BETHESDA, MARYLAND May 15, 2000 - Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products distribution and medical services in the Peoples Republic of China, today announced results for its first quarter ended March 31, 2000.
Revenue for the first quarter of 2000 was $7.0 million with a net loss of $349,000,or a loss per share of $0.44. This compares to revenue of $9.4 million with a net profit of $306,000, or earnings per share of $0.39 for the first quarter of 1999.
"We are extremely encouraged by the growth rates we are seeing in our new healthcare businesses. In this quarter our healthcare products distribution group accounted for a full 32% of our products segment revenue, a substantial increase over the prior year. Our healthcare services segment contributed 17% to our consolidated revenue, also a dramatic increase from a year ago. This shows that our strategic program to broaden our revenue base is right on track," Roberta Lipson, President and CEO of Chindex commented from Beijing.
"In our capital medical equipment business, our government backed loan program for this year is progressing very rapidly. We recently announced the formal contract signing for the first traunche of shipments under this authorization. Assuming all final approvals are received, we are now expecting to deliver $12 million in the second half of the year, with additional contracts to follow. In the first and second quarters of 1999 our results were substantially enhanced by loan program revenues. This is our third round of financing backed by the U.S. Export-Import Bank. We are still only one of two American companies to have completed such loan programs in China." Lipson concluded.
Chindex is a leading American company in healthcare in the Greater Chinese marketplace including Hong Kong. It provides representative and distribution services to a number
of major multinational companies including Acuson (diagnostic ultrasound scanners), Johnson & Johnson (clinical chemistry analyzers), Guidant (interventional cardiology products including stents, balloon catheters, and guide wires) and Tyco/Kendall Healthcare Products (including brands such as Davis & Geck, Sherwood, Kendall, Sheridan, and Curity). It also provides healthcare services through the operations of its private hospital corporation in China. With nearly twenty years of experience, approximately 330 employees, and operations in the United States, China and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater China's professional communities. Further company information may be found at the Chindex website, www.chindex.com.
The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to the Companys (i) performance goals, including successful conclusion of efforts to secure government-backed financing, (ii) future events and earnings, including revenues from the Companys developmental businesses such as healthcare services, (iii) markets, including growth in demand in China for the Companys products and services, and (iv) proposed new operations, including expansion of its healthcare services business. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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