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 -- Fourth Quarter and
Year Ended December 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 2010 were $40.6 million, or
19.2% of the total net revenues, compared to 16.9% in the fourth
quarter 2009 and 17.2% in the third quarter 2010.
General and administrative expenses for the fourth quarter 2010
were $18.3 million, or 8.7% of the
total net revenues, compared to 8.5% in the fourth quarter 2009 and
9.0% in the third quarter 2010. Non-GAAP general and administrative
expenses for the fourth quarter 2010 were $18.0 million, or 8.5% of the total net revenues,
compared to 8.1% in the fourth quarter 2009 and 8.8% in the third
quarter 2010.
Research and development expenses for the fourth quarter 2010
were $16.8 million, or 7.9% of the
total net revenues compared to 7.8% in the fourth quarter 2009 and
8.8% in the third quarter 2010. Non-GAAP research and development
expenses for the fourth quarter 2010 were $16.2 million, or 7.7% of the total net revenues
compared to 7.5% in the fourth quarter 2009 and 8.3% in the third
quarter 2010.
Total share-based compensation expenses, which were allocated to
cost of goods sold and related operating expenses, were
$1.7 million in the fourth quarter
2010 compared to $2.0 million in the
fourth quarter 2009 and $1.9 million
in the third quarter 2010.
Operating income in the fourth quarter 2010 was $37.4 million, a 1.6% decrease from $38.0 million in the fourth quarter 2009.
Non-GAAP operating income in the fourth quarter 2010 was
$41.8 million, a 1.3% decrease from
$42.3 million in the fourth quarter
2009. Operating margin was 17.7% in the fourth quarter 2010
compared to 20.1% in the fourth quarter 2009 and 23.0% in the third
quarter 2010. Non-GAAP operating margin was 19.8% in the fourth
quarter 2010 compared to 22.4% in the fourth quarter 2009 and 25.2%
in the third quarter 2010.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
Fourth quarter 2010 EBITDA increased 3.1% year-over-year to
$53.3 million from $51.7 million in the fourth quarter 2009.
Net Income
Fourth quarter 2010 net income was $41.0
million compared to $37.4
million in the fourth quarter 2009. Fourth quarter 2010
non-GAAP net income increased 8.9% year-over-year to $45.4 million from $41.7
million in the fourth quarter 2009. Net margin in the fourth
quarter was 19.5% compared to 19.8% in the fourth quarter 2009 and
21.4% in the third quarter 2010. Non-GAAP net margin was 21.5% in
the fourth quarter 2010 compared to 22.1% in the fourth quarter
2009 and 23.5% in the third quarter 2010. Fourth quarter 2010
income tax expense was $7.5 million,
representing an effective tax rate of 15.5% compared to a 17.6%
effective tax rate in the fourth quarter 2009.
Fourth quarter 2010 basic and diluted earnings per share were
$0.36 and $0.35, respectively, compared to $0.34 and $0.33 in
the fourth quarter 2009. Fourth quarter 2010 basic and fully
diluted non-GAAP earnings per share were $0.40 and $0.38,
respectively, compared to $0.38 and
$0.37 in the fourth quarter 2009.
Shares used in the computation of diluted earnings per share for
the fourth quarter 2010 were 118 million.
Other Select Data
Average accounts receivable days outstanding were 59 days in the
fourth quarter 2010 compared to 68 days in the third quarter 2010.
Average inventory days outstanding were 82 days in the fourth
quarter 2010 compared to 116 days in the third quarter 2010.
Average accounts payable days outstanding were 45 days in the
fourth quarter 2010 compared to 66 days in the third quarter 2010.
Mindray calculates the above working capital days using the average
of beginning and ending balances of the quarter.
As of December 31, 2010, the
company had total $433.5 million in
cash and cash equivalents, and short-term investments as compared
to $381.9 million as of September 30, 2010. Net cash generated from
operating activities and net cash outflow for capital expenditures
for the quarter were $67.3 million
and $21.9 million, respectively.
