Strong sales bolstered
China Medical Technologies'
bottom line for fourth-quarter and fiscal 2006.
The Beijing-based medical-device company reported earnings Monday, saying its ECLIA system and HIFU tumor therapy systems pumped up quarterly and year-end results. China Medical Technologies said ECLIA system sales brought in $8.5 million, up 74% from the year-ago period, due to increased acceptance of the technology in the Chinese medical community and the launch of new reagents.
Its HIFU tumor therapy systems saw a sales increase of 32% to $12.6 million, compared with the year-ago quarter. The company said the systems accounted for roughly 60% of full-year revenue. It attributed the growth to increased marketing, expanded awareness and acceptance of the system in the Chinese medical community, and a hike in selling price.
For the quarter ended March 31, the company reported net income of $10.8 million, or 41 cents a share, a 21% increase from the comparable quarter in 2006. Quarterly revenue was $21.1 million, a 46% year-over-year increase.
For the full year, the company reported earning $37.5 million, or $1.39 a share, a 46% increase from the same quarter in 2006. Revenue for the year increased 47% year over year to $71 million.
Analysts surveyed by Thomson Analytics had expected the company to earn $1.22 a share for the fiscal year.
Looking ahead, China Medical Technologies expects earnings a share of between $1.83 and $1.91 on a revenue increase of 52% to 59% for the fiscal year ending March 31, 2008.
"Our performance exceeded our own targets and market consensus," said CFO Sam Tsang. "We have integrated the FISH operation into our core business after completion of the acquisition in March 2007 and expect the diagnostic revenues from ECLIA and FISH will contribute more than half of our net revenues in FY 2007."
China Medical Technologies rose $3.80, or 14%, to $31.05 Monday.