SHENZHEN, China, May 9, 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
first quarter ended March 31,
2011.
Highlights for First Quarter 2011
- Net revenues were $180.9 million,
an increase of 24.0% over the first quarter of 2010.
- Robust international sales of $108.5
million, a year-over-year increase of 29.6%. Emerging
markets and developed markets both achieved significant growth this
quarter.
- Total China sales achieved
16.6% year-over-year growth, with solid non-tender sales increase
of 23.1% year-over-year.
- GAAP net income was $37.7
million, a 4.2% year-over-year increase. Excluding the tax
benefit of $7.6 million and
$8.6 million recognized in the first
quarter of 2011 and 2010 respectively, non-GAAP net income
increased 9.9% over the first quarter of 2010(Note).
- EBITDA in the first quarter of 2011 was $40.8 million, a year-over-year increase of
5.2%.
- Net operating cash generated during the quarter was
$32.3 million.
- Mindray introduced three new products during the quarter,
including the A5 anesthesia machine, the BeneHeart D3 defibrillator
and the DP-50 black and white ultrasound system.
"We had a good start to the year and are happy to report a 24.0%
year-over-year increase in revenues, driven primarily by this
quarter's robust international sales growth of nearly 30%,"
commented Xu Hang, Mindray's
chairman and co-chief executive officer. "We are pleased with the
strong sales growth and momentum in both emerging and developed
markets. Latin America,
Asia Pacific and Western Europe all achieved more than 40% year
over year growth, while North
America grew over 20% during the period. In China, non-tender sales maintained its
recovery trend from last quarter, growing 23.1% year-over-year. We
expect international sales to remain our key driver this year. We
are also optimistic about our initiatives in the China market and expect continued, gradual
improvement in our China
business."
SUMMARY – First quarter 2011
|
|
(in $ millions,
except per-share data)
|
Three Months
Ended
|
|
March
31
|
|
2011
|
2010
|
%
chg
|
|
Net Revenues
|
180.9
|
145.8
|
24.0%
|
|
Revenues generated
outside China
|
108.5
|
83.7
|
29.6%
|
|
Revenues generated
in China
|
72.5
|
62.2
|
16.6%
|
|
Gross Profit
|
99.7
|
82.3
|
21.2%
|
|
Non-GAAP Gross
Profit
|
101.0
|
83.9
|
20.5%
|
|
Operating
Income
|
33.0
|
31.9
|
3.5%
|
|
Non-GAAP Operating
Income
|
37.6
|
35.9
|
4.5%
|
|
EBITDA
|
40.8
|
38.8
|
5.2%
|
|
Net Income
|
37.7
|
36.2
|
4.2%
|
|
Non-GAAP Net
Income
|
42.2
|
40.1
|
5.2%
|
|
Non-GAAP Net Income
(ex tax benefit
-Note)
|
34.6
|
31.5
|
9.9%
|
|
Diluted EPS
|
0.32
|
0.31
|
2.2%
|
|
Non-GAAP Diluted
EPS
|
0.36
|
0.35
|
3.1%
|
|
|
|
|
|
|
|
Note: The amount excludes the tax benefits of $7.6 million and $8.6
million for the three months ended March 31, 2011 and 2010 respectively. The tax
benefits are related to the nationwide key software enterprise
status for the calendar year 2010 and 2009, awarded to our
Shenzhen subsidiary in
February 2011 and January 2010 respectively.
Revenues
Mindray reported net revenues of $180.9
million for the first quarter of 2011, a 24.0% increase from
$145.8 million in the first quarter
of 2010. Net revenues generated in international markets in the
first quarter of 2011 increased 29.6% to $108.5 million from $83.7
million in the first quarter of 2010, while net revenues
generated in China in the first
quarter of 2011 increased 16.6% to $72.5
million from $62.2 million in
the first quarter of 2010.
Performance by Segment
Patient Monitoring & Life Support Products: Patient
monitoring & life support products segment revenues increased
26.6% to $78.1 million from
$61.7 million in the first quarter of
2010. The patient monitoring & life support products segment
contributed 43.2% to total net revenues in the first quarter of
2011.