As of December 31, 2010 the
company had approximately 6,782 employees compared to about 5,874
employees as of December 31,
2009.
Full Year 2010 Results
Mindray reported net revenues of $704.3
million for the full year 2010, an 11.1% increase from
$634.2 million for the full year
2009.
- Net revenues generated in international markets for the full
year 2010 increased 20.3% to $410.9
million from $341.6 million in
2009.
- Net revenues generated in China for the full year 2010 increased 0.3% to
$293.4 million from $292.6 million in 2009.
Full year 2010 EBITDA decreased 1.0% year-over-year to
$192.1 million from $194.0 million in the full year 2009.
Full year 2010 net income was $155.5
million compared to $139.2
million in 2009. Full year 2010 non-GAAP net income
increased 16.0% year-over-year to $170.9
million from $147.4 million in
2009. Net margin was 22.1% in the full year 2010 compared to 21.9%
in 2009. Non-GAAP net margin was 24.3% in the full year 2010
compared to 23.2% in 2009. Full year 2010 income tax expense was
$17.6 million, representing an
effective tax rate of 10.2% compared to 17.1% in the full year
2009.
Full year 2010 diluted earnings per share increased 7.4%
year-over-year to $1.32 from
$1.23 in the full year 2009. Full
year 2010 non-GAAP diluted earnings per share increased 11.5% to
$1.45 from $1.30 in the full year 2009.
In February 2011, we obtained a
nationwide key software enterprise status, which allows us to enjoy
10% corporate income tax rate for our Shenzhen subsidiary for calendar year 2010.
The related tax saving as a result of this change in 2010 corporate
income tax rate for the Shenzhen
subsidiary was estimated to be $7.8
million. U.S. GAAP requires the company to recognize the
related financial impact as a result of the change in enacted tax
rate when substantive approval is received. As a result, the
related adjustment to our corporate income tax provision will be
recorded in the first quarter of 2011 and the applicable corporate
income tax rate for our Shenzhen
subsidiary as reported in the 2010 financial statements remains at
15%. The granting of the nationwide key software enterprise status
is subject to approval each year. There is no reliable indication
that Mindray will be granted this status in 2011 or in any future
years.
Dividend Declaration
Mindray's board of directors has declared a cash dividend on its
ordinary shares of $0.30 per share,
based on the company's net income for the full year 2010. The cash
dividend will be payable on or around June
1, 2011, to shareholders of record as of April 26, 2011. The company has approximately
115.1 million ordinary shares outstanding as of February 28, 2011.
Business Outlook for Full Year 2011
Mindray expects that the Shenke acquisition agreement will have
minimal impact to its financial results in 2011. The company
continues to expect its full year 2011 net revenues to be more than
16% higher than its full year 2010 net revenues.
The company also expects its full year 2011 non-GAAP net income
to grow more than 10% over its non-GAAP net income for full year
2010. This guidance excludes the tax benefits related to the
key software enterprise status ($8.6
million recognized in the first quarter of 2010 and
approximately $7.8 million to be
recorded in the first quarter of 2011) and assumes a corporate
income tax rate of 15% applicable to
the Shenzhen subsidiary.
The company expects its capital expenditure for 2011 to be in
the range of $70 million to $80
million.
The company's practice is to provide guidance on a full year
basis only. This forecast reflects Mindray's current and
preliminary views, which are subject to change.
"Looking ahead to 2011, the overall market environment continues
to improve," commented Li Xiting, Mindray's President and Co-Chief
Executive Officer. "There are still lingering uncertainties in some
markets, such as the political instability in the Middle East and Africa. Nonetheless, we are optimistic
about the growth prospects of our key international territories,
particularly in emerging markets, as well as the recovery of the US
business and the continued robust investment and spending in the
Chinese healthcare sector. We will strive to achieve another year
of operational excellence through continually investing in our
international sales and marketing infrastructure, both in key
emerging markets and developed markets. In China, although tender business will continue
to be unpredictable, we are encouraged about our non-tender sales
based on the government's renewed focus on county level hospitals
as well as the progress of our strategic initiatives. Last
but not least, R&D investment remains Mindray's top
priority."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on March 1, 2011 U.S. Eastern Time (9:00 PM on March 1,
2011 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
|
|
Hong
Kong:
|
+852-3002-1672
|
|
U.S. Toll
Free:
|
+1-866-788-0538
|
|
International:
|
+1-857-350-1676
|
|
Passcode for all
regions:
|
Mindray
|
|
|
|
A replay of the conference call may be accessed by phone at the
following numbers until March 15,
2011.
