revenues came from service fees.

During Q1, Mindray raised $149.7 million, net of related costs, through a secondary offering of four million ADSs, which resulted in net cash of $255.1 million on March 31, 2010.

Mindray maintained its full-year guidance and of a 17% increase in revenues and net income for 2010. This excludes the $8.6 million in corporate income tax reduction the company received in Q1. Mindray expects to spend about $60 million in capital expenditures this year.

Mindray’s net income works out to 31 cents per share, fully diluted. The company has a trailing 12-months price/earnings ratio of 28 and a market capitalization of $4 billion.

Disclosure: none.

Source: Mindray's Q1 Results Disappoint