In-Vitro Diagnostic Products: In-vitro diagnostic
products segment revenues increased 22.0% to $46.3 million from $37.9
million in the first quarter of 2010. The in-vitro
diagnostic products segment contributed 25.6% to total net revenues
in the first quarter of 2011.
Medical Imaging Systems: Medical imaging systems segment
revenues increased 28.1% to $47.6
million from $37.1 million in
the first quarter of 2010. The medical imaging systems segment
contributed 26.3% to total net revenues in the first quarter of
2011.
Others: Other revenues, which are primarily comprised of
service fees charged for post warranty period repair services,
decreased 1.9% to $8.9 million from
$9.1 million in the first quarter of
2010. Other revenues contributed 4.9% to total net revenues in the
first quarter of 2011.
Gross Margins
First quarter 2011 gross profit was $99.7
million, a 21.2% increase from $82.3
million in the first quarter of 2010. First quarter 2011
non-GAAP gross profit was $101.0
million, a 20.5% increase from $83.9
million in the first quarter of 2010. First quarter 2011
gross margin was 55.1% compared to 56.4% in the first quarter of
2010 and 54.7% in the fourth quarter of 2010. Non-GAAP gross margin
was 55.9% in the first quarter of 2011 compared to 57.5% in the
first quarter of 2010 and 55.2% in the fourth quarter of 2010.
Operating Expenses
Selling expenses for the first quarter of 2011 were $33.7 million, or 18.6% of total net revenues,
compared to 16.2% in the first quarter of 2010 and 19.9% in the
fourth quarter of 2010. Non-GAAP selling expenses for the first
quarter of 2011 were $32.0 million,
or 17.7% of total net revenues, compared to 15.3% in the first
quarter of 2010 and 19.2% in the fourth quarter of 2010.
General and administrative expenses for the first quarter of
2011 were $14.4 million, or 8.0% of
total net revenues, compared to 8.4% in the first quarter of 2010
and 8.7% in the fourth quarter of 2010. Non-GAAP general and
administrative expenses for the first quarter of 2011 were
$13.9 million, or 7.7% of the total
net revenues, compared to 8.1% in the first quarter of 2010 and
8.5% in the fourth quarter of 2010.
Research and development expenses for the first quarter of 2011
were $18.6 million, or 10.3% of total
net revenues, compared to 9.9% in the first quarter of 2010 and
7.9% in the fourth quarter of 2010. Non-GAAP research and
development expenses for the first quarter of 2011 were
$17.6 million, or 9.7% of total net
revenues, compared to 9.4% in the first quarter of 2010 and 7.7% in
the fourth quarter of 2010.
Total share-based compensation expenses, which were allocated to
cost of revenues and related operating expenses, were $2.8 million in the first quarter of 2011
compared to $1.7 million in the
fourth quarter of 2010 and $1.9
million in the first quarter of 2010.
Operating income was $33.0 million
in the first quarter of 2011, a 3.5% increase from $31.9 million in the first quarter of 2010.
Non-GAAP operating income in the first quarter of 2011 was
$37.6 million, a 4.5% increase from
$35.9 million in the first quarter of
2010. Operating margin was 18.3% in the first quarter of 2011
compared to 21.9% in the first quarter of 2010 and 17.7% in the
fourth quarter of 2010. Non-GAAP operating margin was 20.8% in the
first quarter of 2011 compared to 24.6% in the first quarter of
2010 and 19.8% in the fourth quarter of 2010.
Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA")
First quarter 2011 EBITDA increased 5.2% year-over-year to
$40.8 million from $38.8 million in the first quarter of 2010 and
decreased 23.4% from $53.3 million in
the fourth quarter of 2010.