U.S. Toll
Free:
|
+1-888-286-8010
|
|
International:
|
+1-617-801-6888
|
|
Passcode:
|
6529
4305
|
|
|
|
Additionally, a live and archived webcast of this conference
call will be available on the Investor Relations section of
Mindray's website at http://www.mindray.com.
Use of Non-GAAP Financial Measures
Mindray provides gross profit, R&D expenses, selling
expenses, general and administrative expenses, operating income,
net income and earnings per share on a non-GAAP basis that excludes
share-based compensation expense, acquired intangible assets
amortization expense, realignment costs – post acquisition, and
other income from onetime early termination of contract, all net of
related tax impact, as well as EBITDA to enable investors to better
assess the company's operating performance. The non-GAAP measures
described by the company are reconciled to the corresponding GAAP
measure in the exhibit below titled "Reconciliations of non-GAAP
results of operations measures to the nearest comparable GAAP
measures".
The company has reported for the fourth quarter of 2010 and
provided guidance for full year 2011 earnings on a non-GAAP basis.
Each of the terms as used by the company is defined as follows:
- Non-GAAP gross profit represents gross profit reported in
accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets.
- Non-GAAP operating income represents operating income reported
in accordance with GAAP, adjusted for the effects of share-based
compensation, realignment cost – post acquisition and amortization
of acquired intangible assets.
- Non-GAAP net income represents net income reported in
accordance with GAAP, adjusted for the effects of share-based
compensation, realignment cost – post acquisition, amortization of
acquired intangible assets and other income from onetime early
termination of contract, all net of related tax impact.
- Non-GAAP earnings per share represents non-GAAP net income
divided by the number of shares used in computing basic and diluted
earnings per share in accordance with GAAP, and excludes the impact
of the declared dividends for the basic calculation.
- EBITDA represents net income reported in accordance with GAAP,
adjusted for the effect of interest income and expenses, provision
of income taxes, depreciation and amortization.
The company computes its non-GAAP financial measures using the
same consistent method from quarter to quarter. The company notes
that these measures may not be calculated on the same basis of
similar measures used by other companies. Readers are cautioned not
to view non-GAAP results on a stand-alone basis or as a substitute
for results under GAAP, or as being comparable to results reported
or forecasted by other companies, and should refer to the
reconciliation of GAAP results with non-GAAP results for the three
months and years ended December 31,
2009 and 2010, respectively, in the attached financial
information.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are not historical
facts, including statements about Mindray's anticipated net
revenues and non-GAAP net income for 2010, the
applicable China corporate income tax rate for 2011, our
ability to restore growth in non-tender sales, projected growth of
our market share in 2011, projected growth of net revenues in 2011,
our ability to grow profits and market share, new market
penetration, expansion of our presence in emerging markets,
improving our developed market sales capabilities and improving the
effectiveness of our working capital utilization are
forward-looking statements. Readers are cautioned that these
forward-looking statements are only predictions and may differ
materially from actual results due to a variety of factors. The
anticipated results for 2010 remain subject to the finalization of
Mindray's year-end closing, reporting, and audit processes,
particularly as related to accrued expenses, income taxes, share-
based compensation expenses, and expense and/or amortization of
intangible assets. The financial information contained in this
release should be read in conjunction with the consolidated
financial statements and notes thereto included in our public
filings with the Securities and Exchange Commission. For a
discussion of other important factors that could adversely affect
our business, financial condition, results of operations and
prospects, see "Risk Factors" beginning on page 7 of our annual
report on Form 20-F, filed on May 7, 2010. Our results of
operations for the fourth quarter of 2010 and for fiscal year 2010
are not necessarily indicative of our operating results for any
future periods. Any projections in this release are based on
limited information currently available to us, which is subject to
change. Although such projections and the factors influencing them
will likely change, we will not necessarily update the information.
