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Mindray Medical International (MR) Beats Q1 Estimates, Guides 2008 Above Consensus

Mindray Medical International (MR), a Chinese manufacturer and marketer of medical devices internationally, reported first quarter results after the close today. Net revenues increased 48.2% year over year to $89.3 million vs. analysts’ consensus estimate of $84.4 million. Non-GAAP net income rose 42.7% to $28.4 million or 25 cents per share. Analysts were looking for non-GAAP earnings per share of 19 cents.

Mindray’s chairman and Co-Chief Executive Officer Xu Hang made optimistic comments about future growth. “We delivered another quarter of strong results both in China and international markets,” he said. “During the quarter, we successfully acquired Datascope Corporation’s patient monitoring business, bringing us one step closer to our goal of becoming a leading global medical device provider, which will allow us to make high-quality and affordable medical devices available to the greatest number of doctors and hospitals in China and in the world.”

”Despite a challenging currency environment, we achieved high growth in international markets that was widespread across geographies and well balanced between product segments while maintaining a high gross margin,” added Mr. Li Xiting, Mindray’s President and Co-Chief Executive Officer. “In our home market, we delivered more than 40 percent growth in sales for the fourth consecutive quarter. With a world-class R&D team and strict capital discipline, we continued to drive down costs and enhance overall operating efficiency to achieve higher year-over-year growth in our operating profit than in revenues during the quarter.”

The company offered full-year 2008 guidance for revenues and EPS, which was above analysts’ estimates. Mindray expects 2008 revenues to be in the range of $560 – $580 million vs. consensus of $455 million. The company projects full-year non-GAAP net income of $1.16 – $1.18 per share vs. $1.05 estimates. Shares of MR closed today at $35.40 and have ranged between $23.18 and $45.19 during the past year.

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