Net Income
Net income increased 4.2% year-over-year to $37.7 million from $36.2
million in the first quarter of 2010. Non-GAAP net income
increased 5.2% year-over-year to $42.2
million from $40.1 million in
the first quarter of 2010. Net margin was 20.8% in the first
quarter of 2011 compared to 24.8% in the first quarter of 2010 and
19.5% in the fourth quarter of 2010. Non-GAAP net margin was 23.3%
in the first quarter of 2011 compared to 27.5% in the first quarter
of 2010 and 21.5% in the fourth quarter of 2010. First quarter 2011
income tax benefits in the first quarter were $1.0 million, resulting from the recognition of
$7.6 million corporate income tax
reduction in the first quarter of 2011 which relates to the
nationwide key software enterprise status for the calendar year
2010, awarded to our Shenzhen
subsidiary in February 2011.
First quarter 2011 basic and diluted earnings per share were
$0.33 and $0.32, respectively, compared to $0.33 and $0.31 in
the first quarter of 2010. Basic and diluted non-GAAP earnings per
share were $0.37 and $0.36, respectively, compared to $0.36 and $0.35 in
the first quarter of 2010. Shares used in the computation of
diluted earnings per share for the first quarter 2011 were 118.0
million.
Other Select Data
Average accounts receivable days outstanding were 72 days in the
first quarter of 2011 compared to 59 days in the fourth quarter of
2010. Average inventory days were 94 days in the first quarter of
2011 compared to 82 days in the fourth quarter of 2010. Average
accounts payable days outstanding were 58 days in the first quarter
of 2011 compared to 45 days in the fourth quarter of 2010. Mindray
calculates the above working capital days using the average of
beginning and ending balances of the quarter.
As of March 31, 2011, the company
had $442.6 million in cash and cash
equivalents, and short-term investments as compared to $433.5 million as of December 31, 2010. Net cash generated from
operating activities and net cash outflow for capital expenditures
during the quarter were $32.3 million
and $27.3 million respectively.
As of March 31, 2011, the company
had 6,587 employees.
Business Outlook for Full Year 2011
The company maintains its full year guidance and expects its
full year 2011 net revenues to be more than 16% higher than its
full year 2010 net revenues.
The company continues to expect 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 $7.6
million 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 remain
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.
"We are maintaining our guidance at this time. In the first
quarter, we were pleased with our performance in the international
markets, as well as the sales improvement resulting from our
strategic initiatives in China,"
commented Li Xiting, Mindray's president and co-chief executive
officer. "The overall growth prospects of our key international
markets continue to be positive, although we are closely monitoring
the political situations in the Middle
East and Africa. We also
firmly believe that China's
healthcare sector investment environment remains favorable, which
bodes well for leading companies like Mindray. Based on our
commitment to invest in international markets, the implementation
of our initiatives in China,
coupled with the Chinese government's renewed focus on county level
hospitals, as well as our dedicated R&D effort, we are
confident that Mindray is well-positioned for future growth and
expansion."
Conference Call Information
Mindray's management will hold an earnings conference call at
8:00 AM on May
10, 2011 U.S. Eastern Time (8:00
PM on May 10, 2011
Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
U.S. Toll Free:
|
+1-866-804-6923
|
|
International:
|
+1-857-350-1669
|
|
Hong Kong:
|
+852-3002-1672
|
|
|
|
Pass code for all regions: Mindray
A replay of the conference call may be accessed by phone at the
following numbers until May 23,
2011.
U.S. Toll Free:
|
+1-888-286-8010
|
|
International:
|
+1-617-801-6888
|
|
Passcode:
|
9389-5400
|
|
|
|
Additionally, a live and archived webcast of this conference
call will be available on the Investor Relations section of
Mindray's website at http://ir.mindray.com.
Use of Non-GAAP Financial Measures
Mindray provides gross profit, selling expenses, general and
administrative expenses, R&D expenses, operating income, net
income and earnings per share on a non-GAAP basis that excludes
share-based compensation expense and acquired intangible assets
amortization expense, 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 first quarter of 2011 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, and amortization of acquired intangible assets.
- Non-GAAP selling expenses represent selling expenses reported
in accordance with GAAP, adjusted for the effects of share-based
compensation, and amortization of acquired intangible assets.
- Non-GAAP general and administrative expenses represent general
and administrative expenses reported in accordance with GAAP,
adjusted for the effects of share-based compensation.