Such information speaks only as of the date of this release.
About Mindray
We are a leading developer, manufacturer and marketer of medical
devices worldwide. We maintain global headquarters
in Shenzhen, China, U.S.
headquarters in Mahwah, New Jersey and multiple sales
offices in major international markets. From our main manufacturing
and engineering base in China and through our worldwide
distribution network, we are able to supply internationally a broad
range of products across three primary business segments, comprised
of patient monitoring and life support products, in-vitro
diagnostic products and medical imaging systems. For more
information, please visit http://ir.mindray.com.
For investor and media inquiries
please contact:
|
|
|
|
In the U.S:
|
|
Hoki Luk
|
|
Western Bridge, LLC
|
|
Tel:
+1-646-808-9150
|
|
Email:
hoki.luk@westernbridgegroup.com
|
|
|
|
In China:
|
|
May Li
|
|
Mindray Medical International
Limited
|
|
Tel: + 86 755 2658
2518
|
|
Email: may.li@mindray.com
|
|
|
Exhibit
1
|
|
MINDRAY
MEDICAL INTERNATIONAL LIMITED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Dollars in
thousands)
|
|
|
|
|
|
As of
December 31, 2009
|
|
As of
December 31, 2010
|
|
|
|
US$
|
|
US$
|
|
|
|
(Note
2)
|
|
(unaudited)
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
204,228
|
|
137,502
|
|
|
Restricted cash and restricted
investments (Note 1)
|
102,257
|
|
-
|
|
|
Short-term
investments
|
-
|
|
296,003
|
|
|
Accounts receivable,
net
|
113,340
|
|
143,318
|
|
|
Inventories
|
64,518
|
|
79,185
|
|
|
Value added tax
receivables
|
8,519
|
|
18,562
|
|
|
Other receivables
|
8,999
|
|
9,953
|
|
|
Prepayments and
deposits
|
7,466
|
|
7,596
|
|
|
Deferred tax assets
|
2,338
|
|
2,481
|
|
|
Total current assets
|
511,665
|
|
694,600
|
|
|
|
|
|
|
|
|
Restricted investment (Note
1)
|
66,000
|
|
-
|
|
|
Other assets
|
1,585
|
|
4,552
|
|
|
Advances for purchase of plant
and equipment
|
28,395
|
|
15,775
|
|
|
Property, plant and equipment,
net
|
153,726
|
|
207,636
|
|
|
Land use rights, net
|
25,776
|
|
46,079
|
|
|
Intangible assets,
net
|
64,065
|
|
66,247
|
|
|
Goodwill
|
115,053
|
|
115,672
|
|
|
Total assets
|
966,265
|
|
1,150,561
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term bank loans (Note
1)
|
103,128
|
|
-
|
|
|
Notes payable
|
5,647
|
|
5,773
|
|
|
Accounts payable
|
35,752
|
|
44,322
|
|
|
Advances from
customers
|
10,081
|
|
11,050
|
|
|
Salaries payables
|
19,877
|
|
26,770
|
|
|
Other payables
|
56,592
|
|
68,774
|
|
|
Income taxes payable
|
16,199
|
|
13,582
|
|
|
Deferred tax
liabilities
|
1,499
|
|
-
|
|
|
Other taxes payable
|
5,863
|
|
4,286
|
|
|
Total current
liabilities
|
254,638
|
|
174,557
|
|
Bank loans- long term (Note
1)
|
66,000
|
|
-
|
|
Other long-term
payables
|
1,342
|
|
1,133
|
|
Deferred tax liabilities,
net
|
3,734
|
|
8,268
|
|
|
|
71,076
|
|
9,401
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary shares
|
14
|
|
15
|
|
|
Additional paid-in
capital
|
298,408
|
|
466,613
|
|
|
Retained earnings
|
301,476
|
|
434,143
|
|
|
Accumulated other comprehensive
income
|
40,651
|
|
65,830
|
|
|
Total shareholders'
equity
|
640,549
|
|
966,601
|
|
|
|
|
|
|
|
Non- controlling
interest
|
2
|
|
2
|
|
Total equity
|
640,551
|
|
966,603
|
|
Total liabilities and
shareholders' equity
|
966,265
|
|
1,150,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restricted as the security
package required for the bank loans as of December 31, 2009. Use of
such funds are permitted provided that the proportionate amount of
debt must be retired concurrently. As of December 31, 2010, the
bank loans were fully repaid.
