Revenue almost doubled as the company recorded two months of sales from Datascope's
Most of the growth came from international sales, as the patient-monitoring business pushed year-over-year growth up 139%. Sales back home in China weren't too shabby, with sales up 60% year over year.
Mindray saw growth across all three of its business segments. Patient monitoring and life support was obviously the big gainer, with sales up 158%. Unfortunately, Mindray didn't break out the newly acquired business, so we can't know how much intrinsic growth there was for the segment. Its other two segments, in vitro diagnostics and medical imaging products, also did really well, with growth in sales topping 50%.
Gross margins slipped with the addition of Datascope's business, but Mindray expects to be able to improve those and squeeze out about $30 million per year of synergies within three years. The bottom line was also hampered by a higher tax rate and less net interest income. Sum it all up, carry the one, and net income excluding charges for acquisitions, but including stock compensation, was up only 57%. Ideally we'd like to see the bottom line growing faster than the top, but who's going to complain about growth topping 50%?
Looking forward, Mindray has gained five FDA clearances in the first half of the year, including its M5 ultrasound machine, where it joins General Electric
If it can continue to show strong growth, both in China and elsewhere, Mindray should have no problems securing a gold medal.
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