- Non-GAAP research and development expenses represent research
and development expenses reported in accordance with GAAP, adjusted
for the effects of share-based compensation.
- Non-GAAP net income represents net income reported in
accordance with GAAP, adjusted for the effects of share-based
compensation and amortization of acquired intangible assets, 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 ended March 31, 2010 and
2011, 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, non-GAAP net income and capital expenditure 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
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. Our results of
operations for the first quarter of 2011 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:
|
|
|
|
Cathy Gao
|
|
Mindray Medical International
Limited
|
|
Tel:
+86-755-8188-8023
|
|
Email:
cathy.gao@mindray.com
|
|
|
Exhibit 1
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
As of
December 31, 2010
|
|
As of March
31, 2011
|
|
|
|
|
US$
|
|
US$
|
|
|
|
|
(Note
1)
|
|
(unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
137,502
|
|
118,746
|
|
|
Short-term
investments
|
|
296,003
|
|
323,836
|
|
|
Accounts receivable,
net
|
|
143,318
|
|
144,354
|
|
|
Inventories
|
|
79,185
|
|
88,625
|
|
|
Value added tax
receivables
|
|
18,562
|
|
20,470
|
|
|
Other receivables
|
|
9,953
|
|
11,400
|
|
|
Prepayments and
deposits
|
|
7,596
|
|
8,590
|
|
|
Deferred tax assets
|
|
2,481
|
|
2,797
|
|
|
Total current assets
|
|
694,600
|
|
718,818
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
4,552
|
|
5,306
|
|
|
Advances for purchase of plant
and equipment
|
|
15,775
|
|
11,232
|
|
|
Property, plant and equipment,
net
|
|
207,636
|
|
212,665
|
|
|
Land use rights, net
|
|
46,079
|
|
46,125
|
|
|
Intangible assets,
net
|
|
66,247
|
|
67,795
|
|
|
Goodwill
|
|
115,672
|
|
115,791
|
|
|
Total assets
|
|
1,150,561
|
|
1,177,732
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Notes payable
|
|
5,773
|
|
5,632
|
|
|
Accounts payable
|
|
44,322
|
|
48,441
|
|
|
Advances from
customers
|
|
13,209
|
|
13,918
|
|
|
Salaries payables
|
|
26,770
|
|
17,596
|
|
|
Other payables
|
|
66,615
|
|
87,872
|
|
|
Income taxes payable
|
|
13,582
|
|
11,866
|
|
|
Other taxes payable
|
|
4,286
|
|
3,646
|
|
|
Total current
liabilities
|
|
174,557
|
|
188,971
|
|
|
|
|
|
|
|
|
Other long-term
payables
|
|
1,133
|
|
1,518
|
|
Deferred tax liabilities,
net
|
|
8,268
|
|
8,824
|
|
|
|
|
9,401
|
|
10,342
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Ordinary shares
|
|
15
|
|
15
|
|
|
Additional paid-in
capital
|
|
466,613
|
|
470,627
|
|
|
Retained earnings
|
|
434,143
|
|
437,171
|
|
|
Accumulated other comprehensive
income
|
|
65,830
|
|
70,604
|
|
|
Total shareholders'
equity
|
|
966,601
|
|
978,417
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
2
|
|
2
|
|
Total equity
|
|
966,603
|
|
978,419
|
|
Total liabilities and
shareholders' equity
|
|
1,150,561
|
|
1,177,732
|
|
|
|
|
|
|
|
|
(1) Financial information is
extracted from the audited financial statements included in the
Company's fiscal 2010 Form 20F.