(2) Financial Information is
extracted from the audited financial statements included in the
Company fiscal 2009 20F.
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Exhibit
2
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MINDRAY
MEDICAL INTERNATIONAL LIMITED
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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(Dollars in
thousands, except for share and per share data)
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Three
months ended December
31,
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Year ended
December
31,
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2009
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2010
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2009
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2010
|
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US$
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US$
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US$
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US$
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(unaudited)
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(unaudited)
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(Note
2)
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(unaudited)
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Net revenues
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-PRC
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87,484
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89,829
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292,607
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293,435
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-
International
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101,346
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121,146
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341,576
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410,874
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Net revenues
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188,830
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210,975
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634,183
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704,309
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Cost of revenues (note
3)
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(86,783)
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(95,674)
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(280,319)
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(303,334)
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Gross profit
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102,047
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115,301
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353,864
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400,975
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Selling expenses (note
3)
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(33,138)
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(41,894)
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(106,142)
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(122,960)
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General and administrative
expenses (note 3)
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(15,988)
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(18,329)
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(47,512)
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(61,193)
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Research and development
expenses (note 3)
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(14,747)
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(16,763)
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(58,383)
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(60,316)
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Realignment costs — post
acquisition
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(185)
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(919)
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(1,215)
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(919)
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Operating income
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37,989
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37,396
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140,612
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155,587
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Other income, net
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6,454
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8,698
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25,525
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8,835
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Interest income
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1,857
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2,905
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6,574
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11,575
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Interest expense
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(878)
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(437)
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(4,759)
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(2,900)
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Income before income taxes and
non-controlling interests
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45,422
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48,562
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167,952
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173,097
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Provision for income
taxes
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(8,011)
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(7,513)
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(28,764)
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(17,631)
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Net Income
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37,411
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41,049
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139,188
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155,466
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Less: Net income attributable to
non-controlling interests
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-
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-
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-
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-
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Net Income attributable to the
Company
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37,411
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41,049
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139,188
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155,466
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Basic earnings per
share
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0.34
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0.36
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1.28
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1.37
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Diluted earnings per
share
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0.33
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0.35
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1.23
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1.32
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Shares used in the computation
of:
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Basic earnings per
share
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109,251,426
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114,627,335
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108,567,305
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113,638,024
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Diluted earnings per
share
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113,673,043
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117,957,675
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113,025,775
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117,581,196
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(3) Share-based compensation
charges incurred during the period related to:
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Cost of revenues
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94
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74
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467
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320
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Selling expenses
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548
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709
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3,406
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2,569
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General and administrative
expenses
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744
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335
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3,318
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1,591
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Research and development
expenses
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603
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580
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3,047
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2,800
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Exhibit
3
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MINDRAY
MEDICAL INTERNATIONAL LIMITED
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RECONCILIATIONS OF NON-GAAP
RESULTS OF OPERATIONS MEASURES TO THE NEAREST
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COMPARABLE
GAAP MEASURES
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(Dollars in
thousands, except for share and per share data)
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Three months
ended
December 31,
|
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Year
ended
December 31,
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2009
|
2010
|
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2009
|
2010
|
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US$
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US$
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US$
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US$
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Non-GAAP net
income
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41,662
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45,374
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147,388
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170,944
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Non-GAAP net
margin
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22.1%
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21.5%
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23.2%
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24.3%
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Amortization of acquired
intangible assets
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(2,137)
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(1,742)
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(8,621)
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(7,487)
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Deferred tax impact related to
acquired intangible assets
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60
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34
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348
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208
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Realignment costs — post
acquisition
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(185)
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(919)
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(1,446)
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(919)
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Income from early termination
contract
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-
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-
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11,757
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-
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Share-based
compensation
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(1,989)
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(1,698)
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(10,238)
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(7,280)
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GAAP net income
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37,411
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41,049
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139,188
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155,466
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GAAP net
margin
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19.8%
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19.5%
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21.9%
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22.1%
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Non-GAAP income per share -
basic
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0.38
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0.40
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1.36
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1.50
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Non-GAAP income per share -
diluted
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0.37
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0.38
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1.30
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1.45
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GAAP income per share -
basic
|
0.34
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0.36
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1.28
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1.37
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GAAP income per share -
diluted
|
0.33
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0.35
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1.23
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1.32
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Shares used in computation
of:
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Basic earnings per
share
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109,251,426
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114,627,335
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108,567,305
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113,638,024
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Diluted earnings per
share
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113,673,043
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117,957,675
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113,025,775
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117,581,196
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Non-GAAP operating
income
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42,300
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41,755
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160,917
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171,273
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Non-GAAP
operating margin
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22.4%
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19.8%
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25.4%
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24.3%
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Amortization of acquired
intangible assets
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(2,137)
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(1,742)
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(8,621)
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(7,487)
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Realignment costs — post
acquisition
|
(185)
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(919)
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(1,446)
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(919)
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Share-based
compensation
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(1,989)
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(1,698)
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(10,238)
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(7,280)
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GAAP operating income
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37,989
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37,396
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140,612
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155,587
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GAAP
operating margin
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20.1%
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17.7%
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22.2%
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22.1%
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Non-GAAP gross
profit
|
103,664
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116,497
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360,470
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406,302
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Non-GAAP
gross margin
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54.9%
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55.2%
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56.8%
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57.7%
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Amortization of acquired
intangible assets
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(1,523)
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(1,122)
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(6,139)
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(5,007)
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Share-based
compensation
|
(94)
|
(74)
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(467)
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(320)
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GAAP gross profit
|
102,047
|
115,301
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353,864
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400,975
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GAAP gross
margin
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54.0%
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54.7%
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55.8%
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56.9%
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Exhibit
4
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MINDRAY
MEDICAL INTERNATIONAL LIMITED
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RECONCILIATION OF GAAP NET
INCOME TO EARNINGS BEFORE INTEREST, TAXES,
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DEPRECIATION
AND AMORTIZATION
|
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(Dollars in
thousands)
|
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|
|
|
|
|
Three months
ended
December 31,
|
|
Year
ended
December 31,
|
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|
|
|
2009
|
2010
|
|
2009
|
2010
|
|
|
|
|
US$
|
US$
|
|
US$
|
US$
|
|
|
|
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
37,411
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41,049
|
|
139,188
|
155,466
|
|
|
Interest income
|
|
(1,857)
|
(2,905)
|
|
(6,574)
|
(11,575)
|
|
|
Interest expense
|
|
878
|
437
|
|
4,759
|
2,900
|
|
|
Provision for income
taxes
|
|
8,011
|
7,513
|
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28,764
|
17,631
|
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|
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|
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|
Earnings before interest and
taxes ("EBIT")
|
|
44,443
|
46,094
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|
166,137
|
164,422
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Depreciation
|
|
4,927
|
4,636
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|
18,697
|
18,775
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|
Amortization
|
|
2,358
|
2,584
|
|
9,202
|
8,886
|
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|
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|
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|
Earnings before interest, taxes,
depreciation and amortization ("EBITDA")
|
51,728
|
53,314
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|
194,036
|
192,083
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SOURCE Mindray Medical International Limited