|
|
|
|
|
|
|
|
Exhibit 2
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Dollars in thousands, except
for share and per share data)
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
2010
|
|
2011
|
|
|
US$
|
|
US$
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Net revenues
|
|
|
|
|
-
International
|
83,691
|
|
108,451
|
|
-PRC
|
62,154
|
|
72,453
|
|
Net revenues
|
145,845
|
|
180,904
|
|
Cost of revenues
|
(63,595)
|
|
(81,185)
|
|
Gross profit
|
82,250
|
|
99,719
|
|
|
|
|
|
|
Selling expenses
|
(23,664)
|
|
(33,672)
|
|
General and administrative
expenses
|
(12,246)
|
|
(14,427)
|
|
Research and development
expenses
|
(14,435)
|
|
(18,588)
|
|
Operating income
|
31,905
|
|
33,032
|
|
|
|
|
|
|
Other income, net
|
117
|
|
426
|
|
Interest income
|
2,134
|
|
3,509
|
|
Interest expense
|
(1,406)
|
|
(220)
|
|
Income before income taxes and
non-controlling interests
|
32,750
|
|
36,747
|
|
Income tax benefits
|
3,447
|
|
963
|
|
Net income
|
36,197
|
|
37,710
|
|
Less: Net income attributable to
non-controlling interests
|
-
|
|
-
|
|
Net income attributable to the
Company
|
36,197
|
|
37,710
|
|
|
|
|
|
|
Basic earnings per
share
|
0.33
|
|
0.33
|
|
|
|
|
|
|
Diluted earnings per
share
|
0.31
|
|
0.32
|
|
|
|
|
|
|
Shares used in the computation
of:
|
|
|
|
|
Basic earnings per
share
|
111,242,484
|
|
114,847,103
|
|
|
|
|
|
|
Diluted earnings per
share
|
115,743,576
|
|
118,015,520
|
|
|
|
|
|
Exhibit 3
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31,
|
|
|
|
2010
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Cash flow from operating
activities:
|
|
|
|
|
|
Net income
|
36,197
|
|
37,710
|
|
|
Adjustments to reconcile
net income to net cash from operating activities
|
8,165
|
|
12,314
|
|
|
Changes in current assets
and liabilities
|
(11,566)
|
|
(17,726)
|
|
|
Net cash generated from
operating activities
|
32,796
|
|
32,298
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities:
|
|
|
|
|
|
Capital
expenditure
|
(15,431)
|
|
(27,316)
|
|
|
Decrease in restricted
cash
|
22,623
|
|
-
|
|
|
Proceeds from sale of
restricted/short term investments
|
91,916
|
|
85,692
|
|
|
Increase in short term
investments and changes in other investing activities
|
(121,911)
|
|
(111,349)
|
|
|
Net cash used in investing
activities
|
(22,803)
|
|
(52,973)
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities:
|
|
|
|
|
|
Repayment of bank
loans
|
(115,000)
|
|
-
|
|
|
Proceeds from exercise of
options
|
6,148
|
|
1,235
|
|
|
Net proceeds from
secondary public offering
|
149,661
|
|
-
|
|
|
Net cash generated from
financing activities
|
40,809
|
|
1,235
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash
and cash equivalents
|
50,802
|
|
(19,440)
|
|
|
Cash and cash equivalents at
beginning of period
|
204,228
|
|
137,502
|
|
|
Effect of exchange rate changes
on cash
|
54
|
|
684
|
|
|
Cash and cash equivalents at end
of period
|
255,084
|
|
118,746
|
|
|
|
|
|
|
|
Exhibit 4
|
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
|
RECONCILIATIONS OF NON-GAAP
RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP
MEASURES
|
|
|
(Dollars in thousands, except
for share and per share data)
|
|
|
|
Three months
ended March 31,
|
|
|
|
2010
|
|
2011
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
40,145
|
|
42,222
|
|
|
Non-GAAP net
margin
|
27.5%
|
|
23.3%
|
|
|
Amortization of acquired
intangible assets
|
(2,132)
|
|
(1,767)
|
|
|
Deferred tax impact related to
acquired intangible assets
|
90
|
|
34
|
|
|
Share-based
compensation
|
(1,906)
|
|
(2,779)
|
|
|
GAAP net income
|
36,197
|
|
37,710
|
|
|
GAAP net
margin
|
24.8%
|
|
20.8%
|
|
|
|
|
|
|
|
|
Non-GAAP basic earnings per
share
|
0.36
|
|
0.37
|
|
|
Non-GAAP diluted earnings per
share
|
0.35
|
|
0.36
|
|
|
|
|
|
|
|
|
GAAP basic earnings per
share
|
0.33
|
|
0.33
|
|
|
GAAP diluted earnings per
share
|
0.31
|
|
0.32
|
|
|
|
|
|
|
|
|
Shares used in computation
of:
|
|
|
|
|
|
Basic earnings per
share
|
111,242,484
|
|
114,847,103
|
|
|
Diluted earnings per
share
|
115,743,576
|
|
118,015,520
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
35,943
|
|
37,578
|
|
|
Non-GAAP
operating margin
|
24.6%
|
|
20.8%
|
|
|
Amortization of acquired
intangible assets
|
(2,132)
|
|
(1,767)
|
|
|
Share-based
compensation
|
(1,906)
|
|
(2,779)
|
|
|
GAAP operating income
|
31,905
|
|
33,032
|
|
|
GAAP
operating margin
|
21.9%
|
|
18.3%
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
83,859
|
|
101,041
|
|
|
Non-GAAP
gross margin
|
57.5%
|
|
55.9%
|
|
|
Amortization of acquired
intangible assets
|
(1,510)
|
|
(1,144)
|
|
|
Share-based
compensation
|
(99)
|
|
(178)
|
|
|
GAAP gross profit
|
82,250
|
|
99,719
|
|
|
GAAP gross
margin
|
56.4%
|
|
55.1%
|
|
|
|
|
|
|
|
|
Non-GAAP selling
expenses
|
(22,377)
|
|
(31,966)
|
|
|
Non-GAAP as
% of total revenues
|
15.3%
|
|
17.7%
|
|
|
Amortization of acquired
intangible assets
|
(622)
|
|
(623)
|
|
|
Share-based
compensation
|
(665)
|
|
(1,083)
|
|
|
GAAP selling expenses
|
(23,664)
|
|
(33,672)
|
|
|
GAAP as % of
total revenues
|
16.2%
|
|
18.6%
|
|
|
|
|
|
|
|
|
Non-GAAP general and
administrative expenses
|
(11,768)
|
|
(13,928)
|
|
|
Non-GAAP as
% of total revenues
|
8.1%
|
|
7.7%
|
|
|
Share-based
compensation
|
(478)
|
|
(499)
|
|
|
GAAP general and administrative
expenses
|
(12,246)
|
|
(14,427)
|
|
|
GAAP as % of
total revenues
|
8.4%
|
|
8.0%
|
|
|
|
|
|
|
|
|
Non-GAAP research and
development expenses
|
(13,771)
|
|
(17,569)
|
|
|
Non-GAAP as
% of total revenues
|
9.4%
|
|
9.7%
|
|
|
Share-based
compensation
|
(664)
|
|
(1,019)
|
|
|
GAAP research and development
expenses
|
(14,435)
|
|
(18,588)
|
|
|
GAAP as % of
total revenues
|
9.9%
|
|
10.3%
|
|
|
|
|
|
|
Exhibit 5
|
|
MINDRAY MEDICAL INTERNATIONAL
LIMITED
|
|
RECONCILIATION OF GAAP NET
INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31,
|
|
|
|
2010
|
|
2011
|
|
|
|
US$
|
|
US$
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
GAAP net income
|
36,197
|
|
37,710
|
|
|
Interest income
|
(2,134)
|
|
(3,509)
|
|
|
Interest expense
|
1,406
|
|
220
|
|
|
Income tax benefits
|
(3,447)
|
|
(963)
|
|
|
|
|
|
|
|
Earnings before interest and
taxes ("EBIT")
|
32,022
|
|
33,458
|
|
|
Depreciation
|
4,533
|
|
5,048
|
|
|
Amortization
|
2,250
|
|
2,323
|
|
|
|
|
|
|
|
Earnings before interest, taxes,
depreciation, and amortization ("EBITDA")
|
38,805
|
|
40,829
|
|
|
|
|
|
|
SOURCE Mindray Medical International Limited